Now effective from 3rd January 2020, the amount of monthly wages has been increased from Rs. 8,000/- to Rs. 15,000/-.
My query is, if a contractual employee of XYZ has wages below Rs. 15,000/-, for example, Rs. 12,000/- per month, will they be eligible for the enhanced monthly wages of Rs. 15,000/- or will it be calculated based on Rs. 12,000/-?
Is the wage ceiling Rs. 15,000/-, or even if the employee's wages are Rs. 12,000/-, should it be assumed that their wages are Rs. 15,000/-?
I would appreciate an expert's explanation.
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My query is, if a contractual employee of XYZ has wages below Rs. 15,000/-, for example, Rs. 12,000/- per month, will they be eligible for the enhanced monthly wages of Rs. 15,000/- or will it be calculated based on Rs. 12,000/-?
Is the wage ceiling Rs. 15,000/-, or even if the employee's wages are Rs. 12,000/-, should it be assumed that their wages are Rs. 15,000/-?
I would appreciate an expert's explanation.
Acknowledge(0)Amend(0)
Synopsis of Changes in the Employee's Compensation Act
(1) The WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009. Wherever "workman" or "workmen" is mentioned in the entire Act, it needs to be read as "Employee."
(2) The compensation payable on death from the injury is: (i) the minimum of Rs. 80,000 is increased to Rs. 120,000 or (ii) 50% of the monthly wages of the deceased multiplied by the relevant factor.
(3) The compensation payable on Permanent Total Disablement from the injury is: (i) the minimum of Rs. 90,000 is increased to Rs. 140,000 or (ii) 60% of the monthly wages of the deceased multiplied by the relevant factor.
(4) The definition of wages remains unaltered.
(5) For the purpose of claims settlement, actual monthly wages have to be calculated without a ceiling of Rs. 4,000. This will lead to a multifold increase in claim outgo. The maximum amount of claim compensation payable was Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement. The removal of the ceiling of Rs. 4,000 will increase the claims outgo.
(6) The definition of workmen is replaced by "Definition of Employee," which now includes CLERICAL employees.
The maximum claim outgo in the case of death when the ceiling of Rs. 4,000 was in place is calculated as follows: 50% of 4,000 * 228.54 (if the age of the employee was 16 years from the table below) = Rs. 4.56 lakhs. The revised monthly wage ceiling limit of 50% of Rs. 4,000 is increased to Rs. 8,000 under the Employees Compensation Act for maximum compensation calculation. A new monthly wage-ceiling limit of Rs. 8,000 is introduced for the calculation of 50% of it during the computation of maximum compensation under the Act. Hence, the maximum compensation can go UP TO 50% of 8,000, which amounts to Rs. 4,000, to be multiplied by the age factor. Thus, effectively it was erstwhile 50% of Rs. 4,000 and now it is 50% of Rs. 8,000. This amendment is notified via Central Government Notification No. S.O. 1258(E) by the Ministry of Labour & Employment dated 31st May 2010.
From India, Ahmadabad
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747(1) The WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009. Wherever "workman" or "workmen" is mentioned in the entire Act, it needs to be read as "Employee."
(2) The compensation payable on death from the injury is: (i) the minimum of Rs. 80,000 is increased to Rs. 120,000 or (ii) 50% of the monthly wages of the deceased multiplied by the relevant factor.
(3) The compensation payable on Permanent Total Disablement from the injury is: (i) the minimum of Rs. 90,000 is increased to Rs. 140,000 or (ii) 60% of the monthly wages of the deceased multiplied by the relevant factor.
(4) The definition of wages remains unaltered.
(5) For the purpose of claims settlement, actual monthly wages have to be calculated without a ceiling of Rs. 4,000. This will lead to a multifold increase in claim outgo. The maximum amount of claim compensation payable was Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement. The removal of the ceiling of Rs. 4,000 will increase the claims outgo.
(6) The definition of workmen is replaced by "Definition of Employee," which now includes CLERICAL employees.
The maximum claim outgo in the case of death when the ceiling of Rs. 4,000 was in place is calculated as follows: 50% of 4,000 * 228.54 (if the age of the employee was 16 years from the table below) = Rs. 4.56 lakhs. The revised monthly wage ceiling limit of 50% of Rs. 4,000 is increased to Rs. 8,000 under the Employees Compensation Act for maximum compensation calculation. A new monthly wage-ceiling limit of Rs. 8,000 is introduced for the calculation of 50% of it during the computation of maximum compensation under the Act. Hence, the maximum compensation can go UP TO 50% of 8,000, which amounts to Rs. 4,000, to be multiplied by the age factor. Thus, effectively it was erstwhile 50% of Rs. 4,000 and now it is 50% of Rs. 8,000. This amendment is notified via Central Government Notification No. S.O. 1258(E) by the Ministry of Labour & Employment dated 31st May 2010.
From India, Ahmadabad
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Wage Ceiling Under The Payment Of Wages Act Increased From 18,000 To 24,000.pdf