Creating EDLI Contribution Pay Head

To create Employees Deposit Linked Insurance (EDLI) Contribution Pay Head

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create

  1. Enter the name of the Pay Head in the Name field

  2. Select Employer’s Other Charges as the Pay Head Type from the list of Pay Head Types

  3. Select EDLI Contribution (A/c No. 21) in the Statutory Pay Type field

  4. Select Current Liabilities from the List of Groups in the Under field

  5. By default, Affect Net Salary is set to No

  6. The Calculation Type field is pre-filled with As Computed Value and Calculation Period is pre-filled with Months by default

  7. By Default, Rounding Method is set to Normal Rounding and Rounding Limit as 1

  8. The Compute field is pre-filled with On PF Gross

Note: PF Gross refers to the value of Pay Heads used for A/c. No. 1 (Employee PF) Pay Head.

  1. In the Effective Date field, enter the desired date from which the EDLI Contribution will come into effect

  2. Enter the values in the From Amount and Amount Upto fields if required

  3. The Slab Types is set as Percentage

  4. Enter the EDLI Percentage in the Value Basis field

  1. Press Enter to accept.

Note: This Pay Head will not be included in the Salary Details for the Employees as this is an employer related expense and needs to be handled separately.