Hi Folks
I understand EDLI is calculated based on 0.5% of PF Actual Salary ( if salary exceeds Rs.6500 then Rs.6500 will be considered as PF Actual Salary)...I have doubt only in the Rounding rule, based on my understanding Rounding rule for EDLI is to nearest Rupee
My doubt where do we need to apply the rounding rule
(a) at the employee level (or)
(b) at the sum of PF Actual wages level
Example: If I have 4 employee's whose PF actual wages are Rs.5800, Rs.6500 ( 2 employees) & Rs.5483
Method (a) --> 0.005 * 5800 = 29
0.005 * 6500 = 33 ( 32.5 rounded to 33)
0.005 * 6500 = 33
0.005 * 5483 = 27.415 - round to 27
Total = 122
Method (b)---> 0.005 * (5800+6500+6500+5483) = 121
Because we will get 2 different values based on the above approaches
Currently we are doing at the employee level, looks like statutory wise this is wrong, can anyone help to clarify this?
Thanks & Regards
Arun
From India, Bangalore
I understand EDLI is calculated based on 0.5% of PF Actual Salary ( if salary exceeds Rs.6500 then Rs.6500 will be considered as PF Actual Salary)...I have doubt only in the Rounding rule, based on my understanding Rounding rule for EDLI is to nearest Rupee
My doubt where do we need to apply the rounding rule
(a) at the employee level (or)
(b) at the sum of PF Actual wages level
Example: If I have 4 employee's whose PF actual wages are Rs.5800, Rs.6500 ( 2 employees) & Rs.5483
Method (a) --> 0.005 * 5800 = 29
0.005 * 6500 = 33 ( 32.5 rounded to 33)
0.005 * 6500 = 33
0.005 * 5483 = 27.415 - round to 27
Total = 122
Method (b)---> 0.005 * (5800+6500+6500+5483) = 121
Because we will get 2 different values based on the above approaches
Currently we are doing at the employee level, looks like statutory wise this is wrong, can anyone help to clarify this?
Thanks & Regards
Arun
From India, Bangalore
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