1. What is EDLI Calculator?

Definition: This calculator estimates the Employees' Deposit Linked Insurance (EDLI) amount based on the average salary.

Purpose: It helps employees and employers determine the insurance coverage amount under the EDLI scheme.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

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

Explanation: The average salary is multiplied by 35 to calculate the EDLI coverage amount.

3. Importance of EDLI Calculation

Details: Proper EDLI calculation ensures adequate insurance coverage for employees 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 EDLI?
A: Employees' Deposit Linked Insurance is a social security scheme that provides life insurance protection to employees.

Q2: Why multiply by 35?
A: The factor of 35 is specified in the EDLI scheme rules to determine the insurance coverage amount.

Q3: What salary should I use?
A: Use the employee's average monthly salary over the last 12 months.

Q4: Is there a maximum limit?
A: Yes, there may be upper limits specified by the EDLI scheme rules.

Q5: Does this include all benefits?
A: This calculates the basic EDLI amount. Additional benefits may apply in certain cases.