Details about VRS - Voluntary Retirement Scheme Scheme in BSNL and MTNL subsidiaries of the Government are announced. Government of India (GoI) has planned a Revival Package for both BSNL and MTNL on 23.10.2019. Government has announced 125% of eligible exgratia as the extra benefit. Let us know the Gratuity and Pension Commutation amount also using the below calculator.
Final Rules are yet to be announced by the organisations. Some expected Rules are listed below for basic understanding. These are not final.
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BSNL MTNL VRS Benefits Calculation Rules
Rule 1: Retirement Benefits or Ex-Gratia is/may be as per the popular Gujarat Model VRS Scheme Rules.
Rule 2: Minimum age to enter the VRS Scheme is 50 years. In other words, not more than 10 years of service should be left.
Rule 3: The actual Gujarat Pattern VRS model suggests only 36 months of salary as the maximum amount. But the VRS package for BSNL and MTNL suggested 42 months maximum salary.
Rule 4: Only the Present-Basic and Dearness Allowance (DA) are used for calculation. It is 125% of the salary.
Rule 5: If the final compensation amount is more than 42 months of salary, only 42 months (DA + Basic) salary is given. This ceiling may change.
Rule 6: The employee should serve at least 15 years even though he crosses 50 years of service.
Rule 7: Payment of Ex Gratia and Pension Without Commutation will be paid after 5 years of VRS or 60 years age whichever is earlier.
Rule 8: An interest rate of 8% per annum is applied on the Gratuity amount until 60 years or 5 years after VRS whichever is earlier.
Example Calculation 1 with 42 Months Formula
Basic = Rs. 25,000
DA = 140%
One Day Salary = (Basic+DA)/30days = 60000/30 = Rs. 2000
Completed service = 25 years
Remaining Service = 5 years
Compensation for Completed Years = 35 days x 25 x 2000 = Rs. 17,50,000
Compensation for remaining Years = 25 days x 5 x 2000 = Rs. 2,50,000
Expected Compensation Amount = 17,50,000 + 2,50,000 = Rs. 20,00,000 x 1.25 times = Rs. 25,00,000
42 Months Maximum Salary = (25000 + 1.4*25000) x 42 = Rs. 25,20,000
Final VRS Amount or Ex-Gratia = Rs. 25,00,000 ( It is less than 42 months salary)
Example Calculation 2
Basic = Rs. 40,000
DA = 140%
One Day Salary = (Basic+DA)/30days = 96000/30 = Rs. 3200
Completed service = 25 years
Remaining Service = 10 years
Compensation for Completed Years = 35 days x 25 x 3200 = Rs. 28,00,000
Compensation for remaining Years = 25 days x 10 x 3200 = Rs. 8,00,000
Expected Compensation Amount = 28,00,000 + 8,00,000 = Rs. 36,00,000 x 1.25 times = Rs. 45,00,000
42 Months Maximum Salary = (40000 + 1.4*40000) x 42 = Rs. 40,32,000
Final VRS Amount or Ex-Gratia = Rs. 40,32,000 ( It is less than 42 months salary)
BSNL MTNL VRS Amount or Package Calcuator | Gratuity Calculator | Pension Calculator
You can check the Gujarat Model VRS Calculator as of now for all other Rules regarding Leaves and Leave Encashment.
Disclaimer: *This calculator is only for casual calculation purposes. Exact Rules, Amount and Benefits will be communicated by your Employer directly. This may not show exact/correct amount. This is based on News Portal information.
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