Other benefits such as gratuity pension provisions and medical benefits will also be given to the employees taking SBI VRS Scheme VRS.
The country’s largest bank State Bank of India (SBI) has prepared a voluntary retirement scheme (VRS), for which around 30,190 employees of the bank are eligible. The bank is coming up with this plan with the objective of reducing costs. The total number of employees in SBI as of end-March 2020 was 2.49 lakhs. It was 2.57 lakh a year ago.
According to sources, a draft plan has been prepared for VRS and is awaiting board approval. This proposed scheme is the new VRS scheme, which aims to optimize human resources and costs.
According to the draft plan seen by the news agency PTI, the scheme will provide an option and a respectable exit route to employees who have reached saturation levels in their careers. This may include employees who are not at the peak of their performance, or have a personal issue or wish to pursue their professional or personal life outside the bank.
According to sources, this scheme is for all permanent officers and staff who have completed 25 years of service or have completed 55 years of age. This Yojana will open on December 1 and will continue till the end of February. Applications for VRS will be taken only during this period. As per the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff members will be eligible for the scheme.
Sources said that if 30 percent of the eligible employees opt for retirement under the scheme, the bank will save a total of Rs 1,662.86 crore. This estimate is based on the salary for July 2020.
Sources said, “The staff member whose request for retirement under VRS will be accepted will be provided 50 percent of the salary as grace amount for the remaining period of service. The condition will apply in this. Other benefits such as gratuity, pension, provident and medical benefits will also be given to employees taking VRS.
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