What Are the Benefits of a Voluntary Retirement Scheme?

What Is Voluntary Retirement?

What Is a Voluntary Retirement Scheme?

What Are the Benefits Employees Get Under the Voluntary Retirement Scheme?

How Does the Voluntary Retirement Scheme Benefit the Employers?

FAQs on Benefits of Voluntary Retirement Scheme

How does the company do the calculation of compensation for VRS? up-arrow

The company does the calculation of compensation under VRS on the basis of the last drawn salary. It provides an amount equivalent to three months’ salary for every year of employment as compensation. Another way of calculation involves multiplying the employee’s salary at the time of retirement with the remaining months left in service before normal retirement.

What are the rules of VRS? up-arrow

Companies cannot fill the vacancies that the implementation of VRS creates. On the other hand, an employee opting for VRS cannot apply to work with any sister organisations under the same management from which they are taking VRS.

Can I rejoin a company after taking voluntary retirement? up-arrow

No, once an employee opts for the voluntary retirement scheme and avails of its benefits, he/she cannot rejoin the same company.

Will I get the same benefits as normal retirement if I take voluntary retirement? up-arrow

No, the benefits availed by voluntary retirement differ from those of normal retirement. With voluntary retirement, you would enjoy most of the benefits of normal retirement before your stipulated retirement age.