Confused About EDLI Contribution Calculation? Seeking Clarity on EPF Act Compliance

Doubt on the calculation of "Total EDLI Contribution (ER Share A/C 21)"

Option 1: Total EDLI Contribution (ER Share A/C 21) x Gross Wages

Option 2: Total EDLI Contribution (ER Share A/C 21) x EDLI Wages

Please suggest to us which option complies with the EPF Act.

Regards,
Sravan

Please find the corrected text below:

DO NOT WORRY ABOUT THE EDLI CALCULATION; IT IS DONE ON THE WEBSITE. YOU ONLY HAVE TO CALCULATE ADMIN CHARGES FOR A/C 2 & A/C 22.

EDLI should be calculated on the total wages on which 12% is contributed by the employer. For example, if EPF contribution salary is Rs. 5,00,000/- per month, then EDLI would be calculated at 0.5% on Rs. 5,00,000/-, which is equal to Rs. 2,500/- per month. However, the total gross may be more than Rs. 5,00,000/- per month.

-V. Murali

Dear Sravan,

The Employees’ Deposit Linked Insurance (EDLI) contribution is applicable on salaries up to a ceiling (presently set at Rs. 15,000). There is no requirement to contribute beyond this ceiling limit. Compensation is capped based on the ceiling salary.

Regards,
Abbas P.S

Maximum EDLI wages presently cannot exceed Rs 15,000/-. EDLI contribution is calculated at 0.50% on EDLI wages.