8 Things You Need To Know About VRS Scheme

Outlook Money

What Is VRS?

The voluntary retirement scheme (VRS) allows public and private sector employees to retire before 60.


Legal Framework

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.


Organised Sector

VRS is available only to the employees of the organised sector.

Organized domain of working

Workforce Reduction

VRS allows large corporations and loss-making companies to reduce their workforce by providing suitable compensation.

Budget Cuts on employees


VRS is available to employees based on age, seniority levels, and years at work.

Qualifications Criteria


Employee compensation varies from one organisation to another, typically paid in a lump sum, including salary, gratuity, and pension.

Variations and Diversity

VRS Calculation

VRS is generally calculated by dividing an employee's last drawn salary by their remaining months at work.

Compiled By Himani Verma

Calculating VRS

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