BSNL VRS: Gujarat Model Vs 125% of Salary, which one is better?

The government of India, on 23rd October 2019, has finally approved the proposed Voluntary Retirement Scheme for the employees working in the Telecom PSUs BSNL and MTNL.

The official order from the Department of Telecommunications not yet released.




The IIM Ahmedabad committee report recommended the VRS scheme adopted by the Gujarat State for the government staff.

If you check the Sanchar Nigam Executives’ Association official website, you will find that the VRS calculation will have the Gujarat Model formula.

As per this model, the Ex-Gratia amount will depend on the completed years of service and the remaining service.

After the approval of the proposal, the CMD BSNL explained (in a public speech to employees ) that the Ex-Gratia amount will be 125% of total salary minus pension. The same formula is also available in ‘All India Bharat Sanchar Nigam Limited Executives’ Association’ site.

Here we will check the Ex-Gratia amount, Leave Encashment, and Gratuity in each case. You can compare and decide which is better for the employees.





The above comparison is based on details mentioned in the SNEA, AIBSNLEA website, and BSNL CMD speech. I recommend you to wait for the final VRS order from the competent authority before taking any decision on the same.

If you have any questions on the matter or any other service-related issue, please feel post your query on our website.

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