VRS Stands for Voluntary Retirement Scheme. VSS stands for Voluntary Separation Scheme. Both VRS and VSS are used interchangeably. Central Government of India has designed some guidelines for Public Sector Undertakings (PSU) on the compensation rules to follow at the time of announcing a VRS/VSS package to the employees. Gujarat Model VRS Scheme Calculation is very popular that is followed by Sick or To Be Closed PSUs to settle its employees with benefits package.