1. What is EDLI in PF?

Definition: EDLI (Employees' Deposit Linked Insurance) is an insurance scheme linked to the Employees' Provident Fund (PF) in India.

Purpose: It provides life insurance protection to PF members, with the premium calculated as a percentage of the member's salary.

2. How Does the EDLI Calculation Work?

The calculator uses the formula:

Where:

• \( EDLI \) — EDLI charges (in currency)
• \( \text{Avg Salary} \) — Average monthly salary (in currency)

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

3. Importance of EDLI Calculation

Details: Proper EDLI calculation ensures compliance with labor laws and provides financial security to employees' families in case of unfortunate events.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current EDLI contribution rate?
A: The standard rate is 0.5% of the employee's salary, but this calculator shows the insurance coverage amount (35 times salary).

Q2: Is there a maximum limit for EDLI coverage?
A: Yes, currently the maximum insurance benefit under EDLI is ₹7 lakh (as of 2023).

Q3: Who pays the EDLI contribution?
A: The employer pays the entire EDLI contribution; no deduction is made from the employee's salary.

Q4: What is covered under EDLI?
A: It provides life insurance coverage to PF members during their service period.

Q5: How often is EDLI calculated?
A: EDLI contributions are typically calculated and paid monthly along with PF contributions.