1. What is EDLI?

Definition: EDLI (Employees' Deposit Linked Insurance) is an insurance scheme that provides life insurance coverage to employees covered under the Employees' Provident Fund (EPF) scheme.

Purpose: It offers financial protection to the family members of the employee in case of their untimely death during service.

2. How Does the EDLI Calculation Work?

The calculator uses the formula:

Where:

• \( EDLI \) — Insurance coverage amount
• \( \text{Average Salary} \) — Average monthly salary of the employee

Note: The maximum EDLI benefit is capped at ₹7 lakhs as per current regulations.

3. Importance of EDLI Calculation

Details: Understanding your EDLI coverage helps in financial planning and ensuring adequate life insurance coverage for your family.

4. Using the Calculator

Tips: Enter your average monthly salary in dollars. The calculator will compute your EDLI coverage amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the current maximum EDLI benefit?
A: The maximum EDLI benefit is currently ₹7 lakhs (as of 2023).

Q2: Who is eligible for EDLI?
A: All employees contributing to EPF are automatically covered under EDLI.

Q3: How is average salary calculated for EDLI?
A: It's the average monthly salary drawn during the 12 months preceding the month of death.

Q4: Is there any premium for EDLI?
A: The employer contributes 0.5% of the employee's salary (up to ₹15,000) towards EDLI premium.

Q5: What if my calculated EDLI exceeds the maximum limit?
A: The benefit will be capped at the maximum limit of ₹7 lakhs.