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The short answer
Employee compensation for injury at work is payable by the employer, regardless of fault, for accidents arising out of and in the course of employment, now under Chapter VII of the Code on Social Security, 2020 (which replaced the Employees' Compensation Act, 1923). On death it is 50% of monthly wages × an age-based factor, and 60% for permanent total disablement. ESI-insured workers claim from ESIC instead. Others claim before the competent authority within two years.
Employee compensation for injury at work is payable by the employer, without proof of the employer's fault, when an employee is injured or killed in an accident arising out of and in the course of employment, or contracts a listed occupational disease. The law that used to give this right, the Workmen's (later Employees') Compensation Act, 1923, was replaced on 21 November 2025 by Chapter VII of the Code on Social Security, 2020. The scheme and most of the formulas carried over. Where the employee is covered by ESI, benefits come from the ESI Corporation instead.
ESI or employees' compensation: which applies?
- ESI-covered employees. If the establishment is covered by the Employees' State Insurance scheme (now part of the same Code) and the worker is an insured person, the employer's compensation liability under Chapter VII does not apply. The worker claims employment injury benefits from the ESI Corporation: temporary disablement benefit, permanent disablement benefit, dependants' benefit on death, and medical care. Report the accident to the employer at once and contact the ESI branch office or dispensary. Disputes go to the Employees' Insurance Court.
- Everyone else (employees in establishments outside ESI, or above the ESI wage limit) claims compensation from the employer under Chapter VII.
The labour codes extended ESI coverage across India and made it compulsory even for a single worker in hazardous work, so check the employer's ESI registration first.
When the employer is liable
Under Section 74 of the Code, the employer must pay compensation for personal injury caused by an accident arising out of and in the course of employment. Some points:
- Commuting accidents. An accident while travelling between home and the workplace for duty is treated as arising out of employment if the link with employment is shown (Section 74(4)). The Central Government's explanation of the codes highlights this change.
- Occupational diseases listed in the Third Schedule are treated as injuries by accident, subject to the service conditions in Section 74(3).
- No liability for disablement lasting three days or less. For injuries not causing death or permanent total disablement, there is no liability if the accident was directly due to the employee being drunk or drugged, or wilfully disobeying a safety rule or removing a safety device.
- Contract workers: the principal employer can be made liable for workers engaged through a contractor, with a right to recover from the contractor (Section 85).
Workmen compensation calculation
Section 76 fixes the amounts. "Relevant factor" is a multiplier from the Sixth Schedule that falls as the employee's age rises.
| Result of the injury | Compensation |
|---|---|
| Death | 50% of monthly wages × relevant factor, or the notified minimum, whichever is more |
| Permanent total disablement | 60% of monthly wages × relevant factor, or the notified minimum, whichever is more |
| Permanent partial disablement | The percentage of the permanent total amount set in the Fourth Schedule for that injury, or in proportion to the loss of earning capacity assessed by a doctor |
| Temporary disablement | Half-monthly payments of 25% of monthly wages, for the period of disablement up to five years |
- Under the 1923 Act the notified minimums were ₹1,20,000 for death and ₹1,40,000 for permanent total disablement, and monthly wages were counted up to a notified ceiling. Check the figures now notified under the Code before calculating.
- The employer must also reimburse the actual medical expenses for treating the injury (Section 76(5)).
- On death, the employer must deposit at least ₹15,000 towards funeral expenses, or more if the State prescribes (Section 76(7)).
Example: a 30-year-old worker earning ₹15,000 a month who dies in a workplace accident; compensation is 50% × ₹15,000 × the relevant factor for age 30 in the Sixth Schedule, or the notified minimum if that is higher.
Payment, interest and penalty
Compensation is due as soon as the injury or death occurs. If the employer disputes part of it, it must pay or deposit the amount it admits. Under Section 77, if the employer does not pay within one month of the amount falling due, the competent authority can order interest at the prescribed rate and, if there was no justification for the delay, damages of up to 50% of the arrears, after a show-cause notice. Compensation for death is deposited with the competent authority, which distributes it among the dependants (Section 81); it is not paid directly to the family by the employer.
How to claim employee compensation for injury in Odisha
- Get treatment and record the accident. Keep the hospital papers, the medico-legal record if any, and the names of witnesses. In serious cases, the employer must report the accident to the competent authority within the time set in Section 73.
- Give notice to the employer as soon as practicable, stating your name and address, the cause of injury and the date (Section 82). Send it by registered post or email and keep proof.
- Get a disability assessment from a qualified medical practitioner, stating the percentage loss of earning capacity.
- File a claim before the competent authority within two years of the accident, or of death in a death case. A late claim can be admitted for sufficient cause. In Odisha, ask the District Labour Office which officer is the competent authority (formerly the Commissioner for Employees' Compensation) for your district. The Labour Directorate, Odisha lists its district offices.
- Attend the hearing. The authority hears both sides, may refer the worker for medical examination (Section 84), and passes an order for compensation, interest and penalty.
- Appeal. An appeal lies to the Orissa High Court within 60 days if a substantial question of law is involved and the amount in dispute is at least ₹10,000 (Section 99). An employer appealing an award must first deposit the amount.
Road accidents during work
A driver, cleaner or delivery worker hurt in a road accident on duty can claim under the Code against the employer or before the Motor Accidents Claims Tribunal against the vehicle's insurer, but not both for the same accident (Section 167 of the Motor Vehicles Act). The MACT route is often larger because it compensates loss of future income without a fixed formula; see motor accident claims in Odisha. A civil suit for damages and a claim under the Code are also mutually exclusive.
Documents to collect
- Proof of employment: ID card, appointment letter, wage slips, attendance, ESI or PF number.
- Hospital records, bills, disability certificate, and in a death case, the post-mortem report, death certificate and proof of dependants.
- Any FIR or police report, and copies of the notice to the employer.
Dependants who cannot afford representation can apply for free legal aid in Odisha. Related guides cover termination after an injury and rejected insurance claims. Information on work handled is under civil litigation.
Odia terms used in this guide
| Odia | Transliteration | Meaning |
|---|---|---|
| ଦରମା | darama | salary |
Frequently asked questions
Is the Workmen's Compensation Act still in force?
No. The Employees' Compensation Act, 1923 (earlier the Workmen's Compensation Act) was replaced on 21 November 2025 by Chapter VII of the Code on Social Security, 2020. Accidents before that date may still be dealt with under the old Act's saving provisions.
How is compensation for death at work calculated?
50% of the employee's monthly wages multiplied by the relevant factor for their age in the Sixth Schedule, or the notified minimum if higher, plus at least ₹15,000 for funeral expenses.
What is the time limit to file an employee compensation claim?
Two years from the accident, or from the date of death. The competent authority can admit a late claim if there was sufficient cause for the delay.
Can an ESI-covered worker claim compensation from the employer?
Generally no. Insured persons under ESI receive employment injury benefits from the ESI Corporation, and disputes go to the Employees' Insurance Court.
Does an accident on the way to work count?
Yes, under the Code an accident while commuting between home and the workplace for duty is treated as arising out of employment, if the link with employment is established.
Where do I appeal against a compensation order in Odisha?
To the Orissa High Court within 60 days, where a substantial question of law is involved and the amount in dispute is at least ₹10,000, under Section 99 of the Code.
Official sources
- Code on Social Security, 2020 (India Code PDF)
- Code on Social Security, Section 76: amount of compensation (text)
- Code on Social Security, Section 99: appeal to the High Court (text)
- PIB: explainer on the four labour codes (November 2025)
- Employees' State Insurance Corporation
- Labour Directorate, Government of Odisha
General information, not legal advice. Every matter turns on its own facts and documents, and the law and official procedures change. Check the current position with the concerned office, or take advice on your own facts, before acting.