I have a question regarding EDLI calculation. As I Know the maximum payment slab of EDLI is 7 lacs (15000*30 +1,50,000) according to 12 months average of Basic salary and D.A . However, If any of our employees expires within 3 months from the date of joining, in that case, what will be the calculation of EDLI payment?
From India, Kolkata
4From India, Kolkata
https://economictimes.indiatimes.com/wealth/save/epfo-issues-clarification-on-edli-insurance-claims/articleshow/94961996.cms?from=mdr
Hi, If the deceased employee is contributing to PF till the date of death then he/she is eligible for EDLI Payment. If you are from HR you can process the claim and forward to respective PF office.
From India, Madras
From India, Madras
Hi
In the case of an employee who unfortunately passes away within 3 months from the date of joining, the calculation for the EDLI (Employee's Deposit Linked Insurance) benefit would be slightly different.
The EDLI benefit is calculated based on the average monthly salary drawn during the last 12 months prior to the employee's demise. However, since the employee has not completed 12 months of service, there's no 12-month average to consider.
In such cases, the calculation is usually done on a pro-rata basis. This means that the average monthly salary for the purpose of EDLI calculation will be taken as the total salary earned by the employee divided by the number of months they worked.
Here's a simplified formula to calculate the EDLI benefit in this scenario:
EDLI Benefit = (Total salary earned by the employee during the period of employment / Number of months worked) * 30
Where:
Total salary earned by the employee during the period of employment: This includes the basic salary and dearness allowance (D.A) for the months worked.
Number of months worked: This is the period of actual service rendered by the employee before their demise.
Regards,
From India, Bangalore
In the case of an employee who unfortunately passes away within 3 months from the date of joining, the calculation for the EDLI (Employee's Deposit Linked Insurance) benefit would be slightly different.
The EDLI benefit is calculated based on the average monthly salary drawn during the last 12 months prior to the employee's demise. However, since the employee has not completed 12 months of service, there's no 12-month average to consider.
In such cases, the calculation is usually done on a pro-rata basis. This means that the average monthly salary for the purpose of EDLI calculation will be taken as the total salary earned by the employee divided by the number of months they worked.
Here's a simplified formula to calculate the EDLI benefit in this scenario:
EDLI Benefit = (Total salary earned by the employee during the period of employment / Number of months worked) * 30
Where:
Total salary earned by the employee during the period of employment: This includes the basic salary and dearness allowance (D.A) for the months worked.
Number of months worked: This is the period of actual service rendered by the employee before their demise.
Regards,
From India, Bangalore
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EDLI CALCULATION.xls x