EDLI
EDLI stands for Employees Deposit Linked Insurance (India Death payment Scheme)
All employees to whom the Employee’s Provident Fund and Miscellaneous Provision Act, 1952 applies, have a Statutory liability to subscribe to Employee’s Deposit Linked Insurance scheme, 1976 to provide for the benefit of Life insurance to all their employees.
Under the scheme as amended with effect from 24th June, 2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs 35,000, insurance cover would be equal to Rs 35,000 plus 25% of the amount in excess of Rs 35,000 subject to a maximum of Rs 60,000. Thus if the length of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee’s family is either inadequate or non-existent.
The contribution @0.50% of each employee’s salary is payable by the Employer to the Provident Fund Authorities.

Gratuity Schemes
Gratuity refers to the emoluments received by an employee from his employer in gratitude for the services rendered. It is an amount given to employees by employer when they leave the job after completing five years or minimum 240 days per year or after retirement. The number of years may differ from company to company.
Gratuity is payable under the payment of wages act. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.

1. On his superannuation, or
2. On his retirement or resignation, or
3. On his death or disablement due to accident or disease.

Leave Encashment
Many employers are providing Leave Encashment benefit in addition to other retirement benefits to their employees which is a lumpsum amount payable to the employees or their dependants on retirement, death, disablement, voluntary retirement etc.
Funding:
End-of -the-year leave encashment facility available to employees, can be a huge liability to the company. So can be Medical Leave Encashment, if provided for. To meet this need of entrepreneurs and businesses. Both public sector and private insurance company has introduced Group Leave Encashment Scheme. Just pay a yearly premium, fund your leave encashment liability and let insurance company take care of your worries.
Nature of liability:
The amount depends upon the leave to the credit of the employee and his/ her salary at the time of exit. Liability is of increasing nature as it is linked with salary as well as leave position.
Feature:
Group Leave Encashment Schemes (GLES) of insurers helps the employers in funding of their leave encashment liability. The salient features of the scheme are as follows:-

1. The Company will submit the employees’ data and rules for Leave Encashment. Insurer will make actuarial valuation and find out the funding requirements which shall be quoted to the company. The company will contribute as per the advice of Insurer.
2. A uniform life cover per employee or graded cover will be provided under One Year Renewable Group Term Assurance Plan of Insurance Co. A small term insurance premium will be charged in entitled to the amount of Insurance Cover, which will be tax-free.
3. The insurance company will do the Actuarial Valuation and will provide necessary certificate as per AS-15.
   The amount of Term insurance Premium paid for Life Insurance Cover will be treated as business expenses.

Superannuation Schemes
It is a voluntary scheme for the purpose of tax planning. Company contributes up to 15% of basic wages which Is an allowable expense in the hands of employer and tax free receipt in the hands of employees. Employee does not contribute to this scheme.
The funds thus accumulated can be invested in house or can be invested with LIC who acts as a custodian of the fund. If the funds are invested in house, then the fund is created under an irrevocable trust recognized under the Income Tax Act, 1961.
A mandatory service clause varying from 1 to 10 years is put in by employers.

Key Man Insurance
An insurance policy taken out on the life of an executive or a senior employee of an organization whose death would cause significant loss to the organization. The liability is the estimated cost of the loss (in business lost, and replacement of the individual)
In the event of death, proceeds of the policy would be payable to the organization which took out the policy.