How to calculate the compensation in case of "employee's death while on work"? Is the maximum ceiling limit for the same $8000 or has it been removed completely? Please suggest!!!

It would be great if somebody could provide me with the complete updated Employees' Compensation Act with all the new updates.

Thanks

From India, Mumbai
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Dear Member,

This is to inform you that at present, the wage ceiling under the Employees' Compensation Act, 1923 is Rs. 8000/- per month. A copy of the latest notification is attached herewith for your information.

R.N. Khola

From India, Delhi
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File Type: doc Wage Ceiling Under E C Act, 1923.doc (157.5 KB, 5273 views)

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One of the laborers was working under a contractor in my company. During working hours, he died in an accident. Will the company provide compensation or will it be the responsibility of the contractor under whom he worked? How does the process for compensation begin and how is it calculated? Please advise.
From India, Delhi
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Dear Sudha Acharya,

Please find enclosed the Workmen/employees Compensation calculator for calculating compensation in case of death, Permanent Total Disablement, Permanent Partial Disablement (covered under Schedule I and not covered under Schedule I). I believe it will be helpful to you.

When entering data, only input the Serial Number specified against the List of Injuries Sheet in place of NATURE OF INJURY AS PER LIST OF INJURY SHEET (ENTER SL.NO ONLY). Feel free to reach out for any further queries related to the use of this calculator.

Regards,
Jawed Alam

From India, Dhanbad
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File Type: xls Workmen Compensation Calculator1(NEW).xls (47.0 KB, 7865 views)

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Hi,

The contractor is responsible for the payment of compensation as per the Contract Labour Act. In case the contractor fails to pay, then the principal employer shall be liable to make the compensation to the contract labor employed by the contractor. The amount can be recovered from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

I hope it helps you.

Regards,
Shruti

From India, Jamshedpur
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    (Fact Checked)-[response] (1 Acknowledge point)
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  • Thank you very much, Mr. Khola, for your valuable guidance. Mr. Jawed Alam's Compensation Calculator is indeed very helpful. It would be greatly appreciated if you could provide me with the updated ECA incorporating all the amendments. Additionally, could you please confirm whether an employee covered under ESIC is eligible for any compensation under ECA in the event of death?

    Besides the ESIC Pension, what other benefits can his family receive under different labor laws? We have insured him for GPA up to Rs. 2.00 lakhs. Will this amount be included in the total compensation payable under ECA to the deceased employee? Your guidance on this matter would be highly appreciated.

    From India, Mumbai
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    (Fact Checked)-[The Employee Compensation Act provides compensation in case of an employee's death at work. ESIC coverage does not affect ECA benefits. GPA up to Rs. 2.00 lacs is included in total compensation. Thank you for the detailed inquiry!] (1 Acknowledge point)
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  • Dear Sudha, If an employee covered under ESIC, He is not eligible for ECA.Apart from he is eligiblble for EPF.EPS.EDLI under PF Act, and Gratuity Act, Thanks Manish
    From India, Bangalore
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    Dear Sudha, If an employee covered under ESIC, He is not eligible for ECA.Apart from he is eligible for EPF.EPS.EDLI under PF Act, and Gratuity Act, Thanks Manish
    From India, Bangalore
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    Dear friends,

    Why is an employee covered under ESIC not eligible for receiving W.C. compensation in the event of death by accident during the course of employment? Can anybody elaborate on this matter?

    Regards,
    Ratan

    From India, Visakhapatnam
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    Dear Sir,

    I would like to inquire whether the amount of Rs. 8000/- will be for a monthly basis or as a one-time payment in the mentioned matter. If it is on a monthly basis, could you please clarify what the limit would be?

    Regards,
    Vikram Singh Rawat

    From India
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    (Fact Checked)-The amount of Rs. 8000 is the monthly ceiling limit for compensation in case of an employee's death at work as per the latest Employees Compensation Act. (1 Acknowledge point)
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  • Dear Ratan,
    Section 53 of ESI Act, 1948 debars us from getting any compensation under any other Act(s). Section 53 may be read as under:

    53.Bar against receiving or recovery of compensation or damages under any other law.—An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen’s Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.
    R.N.Khola



    From India, Delhi
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    Dear Mr. Ratatn,

    An employee whose wage/salary is up to Rs. 15,000/- is to be covered under ESI. In case of death or permanent disablement, ESI will take care of the compensation part, and there will be no need to pay compensation under the Workmen's Compensation Act since dual benefit is not allowed.

    Regards,
    M. M. Rao

    From India, Ahmadabad
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    In case of an employees' death (age 24 yrs) while on work, apart from compensation under ECA, how much gratuity is he eligible for in case he has worked only for 4 months with the company.
    From India, Mumbai
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    Dear Member, Then we are not to pay any gratuity to the nominee(s)/ heir(s) of the emploee under the Payment of Gratuity Act, 1972. R.N.Khola
    From India, Delhi
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    Mr. Khola, I've read somewhere that in case of death, the company is liable to pay the gratuity until the age of 58 years, considering that the employee would have worked until the age of 58 years, irrespective of the tenure he has served with the company.

    Please guide me on the amount of gratuity we are liable to pay to an employee who has served only 4 months and died at work. His total monthly salary was 40K, and the basic was 14K.

    From India, Mumbai
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    Dear Member,

    This type of condition where the employer will grant gratuity considering the service period up to 58 years may be present in any insurance coverage, while I have given my opinion based on the Payment of Gratuity Act, 1972.

    Regards, R N KHOLA


    From India, Delhi
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    Dear Khola,

    I would like to reproduce the provision as follows: Sec. 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. As per Sudha's statement, "the death while on work" has been highlighted where the tenure of the worker is null & void, in other words, his nominee is entitled to Gratuity even if he worked for 4 months.

    Regards, KIRAN KALE.

    From India, Kolhapur
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    Mr. Kale,

    In continuation of the above discussion, now how much gratuity is he eligible for if he dies after 4 months (and in one more case one year) of joining? Will the gratuity amount be for 1 year or till 58 years of age? Though the Payment of Gratuity Act remains silent on this issue, is there any legal liability to pay the said gratuity?

    One more thing I wanted to clarify is that a person who serves 10 years with the company and dies while on work, will he get the gratuity for 10 years or till the age of 58 years? Please advise!!

    From India, Mumbai
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    Dear Friends,

    If an employee had an accident during off-duty hours resulting in a leg fracture and is currently on leave granted by the ESI doctor due to the fracture. After approximately 35 days of being on ESIC leave, he passed away from a heart attack at home during the night. He had worked for almost 8 months only.

    Could one of our friends confirm what benefits his family (wife) would be eligible for from ESI, PF, and I believe compensation from the employer should not be applicable. Please advise.

    K Pal

    From India, New Delhi
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    (Fact Checked)-The family of the deceased employee would be eligible for benefits under ESI and PF. Compensation under the Employees' Compensation Act may also apply. (1 Acknowledge point)
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  • Dear Rs. 8000 is per month basis.The notification is available in the portal. Pls refer.If any company is giving additional benifits other than statutory(EXCEPT ESIC) then they can provide it.
    From India, Mumbai
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    Dear Senior’s, please let me know how much we will deducted from as Employee Compensation cotribution whether esic act is not applicable. please help Thanks & regards Ashish Shaw
    From India, Kolkata
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    Workmen(Employee) compensation is to be paid on relevant age factor mentioned in the table of WC Act.
    From India, Mumbai
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    what is the amount of compensation in case of death of an employee?
    From India, Sirsa
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    Dear Ashish,

    Compensation under the Employees' Compensation Act, 1923 is not an accrual-based fund created by any periodical contribution from the employee over a period of time, at the end of which to be paid back to him with interest. On the contrary, it is a definite sum of compensation to be paid by the employer to the affected employee as defined under the Act of 1923 or his dependents on the contingency of any employment accident resulting in death or any disablement of a partial or permanent nature. So, no deduction from the employees towards this is permissible as this Act is applicable only to establishments and/or employees not covered by the ESI Act, 1948.

    From India, Salem
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    (Fact Checked)-[B]Response[/B]: The user's reply regarding the Employees Compensation Act, 1923 is accurate. The Act provides for a fixed sum of compensation by the employer in case of work-related accidents. No contributions are deducted from employees. This Act applies to establishments not covered by the ESI Act, 1948. (1 Acknowledge point)
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  • please send excel sheet of calculation of workmen compen....if esic is applicable
    From India, Jalalpur
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    Sir, if a worker is covered under the ESI Act, 1948, his/her dependants can claim only under the ESI Act, 1948 and not under the Employees' Compensation Act, 1923. Under the ESI Act, 1948, no lump-sum amount is awarded under such death cases due to and out of employment cases. Rather, the amount of compensation (which is called DEPENDANT BENEFIT) is calculated based on the average wages the deceased employee was receiving or his rate of benefits based on contributions made.
    From India, Noida
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    Dear Sir,

    Please help me in this connection. If a laborer dies due to illness and is not covered by ESIC and EPF, the employer wishes to compensate him out of courtesy. How can we show this amount and under which category?

    With regards,
    Dilip S


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    (Fact Checked)-The employer can provide compensation in case of an employee's death even if the employee is not covered by ESIC or EPF. The compensation can be shown under ex-gratia payments or as a goodwill gesture. (1 Acknowledge point)
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