EDLI will be calculated at a rate of 0.5% on total PF wages of the employees i.e basic wage + Dearness allowances. EDLI contributions will be present A/C no 21 of PF challan.
EDLI means Employee Deposit Linked Insurance. Employees who are covering under the employee provident fund scheme will also cover under the employee deposit insurance scheme 1976. Under the EDLI scheme, the beneficiaries or nominees of the beneficiaries will get insurance benefits during the death or illness of EPF members.
How to Calculate EDLI Contribution of Employees
EDLI Contribution Formula = (Basic salary of employee +DA) X 0.5%
For example, if an employee basic wage + DA i.e PF wage is 14000 Rs then EDLI contribution is calculated as follows
EDLI contribution of employee = 14000 X 0.5% = 7 Rs
Employers will calculate the EDLI contributions of employees on the total sum of PF wages of all the employees who are covering under the EPF scheme.
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