Workmen's Compensation Act, 1923
5. Method of
calculating wages—
In this Act and for
the purposes thereof the expression “monthly wages” means the amount of wages
deemed to be payable for a month’s service (whether the wages are payable by
the month or by whatever other period or at piece rates), and calculated] as
follows, namely:—
a.
where
the workman 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 workman 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;
b.
where
the whole of the continuous period of service immediately preceding the
accident during which the workman was in the service of the employer who is
liable to pay the compensation was less than one month, the monthly wages of
the workman shall be the average monthly amount which, during the twelve months
immediately preceding the accident, was being earned by a workman employed on
the same work by the same employer, or, if there was no workman so employed, by
a workman employed on similar work in the same locality;]
c.
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.
Explanation.— A
period of service shall, for the purposes of 8 [this section] be deemed to be
continuous which has not been interrupted by a period of absence from work
exceeding fourteen days.