Hi, I need information about Voluntary Retirement Scheme and also how much compensation given under it.
From India, Nasik
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2From India, Nasik
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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
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From India, Chennai
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Voluntary Retirement Scheme (VRS) in Central PSUs
In Central PSUs (in accordance with the Department of Public Enterprises), the VRS is as follows:
- **Scheme A:** 35 days' salary for each year of past service and 25 days' salary for future service. (If the service is not a full year, the calculation will be made on a pro-rata/proportionate basis.)
- **Scheme B:** 45 days' salary for each year of past service only. (Here, only completed years will be taken into account.)
Out of the above, whichever is higher will be considered as VR compensation. However, payment is subject to a ceiling of the leftover service salary.
Example Calculation
An employee with a date of birth of 02.01.1961, date of joining 23.02.1987, a salary of Rs. 30,000, and a retirement age of 58 years is getting relieved on VRS on 31.07.2015.
- 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.
Therefore, the compensation is 1260 days.
- Salary for 1260 days is 1260/30 x 30000 = 1260000 - (1).
- The salary for the leftover/balance service is = 42 x 30000 = 1260000 - (2).
Out of (1) and (2), whichever is less is 1260000. Hence, the VR compensation is Rs. 12,60,000.
I shall insert an Excel sheet in this regard.
Regards,
Abbas.P.S
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
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In Central PSUs (in accordance with the Department of Public Enterprises), the VRS is as follows:
- **Scheme A:** 35 days' salary for each year of past service and 25 days' salary for future service. (If the service is not a full year, the calculation will be made on a pro-rata/proportionate basis.)
- **Scheme B:** 45 days' salary for each year of past service only. (Here, only completed years will be taken into account.)
Out of the above, whichever is higher will be considered as VR compensation. However, payment is subject to a ceiling of the leftover service salary.
Example Calculation
An employee with a date of birth of 02.01.1961, date of joining 23.02.1987, a salary of Rs. 30,000, and a retirement age of 58 years is getting relieved on VRS on 31.07.2015.
- 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.
Therefore, the compensation is 1260 days.
- Salary for 1260 days is 1260/30 x 30000 = 1260000 - (1).
- The salary for the leftover/balance service is = 42 x 30000 = 1260000 - (2).
Out of (1) and (2), whichever is less is 1260000. Hence, the VR compensation is Rs. 12,60,000.
I shall insert an Excel sheet in this regard.
Regards,
Abbas.P.S
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
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Voluntary Retirement Scheme.pdf
Workmen Compensation Calculation.xls