Prior to the amendment, the amount of wages considered in the below calculations was INR 8000. After the amendment, the amount of wages considered in the below calculations is INR 15,000, therefore the amount of compensation is substantially increased, Specified below.
Earlier In respect of death claims, the employee compensation act required the employer to pay compensation equal to 50% (i.e. INR 8000) of monthly wages of deceased employee multiplied by the relevant factor that is according to the act and specified under the act, or sum of INR 120,000 whichever is higher.
Now In respect of death claims, the employee compensation act requires the employer to pay compensation equal to 50% (i.e. INR 15000) of monthly wages of deceased employee multiplied by the relevant factor that is according to the act and specified under the act, or sum of INR 120,000 whichever is higher.
Earlier In case of permanent total disability, the compensation was 60% (i.e. INR 8000) of monthly wages of injured employee multiplied by the relevant factor Specified in the act, or a sum of INR 140,000 whichever is higher.
Now In case of permanent total disability, the compensation is 60% of monthly wages (i.e. INR 15000) of injured employee multiplied by the relevant factor Specified in the act, or a sum of INR 140,000 whichever is higher.
Previously, In case of temporary total disablement, the payment was 25% (i.e. INR 8000) of the wages of the injured employee.
Now, In case of temporary total disablement, the payment is 25% of the wages (i.e. INR 15000) of the injured employee.
Moreover, the policy already in force does not cover this higher limit of wages and the same is required to be endorsed according to the amendment in force as per the official gazette of India from 3rd January 2020. We at Beacon Insurance brokers therefore notify, that this much needed endorsement must be taken in to consideration by the entities and must be incorporated in their running policies.