Quick Answer: Will BSNL Survive After VRS?

Do BSNL employees get pension after VRS?

Rs 12,678 crores will be disbursed as pension allotment.

The amount of ex-gratia for any eligible employee will be equal to 35 days’ salary for each completed year of service and 25 days’ salary for every year of service left until superannuation.

Almost 78,500 employees—half of the workforce—have opted for the VRS..

Why do BSNL employees take VRS?

The public sector telecom company recently notified a VRS scheme for employees above the age of 50 in an attempt to trim the workforce. “We are the people who work hard to restore mobile connectivity immediately after natural calamities and in the remotest of places in the country.

How many BSNL employees applied for VRS?

Over 92,000 employees of BSNL and MTNL have opted for the scheme so far, the source added. Nearly one lakh BSNL employees are eligible for the Voluntary Retirement Scheme (VRS) out of its total staff strength of about 1.50 lakh. The effective date of voluntary retirement under the present scheme is January 31, 2020.

How is BSNL VRS calculated?

According to sources is it said that the BSNL VRS scheme would be on the basis of the Gujarat pattern, and the VRS benefits of BSNL and MTNL employees will be calculated on salary, and this means the formula would be Basic Salary + Industrial Dearness Allowance of the last month (Retirement) in service.

What should I do after VRS?

After VRS, the portfolio should meet all three requirements, safety, liquidity and yield,” says Rao. “If your risk profile does not permit you to invest in equities, one can invest in debt schemes through systematic investment plans. You can opt for a systematic transfer plan (STP) as well.

Will BSNL close down?

NEW DELHI: The government on Thursday assured Rajya Sabha that public sector telecom companies BSNL and MTNL will not be shut down and efforts are being made to revive them soon. … The minister said the revival package contains the core of optimal utilisation of the assets of these companies.

Can BSNL survive in near future?

NEW DELHI: Bharat Sanchar Nigam Limited (BSNL) officers’ group has warned that things may go out of hand, and the state-controlled telco would not survive for long unless the Prime Minister Office (PMO) takes a decision on telco’s revival and facilitates a soft loan for capital as well as operational expenses.

What is BSNL VRS package?

After months of anticipation and protests, state-owned BSNL has announced its Voluntary Retirement Scheme (VRS) package for its employees. This package will be available for employees aged 50 and above, and will be paid in tranches.

What are the benefits of VRS?

The employee who opts for VRS is entitled to get: — Employee gets provident fund (PF) and gratuity dues. — Compensation received at the time of VRS is tax-free up to the prescribed amount on fulfilling certain conditions. — Companies also offer benefit packages to the employees who opt for VRS.

What is VRS package?

Definition: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees. Description: VRS applies to an employee who has completed 10 years of service or is above 40 years of age. ?

Why is BSNL closing?

According to media reports, BSNL has been in trouble since the last 10 years due to poor government policies and delays in bringing new infrastructure. The inferior infrastructure, as well as the company structure, have further resulted in this situation.

What is the future of BSNL?

The Modi cabinet approved a Rs 69,000 crore revival plan for BSNL and MTNL, which would include restructuring of existing debt by raising bonds with sovereign guarantee, reducing employee costs through a VRS scheme, monetisation of assets, allotment of 4G spectrum, and in-principle approval their merger.