Compensation for Death or Total Permanent Disability
The compensation for death or total permanent disability not only depends upon wages but also the age of the employee. The compensation for death while on duty is 50% of wages (the wages are subject to a maximum of Rs 15,000) multiplied by the age factor in the table annexed to the Act, subject to a minimum of Rs 120,000. In the case of permanent total disablement, it is 60% of the wages multiplied by the age factor, subject to a minimum of Rs 140,000.
For an employee aged less than 16, the age factor is 228.54, and for an employee aged more than 65 years, it is 99.37. This means the higher the age, the lesser the compensation. For example, an employee aged 16 years, whose wages are Rs 15,000 or more, will receive compensation of Rs 1,714,050 for death and Rs 2,056,860 for total disablement. The same for an employee of 65 years of age would be Rs 745,275 and Rs 894,330, respectively.
Calculation Example
The calculation is as follows:
- 50% of wages, 7,500 X 228.54 = 1,714,050
- 60% of wages, 9,000 X 228.54 = 2,056,860
- 50% of wages, 7,500 X 99.37 = 745,275
- 60% of wages, 9,000 X 99.37 = 894,330
The table containing the age factor is attached. When the wages decrease, the compensation will also decrease.