A Critical Review of Voluntary Retirement Scheme

The concept of voluntary retirement became popular after liberalization.  It has its origin in civil services for over a century.  Most of the state governments in India have provisions for voluntary retirement.  However, in the private sector, the idea of VRS developed after 1991.  Many large private organisations provide for retirement of an employee before reaching the age of superannuation. Many even provide incentives to employees who choose for voluntary retirement. It is now called as ‘Golden Hand-shake’.