BSNL Rolls Out VRS To Save Rs 7000 Cr/Yr: 100,000 Employees Are Eligible, 18,000 Already Said Yes
On Wednesday, Bharat Sanchar Nigam Limited (BSNL) revealed about the Voluntary Retirement Scheme (VRS) 2019 for their employees applicable to above the age of 50 workforce.
How Did This Happen?
This scheme is made available to the applicable people until December 3. According to BSNL estimates, around 70,000 to 80,000 persons are expected to opt for the scheme.
By implementing this, the company is expecting to save around Rs 7,000 crore in the form of wages to be paid.
“In pursuance to the decision of the Union Cabinet and conveyed by the Department of Telecommunications (DoT), the BSNL Voluntary Retirement Scheme – 2019 is being circulated to all concerned and invites options from employees eligible under the scheme for seeking voluntary retirement as per the provision of the scheme,” said BSNL.
How Is the VRS Plan?
According to chairman and managing director of BSNL PK Purwar, this was the best ever given VRS by the government and BSNL employees should see it in a positive frame of mind.”
The scheme is applicable for regular and permanent employees of BSNL.
To Whom It Will Be Applicable?
This scheme is applicable to those with a deputation to other organizations or posted outside BSNL on deputation basis of the age 50 and above are also eligible for the scheme.
The company informed, the ex-gratia amount for the eligible employee will be equal to their 35-day salary for each completed year of service.
This will be applicable to those with service years remaining will receive an ex-gratia salary of 25 days for every year of service left until superannuation.
MTNL Also Declared VRS Plan
With this news, the VRS for Mahanagar Telephone Nigam Limited (MTNL) has also been revealed and is also open for opting until December 3, 2019.
This will be applicable to all regular and permanent employees of 50 years and above as on January 31, 2020.
The voluntary retirement under this scheme will be effective by January 31, 2020.
How Will BSNL Approach For Implementing This?
To aim the high enrollment for the VRS, the head on management in BSNL circle are also been instructed to promote the scheme and to hold open house sessions to provide maximum information on the scheme.
Why Would BSNL Come Up With This Scheme?
The company has come up with this scheme to reduce the bench strength of the ailing telecom firm comes at a time when its 1.75 lakh strong workforce consumes 75 % of its revenue in wages.
The company has been facing losses straight for ten years and has faced the loss of around Rs 14,300 crores by 2018-19.
On November 4, BSNL has an announcement for the VRS scheme after having a meeting between some employee unions, BSNL, MTNL and Telecom Minister Ravi Shankar Prasad.
How Would It Benefit The Employees?
According to the new VRS, employees above the age of 53.5 years will get 125 percent of their salary, which they could have earned in the balance period of their service.
As per the information, the employees between 50 and 53.5 years opting for the VRS will get benefit in the range of 80 to 100 percent of the remuneration to be paid in the balance period of their service.
For the employees, currently above 55 years of age, on opting for VRS, the pension will be computed only when they attain 60 years of age (the current retirement age).
On opting for VRS for the employees, currently of age 55 years and less, the pension will be computed in the sixth year 2024-25.