One of my colleagues has taken VRS under the Company's Scheme. His final settlement dues have been calculated and paid considering his salary, i.e., Basic + Fixed DA + Variable DA as of 31/12/2013. However, he was actually relieved on 01/01/2014. He has also been paid salary for one day of Jan 14 separately with a revised increase in Variable DA, including one day of Medical Allowance and LTA (which are paid annually in normal cases), and deductions towards contribution to EPF and ITax.
The question is whether the Company should have done the VRS calculations on the revised salary of Jan 14 or whether they are correct in paying the compensation as above. Kindly advise.
Regards,
Deepak
From India
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The question is whether the Company should have done the VRS calculations on the revised salary of Jan 14 or whether they are correct in paying the compensation as above. Kindly advise.
Regards,
Deepak
From India
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VRS - Voluntary Retirement Scheme - This scheme is already floated by the employer, and as its name suggests, it is voluntary. The calculation method is already provided in the scheme, and your colleague has already accepted it. So, why don't you ask your colleague about the scheme? It will help.
Thanks.
From India, Pune
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470Thanks.
From India, Pune
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SALARY SHEET CALCULATION.xls
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