Accident compensation for factory workers to see steep rise
Govt is framing a new package to make previously excluded clerical grade staff eligible for compensation.
By Niranjan Bharati, |
NEW DELHI: Persons employed in hazardous activities like railways, factories, mines and construction would soon be entitled for a steep hike in their compensation in case of accidents resulting into death or disablement. The government is framing a new compensation package that would make previously excluded clerical grade staff also eligible for the benefit.
The government is in the process of amending the Workmen���s Compensation Act (WCA), 1923. A Cabinet note is already been circulated among the ministries concerned in this regard. After the proposed amendment, the government would be able to revise the compensations from time to time without any further amendments.
WCA provides for payment of compensation to the work men and their dependants in case of injury by industrial accidents. The scope of accidents include certain occupational diseases that may arise in the course of employment resulting into death or disability of the employee.
The Act, however, is not applicable to the employees who are covered under the Employee���s State Insurance Act. Under the present provision, the monthly wages of a workman beyond Rs 4,000 is not taken into account for determining the amount of compensation. This, in practise, means that even if a worker may be earning more than Rs 4,000 per month, his compensations would be calculated on the basis of the prescribed ceiling (Rs 4,000).
���The ceiling was fixed in 2000. There has been a considerable increase in the wages since then and so this limit needs to be revised. Also provisions would be added so that the government does not need to go through the whole process of amendment each time it wants to revise the ceiling,��� an official in the ministry of labour and employment said.
Also, the Act had excluded clerical staffs working at such units from the benefit. Such staffs would get the benefit under the amended scheme. The draft also proposes to enhance the amount payable towards funeral expenses to Rs 3,000 from the existing Rs 2,500. Provisions for the appointment of a commissioner to oversee the implementations of the programme is also likely to be changed.
According to the current Act, the government can appoint any person as the commissioner as there are not prescribed qualifications. The ministry has, however, proposed that only legal practitioners with at least five years of experience should be treated eligible for the post. WCA was last amended in 2000 and the current proposed amendments are based on the recommendations of the second national commission on labour.
The government is in the process of amending the Workmen���s Compensation Act (WCA), 1923. A Cabinet note is already been circulated among the ministries concerned in this regard. After the proposed amendment, the government would be able to revise the compensations from time to time without any further amendments.
WCA provides for payment of compensation to the work men and their dependants in case of injury by industrial accidents. The scope of accidents include certain occupational diseases that may arise in the course of employment resulting into death or disability of the employee.
The Act, however, is not applicable to the employees who are covered under the Employee���s State Insurance Act. Under the present provision, the monthly wages of a workman beyond Rs 4,000 is not taken into account for determining the amount of compensation. This, in practise, means that even if a worker may be earning more than Rs 4,000 per month, his compensations would be calculated on the basis of the prescribed ceiling (Rs 4,000).
���The ceiling was fixed in 2000. There has been a considerable increase in the wages since then and so this limit needs to be revised. Also provisions would be added so that the government does not need to go through the whole process of amendment each time it wants to revise the ceiling,��� an official in the ministry of labour and employment said.
Also, the Act had excluded clerical staffs working at such units from the benefit. Such staffs would get the benefit under the amended scheme. The draft also proposes to enhance the amount payable towards funeral expenses to Rs 3,000 from the existing Rs 2,500. Provisions for the appointment of a commissioner to oversee the implementations of the programme is also likely to be changed.
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According to the current Act, the government can appoint any person as the commissioner as there are not prescribed qualifications. The ministry has, however, proposed that only legal practitioners with at least five years of experience should be treated eligible for the post. WCA was last amended in 2000 and the current proposed amendments are based on the recommendations of the second national commission on labour.
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