Hi, please anyone help on how to calculate EDLI charges? I know it is 0.5%, but I'm not sure whether it is calculated based on the employee's basic salary or a ceiling of Rs. 6500. Can someone confirm if the example below is correct?
If an employee has a basic salary of 10000:
- Employee share 12% - 1200
- Employer's 8.33% on 6500 - 541
- Employer's 3.37% on 6500 - 239
- EDLI 0.5% on 6500 - 32
- Admin charges 1.1% on 10000 - 110
- EDLI admin charges 0.01% on 6500 - 1
Thanks in advance
From India, Pondicherry
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1If an employee has a basic salary of 10000:
- Employee share 12% - 1200
- Employer's 8.33% on 6500 - 541
- Employer's 3.37% on 6500 - 239
- EDLI 0.5% on 6500 - 32
- Admin charges 1.1% on 10000 - 110
- EDLI admin charges 0.01% on 6500 - 1
Thanks in advance
From India, Pondicherry
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Dear, Your Calculation is Correct. The Maximum Contribtion to EDLI is Rs.32.50 only. But many unexampted companies Calculate EDLI for the whole Basic. S.Sethupathy, Erode.
From India, Selam
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From India, Selam
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Dear Sethupathy,
Thank you for your response. Can you please tell me the account headings for payment split in the challan? I have been informed to perform the following calculation: for example, if 5 employees have a basic salary of 10,000 each, then the totals should be as follows:
- Total A/C1: full basic wages - 50,000
- Total A/C10: ceiling basic - 32,500
Is this correct? Please clarify.
Thank you,
Thiru
From India, Pondicherry
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Thank you for your response. Can you please tell me the account headings for payment split in the challan? I have been informed to perform the following calculation: for example, if 5 employees have a basic salary of 10,000 each, then the totals should be as follows:
- Total A/C1: full basic wages - 50,000
- Total A/C10: ceiling basic - 32,500
Is this correct? Please clarify.
Thank you,
Thiru
From India, Pondicherry
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Dear sir,
The calculation should be:
EPF/EPS/EDLI salary - Rs. 10,000
A/c 1 (3.67% + 12%) - 659 + 1200 = 1859.
A/C 2 (1.1% of EPF salary) - 110
A/C 10 (8.33% of EPS salary) - 541
A/C 21 (0.5% of EPS/EDLI salary) - 50
A/C 22 (0.01% of EDLI salary) - 2
Let us clarify the same:
In EPF, the deductions bearing on employee salary should be 12% of the salary. The component considered for deduction should be (basic + DA + food conc. if any and any other special or undefined allowances).
The Employer Share of contribution for 12% should be bifurcated in this way: 3.67% + 8.33%. The 3.67% should be the difference of 12% (employee share) - 8.33% (pension fund).
The Ceiling for calculation of 8.33% should be a maximum of Rs. 6500/-
The Ceiling for EDLI calculation should also be the same, but in A/C, the minimum charge should be Rs. 2/- and the minimum charge should be Rs. 5 for A/C 2.
Hope this explanation clears all doubts regarding the calculation of EPF accumulations.
Thanks & regards,
Sumit Kumar Saxena
+91-9899669071, 0120-4131277
From India, Ghaziabad
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The calculation should be:
EPF/EPS/EDLI salary - Rs. 10,000
A/c 1 (3.67% + 12%) - 659 + 1200 = 1859.
A/C 2 (1.1% of EPF salary) - 110
A/C 10 (8.33% of EPS salary) - 541
A/C 21 (0.5% of EPS/EDLI salary) - 50
A/C 22 (0.01% of EDLI salary) - 2
Let us clarify the same:
In EPF, the deductions bearing on employee salary should be 12% of the salary. The component considered for deduction should be (basic + DA + food conc. if any and any other special or undefined allowances).
The Employer Share of contribution for 12% should be bifurcated in this way: 3.67% + 8.33%. The 3.67% should be the difference of 12% (employee share) - 8.33% (pension fund).
The Ceiling for calculation of 8.33% should be a maximum of Rs. 6500/-
The Ceiling for EDLI calculation should also be the same, but in A/C, the minimum charge should be Rs. 2/- and the minimum charge should be Rs. 5 for A/C 2.
Hope this explanation clears all doubts regarding the calculation of EPF accumulations.
Thanks & regards,
Sumit Kumar Saxena
+91-9899669071, 0120-4131277
From India, Ghaziabad
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