State Bank of India i.e. SBI is going to start VRS for its employees. VRS considered a voluntary retirement scheme. In this, employees can apply for premature retirement. The bank has named this scheme (Second Innings Tap VRS-2020). According to the bank, employees will be able to apply for the scheme from December 1, 2020, to the end of February.
Who can apply for VRS
According to the information gathered from reliable sources, any employee who has worked in the bank for 25 years or whose age is more than 55 years. They can apply for VRS. Accordingly, at present 30,190 employees of the bank are eligible for this scheme.
Those who retire with VRS will get retirement money or not?
Employees whose VRS application is accepted will be given a fixed amount on an ex-Gracia basis. How much? Which of the following two options will be less-
- 50% of the salary paid in the remaining job. Or say 50% of salary from the day of VRS to the day of retirement. ‘Retirement day’ here means the day on which the employee had to retire even if VRS was not received.
- Salary for the last 18 months.
X-Grecia – means there is no legal oblation of salary / VRS / salary giver. He is doing so on moral grounds.
What other benefits will be available to employees taking VRS?
- Apart from salary, employees will also get the benefit of gratuity and health insurance.
- There will also be a two-year cooling-off period. Under this, if employees want to join the job back then they can also join back within two years of taking VRS.
How does SBI benefit from this?
Even iff 30% of the employees under VRS opt for this option, then the bank will save Rs 1,662 crore annually.
Extra
According to the draft, VRS will cover 11,565 officers and 18,625 employees. The bank has prepared the draft. It will be implemented as soon as the board gets permission. #24x7newsalert
