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AjaySharma (HR Manager)     09 April 2012

Calculation of workmen compansation

Dear Expert/ Members,

 

Will any Expert /member will advice on the issue of calculation of W C that we are calculating compansation of a employee whose salary is 17085/- means half of it is Rs. 8542/-  age index is 169.44 means compansation should be paid Rs.1447441/-

While insuarnce company is considering maximum cealing of WC payment is Rs. 8000/- and half of it is Rs. 4000/- and age index is 169.44 means they are paying Rs 677760/-.

Who is right in present cenerio if any case law is refered will support my claim.  

Regards

Ajay Sharma

 



Learning

 4 Replies

Kumar Doab (FIN)     09 April 2012

Insurance company is right.

Look into section 4 of the Employees' Compensation Act, 1923for amount of compensation.

Max. wages for calculation of compensation is  Rs 8000 and there is provision for calculating compensation on the statutory minimum rates of wages.

Look into sec.  IV of the Employees Compensation Act, 1923 for Relevant factor.

AjaySharma (HR Manager)     10 April 2012

Dear Sir,

 

Thanks a lot for prompt reply but in section 4 i have not find sealing of Rs.8000/- anywhere.

Wording of section 4 is enclosed herewith.

 

Regards

Ajay Sharma

 

Amount of compensation.

 

4. (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely :—

 

(a)   where death results from the injury

an amount equal to fifty per cent of the monthly wages of the deceased employee multiplied by the relevant factor;

or

an amount of one lakh and twenty thousand rupees,

whichever is more;

(b)   where permanent total disablement results from the injury

an amount equal to sixty per cent of the monthly wages of the injured employee multiplied by the relevant factor;

or

an amount of one lakh and forty thousand rupees,

whichever is more.

Explanation I: For the purposes of clause (a) and clause (b), “relevant factor”, in relation to an employee means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the employee on his last birthday immedi­ately preceding the date on which the compensation fell due.

Explanation II: [***];

Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount of compensation mentioned in clauses (a) and (b);

(c)   where permanent partial disablement results from the injury

(i)    in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and

(ii)   in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury.

Explanation I: Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.

Explanation II: In assessing the loss of earning capacity for the purposes of sub-clause (ii) the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;

(d)  where temporary disablement, whether total or partial, results from the injury

a half-monthly payment of the sum equivalent to twenty-five per cent of monthly wages of the employee, to be paid in accordance with the provisions of sub-section (2).

 

 

 

 

(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to a employee in respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such employee in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the employee in accordance with the law of that country.

 

(1B) The Central Government may, by notification in the Official Gazette, specify, for the purposes of sub-section (1), such monthly wages in relation to an employee as it may consider necessary.

 

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day—

 

(i)   from the date of disablement where such disablement lasts for a period of twenty-eight days or more, or

 

(ii)  after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the disablement or during a period of five years, whichever period is shorter:

 

Provided that—

 

(a)  there shall be deducted from any lump sum or half-monthly pay­ments to which the employee is entitled the amount of any payment or allowance which the employee has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and

 

(b)  no half-monthly payment shall in any case exceed the amount, if any, by which half the amount of the monthly wages of the employee before the accident exceeds half the amount of such wages which he is earning after the accident.

 

Explanation : Any payment or allowance which the employee has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso.

 

(2A) The employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment.

 

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due, there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.]

 

(4) If the injury of the employee results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of not less than five thousand rupees for payment of the same to the eldest surviving dependant of the employee towards the expenditure of the funeral of such employee or where the employee did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure. 

 

Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount specified in this sub-section.

 

 

Kumar Doab (FIN)     10 April 2012

Central Government Notification No. S.O. 1258(E) vide Ministry of Labour & Employment dated 31st May 2010.

Kindly look into the attachment.

The insurance shall also be happy to reply to your query on the subject.

You have your self noted and posted that "Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount specified in this sub-section."

Amendment

of section 4.          7. In section 4 of the principal Act,—

(b) after sub-section (IA), the following sub-section shall be inserted,

namely:—

‘‘(IB) The Central Government may, by notification in the Official

Gazette, specify, for the purposes of sub-section (I), such monthly wages in

relation to an employee as it may consider necessary.’’;

STATEMENT OF OBJECTS AND REASONS:

4 (c) to confer power upon the Central Government to specify the monthly

wages in relation to an employee for the purposes of the aforesaid compensation;

 

FINANCIAL MEMORANDUM:

Sub-clause (b) of clause 7 of the Bill empowers the Central Government

to revise the wage ceiling from time to time for calculation of maximum amount of

compensation where death or permanent total disablement or permanent partial disablement

results from the injury.

 

 


Attached File : 522299588 wage limit0001.pdf, 522299588 the workmens compensation amendment bill 2009.pdf downloaded: 389 times

Srinivasan (Asst.Manager - HR Admin)     26 May 2012

Dear Experts,

Please tell me how to register under Employees compnesation act and how to take employees comensation insurance with a insurance company.

 

What are the procedures?

 

R.Srnivasan

Mobile : 9533697005


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