You can create EDLI Contribution pay head by selecting Employer’s Other Charges as the Pay head type during pay head creation.
To create Employees Deposit Linked Insurance (EDLI) Contribution Pay Head
1. Go to Gateway of Tally > Payroll Info. > Pay Heads > Create.
2. Enter the name of the pay head in the Name field.
3. Select Employer’s Other Charges as the Pay Head Type from the list of Pay Head Types.
4. Select EDLI Contribution (A/c No. 21) in the Statutory Pay Type field.
5. Select Current Liabilities from the List of Groups , in the Under field.
By default, Affect Net Salary is set to No .
By default, the Calculation Type field is set to As Computed Value and the Calculation Period is set to Months .
By default, Rounding Method is set to Normal Rounding and Rounding Limit as 1 .
By default, the Compute field is set to On PF Gross .
Note: PF Gross refers to the value of pay heads used for the A/c. No. 1 (Employee PF) Pay Head.
6. Enter the desired date from when EDLI contribution will be effective in the Effective Date field.
7. Enter the values in the From Amount and Amount Upto fields, if required.
8. Set the Slab Types to Percentage .
9. Enter the EDLI percentage in the Value Basis field.
10. Press Enter to accept.
Note: This pay head is not included in the salary details for the employees because this is an employer-related expense.