Understanding EDLI Calculation: How to Navigate New PF Limits and Claim Procedures

My query is regarding the calculation of EDLI (Employees' Deposit Linked Insurance). I would like to understand how EDLI is calculated in accordance with the new PF ceiling limit.

Could you please clarify how much minimum contribution is required for EDLI?

Additionally, I would appreciate it if you could outline the procedure and the documents necessary to settle an EDLI claim.

Please provide a simple explanation and include examples if possible.

Thank you.

Thank you, Abbasiti. Salary means what? Please clarify, 24 times of what?

EDLI Calculation Formula

1. Through some source, I came to know about the calculation by the P.F. department for EDLI.
Formula: Average basic * 20 + 20%
Is it true?

2. At the time of calculation, is the PF balance of the employee considered?

Mr. Abbas has replied to you as per the latest circular of September 2014 of EPFO. Salary means the average of the last 12 months of EPF wages (the wage on which EPF contribution is being deducted). I request Abbas to clarify how this average salary will be calculated in case of the sad demise of an employee before completing 12 months of service.

Regards

Thank you all for your replies.

However, it is still not clear.

1. For example, an employee who has subscribed to P.F. for two months with a basic salary of 5000 suddenly passes away. In such a case, how does the PF department calculate his EDLI portion?
2. Please explain with a formula.

Dear friends,

If the service is less than twelve months, the average salary will be calculated based on actual service. If the average salary is $5000, the EDLI amount will be $5000 x 24 = $120,000.

Abbas P.S