The Employees’ Compensation Act, 1923, originally the Workmen’s Compensation Act before a 2009 rename, makes an employer liable to compensate a worker, or their dependents, for injury or disablement arising out of and in the course of employment.

How liability works, and who it covers

The Act operates on a no-fault basis, an employee doesn’t need to prove the employer was negligent, only that the injury arose from and during their work. Compensation is calculated using the employee’s wages, an age-based multiplier that gives younger workers a higher factor for the same wage and injury, and the extent of disablement for partial-disability cases. The specific wage ceiling used in this calculation and the statutory minimum amounts are revised periodically by government notification, so any current figure should be checked fresh rather than assumed. Today its provisions sit inside the Code on Social Security, 2020, and it typically applies to employees or situations not covered by the ESI Act instead of running alongside it.

Frequently asked questions

Does this Act apply to ESI-covered employees too?

Generally no, it’s the fallback for employees and injury types ESI doesn’t cover, not a parallel benefit for the same claim.

Does age affect the compensation amount?

Yes, younger workers receive a higher age-based multiplier in the calculation for the same wage and injury severity.

Is this Act still a standalone law today?

Its provisions are now housed inside the Code on Social Security, part of the broader labour code consolidation in force since November 2025.

See the Code on Social Security that now houses this Act’s provisions.