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..
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 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.
Why are BSNL employees opting for 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.
What is VRS scheme for BSNL employees?
The BSNL VRS offer is quite generous since it would pay every retiring employee a lumpsum salary of the remaining months of their service at the telco. … The scheme, known as BSNL Voluntary Retirement Scheme 2019, is part of the Rs 69,000-crore cabinet-approved revival package for the ailing BSNL and MTNL .
What is the benefit of VRS?
The voluntary retirement scheme(VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. It is a technique used by companies for trimming the workforce employed in the industrial unit.
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.
What is the rule of VRS?
1. Criteria: Voluntary retirement scheme can be applied to employees who have a minimum of 40 years of age or who have completed a minimum of ten years of service. It is applicable to all employees of the concern.
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.