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VRS for surplus Central staff
By Our Special Correspondent
NEW DELHI, FEB. 5. The Union Cabinet today approved a voluntary retirement scheme for permanent Government employees rendered surplus in keeping with the announcement made by the Finance Minister, Yashwant Sinha, in his Budget speech last year.
Under the scheme, the surplus employees would be eligible for an ex-gratia, apart from normal retirement benefits. The ex-gratia would be equivalent to emoluments (basic pay and DA) of 35 days for each completed year of service plus emoluments of 25 days for each year of the balance of service that was left. This would be subject to the condition that the total number of years counted for payment of ex-gratia would not exceed 33 years excluding any weightage that may be allowed for purpose of pension/ commutation of pension/ gratuity.
The ex-gratia would have both a minimum and a maximum limit. It would be subject to a minimum of Rs. 25,000 or 250 days emoluments, whichever is more and as for the ceiling limit, it should not exceed the sum of the emoluments that the employees would draw at the prevailing level for the balance of the period of service left before their natural retirement. The scheme would not apply on an automatic basis. The employees would be given an option to get redeployed after retraining.
Announcing the Cabinet decision, the Government spokesperson said Income Tax rebate would be given on a portion of the ex-gratia and for this suitable amendments would be made to the CCS (Pension) Rules and the Income Tax Act.
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