What Is The VRS Scheme In BSNL?

What are the benefits of VRS?

The employee who opts for VRS is entitled to get: — Employee gets provident fund (PF) and gratuity dues.

— Compensation received at the time of VRS is tax-free up to the prescribed amount on fulfilling certain conditions.

— Companies also offer benefit packages to the employees who opt for VRS..

How is VRS amount calculated?

The VRS amount is limited to an amount which is equal to three months’ salary of each completed years of service. Or in another way of calculation is salary at the time of retirement multiplied by the rest of the months of service before normal retirement. VRS amount up to Rs. 5 lakhs is exempted from tax.

What is VRS job?

Definition: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees. Description: VRS applies to an employee who has completed 10 years of service or is above 40 years of age. ?

What is difference between resignation and voluntary retirement?

“One of the basic distinctions is that in case of resignation it can be tendered at any time, but in the case of voluntary retirement, it can only be sought for after rendering the prescribed period of qualifying service.

Will BSNL survive after VRS?

“We are saving up to 50% or Rs 600 crore monthly on employee cost. … Some 78,569 employees have opted for VRS, and Purwar said the current employee base of 70,000 would be a reasonable number to support the network. BSNL will however continue to meet salary expenses of those retiring till January 31, 2020.

How do you take VRS?

Presently, all employees on completion of 30 years qualifying service can take voluntary retirement by giving 3 months notice. Group A & B Officers who had entered service before the age of 35 years have the right to retire after attaining the age of 50 years by giving a similar notice.

Can VRS be rejected?

The management of a nationalised bank has the discretion either to accept or reject an employee’s request for voluntary retirement under the Voluntary Retirement Scheme (VRS) and he cannot claim a mandatory right that his request should be accepted, the Supreme Court has held.

Does BSNL employees get pension?

Pension is admissible to permanent employees who retire with a qualifying service of not less than ten years. In case of the BSNL employees, the minimum amount of pension will be Rs. … 1275 p.m. and maximum will be 50% of the highest pay plus Dearness Pay subject to maximum Rs.

How is BSNL gratuity calculated?

The gratuity amount depends upon the tenure of service and last drawn salary. It is calculated according to this formula: Last drawn salary (basic salary plus dearness allowance) X number of completed years of service X 15/26.

What is the salary of BSNL employees?

290 Bsnl employees have shared their salaries on Glassdoor….Bsnl Salaries.Job TitleSalaryJTO salaries – 30 salaries reported₹ 42,798/moJunior Telecom Officer salaries – 23 salaries reported₹ 8,15,462/yr18 more rows

What is VRS scheme in BSNL?

Nearly one lakh BSNL employees are eligible for the Voluntary Retirement Scheme (VRS) out of its total staff strength of about 1.50 lakh. The effective date of voluntary retirement under the present scheme is January 31, 2020.

Why do BSNL employees take VRS?

The public sector telecom company recently notified a VRS scheme for employees above the age of 50 in an attempt to trim the workforce. “We are the people who work hard to restore mobile connectivity immediately after natural calamities and in the remotest of places in the country.

Do BSNL employees get pension after VRS?

Rs 12,678 crores will be disbursed as pension allotment. The amount of ex-gratia for any eligible employee will be equal to 35 days’ salary for each completed year of service and 25 days’ salary for every year of service left until superannuation. Almost 78,500 employees—half of the workforce—have opted for the VRS.

What is the rule for VRS?

Though the eligibility criteria for VRS varies from company to company, but usually, employees who have attained 40 years of age or completed 10 years of service are eligible for voluntary retirement. The scheme applies to all employees including workers and executives, except the directors of a company.

What are the major objectives of VRS?

OBJECTIVE: (i) To achieve optimum human resource utilization. (ii) To optimize return on investment in PSU. (iii) In implementing the VRS scheme, managements shall ensure that it is extended primarily to such employees whose services can be dispensed with without detriment to the company.

When should I take voluntary retirement?

A Govt. servant may be permitted to be retired voluntarily by giving notice of not less than 3 months in writing to the appropriate authority before the date on which he wishes to retire on completion of qualifying service of not less than 20 years. There is no reciprocal arrangement with the Govt. to retire a Govt.

What is BSNL future?

The Modi cabinet approved a Rs 69,000 crore revival plan for BSNL and MTNL, which would include restructuring of existing debt by raising bonds with sovereign guarantee, reducing employee costs through a VRS scheme, monetisation of assets, allotment of 4G spectrum, and in-principle approval their merger.