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Section 5: 8 [Method of calculating wages

The Employee’s Compensation Act,1923(CENTRAL ACT)State Act of Tamil Nadu · Act 8 of 1923

8 *** 9 [In this Act and for the purposes thereof the expression “monthly wages” means me amount of wages deemed to be payable for a month’s service (whether the

1. Ins. by Act 30 of 1995, s. 4 (w.e.f.15-9-1995).

2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).

3. Subs. by Act 46 of 2000, s. 3, for “one thousand rupees” (w.e.f.8-12-2000).

4. Ins. by Act 45 of 2009, s. 7 (w. e. f. 18-1-2010).

5. Ins. by Act 8 of 1959, s. 5 (w.e.f.1-6-1959).

6. Subs. by Act 30 of 1995, s. 5 for sub-section (3) (w.e.f.15-9-1995),

7. Subs. by Act 46 of 2000, s. 4, for sub-section (3A) (w.e.f.8-12-2000).

8. The brackets and figure “(1)” omitted by Act 9 of 1938, s. 4. Earlier section 5 was re-numbered as sub-section (1) of that section by Act 5 of 1929, s. 3.

9. Subs. by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934), for “For the purposes of this Act the monthly wages of a workman shall be calculated”. The words in italics subs. by Act 15 of 1933, s. 5, for “section 4”.

11 wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows, namely:—

(a) where the 1 [employee] has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the 1 [employee] shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period;

2 [(b) where the whole of the continuous period of service immediately preceding the accident during which the 1[employee] was in the service of the employer who is liable to pay the compensation was less than one month, the monthly wages of the 1 [employee] shall be 3 *** the average monthly amount which, during the twelve months immediately preceding the accident, was being earned by a 1 [employee] employed on the same work by the same employer, or, if there was no 1 [employee] so employed, by a 1 [employee] employed on similar work in the same locality;]

4 [(c)] 5 [in other cases [including cases in which it is not possible for want of necessary information to calculate the monthly wages under clause (b)]], the monthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately preceding the accident from the employer who is liable to pay compensation, divided by the number of days comprising such period.

6 * * * * *

Explanation.—A period of service shall, for the purposes of 7 [this 8 [section]] be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.

9 * * * * *

Where this provision sits

ActThe Employee’s Compensation Act,1923(CENTRAL ACT)
Section5
Marginal note8 [Method of calculating wages
JurisdictionState of Tamil Nadu
StatusIn force as published by the source

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