Hi, I need information about Voluntary Retirement Scheme and also how much compensation given under it.
From India, Nasik
2From India, Nasik
Dear friend, Make it clear that in which organisation you are working. Abbas.P.S
From India, Bangalore
From India, Bangalore
Hello, During retirement/voluntary retirement, the F&F include Gratuity if employee is eligible, leave en-cashment, PF amount, last month wages etc.
From India, Chennai
From India, Chennai
Dear Nehe.Bhausahe,
In Central PSUs (in accordance with the Department of Public Enterprises) the VRS is as follows:-
A. 35 days' salary for each year for past service and 25 days' salary for future service. (if the service is not full year, calculation will be made on pro rata / proportionate basis.)
B. 45 years' salary for each year for past service only. (Here completed years only will be taken into account.)
Out of the above whichever is high will be considered as VR compensation. But payment is subject to ceiling of left over service salary.
For example :-
An employee with Date of birth as 02.01.1961, Date of join as 23.02.1987, salary as Rs. 30000 and retirement age as 58 years is getting relieved on VRS on 31.07.2015.
Here past service is 28 years, 5 months and 6 days (in decimal 28.44) and future service is 3 years and 6 months (in decimal 3.5)
As per Scheme A, VR compensation in days is 28.44 x 35 + 3.5 x 25 = 995.43+87.5 = 1082.93
As per Scheme B, VR compensation in days is 28 x 45 = 1260
Here whichever is 1260 days.
Salary for 1260 days is 1260/30x30000 = 1260000. - (1)
Salary for left out / balance service is = 42x30000 = 1260000 - (2)
Out of (1) & (2), whichever is less is 1260000. Hence VR compensation is Rs. 12,60,000.
I shall insert an excel sheet in this regard.
Abbas.P.S,
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
In Central PSUs (in accordance with the Department of Public Enterprises) the VRS is as follows:-
A. 35 days' salary for each year for past service and 25 days' salary for future service. (if the service is not full year, calculation will be made on pro rata / proportionate basis.)
B. 45 years' salary for each year for past service only. (Here completed years only will be taken into account.)
Out of the above whichever is high will be considered as VR compensation. But payment is subject to ceiling of left over service salary.
For example :-
An employee with Date of birth as 02.01.1961, Date of join as 23.02.1987, salary as Rs. 30000 and retirement age as 58 years is getting relieved on VRS on 31.07.2015.
Here past service is 28 years, 5 months and 6 days (in decimal 28.44) and future service is 3 years and 6 months (in decimal 3.5)
As per Scheme A, VR compensation in days is 28.44 x 35 + 3.5 x 25 = 995.43+87.5 = 1082.93
As per Scheme B, VR compensation in days is 28 x 45 = 1260
Here whichever is 1260 days.
Salary for 1260 days is 1260/30x30000 = 1260000. - (1)
Salary for left out / balance service is = 42x30000 = 1260000 - (2)
Out of (1) & (2), whichever is less is 1260000. Hence VR compensation is Rs. 12,60,000.
I shall insert an excel sheet in this regard.
Abbas.P.S,
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
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Voluntary Retirement Scheme.pdf
Voluntary Retirement.docx