Dear All,
We pray to God that no accidents should happen in any factories, and no employees should suffer as a result. We hope that no one dies. However, if, unfortunately, somebody dies due to an accident, what should be done?
I have attached an Excel sheet for calculating compensation in that case.
From India, Mumbai
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121We pray to God that no accidents should happen in any factories, and no employees should suffer as a result. We hope that no one dies. However, if, unfortunately, somebody dies due to an accident, what should be done?
I have attached an Excel sheet for calculating compensation in that case.
From India, Mumbai
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Suhas, it is a good initiative. However, please note that the minimum compensation for death cases is Rs. 120,000 and the maximum salary for compensation purposes is Rs. 8,000. Therefore, you should calculate 50% of the maximum salary, which amounts to Rs. 4,000 (i.e., 50% of 8,000).
In your sheet, we end up with amounts less than Rs. 120,000 if we input a salary lower than the minimum and it allows us to input salaries exceeding Rs. 8,000, which should be restricted. Please ensure both caps are applied in your Excel calculations so that HR personnel can use it effectively.
Regards,
Madhu T.K
From India, Kannur
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In your sheet, we end up with amounts less than Rs. 120,000 if we input a salary lower than the minimum and it allows us to input salaries exceeding Rs. 8,000, which should be restricted. Please ensure both caps are applied in your Excel calculations so that HR personnel can use it effectively.
Regards,
Madhu T.K
From India, Kannur
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Dear Madhu Sir, Thanks for your reply. I have ammended the file as per your valuable suggestions. looking for your veiws for any further modifications.
From India, Mumbai
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From India, Mumbai
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Dear Suhas,
Kindly cross-check the relevant factor for age 52. It should be Rs. 146.20, but your sheet is showing Rs. 166.29.
Completed years of age on the last birthday of the workman immediately preceding the date on which the compensation fell due:
Age Factor
Not more than 16 ... 228.54
17 ... 227.49
18 ... 226.38
19 ... 225.22
20 ... 224.00
21 ... 222.71
22 ... 221.37
23 ... 219.95
24 ... 218.47
25 ... 216.91
26 ... 215.28
27 ... 213.57
28 ... 211.79
29 ... 209.92
30 ... 207.98
31 ... 205.95
32 ... 203.85
33 ... 201.66
34 ... 199.40
35 ... 197.06
36 ... 194.64
37 ... 192.14
38 ... 189.56
39 ... 186.90
40 ... 184.17
41 ... 181.37
42 ... 178.49
43 ... 175.54
44 ... 172.52
45 ... 169.44
46 ... 166.29
47 ... 163.07
48 ... 159.80
49 ... 156.47
50 ... 153.09
51 ... 149.67
52 ... 146.20
53 ... 142.68
54 ... 139.13
55 ... 135.56
56 ... 131.95
57 ... 128.33
58 ... 124.70
59 ... 121.05
60 ... 117.41
61 ... 113.77
62 ... 110.14
63 ... 106.52
64 ... 102.93
65 or more ... 99.37
Subs. by Act 22 of 1984, sec. 7, for Schedule IV (w.e.f. 1-7-1984).
From India, Kota
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Kindly cross-check the relevant factor for age 52. It should be Rs. 146.20, but your sheet is showing Rs. 166.29.
Completed years of age on the last birthday of the workman immediately preceding the date on which the compensation fell due:
Age Factor
Not more than 16 ... 228.54
17 ... 227.49
18 ... 226.38
19 ... 225.22
20 ... 224.00
21 ... 222.71
22 ... 221.37
23 ... 219.95
24 ... 218.47
25 ... 216.91
26 ... 215.28
27 ... 213.57
28 ... 211.79
29 ... 209.92
30 ... 207.98
31 ... 205.95
32 ... 203.85
33 ... 201.66
34 ... 199.40
35 ... 197.06
36 ... 194.64
37 ... 192.14
38 ... 189.56
39 ... 186.90
40 ... 184.17
41 ... 181.37
42 ... 178.49
43 ... 175.54
44 ... 172.52
45 ... 169.44
46 ... 166.29
47 ... 163.07
48 ... 159.80
49 ... 156.47
50 ... 153.09
51 ... 149.67
52 ... 146.20
53 ... 142.68
54 ... 139.13
55 ... 135.56
56 ... 131.95
57 ... 128.33
58 ... 124.70
59 ... 121.05
60 ... 117.41
61 ... 113.77
62 ... 110.14
63 ... 106.52
64 ... 102.93
65 or more ... 99.37
Subs. by Act 22 of 1984, sec. 7, for Schedule IV (w.e.f. 1-7-1984).
From India, Kota
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Dear AKKI79, first up all thanks for identifying error with the formula. I have rectified the error. Hope this is correct this time. Waiting for your feedback.
From India, Mumbai
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From India, Mumbai
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Hi, Dear,
The multiplication factor is based on the loss of anticipated income if the person were alive. This factor is provided in Schedule IV as per Section 4 of the Employee's Compensation Act, 1923. Please read Section 4 of the act.
From India, Mumbai
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The multiplication factor is based on the loss of anticipated income if the person were alive. This factor is provided in Schedule IV as per Section 4 of the Employee's Compensation Act, 1923. Please read Section 4 of the act.
From India, Mumbai
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Dear all,
I am very new to the calculation of compensation in case of a deceased employee, so please help me learn by answering some of my questions.
As Madhu sir said, the maximum salary for the purpose of compensation is Rs 8000. Therefore, you have to take 50% of the maximum salary, which means the maximum salary factor will be Rs 4000, i.e., 50% of 8000. Then why is the Excel sheet salary component accepting 5000, 6000, 7000, and 8000 as well?
Please clarify.
From India, Ghaziabad
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I am very new to the calculation of compensation in case of a deceased employee, so please help me learn by answering some of my questions.
As Madhu sir said, the maximum salary for the purpose of compensation is Rs 8000. Therefore, you have to take 50% of the maximum salary, which means the maximum salary factor will be Rs 4000, i.e., 50% of 8000. Then why is the Excel sheet salary component accepting 5000, 6000, 7000, and 8000 as well?
Please clarify.
From India, Ghaziabad
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Dear Excel sheet will accept any figure you enter but it will calculate on the basis of 8,000 as the maximum salary (it will auto consider). You can verify by calculating on a calculator. It will automatically give the result as 120,000 as the minimum compensation.
Try it out. Best of luck.
From India, Mumbai
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Try it out. Best of luck.
From India, Mumbai
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Dear Madhu Sir,
I apologize for sending this query to this thread; however, it is urgent. I need clarification on OT payments under the factory act:
1. Is it mandatory that OT is payable on the gross amount, including all allowances like Cony Allowance, CCA, Washing Allowance, etc.?
2. Is it mandatory that OT is paid at double the gross amount?
3. If OT is paid at double the gross amount, is it necessary to also pay the night allowance?
Please guide me on these matters.
Regards,
Swarnalata
From India, New Delhi
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I apologize for sending this query to this thread; however, it is urgent. I need clarification on OT payments under the factory act:
1. Is it mandatory that OT is payable on the gross amount, including all allowances like Cony Allowance, CCA, Washing Allowance, etc.?
2. Is it mandatory that OT is paid at double the gross amount?
3. If OT is paid at double the gross amount, is it necessary to also pay the night allowance?
Please guide me on these matters.
Regards,
Swarnalata
From India, New Delhi
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You have posted in the wrong place; you should have started a separate discussion for this.
Wages mean all-inclusive, but the treatment of it differs from case to case. Allowances, which are flexible in nature, need not be taken into account for the purpose of overtime payment. Therefore, night allowance, which is paid only for the night shifts attended, will not form part of wages for the purpose of overtime calculation (as well as for other purposes like deciding bonus payments, retrenchment, or layoff compensation, workmen's compensation payments, etc). Washing allowance is also an allowance to be excluded for OT calculation. If CCA, HRA, and Conveyance allowance are fixed per month, that should be included.
Regards,
Madhu.T.K
From India, Kannur
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Wages mean all-inclusive, but the treatment of it differs from case to case. Allowances, which are flexible in nature, need not be taken into account for the purpose of overtime payment. Therefore, night allowance, which is paid only for the night shifts attended, will not form part of wages for the purpose of overtime calculation (as well as for other purposes like deciding bonus payments, retrenchment, or layoff compensation, workmen's compensation payments, etc). Washing allowance is also an allowance to be excluded for OT calculation. If CCA, HRA, and Conveyance allowance are fixed per month, that should be included.
Regards,
Madhu.T.K
From India, Kannur
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Dear Mr. Panwar,
Please go through the discussion, it is mentioned that :-
if monthly wages is more than 8, 000 ( Before May 1st , 2010 it was 4000) then we will calculate the compensation on 8,000 only, means 8000 is the ceiling value for Employee Compensation Act – 1923 (See section 4) .
From India, Kota
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Please go through the discussion, it is mentioned that :-
if monthly wages is more than 8, 000 ( Before May 1st , 2010 it was 4000) then we will calculate the compensation on 8,000 only, means 8000 is the ceiling value for Employee Compensation Act – 1923 (See section 4) .
From India, Kota
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Maximum salary for the purpose of compensation was Rs. 4000, which was removed without any ceiling on 18-1-2010. However, it was later realized that if the ceiling is eliminated, the compensation could amount to crores. Therefore, on 31-5-2010, it was decided to set the salary at Rs. 8000. This is now the maximum salary upon which the compensation shall be calculated: 50% of Rs. 8000 in case of death and 60% of Rs. 8000 in case of total disablement. Additionally, the amended Act also includes provisions for full reimbursement of medical expenses.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Hi!
One of our employees, who was working as a Foreman (Civil) drawing 22,000/- per month, suddenly passed away (due to natural causes).
Please let me know what formalities need to be completed along with the compensation. He was not enrolled in ESI & PF.
Regards,
TM
From India, Pune
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One of our employees, who was working as a Foreman (Civil) drawing 22,000/- per month, suddenly passed away (due to natural causes).
Please let me know what formalities need to be completed along with the compensation. He was not enrolled in ESI & PF.
Regards,
TM
From India, Pune
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As already stated, compensation depends on wages and age of the employee. Therefore, by simply stating the wage, it is not possible to calculate compensation. Moreover, the schedule is also available, which is self-explanatory.
There is no compensation if the death has occurred not during the course of employment. In the present case, since it is a natural death, there exists no connection with employment; therefore, no compensation is payable to the representatives of the deceased.
Madhu.T.K
From India, Kannur
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There is no compensation if the death has occurred not during the course of employment. In the present case, since it is a natural death, there exists no connection with employment; therefore, no compensation is payable to the representatives of the deceased.
Madhu.T.K
From India, Kannur
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Dear Shri Madhu Sir,
Thank you very much for your reply.
By the way, I want to make his full and final settlement. He worked with us for 13 years, and now he is not under ESI & PF. Kindly let me know for the final settlement, I may consider Salary for the month, Leave salary, Gratuity, bonus, etc. Any other formalities to be done? Are there any statutory forms for this purpose? Should I take any signatures/thumb impression from the wife/son, etc., of the employee?
Kindly help to avoid any inconvenience/difficulties in the future for our company and/or for me.
Regards,
TM
From India, Pune
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Thank you very much for your reply.
By the way, I want to make his full and final settlement. He worked with us for 13 years, and now he is not under ESI & PF. Kindly let me know for the final settlement, I may consider Salary for the month, Leave salary, Gratuity, bonus, etc. Any other formalities to be done? Are there any statutory forms for this purpose? Should I take any signatures/thumb impression from the wife/son, etc., of the employee?
Kindly help to avoid any inconvenience/difficulties in the future for our company and/or for me.
Regards,
TM
From India, Pune
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For full and final settlement, there is no legal form, but you can create your own sheet with calculations for leave salary due, salary for the days worked, any additional payments that you would like to grant, etc. The payee should sign the sheet and the voucher to acknowledge receipt of the amount.
Regarding gratuity, it is advisable to collect a signature on Form L, which serves as an intimation of payment of gratuity to the employee or their representative in the case of a deceased employee.
Moreover, ensure that payments are made by cheque only.
Madhu.T.K
From India, Kannur
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Regarding gratuity, it is advisable to collect a signature on Form L, which serves as an intimation of payment of gratuity to the employee or their representative in the case of a deceased employee.
Moreover, ensure that payments are made by cheque only.
Madhu.T.K
From India, Kannur
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Dear Sir Good Mornig Please advise me that when compensation Act apply With warm Regards Abhishek Singh
From India, Delhi
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From India, Delhi
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Hi all,
Can anybody please send the compensations for an injured person? How much do we have to pay if he dies or if he is injured? How much amount does the employer have to pay, and what benefits will the employee get?
Thank you.
From India, Karur
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Can anybody please send the compensations for an injured person? How much do we have to pay if he dies or if he is injured? How much amount does the employer have to pay, and what benefits will the employee get?
Thank you.
From India, Karur
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Hi sir can anybody tell about the difference between out of employment and In the course of employment under employees compensation Act
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Understanding Employment-Related Accidents
In the course of employment means while on duty in the place where an employee is expected to perform their duties, and it includes notional extension. At the same time, if a welder is asked to pluck some tender coconuts, climbs up the tree, and falls, no compensation would be payable. This is because plucking coconuts is not part of his duty, even if he does it following instructions from his superiors. This accident is not considered to arise out of his employment because he is employed as a welder. Had he suffered a burn injury or eye irritation while welding, he would have been eligible for compensation because such injuries are considered accidents arising out of his employment.
Occupational Diseases and Employment
Any kind of disease contracted by employees due to the working environment, generally referred to as occupational diseases as per separate schedules in the Act, will be considered as arising out of employment. There is a minimum period of six months required to establish that the disease is related to employment.
From India, Kannur
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In the course of employment means while on duty in the place where an employee is expected to perform their duties, and it includes notional extension. At the same time, if a welder is asked to pluck some tender coconuts, climbs up the tree, and falls, no compensation would be payable. This is because plucking coconuts is not part of his duty, even if he does it following instructions from his superiors. This accident is not considered to arise out of his employment because he is employed as a welder. Had he suffered a burn injury or eye irritation while welding, he would have been eligible for compensation because such injuries are considered accidents arising out of his employment.
Occupational Diseases and Employment
Any kind of disease contracted by employees due to the working environment, generally referred to as occupational diseases as per separate schedules in the Act, will be considered as arising out of employment. There is a minimum period of six months required to establish that the disease is related to employment.
From India, Kannur
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Dear Suhas Khambeji,
You have shared the Employee Compensation Act calculation sheet, which is a ready reference and useful to HR professionals. So nice of you. I would like to request the password to the unprotected sheet, as per the recent amendment. The salary taken for EC needs to be amended from Rs. 8000/- to Rs. 15000/-. It would be a great help if you could share the password or alternatively, share and upload the sheet with the recent wage ceiling for EC calculation at Rs. 15,000/-
Regards,
Vipul Rana
From India, Thana
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You have shared the Employee Compensation Act calculation sheet, which is a ready reference and useful to HR professionals. So nice of you. I would like to request the password to the unprotected sheet, as per the recent amendment. The salary taken for EC needs to be amended from Rs. 8000/- to Rs. 15000/-. It would be a great help if you could share the password or alternatively, share and upload the sheet with the recent wage ceiling for EC calculation at Rs. 15,000/-
Regards,
Vipul Rana
From India, Thana
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Employee's Compensation Act-2009.pdf
THE EMPLOYEE COMPENSATION ACT.docx