POSH India Help LogoPOSH India Help
Skip to statutory text

Chapter V · Inquiry & Relief

Section 15

Determination of compensation

Statutory textCounsel-reviewed publication
For the purpose of determining the sums to be paid to the aggrieved woman under clause (ii) of sub-section (3) of section 13, the Internal Committee or the Local Committee, as the case may be, shall have regard to—
the mental trauma, pain, suffering and emotional distress caused to the aggrieved woman;
the loss in the career opportunity due to the incident of sexual harassment;
medical expenses incurred by the victim for physical or psychiatric treatment;
the income and financial status of the respondent;
feasibility of such payment in lump sum or in instalments.

Transcribed from the official India Code source for reading and comparison. PIH plain-language guidance is editorial and separate; this page is not legal advice.

Source: India Code, Ministry of Law and Justice, Government of IndiaRetrieved: 2026-09-10India Code PDF, p. 10India Code PDF — last updated 31 August 2021

Plain Language

When the committee recommends compensation, it must consider five specific factors: mental trauma and suffering, loss of career opportunity, medical expenses, the respondent's income, and whether payment should be lump sum or in instalments.

Compensation is meant to reflect the real impact of the misconduct on the aggrieved woman, not an arbitrary figure.

Section 15 supplies the factors for determining the sum under Section 13(3)(ii); the recommendation and any deduction mechanism are governed by Section 13.

Why It Matters

Section 15 makes compensation a factor-driven exercise, not a discretionary one. The committee must record how each factor was considered.

It covers both tangible losses (medical expenses, career opportunity) and intangible harm (mental trauma, emotional distress).

The inclusion of the respondent's income ensures the compensation amount is realistic and enforceable.

The lump-sum vs instalment option provides flexibility for both the respondent's capacity and the aggrieved woman's needs.

Practical Example

Factor-based compensation

Scenario: The IC finds the allegation proved. The aggrieved woman incurred Rs 30,000 in counselling costs and lost a promotion opportunity. The respondent earns Rs 80,000 per month.

Outcome: The IC considers all five factors under Section 15 and recommends Rs 1,50,000 compensation, payable in three monthly instalments deducted from the respondent's salary.

Career loss and medical costs

Scenario: The aggrieved woman suffered severe anxiety requiring psychiatric treatment and was forced to resign due to workplace hostility.

Outcome: The IC weighs the mental trauma, medical expenses, and loss of career opportunity heavily, recommending a higher compensation amount commensurate with the respondent's financial capacity.

Who Must Act

ic member

  • Record the basis for compensation clearly, addressing each factor under Section 15.
  • Consider evidence of mental trauma, career loss, medical expenses, and the respondent's income.
  • Recommend whether payment should be lump sum or in instalments.

employee

  • Document concrete effects on work, health, and income if compensation is in issue.
  • Provide evidence of medical expenses and career impact to support the compensation claim.

employer

  • Implement the compensation deduction as recommended by the committee.
  • Deduct from the respondent's salary notwithstanding any inconsistent service rules.

Compliance

✓

Have regard to the five specified factors when determining compensation

Actor: Internal Committee / Local Committee · Rule: Section 15

✓

Record the basis for the compensation amount with reference to each factor

Actor: Internal Committee / Local Committee · Rule: Section 15

Common Mistakes

✗

Recommending an arbitrary compensation amount without addressing the Section 15 factors.

✗

Failing to consider intangible harm like mental trauma and emotional distress — these are statutory factors.

✗

Ignoring the feasibility of payment — the committee should consider whether lump sum or instalments are appropriate.

✗

Not documenting the reasoning for the compensation figure, which can make the recommendation vulnerable to appeal.

Related Sections

§13Inquiry report — Compensation is recommended as part of the inquiry report under Section 13§14Punishment for false or malicious complaint — If the complaint is found malicious, no compensation is awarded; Section 14 applies instead§18Appeal — The aggrieved woman or respondent may appeal the compensation amount under Section 18

Source & Status

Source and review statusPublication ready
Source version
India Code PDF — last updated 31 August 2021
Source location
India Code PDF, p. 10
Retrieved

View the official record page

Statutory blocks are kept separate from PIH plain-language and operational guidance. The reading copy is not legal advice.

Legal review status: counsel-reviewed. All sections have valid documentary counsel evidence and publication signals are enabled.

Judicial material: no verified judicial interpretation is published in this reading copy. Judicial analysis is a separate layer from the statutory transcription and PIH editorial guidance.