Voluntary Retirement Scheme (VRS) Guidelines PDF

The Voluntary Retirement Scheme (VRS) allows employees to choose to retire from their jobs before their standard retirement date. This scheme is especially useful for companies wanting to manage their workforce efficiently. VRS can be implemented in both the public and private sectors.

Understanding the Purpose of VRS

The main goal of the Voluntary Retirement Scheme is to maintain the right balance of employee age and skills to adapt to the changing needs of the company. This is crucial as businesses advance and embrace modern technologies. While new roles and locations are created, some employees may struggle to adapt due to mobility challenges or an unwillingness to learn new skills.

Eligibility Criteria for VRS

• Permanent employees who have served for 10 years or have reached 40 years of age qualify for the Voluntary Retirement Scheme.
• When assessing total service, any previous employment in a Central Public Sector Undertaking will be counted if the employee’s benefits, like CPF, Gratuity, and Leave, were transferred to BDL within five years. However, this clause does not apply to employees from State or Central Government Departments, as they have different termination benefits.

Benefits of Opting for VRS

• Employees choosing the Voluntary Retirement Scheme can avail themselves of benefits such as VL encashment, Gratuity, PF, and Transfer benefits.
• Moreover, they will receive an ex gratia payment equivalent to two months’ salary for every completed year of service, or their monthly salary multiplied by the months left until their standard retirement date, whichever amount is lower. However, this ex gratia payment cannot exceed 60 months’ salary.
• The acceptance of applications for the Voluntary Retirement Scheme depends on the approval of the Competent Authority and the availability of funds.

For further details, you can easily download the VRS Guidelines in PDF format by using the official links provided below.