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:

• \( EDLI \) — Employees' 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.

3. Importance of EDLI Calculation

Details: Proper EDLI estimation ensures adequate insurance coverage for employees and helps employers comply with statutory requirements.

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: EDLI is an insurance scheme linked to employees' provident fund that provides life insurance protection.

Q2: Why is the multiplier 35?
A: The 35x multiplier is the standard formula specified in the EDLI scheme rules.

Q3: Is there a maximum limit for EDLI?
A: Yes, there is typically a maximum coverage limit which may vary by jurisdiction.

Q4: How is average salary calculated?
A: It's usually the average of the last 12 months' salary or as defined by the scheme rules.

Q5: Who is eligible for EDLI?
A: Generally, all employees covered under the provident fund scheme are eligible.