1. What is EDLI and Pension Calculator?

Definition: This calculator estimates the Employees' Deposit Linked Insurance (EDLI) amount and monthly pension based on salary and service years.

Purpose: It helps employees understand their potential insurance benefits and pension amounts under typical retirement schemes.

2. How Does the Calculator Work?

The calculator uses two formulas:

Where:

• EDLI — Employees' Deposit Linked Insurance amount
• Pension — Monthly pension amount
• Avg Salary — Average salary over employment period
• Salary — Final or current salary
• Service — Years of service

Explanation: EDLI is calculated as 35 times the average salary, while pension is calculated as (salary × service years) divided by 70.

3. Importance of EDLI and Pension Calculation

Details: Understanding these benefits helps in financial planning for retirement and ensures awareness of employment benefits.

4. Using the Calculator

Tips: Enter your average salary, current salary, and years of service. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is EDLI?
A: Employees' Deposit Linked Insurance is a life insurance benefit linked to an employee's provident fund account.

Q2: Is the pension calculation accurate for all countries?
A: This uses a standard formula but pension schemes vary by country. Check your local regulations for exact calculations.

Q3: Why divide by 70 in the pension formula?
A: This divisor is commonly used in pension calculations to determine monthly amounts based on years of service.

Q4: Does this include inflation adjustments?
A: No, these are basic calculations. Actual benefits may be adjusted for inflation or other factors.

Q5: Can I use this for early retirement calculations?
A: Yes, but early retirement may have different rules. Consult with your pension provider for exact details.