What is a Voluntary Retirement Scheme, know who can take VRS and what its benefits
Some people want to take premature retirement due for some reasons, then in such a situation Voluntary Retirement Scheme comes in handy for them which we also call VRS. So let us know the process, eligibility, and benefits of taking VRS, which is very important for a person wishing to take VRS.
Voluntary Retirement Scheme (VRS), is a scheme by which an employee can take retirement as per his wish even before the date of retirement. Whether the job is government or private, or rather, the Voluntary Retirement Scheme applies to both private and public sector companies. But this also has its process and eligibility which has to be fulfilled by the employee wishing to take VRS.
Who can take VRS?
Rules have also been prescribed for availing the benefits of the Voluntary Retirement Scheme i.e. VRS. The benefit of this scheme can be availed only by those employees who have worked with the company for more than 10 years or are 40 years of age or older. But directors and new employees cannot avail the benefits of this scheme.
What are the benefits of taking VRS?
You can understand the benefits of taking the Voluntary Retirement Scheme i.e. VRS through the points given below.
The employee enjoys retirement benefits at an early age.
The employee gets PF and gratuity arrears.
The employee gets counseling and tax consultation from the company to achieve a smooth retirement.
The employee may also get tax-free compensation.
What are the rules for taking VRS?
If a government employee wants to take VRS, he has to give notice directly to the appointing authority 3 months in advance. No replacement will be made for the employee retiring from VRS. After the notice, the employee has to prove that he has completed the qualifying service. After this one can take VRS.
Objective
The primary objective of the Voluntary Retirement Scheme (VRS) is to provide benefits to both employees and companies. Employees who have worked with the company for a long time can benefit from this scheme by taking voluntary retirement so that they can enjoy retirement benefits. Also, be able to fulfill your other and other interests.
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