Confused About EPF Contributions? Need Clarity on EDLI Calculations Above Wage Ceiling

Clarification Needed on EPF Contributions

I have joined a new organization and am in the process of calculating PF. However, I have come across a situation where the employer is contributing more to EPF than the wage ceiling. I have the following doubts and would appreciate clarification in this regard:

- Should EDLI be calculated based on the basic wage earned or the EPS wage ceiling?
- Are EDLI admin/inspection charges also calculated based on the basic wage earned or the EPS wage ceiling?

Please kindly advise.

Regards,
Gowri Sankar

EDLI Contribution and Administrative Charges

Paragraph 7 of the EDLI scheme states that where the monthly pay of an employee exceeds Rs. 6500/-, the EDLI contribution by the employer is confined to Rs. 6500/-. The administrative charges shall also be calculated on basic + DA + retaining allowance + cash value of food concession.

Regards,
B. Saikumar

Thank you, Sai, for stating the right information. Yes, I know admin charges are calculated based on basic pay + DA. However, I have a question about the EDLI admin/inspection charges. Are they calculated based on 6500/-?

Regards,
Gowri Sankara

Yes, when the contribution is confined to Rs. 6500, logically, the administrative charges too shall be confined to Rs. 6500 per month.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai