Employees Taking VRS After 20 Years Can Get "Payout On Pro Rata Basis": Centre
Central government employees are entitled to "assured payout on pro rata basis" on opting for voluntary retirement after completion of service of 20 years or more under the recently-notified rules, the personnel ministry said on Tuesday.
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The ministry stated that payments will commence from the date of superannuation.
New Delhi:
According to an announcement made Tuesday by the personnel ministry, central government employees who opt for voluntary retirement after serving 20 years or more are eligible for "assured payout on pro rata basis" under newly notified regulations.
On September 2, the Department of Pension and Pensioners' Welfare officially published the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025 in the government gazette. These rules govern service-related matters concerning benefits under the Unified Pension Scheme for central government employees who select UPS as an option within the NPS framework.
Among other provisions, these regulations offer UPS subscribers the option to voluntarily retire after completing 20 years of service.
"While the full assured payout under the Unified Pension Scheme becomes available only after completing 25 years of qualifying service, employees choosing VRS (voluntary retirement scheme) after serving 20 years or more will receive assured payout calculated on a prorata basis—specifically, years of qualifying service divided by 25—of the total assured payout," the ministry explained in its statement.
The statement added that payments will begin on the date of superannuation.
"Additional benefits available upon retirement include final withdrawal of 60 percent of individual corpus, lump sum benefit equal to 1/10th of basic pay and dearness allowance for each six-month service period, retirement gratuity, leave encashment, and CGEGIS (central government employees group insurance scheme) benefits," the statement outlined.
Additionally, if a subscriber passes away after taking VRS but before assured payouts begin, the legally wedded spouse will receive family payout starting from the date of the subscriber's death.
Manjeet Singh Patel, national president of All India NPS employees federation, welcomed this amendment, describing it as an essential development for all central government employees, particularly paramilitary personnel who work under challenging conditions.
"This provision will benefit employees who cannot continue serving in their departments after completing 20 years of regular service," Patel remarked.