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
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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
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From India, Bangalore
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Hello Ankur,
As per the new rule notified by the government, Rs 15,000 will be considered as the wage for calculating compensation under the Employees' Compensation Act, rule change 2020. The relevant factor for computation is mentioned in Schedule IV of the Act.
Example Calculation
If the employee's actual salary is Rs. 30,000, we calculate as per that wage ceiling.
Calculation for Permanent Total Disablement
In the case of Permanent Total Disablement, where the age is 30:
Relevant Factor of Age X 60% of Wage ceiling.
Compensation = 207.98 X 9,000 = Rs. 18,71,820/-
Thank you.
Regards, Pradhap Ambethkar
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From India, Erode
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As per the new rule notified by the government, Rs 15,000 will be considered as the wage for calculating compensation under the Employees' Compensation Act, rule change 2020. The relevant factor for computation is mentioned in Schedule IV of the Act.
Example Calculation
If the employee's actual salary is Rs. 30,000, we calculate as per that wage ceiling.
Calculation for Permanent Total Disablement
In the case of Permanent Total Disablement, where the age is 30:
Relevant Factor of Age X 60% of Wage ceiling.
Compensation = 207.98 X 9,000 = Rs. 18,71,820/-
Thank you.
Regards, Pradhap Ambethkar
[Email Removed For Privacy Reasons]
From India, Erode
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Employee's Compensation Act-2009.pdf
THE EMPLOYEE COMPENSATION ACT.docx