How Do You Calculate EDLI for a Private Policy When Exempt from PF?

Hi,

I am working in a Pvt company, and I need help in calculating EDLI. Our company is exempt from EDLI in PF, but we undertake a PVT EDLI Policy. In this regard, how is EDLI calculated?

If you are exempted from EDLI on the basis of your group insurance policy of LIC, you need not contribute towards EDLI and administration charges thereon. However, you have to pay Inspection charges at 0.005% of the total wages every month.

Regards,
Madhu.T.K

Dear Sir,

Recently, there has been an amendment in the provisions of the EDLI Scheme 1976, where an enhancement is proposed under the said Act. If so, will LIC also enhance the ceiling to provide a greater increase in the quantum of the sum to qualify for exemption under the PF Act? Kindly clarify.

R. Srinivasan

Dear Sir,

We are currently calculating arrear PF apart from the basic amount of 420 and PF amount of 51. Could you please confirm if the calculation for EDLI wages at 0.01000% equals 0.41, or if there is a minimum amount required?

Thank you.

Dear Madhu Sir,

As per your message, what would be the total percentage of PF admin charges (normally it is 1.61% of Basic with EDLI included)? Could you also provide the breakdown of the calculations?

Thanks & Regards,
Jeene

Dear VSV Lakshmi,

EDLI calculation is on central pooling basis, i.e., the calculation is not individual. Take the consolidated salary of all applicable employees (subject to the individual ceiling of Rs. 6500). Calculate the 0.5% and round to the nearest rupee. However, this should not be below Rs. 2.

Abbas.P.S

Can you please confirm the below post on EDLI? Most forum posts show EDLI calculated from total wages.

https://www.citehr.com/333224-edli-c...ml#post1526219

Thanks