Management Consultancy
Compliance Officer

Thread Started by #umesh9582pant@gmail.com

How to calculate the amount in the employee compensation act - 1923 in death case?
i am waiting for your valuable reply.
17th March 2018 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;
18th March 2018 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
19th March 2018 From United States, Toledo
Dear Amit,
can u explain how you arrived that Rs.57,427/-.
19th March 2018 From India, Hyderabad
Its a 6% (disability ration) of 100% compensation ie. Rs. 957120/- x 6% = 57427/-
19th March 2018 From United States, Toledo
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™