I am working in a firm of civil construction engineers in Kerala. Last year on 26.2.11 on of our workers died at work site. Compensation under Workmen's Compensation Act 1923 is payable based on mimimum wages. I understand that the minimum wages in Keral is raised to Rs.8000/pm w.e.f 4.08.2010 Earlier it was Rs.4000. For computing the wages forpayment of compensation the average wages for the preceding 12 months is to be taken into account. Prior to 26.2.2010, the min wages was Rs.4000 for 6 months and Rs.8000 for 6 months and the average min wages come to Rs.6000. Is the compensation to be calculated taking into account the average min wage of Rs.6000 or on Rs.8000 which is the min wage on 26.2.11 ( date of death) . Please clarify.
If the above line of thinking is not correct, then what is the coreect one? Incidently, we had declared the daily wages of the worker as Rs.190 and the Insurance company has calculated the claim taking the wages as Rs.5700 (190x30)
Thanks in advance!
