Anonymous
Hi, Could anybody assist me in calculating the death claim for the employee?
Employee demised within the office premises & now we have to settle the dispute amicably?
Appreciate if you can share the calculator.

Thanks

From India, Chennai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
Vmlakshminarayanan
Sr.manager - Hr&admin
Suresh2511
Labour Consultant
Honeyanshi
Vice President (hr&ir)
Cnnarendra@gmail.com
Welfare Officer
Babitha Sathees
Hr Manager

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vmlakshminarayanan
380

Hi,

What is the nature of death ? natural or work place accident.?

Full and final settlement till the date of death

Claim under PF

Accumulated PF contribution
EDLI amount claim
Pension for nominee

Gratuity under Group Gratuity scheme if applicable

From India, Madras
Babitha Sathees
Hi,
Its accident in the workplace.
Full and final settlement till the date of death - May i know how to calculate the settlement?
Should we consider the years of service in past & future as well? Do the monthly gross will remain the same for the future compensation as well?


Thanks,
Babitha B

From India, Chennai
cnnarendra@gmail.com
4

BENEFITS OF THE DEATH CASE

Payment of Gratuity Act
Section 4: Payment of gratuity
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease :

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority

Employees Deposit Linked Insurance Scheme
Section 22: Scales of assurance benefits and the minimum average balance to be maintained by an employee.
On the death of an employee, who is a member of the Fund or of a provident fund exempted under Section 17 of the Act, as the case may be, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to the average balance in the account of the deceased in the Fund or of a Provident Fund exempted under Section 17 of the Act, as the case may be , during preceding twelve months or during the period of his membership, whichever is less, except where the average balance exceeds rupees thirty-five thousand, the amount payable shall be rupees thirty-five thousand plus 25 per cent of the amount in excess of rupees thirty-five thousand subject to a ceiling of rupees sixty thousand.

Employees Pension Scheme
Section 16: Benefits to the family on the death of a member
(1) Pension to the Family shall be admissible from the date following the date of death of the member if the member dies-
(a) while in service, provided that at least one months contribution has been paid into the Employees Pension Fund; or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly members pension but before the commencement of pension payment or
(c) after commencement of payment of the monthly members pension.
Note.- The cases where a member has rendered less then 10 years eligible service on the date of exit but has retained the membership of the Pension Fund, and dies before attaining the age of 58 years, shall be regulated under sub-paragraph (8) of Paragraph 12.

Employee State Insurance (General) Regulations
Section 77: Report of death of insured person by employment injury
In case of death of an insured person as a result of an employment injury-
(a) if the death occurs at the place of employment the employer shall, and
(b) if the death occurs at any other place, a dependant intending to claim dependants benefit shall, or
(c) any other person present at the time of death may,
immediately report the death to the nearest Branch Office and to the nearest dispensary, hospital, clinic or other institution where medical benefit under the Act is available

Chapter: Dependants Benefit
Section 78: Disposal of body of an insured person dying by employment injury

Minimum Wages Act
Section 22-D: Payment of undisbursed amounts due to employees
All amounts payable by an employer to an employee the amount of minimum wages of the employee under this Act or otherwise due to the employee under this Act or any rule or order made thereunder shall, if such amounts could not or cannot be paid to the employee on account of his death before payment or on account of his whereabouts not being known, be deposited with the prescribed authority who shall deal with the money so deposited in such manner as may be prescribed.

From India, Hyderabad
Madhu.T.K
3767

Since the death has happened during the course of employment, the dependents of the deceased employee should be paid compensation as per Employees Compensation Act. The amount of compensation will be equal to 50% of his last drawn salary (which can be capped to a maximum of Rs 15000) multiplied by an age factor. Please find the attachment regarding the factor and calculate the amount of compensation payable. This is in addition to the payments as detailed by others here.
From India, Kannur

Attached Files (Download Requires Membership)
File Type: doc WC Compensation schedule.doc (47.0 KB, 56 views)

Madhu.T.K
3767

Babita,
In continuation to my previous post and in reply to your query I would like to ask you one thing, ie, whether your gratuity was invested in LIC? and If yes, whether you had purchased a death cum gratuity policy which enables the dependents of a deceased employee to get gratuity calculated based on the superannuation date? If your answer is yes, then the LIC will pay the gratuity with future service. If you have not invested the gratuity fund in policies and the state government has notified the section 4A of the Payment of Gratuity Act, then you need to pay gratuity for the service till date of death only.

From India, Kannur
Babitha Sathees
Dear Madhu, Your detailed note enabled me to conclude with the compensation. There was no gratuity policy invested in LIC. Thanks, Babitha B
From India, Chennai
Babitha Sathees
Dear All, Thank you so much for your valuable guidelines. Regards, Babitha B
From India, Chennai
suresh2511
239

Forwarding EDLI calculation formula (Insurance & Bonus) for members' benefit in the attached excel sheet. Regards, Suresh
From India, Thane

Attached Files (Download Requires Membership)
File Type: xls EDLI CALCULATION Insurance & Bonus 50% of average balance..xls (26.0 KB, 61 views)

Madhu.T.K
3767

Suresh, very good calculation sheet. I have a doubt. In respect of an employee who has joined very recently, say worked only for 3 months, how the average is arrived at by the EPFO for EDLI purpose? Is it 45000 (EDLI qualifying salary for 3 months) divided 3 or 12?

If it is average of 12 months, as the Act says, then we have to put '0' against the months in which he has not worked and if so the average will be Rs 3750 and the amount admissible will be calculated accordingly. But if you ignore the cells completely, then the average will become Rs 15000 (ie, 45000/ 3) and, obviously, he will get Rs 525000 (plus whatever bonus is applicable)

In respect of an existing member who joins our company with a previous service also the average would be the average of 12 months. The confusion is with regard to a new employee. Can you please clarify?

From India, Kannur

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