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How to Calculate Pension and Commute?

HOW TO CALCULATE PENSION/ COMMUTATION

The calculation of Pension and Commute is very simple but a little bit technical. Every person who is serving in any Govt Department can calculate his/her pension and commute himself/herself.The main things in pension calculation are basic pay and total service at the time of retirement. Complete detail and formulas to calculate pension and Commute / Gratuity is mentioned below;

Formula to Calculate Pension

Gross Pension = Basic Pay x Service (Maximum 30 years) x 70/3000

We have shared Pension Calculator on this site,you can calculate your pension by using this calculator which is updated every year just after 1st May after the revision of pay scales or increase in pension and adhoc allowance.

Basic Pay

The basic pay is taken the pay at the time of retirement the individual is drawing. If an employee retires from service on 1st June or after it then 1x Usual Increment is added in his/her basic pay for the pension purpose only. If an employee is drawing PP (Personal Pay), it is also included in his/her basic pay. Same is the case with Special Pay.

Service

The maximum length of service for the pension purpose is 30 years. If an employee has a service more than 30 years then only 30 years service is considered for the pension purpose.

Ordinary Pension

Here is to mention that 65 % of the Gross Pension is taken as Ordinary Pension and the remaining 35 % is taken for the Commute purpose.

Formula to Calculate Ordinary Pension

Ordinary Pension = Gross Pension x 65 %

Formula to Calculation of Commute

Use the following formula for the calculation of commute.

Commute = 35 % of Gross Pension x 12 x Age Rate

Age Rates

Age rates according to the Revised Pay Scale 2001 are as under:

Age Next BirthdayNo. of Years Purchased
2040.5043
2139.7341
2238.9653
2338.1974
2437.4307
2536.6651
2635.9006
2735.1372
2834.3750
2933.6143
3032.8071
3132.0974
3231.3412
3330.5869
3429.8343
3529.0841
3628.3362
3727.5908
3826.8482
3926.1009
4025.3728
4124.6406
4223.9126
4323.1840
4422.4713
4521.7592
4621.0538
4720.3555
4819.6653
4918.9841
5018.3129
5117.6526
5217.0050
5316.3710
5415.7517
5515.1478
5614.5602
5713.9888
5813.4340
5912.8953
6012.3719
6111.8632
6211.3684
6310.8872
6410.4191
6509.9639
6609.5214
6709.0914
6808.6742
6908.2697
7007.8778
7107.4983
7207.1314
7306.7766
7406.4342
7506.1039
7605.7858
7705.4797
7805.1854
7904.9030
8004.6321

Irfan Tariq

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