Dear All, We pray to God that no accidents should happen in any factories, and no employees should suffer as a result. We hope that no one dies. However, if, unfortunately, somebody dies due to an accident, what should be done?
I have attached an Excel sheet for calculating compensation in that case.
From India, Mumbai
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121I have attached an Excel sheet for calculating compensation in that case.
From India, Mumbai
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Suhas, it is a good initiative. However, please note that the minimum compensation for death cases is Rs. 120,000, and the maximum salary for compensation purposes is Rs. 8,000. Therefore, you should calculate 50% of the maximum salary, which amounts to Rs. 4,000 (i.e., 50% of 8,000).
In your sheet, we end up with amounts less than Rs. 120,000 if we input a salary lower than the minimum, and it allows us to input salaries exceeding Rs. 8,000, which should be restricted. Please ensure both caps are applied in your Excel calculations so that HR personnel can use it effectively.
Regards,
Madhu T.K
From India, Kannur
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In your sheet, we end up with amounts less than Rs. 120,000 if we input a salary lower than the minimum, and it allows us to input salaries exceeding Rs. 8,000, which should be restricted. Please ensure both caps are applied in your Excel calculations so that HR personnel can use it effectively.
Regards,
Madhu T.K
From India, Kannur
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Kindly cross-check the relevant factor for age 52. It should be Rs. 146.20, but your sheet is showing Rs. 166.29. Completed years of age on the last birthday of the workman immediately preceding the date on which the compensation fell due:
Age Factor
Not more than 16 ... 228.54
17 ... 227.49
18 ... 226.38
19 ... 225.22
20 ... 224.00
21 ... 222.71
22 ... 221.37
23 ... 219.95
24 ... 218.47
25 ... 216.91
26 ... 215.28
27 ... 213.57
28 ... 211.79
29 ... 209.92
30 ... 207.98
31 ... 205.95
32 ... 203.85
33 ... 201.66
34 ... 199.40
35 ... 197.06
36 ... 194.64
37 ... 192.14
38 ... 189.56
39 ... 186.90
40 ... 184.17
41 ... 181.37
42 ... 178.49
43 ... 175.54
44 ... 172.52
45 ... 169.44
46 ... 166.29
47 ... 163.07
48 ... 159.80
49 ... 156.47
50 ... 153.09
51 ... 149.67
52 ... 146.20
53 ... 142.68
54 ... 139.13
55 ... 135.56
56 ... 131.95
57 ... 128.33
58 ... 124.70
59 ... 121.05
60 ... 117.41
61 ... 113.77
62 ... 110.14
63 ... 106.52
64 ... 102.93
65 or more ... 99.37
Subs. by Act 22 of 1984, sec. 7, for Schedule IV (w.e.f. 1-7-1984).
Regards
From India, Kota
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Age Factor
Not more than 16 ... 228.54
17 ... 227.49
18 ... 226.38
19 ... 225.22
20 ... 224.00
21 ... 222.71
22 ... 221.37
23 ... 219.95
24 ... 218.47
25 ... 216.91
26 ... 215.28
27 ... 213.57
28 ... 211.79
29 ... 209.92
30 ... 207.98
31 ... 205.95
32 ... 203.85
33 ... 201.66
34 ... 199.40
35 ... 197.06
36 ... 194.64
37 ... 192.14
38 ... 189.56
39 ... 186.90
40 ... 184.17
41 ... 181.37
42 ... 178.49
43 ... 175.54
44 ... 172.52
45 ... 169.44
46 ... 166.29
47 ... 163.07
48 ... 159.80
49 ... 156.47
50 ... 153.09
51 ... 149.67
52 ... 146.20
53 ... 142.68
54 ... 139.13
55 ... 135.56
56 ... 131.95
57 ... 128.33
58 ... 124.70
59 ... 121.05
60 ... 117.41
61 ... 113.77
62 ... 110.14
63 ... 106.52
64 ... 102.93
65 or more ... 99.37
Subs. by Act 22 of 1984, sec. 7, for Schedule IV (w.e.f. 1-7-1984).
Regards
From India, Kota
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Dear AKKI79, first up all thanks for identifying error with the formula. I have rectified the error. Hope this is correct this time. Waiting for your feedback.
From India, Mumbai
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The multiplication factor is based on the loss of anticipated income if the person were alive. This factor is provided in Schedule IV as per Section 4 of the Employee's Compensation Act, 1923. Please read Section 4 of the act.
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From India, Mumbai
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I am very new to the calculation of compensation in the case of a deceased employee, so please help me learn by answering some of my questions.
Compensation Calculation for Deceased Employee
As Madhu sir said, the maximum salary for the purpose of compensation is Rs 8000. Therefore, you have to take 50% of the maximum salary, which means the maximum salary factor will be Rs 4000, i.e., 50% of 8000. Then why is the Excel sheet salary component accepting 5000, 6000, 7000, and 8000 as well?
Please clarify.
From India, Ghaziabad
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Compensation Calculation for Deceased Employee
As Madhu sir said, the maximum salary for the purpose of compensation is Rs 8000. Therefore, you have to take 50% of the maximum salary, which means the maximum salary factor will be Rs 4000, i.e., 50% of 8000. Then why is the Excel sheet salary component accepting 5000, 6000, 7000, and 8000 as well?
Please clarify.
From India, Ghaziabad
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Please go through the discussion. It is mentioned that if monthly wages are more than 8,000 (before May 1st, 2010, it was 4,000), then we will calculate the compensation on 8,000 only. This means 8,000 is the ceiling value for the Employee Compensation Act – 1923 (See section 4).
From India, Kota
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From India, Kota
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Compensation Ceiling and Amendments
Maximum salary for the purpose of compensation was Rs. 4000, which was removed without any ceiling on 18-1-2010. However, it was later realized that if the ceiling is eliminated, the compensation could amount to crores. Therefore, on 31-5-2010, it was decided to set the salary at Rs. 8000. This is now the maximum salary upon which the compensation shall be calculated: 50% of Rs. 8000 in case of death and 60% of Rs. 8000 in case of total disablement. Additionally, the amended Act also includes provisions for full reimbursement of medical expenses.
Regards,
Madhu.T.K
From India, Kannur
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Maximum salary for the purpose of compensation was Rs. 4000, which was removed without any ceiling on 18-1-2010. However, it was later realized that if the ceiling is eliminated, the compensation could amount to crores. Therefore, on 31-5-2010, it was decided to set the salary at Rs. 8000. This is now the maximum salary upon which the compensation shall be calculated: 50% of Rs. 8000 in case of death and 60% of Rs. 8000 in case of total disablement. Additionally, the amended Act also includes provisions for full reimbursement of medical expenses.
Regards,
Madhu.T.K
From India, Kannur
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One of our employees, who was working as a Foreman (Civil) and earning ₹22,000 per month, suddenly passed away due to natural causes. Please let me know what formalities need to be completed along with the compensation. He was not enrolled in ESI & PF.
Regards,
TM
From India, Pune
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Regards,
TM
From India, Pune
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As already stated, compensation depends on the wages and age of the employee. Therefore, by simply stating the wage, it is not possible to calculate compensation. Moreover, the schedule is also available, which is self-explanatory.
There is no compensation if the death has occurred not during the course of employment. In the present case, since it is a natural death, there exists no connection with employment; therefore, no compensation is payable to the representatives of the deceased.
Regards,
Madhu.T.K
From India, Kannur
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There is no compensation if the death has occurred not during the course of employment. In the present case, since it is a natural death, there exists no connection with employment; therefore, no compensation is payable to the representatives of the deceased.
Regards,
Madhu.T.K
From India, Kannur
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Hi all,
Can anybody please send the compensations for an injured person? How much do we have to pay if he dies or if he is injured? How much amount does the employer have to pay, and what benefits will the employee get?
Thank you.
From India, Karur
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Can anybody please send the compensations for an injured person? How much do we have to pay if he dies or if he is injured? How much amount does the employer have to pay, and what benefits will the employee get?
Thank you.
From India, Karur
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Hi sir can anybody tell about the difference between out of employment and In the course of employment under employees compensation Act
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Understanding Employment-Related Accidents
In the course of employment means while on duty in the place where an employee is expected to perform their duties, and it includes notional extension. At the same time, if a welder is asked to pluck some tender coconuts, climbs up the tree, and falls, no compensation would be payable. This is because plucking coconuts is not part of his duty, even if he does it following instructions from his superiors. This accident is not considered to arise out of his employment because he is employed as a welder. Had he suffered a burn injury or eye irritation while welding, he would have been eligible for compensation because such injuries are considered accidents arising out of his employment.
Occupational Diseases and Employment
Any kind of disease contracted by employees due to the working environment, generally referred to as occupational diseases as per separate schedules in the Act, will be considered as arising out of employment. There is a minimum period of six months required to establish that the disease is related to employment.
From India, Kannur
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In the course of employment means while on duty in the place where an employee is expected to perform their duties, and it includes notional extension. At the same time, if a welder is asked to pluck some tender coconuts, climbs up the tree, and falls, no compensation would be payable. This is because plucking coconuts is not part of his duty, even if he does it following instructions from his superiors. This accident is not considered to arise out of his employment because he is employed as a welder. Had he suffered a burn injury or eye irritation while welding, he would have been eligible for compensation because such injuries are considered accidents arising out of his employment.
Occupational Diseases and Employment
Any kind of disease contracted by employees due to the working environment, generally referred to as occupational diseases as per separate schedules in the Act, will be considered as arising out of employment. There is a minimum period of six months required to establish that the disease is related to employment.
From India, Kannur
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Dear Suhas Khambeji,
You have shared the Employee Compensation Act calculation sheet, which is a ready reference and useful to HR professionals. So nice of you. I would like to request the password to the unprotected sheet, as per the recent amendment. The salary taken for EC needs to be amended from Rs. 8000/- to Rs. 15000/-. It would be a great help if you could share the password or alternatively, share and upload the sheet with the recent wage ceiling for EC calculation at Rs. 15,000/-
Regards,
Vipul Rana
From India, Thana
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You have shared the Employee Compensation Act calculation sheet, which is a ready reference and useful to HR professionals. So nice of you. I would like to request the password to the unprotected sheet, as per the recent amendment. The salary taken for EC needs to be amended from Rs. 8000/- to Rs. 15000/-. It would be a great help if you could share the password or alternatively, share and upload the sheet with the recent wage ceiling for EC calculation at Rs. 15,000/-
Regards,
Vipul Rana
From India, Thana
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Employee's Compensation Act-2009.pdf
THE EMPLOYEE COMPENSATION ACT.docx