 statement of objects and reasonsthe workmen's compensation act, 1923 provides for payment of compensation to workmen or their dependants in case of personal injury caused by accident or certain occupational diseases arising out of and in the course of employment and resulting in disablement or death the act, at present, applies to railway servants and persons employed in certain hazardous employments specified in schedule ii of the act 2 based on the recommendations of the standing committee of parliament on labour and welfare, the act is being made applicable to all casual workers by deleting the brackets and words "(other than a person whose employment is of casual nature and who is employed otherwise than forthe purposes of the employer's trade or business)" from section 2(1)(n) of the act 3, the act was last amended in 1995 since then, there has been general increase in prices of goods and commodities the standing committee of parliament on labour and welfare has also made certain recommendations for enhancement in the amount of compensation payable under the workmen's compensation act these recommendations were examined in consultation with state governments and union territory administrations keeping in view the recommendations of the standing committee of parliament and suggestions received from the state governments, it is ptoposed to carry out the following amendments in the act, namely:— (i) minimum amount of compensation for death is being enhanced from rs 50,000 to rs 80,000 and that for permanent total disablement from rs, 60,000 to rs 90,000; (ii) the ceiling on monthly wage prescribed in explanation i below section 4(1)(b) for determining the maximum amount of compensation is being enhanced from rs 2,000 to rs 4,000, (iii) the amount of funeral expenses payable under section 4(4) is being enhanced from rs 1,000 to rs 2,500 4 in the case of undue delay in payment of compensation, the employer under section 4a(3) of the act is also liable for payment of interest and penalty up to fifty per cent of the amount of compensation at present interest is payable to the workman or dependants and the penalty is being credited to state government there have been representations for making the penalty also payable to the workman or dependants accordingly, it is proposed to amend section 4a(3a) so as to make the penalty also payable to the workman dependants 5, the bill seeks to achieve the above objects satya narayan jatiya  financial memorandumthe workmen's compensation act, 1923 covers a large number of persons employed by the central government in railways and in other departments such as central public works department, ordnance factories, telecommunications, telegraph, etc 2 clause 3 of the bill seeks to enhance the minimum amount of compensation for death from rs 50,000 to rs 80,000 and that for permanent total disablement from rs 60,000 to rs 90,000 it also seeks to enhance the ceiling on monthly wage for calculation of maximum amount of compensation from rs 2,000 to rs 4,000 finally, it also seeks to enhance the amount of funeral expenses from rs 1,000 to rs 2,500 the proposed provisions will ensure payment of compensation on comparatively higher rates than existing rates 3 the above-mentioned proposals in their application to the workmen employed by the central government will involve increased expenditure from the consolidated fund of india by way of payment of compensation however, as compensation becomes payable only in the event of employment injury resulting in disablement or death, it is not possible to estimate in advance the amount of additional expenditure involved 4 the bill does not involve any other expenditure whether recurring or non-recurring nature annexure extracts from the workmen's compensation act, 1923 (8 or 1923)definitions 2(1) in this act, unless there is anything repugnant in the subject or context,—~      (n) "workman" means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business) who is— 24 of 1989 (i) arailway servant as defined in clause (34) of section 2 of the railways act, 1989, not permanently employed in any administrative, district or subdivisional office of a railway and not employed in any such capacity as is specified in schedule ii, or (ia) (a) a master, seaman or other member of the crew of a ship, (b) a captain or other member of the crew of an aircraft, (c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle, (d) a person recruited for work abroad by a company, aud who is employed outside india in any such capacity as is specified in schedule ii and the ship, aircraft or motor vehicle, or company, as the case may be, is registered in india, or (ii) employed in any such capacity as is specified in schedule ii, whether the contract of employment was made before or after the passing of this act and whether such contract is expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of the armed forces of union; and any reference to a workman who has been injured shall, where the workman is dead, include a reference to his dependants or any of them      4 (1) subject to the provisions of this act, the amount of compensation shall be as amount of compensationfollows, namely:— (a) where death results from an amount equal to fifty per cent of the the injury monthly wages of the deceased workman multiplied by the relevant factor; or an amount of fifty thousand rupees, whichever is more; (b) where permanent total an amount equal to fifty per cent of the disablement results monthly wages of the injured workman from the injury multiplied by the relevant factor, or an amount of sixty thousand rupees, whichever is more; 