I have a question regarding EDLI calculation. As I know, the maximum payment slab of EDLI is 7 lakhs (15000*30 + 1,50,000) according to the 12-month average of Basic salary and D.A. However, if any of our employees expire within 3 months from the date of joining, in that case, what will be the calculation of EDLI payment?
From India, Kolkata
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4From India, Kolkata
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Hi, If the deceased employee is contributing to PF till the date of death then he/she is eligible for EDLI Payment. If you are from HR you can process the claim and forward to respective PF office.
From India, Madras
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From India, Madras
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Hi,
In the case of an employee who unfortunately passes away within 3 months from the date of joining, the calculation for the EDLI (Employee's Deposit Linked Insurance) benefit would be slightly different.
EDLI Calculation for Employees with Less Than 12 Months of Service
The EDLI benefit is calculated based on the average monthly salary drawn during the last 12 months prior to the employee's demise. However, since the employee has not completed 12 months of service, there's no 12-month average to consider.
In such cases, the calculation is usually done on a pro-rata basis. This means that the average monthly salary for the purpose of EDLI calculation will be taken as the total salary earned by the employee divided by the number of months they worked.
Simplified Formula for EDLI Benefit Calculation
Here's a simplified formula to calculate the EDLI benefit in this scenario:
EDLI Benefit = (Total salary earned by the employee during the period of employment / Number of months worked) * 30
Where:
- Total salary earned by the employee during the period of employment: This includes the basic salary and dearness allowance (D.A) for the months worked.
- Number of months worked: This is the period of actual service rendered by the employee before their demise.
Regards,
From India, Bangalore
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In the case of an employee who unfortunately passes away within 3 months from the date of joining, the calculation for the EDLI (Employee's Deposit Linked Insurance) benefit would be slightly different.
EDLI Calculation for Employees with Less Than 12 Months of Service
The EDLI benefit is calculated based on the average monthly salary drawn during the last 12 months prior to the employee's demise. However, since the employee has not completed 12 months of service, there's no 12-month average to consider.
In such cases, the calculation is usually done on a pro-rata basis. This means that the average monthly salary for the purpose of EDLI calculation will be taken as the total salary earned by the employee divided by the number of months they worked.
Simplified Formula for EDLI Benefit Calculation
Here's a simplified formula to calculate the EDLI benefit in this scenario:
EDLI Benefit = (Total salary earned by the employee during the period of employment / Number of months worked) * 30
Where:
- Total salary earned by the employee during the period of employment: This includes the basic salary and dearness allowance (D.A) for the months worked.
- Number of months worked: This is the period of actual service rendered by the employee before their demise.
Regards,
From India, Bangalore
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Ex Employee joining back..ppt
SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls