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MSRTC begins implementation of voluntary retirement scheme

The transport, which was already at a loss, due to the COVID-19 has lost a large amount of passenger revenue. Therefore, in order to reduce the expenditure on salaries and get out of financial difficulties, the corporation decided to implement VRS.

MSRTC begins implementation of voluntary retirement scheme
SHARES

Days after the announcement of voluntary retirement scheme (VRS), the Maharashtra State Road Transport Corporation (MSRTC) has begun the preparations to roll it out. Under this scheme, ST employees and officers, who have reached the age of 50 can opt for voluntary retirement. 

To take VRS, the employees will have to first fill and consent form. Accordingly, information is being sought from the ST Corporation for those who are interested in the voluntary retirement scheme to be implemented for officers and employees above 50 years of age. The ST Corporation has clarified that funds for the scheme will be sought by submitting the information of such retired employees to the State Government.

The responsibility of coordination has been entrusted to the senior officials of the corporation for their approval.

The transport, which was already running in losses, had to take another hit due to the COVID-19. During the lockdown, the department lost out on a large chunk of passenger revenue. Therefore, in order to reduce the expenditure on salaries and get out of financial difficulties, the corporation decided to implement a voluntary retirement scheme for officers and employees.

According to officials, the total funding cannot be claimed until information on retirees is available under the scheme. Therefore, the corporation has already started collecting employee information.

The officials asked its employees to send a consent letter along with personal information, willing to avail the VRS. The scheme will be applicable to officers and employees who have completed 50 years of age as on June 30, 2020. Meanwhile, for the newly recruited employees between July 1, 2020 to December 2020, a decision will be taken as per the agreement of the Board of Directors of the corporation, stated the circular issued in this regard.

At present, the corporation has 1 lakh officers and staff. Of which 27,000 will be eligible for the scheme, while by December 2020, it will add around 2,000 employees. However, the total number of employees who will benefit from the scheme will come to light only after the information requested by the corporation is received. The scheme will be implemented in ST only after the approval of the state government after submitting all the information.

According to reports, if 27,000 employees take the initiative for voluntary retirement, it will save ₹103 crores per month in paying salaries. Moreover, Sandeep Shinde, president of Maharashtra ST Kamgar Sanghatan, has demanded to give a job with 6 months’ salary and inheritance for the remaining service every year as a part of the scheme.

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