Difference between Pension wage and EDLI wage
The employee whose PF is deposited but pension is not deposited are included in EDLI wages. Reason can be attainment of pension limit age of 58.
For e.g
Employee E0001 has a Basic wage of 10000 but no Pension is desposited, 100% amount is deposited as EPF. Let's take 10000 as Basic Wage for E0001. Employee's PF is deposited on the basis of actual basic and not the 6500 limit.
Employee E0002 has a Basic wage of 6500 and Pension is also desposited. In this case 6500 is PF / Basic Wage and 6500 is pension wage for E0002.
And to calculate EDLI, we consider 6500 for both the employees.
Therefore in above example:
Basic Wage is 16500 (10000 + 6500)
EDLI Wage is 13000 (6500 + 6500)
But Pension wage is 6500 (6500)
Remember EDLI wage is also limited to 6500 like Pension.
Blog by BBSPL
The employee whose PF is deposited but pension is not deposited are included in EDLI wages. Reason can be attainment of pension limit age of 58.
For e.g
Employee E0001 has a Basic wage of 10000 but no Pension is desposited, 100% amount is deposited as EPF. Let's take 10000 as Basic Wage for E0001. Employee's PF is deposited on the basis of actual basic and not the 6500 limit.
Employee E0002 has a Basic wage of 6500 and Pension is also desposited. In this case 6500 is PF / Basic Wage and 6500 is pension wage for E0002.
And to calculate EDLI, we consider 6500 for both the employees.
Therefore in above example:
Basic Wage is 16500 (10000 + 6500)
EDLI Wage is 13000 (6500 + 6500)
But Pension wage is 6500 (6500)
Remember EDLI wage is also limited to 6500 like Pension.
Blog by BBSPL
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