It is fully depends on the state where we work. In Hyderabad I have calculated the Compensation for a fatal case on Total wages paid to the workman. But in Gujarat it is entirely different. Here the calculation is based on the Monthly Minimum Wages only and not on Gross Wages (Basic +OT) which we make it in Hyderabad.
If you submit the Wage Sheet to the JCL's Office and the information regarding the accident, they will inturn serve you a notice with calculation regarding the amount of compensation to be paid.
Calculation is :- Wages Paid X Percentage of Compensation (As per schedule I) to be paid X Age Factor (Schedule IV) as per Workmen Compensation Act, 1923.