• Prashant V Shah

  • Join 341 other followers

  • Upcoming Posts

    1. General Insurance

  • Recently Updated

    1. Q-6 (BOND) in questions for IP. Ans: 13.15%
    2. Small Savings Schemes. Category: Investment Planning

  • Link to FPSB India

  • Link to SEBI

  • Link to PFRDA

  • Link to NISM

  • Link to the RBI

  • Link to Fin Min

  • Data Portal India

  • Link to NSE India

  • Link to FIMMDA

  • Track CPI at MOSPI

  • Track WPI

  • Link to India Post

  • Buy Stamps Online

Voluntary Retirement Scheme

Posted by Prashant Shah on March 16, 2011

It is popularly known as VRS. 

Objective of employers:

  1. To achieve optimum human resource utilization
  2. Optimize ROI of the company
  3. Due to joint ventures and collaborations
  4. Due to takeover and merger, downsizing is required to avoid duplication of task

Eligibility for Employees:

  1. Employees who have attained 40 years of age or completed 10 years of service are eligible for VRS
  2. This scheme applies to all employees including workers and executives except the directors of the company
  3. Employees employed on permanent basis provided they have completed minimum 5 years of service and have at least 5 years of service remaining before their superannuation

There can be any amount paid by the employer for VRS. For taxation purpose least of the following is exempt from tax

  1. 3 months salary for each completed year of service
  2. Salary at the time of retirement × balance months of service left before date of retirement
  3. Rs. 5,00,000
  4. Actual amount received
About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

Join 341 other followers

%d bloggers like this: