Table of Contents
- 1 What is meant by voluntary retirement scheme?
- 2 What do you understand by voluntary retirement scheme as initiated by Government of India?
- 3 How is VRS scheme calculated?
- 4 What are the schemes launched by government?
- 5 What are the benefits of voluntary early retirement?
- 6 Which is a scheme introduced by Govt of India for development of public sector banks in India?
What is meant by voluntary retirement scheme?
VRS stands for voluntary retirement scheme, whereby an employee is offered to voluntarily retire from services before the retirement date. The scheme allows companies to reduce the strength of employees. It can be implemented by both the public and private sectors. VRS is also known as ‘Golden Handshake’
What is voluntary retirement scheme and its benefits?
The scheme offers the employee their provident fund (PF) as well as gratuity. The compensation paid to the employee is tax-free up to a prescribed amount. The employee can opt for benefits such as counselling, rehabilitation, etc. to facilitate a smooth transition into retirement.
What do you understand by voluntary retirement scheme as initiated by Government of India?
Definition: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees. The retiring employee shall not be employed in another company or concern belonging to the same management.
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.
How is VRS scheme calculated?
VRS Calculation The VRS amount is limited to an amount that is equal to three months’ salary of each completed year of service. Or in another way of calculation is the salary at the time of retirement multiplied by the rest of the months of service before normal retirement.
Can a govt employee take VRS?
A Central Government employee could apply for voluntary retirement after completion of 30 years of service. He may be allowed to retire from his service under Rule No. 48 of CCS (Pension) Rules 1972. A Central Government employee could apply for Voluntary retirement after completion of 20 years of service.
What are the schemes launched by government?
They are:
- Atmanirbhar Bharat Abhiyan.
- Mission Karmayogi.
- Pradhan Mantri SVANidhi Scheme.
- Samarth Scheme.
- Savya Shiksha Abhiyaan.
- Rashtriya Gokul Mission.
- Production Linked Incentive (PLI) Scheme.
- PM FME – Formalization of Micro Food Processing Enterprises Scheme.
What are the advantages and disadvantages of VRS?
(i) VRS is a more humane way to reduce surplus workforce than terminating services of employees. The firm’s reputation remains intact. (ii) Payment of heavy compensation to retiring employees prevents resentment on their part. (iii) Trade unions also do not object to VRS as it is voluntary in nature.
What are the benefits of voluntary early retirement?
The early retirement incentives provided by the voluntary separation package may include extended health benefits, a lump sum bonus, future annual payments, added years of service for pension benefits, and more.
What is government Yojana?
Generally, the meaning of a scheme is a plan, design, or program of action involving many people which is formulated by the government. The different Ministries of the Government of India have launched various government programmes known as schemes or Yojana.
Which is a scheme introduced by Govt of India for development of public sector banks in India?
Government of India launched the Stand Up India scheme on 5th April, 2016. The Scheme facilitates bank loans between Rs. 10 lakh and Rs. The scheme which is being implemented through all Scheduled Commercial Banks is to benefit at least 2.5 lakh borrowers.