Home / Industry / Banking /  SBI VRS scheme 2020: Eligibility, compensation, pension and other benefits

The State Bank of India (SBI) has planned to introduce a voluntary retirement scheme (VRS) for its employees. Named as 'Second Innings Tap VRS-2020', the proposed scheme "will provide a congenial solution to employees who expressed desire for making strategic shift in their vocations, either due to professional growth limitations, mobility issues, physical health conditions or family situations," a spokesperson from SBI said.

"While our commitment towards our valued employees remains unshakable, we are deeply desirous of skilling the unemployed youth of the country, as is evidenced by the fact that we are the only Bank in the country which has onboarded Apprentices under the National Apprenticeship Scheme of Govt of India," the bank further said.

Over 30,000 employees will be able to get the benefits of the proposed VRS scheme. The SBI VRS 2020 scheme "will provide an option and a respectable exit route to employees who have reached a level of saturation in their career, may not be at the peak of their performance, have some personal issue or want to pursue their professional or personal life outside the bank," the bank said, according to reports.

Eligibility: All permanent officers and staff who have put 25 years of service or completed 55 years of age on the cut-off date will eligible for the scheme, according to the draft.

Period: The SBI VRS 2020 scheme will be open on 1 December and will remain open till the end of February, 2021. The applications for VRS will be accepted during this period only, the draft mentioned.

Salary: "The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting 50% of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months' last drawn salary," the bank said.

Other benefits: Other benefits like gratuity, pension, provident and medical benefits will be given to employees seeking VRS.

Two-year cooling period: A staff member retired under the scheme will be eligible for engagement or re-employment in the bank after a cooling-off period of two years from the date of retirement, the bank added in the draft.

The total employee strength of country's largest lender stood at 2.49 lakh at the end of March 2020. A total of 11,565 officers and 18,625 staff will be able to avail the SBI VRS scheme. Even if 30% of the eligible employees decide to go for the new scheme, the bank will save around 2,170.85 crore.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout