Employee’s Compensation Act, 1923

  • ECA is an act, which safeguards certain classes of employees against the risk in employment and payment of compensation for injuries sustained by them in accidents.


  • To provide for payment of compensation to certain class of workers for injuries/death caused due to accidents, arising out of and in the course of employment.
  • To regulate the payment of compensation according to the nature and result of the accidents.
  • To prescribe the procedure to be followed in the payment of compensation.
  • To evolve suitable machinery has been to ensure proper implementation of the provisions of the Act.


  • Employee: A railway servant as defined in clause (34) of section 2 of the Railways Act, 1989, not permanently employed in any administrative district or sub-divisional office of a railway.
  • Wages : Means all remuneration expressed in terms of money or capable of being expressed on terms of money. It excludes traveling allowance, contribution to PF by the employer, amounts given to cover special kind of expenses and services. Wages for purpose of calculation of compensation will be fixed by the Government.
  • Employer : Means anybody or persons or any managing agent of the employer or any legal representative of deceased employer.
  • Accidents : Means an unexpected event happening without design even though there may be negligence on the part of the workmen.

Circumstances under which compensation is payable

  • Where a personal injury caused to workmen is lasting a period of more than 3 days.
  • The injury is caused as a result of accident.
  • The accident has arisen out of and in the course of employment (out of refers to the place of accident and in the course of refers to the time of accident).
  • Injury has resulted in disablement or death.

Circumstances under which compensation is not payable

  • In respect of any injury, which does not result in the total or partial disablement of workmen for a period, exceeding 3 days.
  • In respect of any injury (excluding death) caused by accident which is directly attributable to :

Ø  The influence of Drink or Drug at the time of the accidents.

Ø  Willful removal or disregard of safety appliances.

Ø  Willful disobedience of safety instructions.








Reduce the earning capacity of the workmen in any of the employment he was capable of performing at the time of accident.

Reduce the earning capacity of the workmen in every employment he has capable of performing at the time of the accident.



Incapacitate the workmen in all types of work.



Incapacitate the workmen in all types of work.




                                     Compensation under the Act


Partial permanent

Total     permanent


No compensation. HMP is payable during the period of treatment. (25% of wages)

Compensation is worked out for total permanent disablement and allowed  proportionately based on LEC %.

60% of wages multiplied by age factor or Rs. 1,40,000/- whichever is more.

50% of wages multiplied by age factor or Rs. 1,20,000/- whichever is more.



Schedule - I

Part-I List of total disablement with loss of earning capacity.

Part-II List of partial disablement with loss of earning capacity.

Schedule - II

List of workmen.

Schedule - III

List of occupational diseases.

Schedule - IV

Age relevant factor.


  • Aggregate of the relief/exgratia compensation paid through different sources of workmen compensation, viz. compensation under ECA, compensation under Section 124 of the Railways Act, 1989 as applicable, etc. is subject to the ceiling of Rs. 20 lakh.
  • The provisions of the Act would also be applicable to pre-working post trainee through Railway Recruitment Board or  compassionate ground and Apprentices selected under Apprenticeship Act, 1961.




Bhargav Kumar

Wed, 17/10/2012 - 23:29

sir my father was expired while working as a office superintendent, will he get compensation.

Can u differentiate the gratuity, death gratuity and compensation, i do not understand

and can u please let me know what are all the types of settlement dues we should get.

For pension no one is eligible in my family.

his salary was 21000 for the last working month and age 49

can i know what will be the approximate amount of compensation of my father.  Can u please calculate sir.  No body is helping me in this matter,  my father left us with debts could u please give the information sir.

Compensation is paid only in cases of work related accident death.

Your family is eligible for Death Gratuity, leave salary depending on leave at his credit, his Provident Fund (balance at credit with interest). 

Gratuity depends on the number of years of his Railway service.

ankush kiran more

Tue, 15/07/2014 - 19:25


my father expired on 23 dec 2011, we got all the necessary compensation but that was through labour court

in which court fixed one lakh rupees each for my mother and my two younger sisters... all three lakh rupees was 

put in fixed deposit account in jalgaon in a bank...

now i want that amount for my sisters marriage.. 

pls tell me the procedure for getting the money ...




Sun, 16/08/2015 - 18:35

the act of employees compensation 1923 has define briefly and have some change for the better solution. a personal lawyer may define the real fact of the correction on employees  compensation. Layfield Wallace

Bharat Singh Negi

Tue, 15/01/2019 - 16:14

Respected sir,i am a technician in c&w department. my right thumb is half cut during work.can the department pay any compensation to me??plz reply sir