Hi, could anybody assist me in calculating the death claim for the employee? The employee passed away within the office premises, and now we have to settle the dispute amicably. I would appreciate it if you could share the calculator.
Thanks
From India, Chennai
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Thanks
From India, Chennai
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Hi, what is the nature of death? Was it natural or a workplace 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
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1015Full 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
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Hi, there's been an accident in the workplace. I am seeking clarification on the full and final settlement until the date of death—could you please advise me on how to calculate the settlement? Should we also take into account the years of service both in the past and future? Will the monthly gross remain the same for future compensation as well?
Thanks,
Regards.
From India, Chennai
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Thanks,
Regards.
From India, Chennai
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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 nominee or heir 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 the 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 percent 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 month's 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 the commencement of payment of the monthly members pension.
Note: The cases where a member has rendered less than 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 dependent intending to claim dependent's 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: Dependents 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
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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 nominee or heir 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 the 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 percent 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 month's 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 the commencement of payment of the monthly members pension.
Note: The cases where a member has rendered less than 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 dependent intending to claim dependent's 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: Dependents 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
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Since the death occurred during the course of employment, the dependents of the deceased employee should be paid compensation as per the Employees' Compensation Act. The amount of compensation will be equal to 50% of the last drawn salary (which can be capped at a maximum of Rs 15,000) 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
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This is in addition to the payments as detailed by others here.
From India, Kannur
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Babita, in continuation of my previous post and in reply to your query, I would like to ask you one thing: whether your gratuity was invested in LIC? If yes, did you purchase a death cum gratuity policy that enables the dependents of a deceased employee to receive gratuity calculated based on the superannuation date? If your answer is yes, then LIC will pay the gratuity with future service. If you have not invested the gratuity fund in policies and the state government has notified section 4A of the Payment of Gratuity Act, then you only need to pay gratuity for the service up to the date of death.
Best regards,
Regards.
From India, Kannur
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Best regards,
Regards.
From India, Kannur
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Forwarding EDLI calculation formula (Insurance & Bonus) for members' benefit in the attached excel sheet. Regards, Suresh
From India, Thane
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From India, Thane
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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 is the average arrived at by the EPFO for EDLI purpose? Is it 45,000 (EDLI qualifying salary for 3 months) divided by 3 or 12?
If it is the average of 12 months, as the Act states, then we have to put '0' against the months in which he has not worked. If so, the average will be Rs 3,750 and the admissible amount will be calculated accordingly. But if you ignore the cells completely, then the average will become Rs 15,000 (i.e., 45,000/3), and he will get Rs 525,000 (plus whatever bonus is applicable).
In respect of an existing member who joins our company with previous service, the average would be the average of 12 months. The confusion lies regarding a new employee. Can you please clarify?
From India, Kannur
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If it is the average of 12 months, as the Act states, then we have to put '0' against the months in which he has not worked. If so, the average will be Rs 3,750 and the admissible amount will be calculated accordingly. But if you ignore the cells completely, then the average will become Rs 15,000 (i.e., 45,000/3), and he will get Rs 525,000 (plus whatever bonus is applicable).
In respect of an existing member who joins our company with previous service, the average would be the average of 12 months. The confusion lies regarding a new employee. Can you please clarify?
From India, Kannur
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Dear Madhu Jee, The new employee will receive an insurance benefit of 35 times the average salary, as you rightfully mentioned in paragraph 2. However, the bonus amount will be 50% of their average balance or Rs. 1,75,000, whichever is lower.
Regards,
Suresh
From India, Thane
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Regards,
Suresh
From India, Thane
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No, my question is different. Suppose an employee who joined just three months ago dies. His EDLI salary was Rs. 15,000, and he had contributed for 3 months, making the total Rs. 45,000. What would be the average PF or EDLI contributing salary? Is it Rs. 45,000 divided by 3, which equals Rs. 15,000, or is it Rs. 45,000 divided by 12, which equals Rs. 3,750?
Calculation Method
In your calculation sheet, if you put '0' against the months preceding his joining, the result will be as I have stated second. But if you keep the cells blank, then the result will be different.
From India, Kannur
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Calculation Method
In your calculation sheet, if you put '0' against the months preceding his joining, the result will be as I have stated second. But if you keep the cells blank, then the result will be different.
From India, Kannur
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The average is for the number of months he or she worked, not for the entire year. For example, if a worker starts on March 1st and dies on May 31st, and his monthly salary is Rs. 12,000/-, he is entitled to an insurance benefit of Rs. 12,000 * 35 = Rs. 420,000, as well as a bonus of Rs. 1,440 + Rs. 440 = Rs. 1,880 * 3 = Rs. 5,640 / 2 = Rs. 2,820 (50 percent of the average EPF balance).
(12,000 * 12%) = Rs. 1,440 + Rs. 440 (3.67 percent employer contribution) = Rs. 1,880
Because we are displaying the salary for the previous 12 months, we can enter '0' and take the average of three months.
Regards, Suresh
From India, Thane
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(12,000 * 12%) = Rs. 1,440 + Rs. 440 (3.67 percent employer contribution) = Rs. 1,880
Because we are displaying the salary for the previous 12 months, we can enter '0' and take the average of three months.
Regards, Suresh
From India, Thane
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Ok. Understand. It is the average of the period actually worked and not the average of preceding 12 months per se. Thank you
From India, Kannur
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From India, Kannur
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Following should be paid to the nominee:
01. Full & Final Payment (unpaid salary, Earned Leave if any)
02. Bonus (if applicable)
03. EPF
04. EDLI
05. Pension from EPF department to their family
06. ESIC Funeral expenses (if ESIC Member)
07. Pension from ESIC
08. Gratuity payment (if service is less than 5 years, then it should be paid by LIC Gratuity Insurance, as most companies insure their employees' gratuity with LIC)
09. Insurance amount, if any, provided by the company
10. Contribution under the death policy of the company, if applicable.
From India, Rudarpur
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01. Full & Final Payment (unpaid salary, Earned Leave if any)
02. Bonus (if applicable)
03. EPF
04. EDLI
05. Pension from EPF department to their family
06. ESIC Funeral expenses (if ESIC Member)
07. Pension from ESIC
08. Gratuity payment (if service is less than 5 years, then it should be paid by LIC Gratuity Insurance, as most companies insure their employees' gratuity with LIC)
09. Insurance amount, if any, provided by the company
10. Contribution under the death policy of the company, if applicable.
From India, Rudarpur
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