Dear Professional Colleagues,
An employee lost his first phalanx of index finger during and arising of and out of employment. His salary is Rs.27,000/- and has been working for the last for 5 months. How to calculate the Employees compensation?
Michael Nicholas
From India, Chennai
An employee lost his first phalanx of index finger during and arising of and out of employment. His salary is Rs.27,000/- and has been working for the last for 5 months. How to calculate the Employees compensation?
Michael Nicholas
From India, Chennai
The loss of earning capacity for loss of first phalanx of index finger is specified as 9% in the Schedule 1 of the EC Act 1923. This is subject to the fact that the injury has not affected the due discharge of his function in the organisation.
To calculate the compensation for such injury, first calculate the amount equal to sixty per cent of the monthly wages of the injured employee (subject to ceiling of Rs. 15,000) multiplied by the relevant factor. (Say A) The "relevant factor", in relation to a employee means the factor specified in the second column of Schedule IV against the completed years of the age of the employee on his last birthday immediately preceding the date on which the compensation fell due. Then multiply A with the loss of earning capacity.
For instance for a 45 year injured the compensation would be (Rs. 15,000X60/100) X 169.44 X 9% = Rs 1,37,424.60
From India, Mumbai
1530To calculate the compensation for such injury, first calculate the amount equal to sixty per cent of the monthly wages of the injured employee (subject to ceiling of Rs. 15,000) multiplied by the relevant factor. (Say A) The "relevant factor", in relation to a employee means the factor specified in the second column of Schedule IV against the completed years of the age of the employee on his last birthday immediately preceding the date on which the compensation fell due. Then multiply A with the loss of earning capacity.
For instance for a 45 year injured the compensation would be (Rs. 15,000X60/100) X 169.44 X 9% = Rs 1,37,424.60
From India, Mumbai
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EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf
Employees' Compensation Act 1923.doc