Outlook Money
The voluntary retirement scheme (VRS) allows public and private sector employees to retire before 60.
The scheme provides a legal framework for appropriate compensation to those seeking early retirement.
VRS aims to offer employees the option to retire before their superannuation age, subject to specific conditions.
VRS is available only to the employees of the organised sector.
VRS allows large corporations and loss-making companies to reduce their workforce by providing suitable compensation.
VRS is available to employees based on age, seniority levels, and years at work.
Employee compensation varies from one organisation to another, typically paid in a lump sum, including salary, gratuity, and pension.
VRS is generally calculated by dividing an employee's last drawn salary by their remaining months at work.
Compiled By Himani Verma