1. What is EDLI Calculator Means?

Definition: This calculator estimates the Employee Deposit Linked Insurance (EDLI) amount based on the average salary of an employee.

Purpose: It helps employers and employees understand the insurance coverage provided under the EDLI scheme.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( EDLI \) — Employee Deposit Linked Insurance amount ($)
• \( \text{Avg Salary} \) — Average monthly salary ($/month)

Explanation: The average salary is multiplied by 35 to determine the insurance coverage amount under the EDLI scheme.

3. Importance of EDLI Calculation

Details: Understanding EDLI helps in financial planning and ensures employees are aware of their insurance benefits.

4. Using the Calculator

Tips: Enter the average monthly salary in dollars. The value must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is EDLI?
A: Employee Deposit Linked Insurance is an insurance scheme linked to the provident fund account of employees.

Q2: Why is the multiplier 35?
A: The EDLI scheme typically provides insurance coverage equal to 35 times the average monthly salary.

Q3: Is there a maximum limit for EDLI?
A: Yes, there is usually a maximum cap on the EDLI amount, which may vary by country or scheme.

Q4: How is average salary calculated?
A: Average salary is typically calculated as the average of the last 12 months' salary.

Q5: Is EDLI mandatory for all employees?
A: This depends on local labor laws and the specific provident fund scheme regulations.