Voluntary Retirement Scheme Calculation for Central Govt. Employees | Voluntary Retirement Scheme PPT in India Details – There are many situations due to which many companies need to reduce the number of employees. Various types of measures are taken by the companies to do this work well, in this direction the Voluntary Retirement Scheme has also been started. This scheme has been started by the Central Government to provide benefits to the companies of the country. In today’s article, we are going to provide you all the important information related to Voluntary Retirement Scheme 2024, like for what purpose this scheme has been started and what is the eligibility on its benefits etc. [यह भी पढ़ें- (PMGKY) प्रधानमंत्री गरीब कल्याण योजना PM Anna Yojana ऑनलाइन आवेदन व लाभ]
Voluntary Retirement Scheme 2024
Under the Voluntary Retirement Scheme, the company offers to voluntarily retire from its services before the date of retirement of the employee. This scheme is adopted to reduce the number of employees, through this, voluntary retirement can be taken by the employees of the officers of the companies, the authority of the cooperative societies etc. These schemes can be offered by both public and private sector companies, this scheme is also known as Golden Handshake. The number of employees is reduced through Voluntary Retirement Scheme 2024, through this the total cost of the firm can be reduced by the companies. [यह भी पढ़ें- (List) प्रधानमंत्री ग्रामीण आवास योजना लिस्ट: PMAY-G संशोधित लिस्ट]
Overview of Voluntary Retirement Scheme
| Scheme Name | Voluntary Retirement Scheme |
| Launched By | By the central government |
| Year | 2024 |
| Beneficiaries | country companies |
| Application Procedure | — |
| Objective | reducing the strength of employees in a company |
| Benefits | The strength of the employees in a company will be reduced |
| Category | Central Government Schemes |
| Official Website | ——————- |
Objectives of Voluntary Retirement Scheme 2024
The main objective of the Voluntary Retirement Scheme is to reduce the number of employees in companies, such companies which are unable to pay the employees due to financial problems. Through this scheme, all those companies can reduce the company cost by giving voluntary retirement, and various types of benefits are provided to all the employees through Voluntary Retirement Scheme 2024. These benefits include rehabilitation facilities to the employees, advice on money management, etc. which automatically improves their income. [यह भी पढ़ें- (PMJAY) आयुष्मान भारत योजना: Ayushman Bharat Yojana ऑनलाइन आवेदन]
Compensation for Voluntary Retirement Scheme 2024
- The compensation is calculated on the last drawn pay of the employee under the Voluntary Retirement Scheme.
- Payment equal to the employee’s 3 months’ salary is made by the company for each completed year of service, as opposed to multiplying the employee’s salary at the time of retirement by the remaining months of service prior to the original date of retirement.
- Compensation is calculated in the case of Public Sector Banks on the basis of 45 days’ pay or the balance pay for each year of service, whichever is less.
Benefits to Employees Opting for Voluntary Retirement Scheme
- Under this, 45 days’ pay or monthly emoluments at the time of retirement, whichever is less, shall be multiplied by the number of months of service remaining before the normal date of service for each completed year of service of the employee.
- Apart from this, the benefit of provident fund and gratuity dues will also be provided to the employee under this scheme.
- Under this scheme, the compensation received at the time of voluntary retirement is tax-free up to a specified amount.
- The benefit package by the companies will also be provided through this scheme to the employees opting for voluntary retirement.
Benefits and Features of Voluntary Retirement Scheme
- Voluntary retirement from the services is offered to all the employees of the country through the Voluntary Retirement Scheme.
- Through this the retirement takes place before the date of retirement, this scheme is offered by both public and private sector companies.
- Under this, voluntary retirement is not a type of forced retirement, citizens have to pay attention to this. Under this plan, it is completely in the hands of the employees to leave the job or continue in the job.
- Employees who have completed 10 years of service, or whose age is more than 40 years, the benefit of this scheme will be provided only to those employees.
- This scheme is offered by both public and private sector companies, besides this scheme is also known as Golden Handshake.
- In addition, the power to cut costs of the firm through voluntary retirement of employees is reduced.
- Person seeking voluntary retirement is permitted to apply in another firm not belonging to the same industry.
- Under Voluntary Retirement Scheme 2024, various benefits like rehabilitation facilities, counseling etc. are offered by the company to the person taking voluntary retirement.
- Compensation is also offered to retiring employees under this, which is tax-free up to a certain amount.
- Apart from this, provident fund and gratuity dues are provided to the employees at the time of retirement through this scheme.
Voluntary Retirement Direct Retrenchment
The Indian labor law does not allow companies to directly retrench their employees, moreover, if companies directly retrench their employees, it is strongly opposed by trade unions. Sometimes the employees are not paid by the companies due to financial issues, keeping this situation in mind the Voluntary Retirement Scheme 2024 has been started. Apart from this, this scheme is not opposed by the labor unions as voluntary retirement is taken by the employee under this scheme.
Conditions in Which Voluntary Retirement Scheme is Adopted
- joint venture with foreign collaboration
- recession in business
- obsolescence of product or technology
- acquisitions and mergers
- stiff competition etc.
Conditions on Which the Employee Can Opt for Voluntary Retirement
- joint venture with foreign collaboration
- acquisitions and mergers
- recession in business
- intense competition
- obsolescence of product or technology etc.
VRS Eligibility Criteria
- Applicants who want to get the benefits of this scheme should be at least 40 years of age.
- The applicant should have worked with the company for at least 10 years.
- The benefit of this scheme can be availed only by the employee citizens of the company, the only exception being the directors of the companies or a co-operative society.
Eligibility Criteria for Voluntary Retirement Scheme
- A person retiring through this scheme will be provided 45 days salary for each completed year of service.
Or
Under this, the monthly emoluments at the time of retirement are multiplied by the remaining months of service before the normal date of service.
- The provident fund and gratuity dues will be provided to the willing employee through this scheme.
- The compensation received by the retiring employee at the time of voluntary retirement is tax-free up to a certain amount.
- Apart from this, all those employees who opt for this scheme are also given a benefit package.
Conclusion
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