[email protected]
Asst.manager Hr
Management Consultancy
Compliance Officer

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
How to calculate the amount in the employee compensation act - 1923 in death case? i am waiting for your valuable reply.
From India, Delhi
In fatal cases the amount of compensation shall be calculated as an amount equal to fifty per cent. of the monthly wages of the deceased employee multiplied by the relevant factor; or
an amount of one lakh and twenty thousand rupees, whichever is more;

From India, Mumbai
For calculating the Employee Compensation, you need to compile all the relevant details like
1) disability percentage (will be decided by Doctor vide their certificate),
2) compensation factor as per his/her completed years of age on the last birthday of the workman(refer EC act),
3) monthly wages drawn (As per Employees Compensation Act, when the wages exceeds Rs. 8000/-, then for the purpose of calculating the amount of compensation, the wages should be taken as if the workman is drawing the wage of Rs. 8000/- per month) - 60% of wages shall be taken into consideration.
you may please take following example for calculation:
Rs. 4800/- [ 60% of wages] x 199.40 [relevant factor] = 9,57,120/- [ 100% compensation]
The disability is 6% : therefore, the amount of compensation would be Rs. 57,427.20/- (Rupees Fifty seven thousand four hundred twenty seven and twenty paise only).
Also you need to pay compensation amount to workman through DD/pay order in favour of <name of workman> alongwith duly filled and signed Form-L for your application for registration of memorandum of agreement at Regional Labour Court (Commissioner under WC act).
please refer EC Act for more details.
Amit More

From United States, Toledo
Dear Amit, can u explain how you arrived that Rs.57,427/-.
From India, Hyderabad
Abhiram, Its a 6% (disability ration) of 100% compensation ie. Rs. 957120/- x 6% = 57427/-
From United States, Toledo
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™