Report No. 62

Method of calculating wages

3A.2. Sections 5(a) and 5(b).-

For calculating monthly wages section 5 provides several methods.

Method of calculating wage.-The normal situation of a workman employed under the same employer continuously for 12 months is dealt with in clause (a) under which the monthly wages are 1/12 of the total wages earned for the whole 12 months. We are of the view that this clause requires modification in one respect. At present, the total wages for the whole 12 months are to be taken into account and divided by 12 but, in fairness, the wages for the last month should be decisive. Under the present law a workman who got a rise in wages a month or so before the accident does not get the benefit of that rise, if he is injured. This should be changed by amending clause (a).

3A.2A. Recommendation to amend section 5(a).-

We therefore recommend that in section 5(a) for the words "one-twelfth of total wages etc. the words "the wages for the last full month immediately preceding the accident", should be substituted.