Employment-injury compensation under the Social Security Code
Reviewed 16 October 2026. For periods governed by the Code on Social Security, 2020, employment-injury compensation is covered by Chapter VII, titled Employee’s Compensation. The chapter consolidates the subject previously covered by the Employees’ Compensation Act, 1923. The Code’s commencement and applicable rules, including State rules, should be checked for the establishment and date involved. Kerala’s Labour Commissionerate still listed draft Labour Code rules in its May 2026 update, so do not assume that every Central draft procedure is final or applies to every Kerala establishment.
Employer liability can arise where an employee suffers personal injury from an accident or occupational disease arising out of and in the course of employment, subject to the Code’s terms and exceptions. Entitlement and amount depend on the type of injury, its effect on earning capacity, the applicable wage basis, age-related factors in the statutory schedule, and any coordination with ESIC coverage. Do not use an old Employees’ Compensation Act formula or threshold without checking the current Code and notification.
What to do after an employment injury
- Arrange medical care and record the event. Note when and where it occurred, the work being performed, witnesses, immediate response and the treating provider’s records.
- Notify the employer and preserve evidence. Keep attendance, wage, job-duty, safety-training, equipment and accident records. For a contractor workforce, record the principal employer, contractor and supervisory relationship.
- Check the applicable benefit route. Establish whether the employee is insured under ESIC, whether Chapter VII applies, and how the Code coordinates the relevant benefits. Do not assume overlapping compensation is payable or excluded without checking the legal provisions for the facts.
- Follow the current reporting procedure. Chapter VII addresses reports of fatal accidents and serious bodily injuries. Use the notice, form, authority and time limit prescribed for the establishment and the appropriate Government. Do not rely on an unverified universal 24-hour deadline.
- Refer disputed or dependent claims correctly. Claims may require determination by the competent authority, medical evidence and wage records. Check the current Kerala or Central rules for the responsible authority, filing method and limitation period.
How compensation is determined
The Code separates employer liability, compensation amounts, the wage calculation, payment timing and claims procedure. Chapter VII includes sections on liability, amount, payment when due, calculation of monthly wages, distribution and notice of claim. The result can depend on the injury category and statutory schedule, so a single example using a fixed monthly-wage ceiling or an old minimum amount can misstate the current entitlement.
For a case calculation, collect the employee’s age, wage records for the statutory reference period, medical assessment, description of the injury and any prior ESIC contribution record. Have the calculation checked against the current Code, Gazette notifications and applicable rules before advising the employee or settling a claim.
Employer records and risk management
Keep an incident file with the notice, investigation, witness accounts, wage and attendance records, medical documents, correspondence and proof of any payment. Review safety measures and correct the cause of the incident. Check insurance terms and any current legal requirement separately; a policy does not replace the employer’s reporting or payment duties.
Official sources
- Code on Social Security, 2020, especially Chapter VII.
- Ministry of Labour: Labour Code rules and notifications.
- Kerala Labour Commissionerate notices for State rules and local process updates.
This page is general information, not an assessment of a particular injury claim. GHR Consultancy supports Kerala employers with payroll and compliance records; contact us for assistance.