1. What is EDLI Pension?

Definition: EDLI (Employees' Deposit Linked Insurance) pension is calculated as 35 times the average salary of the employee.

Purpose: This insurance scheme provides financial protection to the family of employees in case of death while in service.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• EDLI — Employees' Deposit Linked Insurance amount ($)
• Average Salary — The average monthly salary of the employee ($/month)

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

3. Importance of EDLI Calculation

Details: Proper calculation ensures adequate insurance coverage for employees' families and compliance with labor regulations.

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 the maximum EDLI amount?
A: There is typically a cap on the maximum EDLI amount, which varies by country and scheme rules.

Q2: How is average salary calculated?
A: Average salary is usually calculated as the basic salary plus dearness allowance over the preceding 12 months.

Q3: Is EDLI pension taxable?
A: Tax treatment varies by jurisdiction. Consult a tax professional for specific advice.

Q4: Who is eligible for EDLI?
A: Typically all employees covered under the Employees' Provident Fund are automatically covered under EDLI.

Q5: Can the multiplier change?
A: The 35x multiplier is standard but may be revised by government regulations.