Method of calculating monthly wages for purposes of compensation
Section 78 of the Code on Social Security, 2020 deals with method of calculating monthly wages for purposes of compensation. For the purposes of this Chapter, 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 employee has, during a The Act was enacted on 28 Sep 2020.
For the purposes of this Chapter, 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 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 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;
(b) where the whole of the continuous period of service immediately preceding the accident during which the 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 employee shall be the average monthly amount which, during the twelve months immediately preceding the accident, was being earned by an employee employed on the same work by the same employer, or, if there was no employee so employed, by an employee 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.---For the purposes of this section, "a period of service" shall be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.
Section 78, The Code on Social Security, 2020 (Act 36 of 2020).
Questions about Section 78
What does Section 78 of the Code on Social Security deal with?
Section 78 of the Code on Social Security is headed "Method of calculating monthly wages for purposes of compensation". For the purposes of this Chapter, 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 employee has, during a
How do I find court cases under Section 78 of the Code on Social Security?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Code on Social Security 78, section 78 Code on Social Security, section 78 of the Code on Social Security. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When was Section 78 of the Code on Social Security enacted?
Section 78 of the Code on Social Security, cited as Code on Social Security 78, was enacted on 28 Sep 2020 as Act 36 of 2020. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5890 words
- 155. Power of central Government to make rules1551 words
- 131. Other modes of recovery1340 words
- 143. Power to exempt establishment1042 words
- 6. National Social Security Board and State Unorganised Workers’ Board1022 words
- 76. Amount of compensation946 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.