Hi, For calculation under Employee Compensation Act, what amount of salary is to be considered, Rs. 15000 or Actual salary? Please clarify. Thanks & Regards, Ankur
From India, undefined
From India, undefined
Max salary under the EC Act is Rs.15,000/- If employee is drawing the wages below Rs. 15,000/- then Actual wages shall be treated & if above then Rs. 15,000/- only
From India, Bangalore
633From India, Bangalore
Hello Ankur,
As per the new rule notified by the government, Rs 15,000 will be considered as wage for calculating compensation under the Employee’s Compensation Act rule change 2020.
The relevant factor for computation is mentioned in schedule IV of the Act.
Example: If the employee actual salary is Rs.30000/-, but we calculate as per that wage ceiling.
Calculation:
In Case of Permanent Total Disablement, Age is 30.
Relevant Factor of Age X 60% of Wage ceiling.
Compensation = 207.98 X 9,000= 18,71,820/-
Thank you.
Pradhap Ambethkar
From India, Erode
As per the new rule notified by the government, Rs 15,000 will be considered as wage for calculating compensation under the Employee’s Compensation Act rule change 2020.
The relevant factor for computation is mentioned in schedule IV of the Act.
Example: If the employee actual salary is Rs.30000/-, but we calculate as per that wage ceiling.
Calculation:
In Case of Permanent Total Disablement, Age is 30.
Relevant Factor of Age X 60% of Wage ceiling.
Compensation = 207.98 X 9,000= 18,71,820/-
Thank you.
Pradhap Ambethkar
From India, Erode
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Notification on Max Wages under EC Act.doc
Amendment to Payment of Bonus Act 2015.jpg