PAYROLL: EDLI Exemption Configuration (India)

Organisations that provide an alternative group insurance benefit, as permitted under EPFO regulations, may be eligible for exemption from EDLI (Employees’ Deposit Linked Insurance) contributions. Keka now supports EDLI Exemption Configuration directly within PF settings to ensure compliant payroll processing when such exemptions apply.

What’s New

A new EDLI Exemption option is available under PF Settings.

When enabled, EDLI contributions are fully excluded from payroll calculations, salary structures, and statutory outputs — ensuring system-wide suppression of EDLI wherever applicable.

How It Works

Enabling EDLI Exemption

Once the EDLI exemption option is enabled:

• EDLI charges are not included in the Salary Structure
• EDLI contributions are not calculated during Payroll Processing
• EDLI amounts do not appear in Payroll or Statutory Reports
• EDLI details are excluded from the ECR (Electronic Challan-cum-Return) file

This ensures complete removal of EDLI components across payroll computation and compliance workflows, preventing discrepancies in statutory filings.

Impact Across Modules

• Salary Structure: EDLI components are excluded
• Payroll Processing: No EDLI calculation performed
• Statutory Reports: EDLI values suppressed
• ECR File: No EDLI-related entries generated

The configuration is applied consistently across all relevant payroll and compliance layers.

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