SBI VRS 2020: Eligibility, salary, pension, gratuity, leave encashment and more - All details here

India's largest lender, State Bank of India is once again coming up with the Voluntary Retirement Scheme (VRS). Under this scheme, the prime focus has been put on employees who lost 3 or more opportunities for promotions. According to SBI's policy, the scheme has been formulated to led these employees towards retirement through a respectful option. This scheme by SBI provides the employees with an opportunity to make a career outside SBI.

Who is eligible for this SBI VRS?

This SBI VRS is meant for SBI employees aged 55 years and have completed 25 years in service. Also, the SBI VRS is open for those having health reasons. Moreover, the employees of banks merged with SBI are also allowed to participate in SBI VRS. However, the SBI VRS will not be applicable to CA, CFA , Forex Dealer, Risk Management professionals. Moreover, staff on contract are also not allowed to participate in SBI VRS. Also, people who are in suspension or facing departmental inquiry won't become a part of SBI VRS. Employees who are being investigated by CBI and ED are also not allowed for SBI VRS.

Noteworthy, even if you participate in SBI VRS, you can join SBI after a gap of 2 years.

What are the benefits of SBI VRS?

SBI employees availing VRS will get 50% salary for the rest of the years in service but this won't exceed the cumulative amount of 18 months of the current salary. Also, Income Tax will be deducted from the said amount. According to rules, workers availing SBI VRS will get provident fund and gratuity benefits too. Moreover, pension leaves encashment, rates of housing loan, car loan, educational loan polcies will continue to remain applicable as per bank rules.

When to apply for SBI VRS?

The scheme will remain open every year from Dec to Feb. You can withdraw SBI VRS application within 15 days period.

What amount SBI is expected to save due to VRS?

It is estimated that SBI will save Rs 2171 cr if all employees as per bank's idea will participate in the scheme. If the SBI VRS scheme sees 30% participation, Rs 1663 cr will be saved. The basis of the calculation is July 2020 salary of SBI employees.