1. What is EDLI?

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

Purpose: It offers financial security 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 amount payable ($)
• \( \text{Avg Salary} \) — Average monthly salary during the last 12 months ($/month)

Explanation: The EDLI amount is calculated as 35 times the average monthly salary of the employee.

3. Importance of EDLI Calculation

Details: Understanding the EDLI amount helps employees and their families plan their financial security and know the insurance coverage available.

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 benefit amount?
A: Currently, the maximum benefit is $70,000, even if 35 times the average salary exceeds this amount.

Q2: Who is eligible for EDLI?
A: All employees enrolled in EPF (except those specifically excluded) are automatically covered under EDLI.

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

Q4: Are there any additional benefits?
A: Yes, there's an additional $7,000 payable along with the EDLI amount.

Q5: Is the EDLI amount taxable?
A: No, the EDLI amount received by the nominee is tax-free.