IN A bid to help the central public sector undertakings (PSUs) shed their surplus manpower, the Centre today approved a uniform Voluntary Retirement Scheme (VRS) for all the employees. Minimum Support Price (MSP) of wheat, barley, gram, rapeseed, mustard seed and sap flower have also been hiked for the ensuing rabi season.
These two decisions were taken at a late evening meeting of Union Cabinet here today. For the purposes of VRS, all PSUs have been divided into three categories, i.e. profit making, marginally profit making/loss making and terminally sick companies.
Through a decision today, the centre has made VRS attractive for those working in profitable PSUs by offering a five years or 60 months salary to employees who have not completed 30 years service. Otherwise, an employee of profitable PSU could opt for VRS in case he has completed ten years service or 40 years age. In addition to terminal benefits, an employee would be entitled to exgratia payment equivalent to one and a half months emoluments (pay and DA) for each completed year of service. He or she will also be eligible for monthly emolument at the time of retirement multiplied by balance months of service left which ever is less.
For employees working with marginally profit or loss making enterprises, the centre has decided to adopt the Gujarat Government's model. Accordingly, 35 days salary for every one year of completed service has been offered to those seeking VRS. Retiring employees will also be eligible for 25 days salary or Rs 2500 whichever is higher for every year of service left, subject to a minimum of Rs 25,000 or 250 days salary which ever is higher. Salary includes basic pay, DA, personal pay and house rent allowance. For those drawing a basic pay of less than Rs 350, then Rs 350 per month would be taken as basic for granting VRS.
For employees in terminally sick companies, the Department of Public Enterprises (DOPE) stipulations would be exercised. The sick PSUs will not have any freedom in this regard.
While, the profitable PSUs would fund VRS through its own internal resources, the marginally profitable/sick companies would be allowed to raise loans for the purpose.
