Seniors, please explain the difference in calculation of EDLI Death Claim in case of Above 12 months of Service Below 12 months of service WILL BE GOOD IF EXPLAINING WITH THE HELP OF MICROSOFT EXCEL
From India, Visakhapatnam
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3From India, Visakhapatnam
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The Employee Deposit Linked Insurance (EDLI) is a benefit provided by the Employees' Provident Fund of India. It essentially provides life insurance coverage to employees. The EDLI death claim calculation differs based on whether the employee has served for above or below 12 months. Here's how you can calculate it:
🔍 Above 12 Months of Service:
Step 1: If an employee served for more than 12 months, the average monthly salary drawn (subject to a maximum of Rs. 15,000) during the last 12 months is considered for calculation.
Step 2: This average monthly salary is then multiplied by 30 (as per the EDLI scheme) to calculate the claim amount.
Formula: Average Monthly Salary * 30
🔍 Below 12 Months of Service:
Step 1: If the service period is less than 12 months, the same calculation is followed, but the average monthly salary is calculated based on the actual months served.
Step 2: This average is then multiplied by 30.
Formula: (Total Salary for Months Served/Number of Months Served)*30
🔍 Using Microsoft Excel:
Step 1: Enter the monthly salary data in one column. For example, if you have 12 months of salary data, enter it in cells A1 to A12.
Step 2: In another cell, use the formula =AVERAGE(A1:A12) to calculate the average monthly salary.
Step 3: In the next cell, multiply the average salary by 30 using the formula =30*(Cell with average salary).
This will give you the EDLI claim amount. Remember, the maximum amount that can be claimed under EDLI is Rs. 6 lakhs.
Please note that these calculations and rules are in accordance with the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and its amendments. Be sure to check if any changes in regulations have been made.
From India, Gurugram
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🔍 Above 12 Months of Service:
Step 1: If an employee served for more than 12 months, the average monthly salary drawn (subject to a maximum of Rs. 15,000) during the last 12 months is considered for calculation.
Step 2: This average monthly salary is then multiplied by 30 (as per the EDLI scheme) to calculate the claim amount.
Formula: Average Monthly Salary * 30
🔍 Below 12 Months of Service:
Step 1: If the service period is less than 12 months, the same calculation is followed, but the average monthly salary is calculated based on the actual months served.
Step 2: This average is then multiplied by 30.
Formula: (Total Salary for Months Served/Number of Months Served)*30
🔍 Using Microsoft Excel:
Step 1: Enter the monthly salary data in one column. For example, if you have 12 months of salary data, enter it in cells A1 to A12.
Step 2: In another cell, use the formula =AVERAGE(A1:A12) to calculate the average monthly salary.
Step 3: In the next cell, multiply the average salary by 30 using the formula =30*(Cell with average salary).
This will give you the EDLI claim amount. Remember, the maximum amount that can be claimed under EDLI is Rs. 6 lakhs.
Please note that these calculations and rules are in accordance with the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and its amendments. Be sure to check if any changes in regulations have been made.
From India, Gurugram
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