New Delhi: State-run refiner Indian Oil Corp (IOC) will shed about thousand surplus employees by giving them voluntary retirement, the Rajya Sabha was informed on July 29.

"The extent of identified surplus staff, all in the non-officer category, is about 1068, out of which between 700 and 1000 employees are expected to avail the voluntary retirement scheme (VRS)," Minister of State for Petroleum and Natural Gas Sumitra Mahajan said in a written reply.

The one-time VRS is intended to be applicable to those employees who have put in minimum 15 years of service and are not below the age of 40 years.

The benefits would include ex-gratia equivalent to two months' salary for each completed years of service or salary for the number of months left, whichever is less.

Additional monthly benefit equivalent 105 per cent of the basic pay drawn on the date of voluntary retirement would be given to employees above 58 years who opt for VRS.

For employees above 54 years and up to 58 years would be entitled to 100 per cent of the basic pay, employees above 50 years and up to 54 year would get 95 per cent and those below 50 years would be entitled for 90 per cent of the basic pay.

Balance of provident fund, gratuity, cash equivalent of earned leave, encashment of half pay leave as per the relevant statues/corporation's rules would also be paid.

Mahajan said the scheme has been announced with effect from July 4, 2003 and IOC has started receiving applications.

PTI