Employees' Compensation Act - Consequences of recent amendment (Gazette Notification dt.03.01.2020) - CiteHR
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Dear Friends,
Consequences of recent amendment (Gazette Notification dt.03.01.2020) to the Employees' Compensation Act:
For death and tvpermanent total disablement due to employment injury from 03.01.2020, employees will get higher compensation under Employees' Compensation Act, 1923.
For Death Cases:
Minimum: ₹7,45,275/-, Maximum: ₹17,14,050/-
For Permanent Total Disablement Cases:
Minimum: ₹8,94,330/-,
Maximum: ₹20,56,860/-.
The above amount of compensation is calculated based on revised wages of ₹15,000/- p.m. (Before the latest amendment, this amount was ₹8,000/-).
However, if the wages is less than ₹15,000/-, the compensation will be proportionately less, subject to a minimum of ₹1,20,000/- & ₹1,40,000/- for death and permanent disablement benefit respectively.
Thumb Rule:
> Higher the age, lower the compensation.
> Relevant factors specified in Schedule-IV give slabs depending upon the age of the concerned employee.
If any of the above details are wrong or in case of variation, please do correct me and update us in this Group/Forum.
If the deceased age is 53 yrs and presuming his monthly wage exceeds Rs.15000/-, the compensation will be:
50% monthly wage x relevant factor (as per Sch IV).
Rs.7500/- (50% monthly wage subject to max monthly wage of Rs.15000/-) x 142.68 (relevant factor for 53 yrs of age from sch IV)
= Rs.10,70,100/-.
Sec 4 of EC Act, 1923 defines calculation methodology
Note:
For more details & clarifications, please refer Employees' Compensation Act.
Regards,
Dr. PBS KUMAR


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File Type: pdf Notification_EC_Compensation_Wages_Amendment_3 Jan 2020.pdf (248.4 KB, 93 views)

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