Understanding EDLI and Admin Charges: Should We Calculate on Total Wages or Ceiling Limit?

Dear All Cite HR readers,

Please specify the payment calculation of EDLI and Admin charges for an exempted establishment. Should it be calculated based on total wages or the ceiling limit?

Kindly reply at the earliest.

Thanks & Regards,

Debajit Roy
Officer HR
Email: debajeetroy@gmail.com

EDLI for an exempted establishment is 0.001%, while for an unexempted one, it is 0.01%. However, the administrative charge is the same for exempted and unexempted establishments, i.e., 1.01%.

EDLI has to be paid on the consolidated salary of applicable employees, subject to the individual salary ceiling of Rs. 6500, i.e., the total salary will not be taken into account. This clause is common to both exempted and non-exempt organizations.

Abbas.P.S