# HOW TO CALCULATE PENSION/ COMMUTATION

## HOW TO CALCULATE PENSION/ COMMUTATION

A govt servant can get Pension and Commutation on
a) Completion of 25 years service
b) attaining the age of 60 years
c) If a Govt servant dies after completing minimum 10 Years service, his Family can get the pension.

HOW TO CALCULATE GROSS PENSION:
Gross Pension= Last Basic Pay X Service in years (Max 30) X 7/300
(Note: 6 months or more than 6 months service will be counted full year.)

Example:
If a Govt Servant whose date of birth is 1/1/1970 and date of appointment is 1/3/1990 retires on 28/2/2015 after completing 25 Years service and his Last basic pay is 30000 in Grade 14, his gross pension will be as under.
Gross Pension = 30000 X 25 X 7/300 = 17500

HOW TO CALCULATE COMMUTATION:
Commuted Pension = Gross Pension X 35/100 = 17500 X 35/100= 6125
Amount of Commutation=
Commuted Pension X12 X Rate from Commutation Table
= 6125 X 12 X 20.3555 = 1496129

COMMUTATION TABLE:
In the above example, age on next birthday of Govt servant on 28/2/2015 becomes 47. ( Age on 1/1/2016). So we have taken the rate of 47 years from the commutation table which is 20.3555

NET PENSION:
Net Pension = Gross Pension X 65/100 = 17500 X 65/100 = 11375
Increases on Net Pension are as under.
Medical (25% of Net Pension) = 2843.75
(Note: For Grade 16 and above, Medical is 20%)
25% Increase on Medical = 710.93
15% Increase of year 2010 = 1706.25
15% Increase of year 2011 = 1706.25
10% Increase of year 2013 = 1137.50
10% Increase of year 2014 = 1137.50
7.5% Increase of year 2015 = 853.12
TOTAL PENSION PER MONTH = 21470

CONCLUSION:
The Govt servant will get commutation Rs. 1496129k and Pension Rs. 21470 per month.

Thanks for sharing.
Lahore
Pakistan View all posts by admin →

### 2 Comments on “HOW TO CALCULATE PENSION/ COMMUTATION”

1. Hamdullah says:

Bps 16
Basic pay 64500
Dob 28 12 1971
Do appointment 03 03 1990
Will retire on 03 03 2019
Pl calculate the net pension, graduaity and commutation.
Regards

2. Sadullah says:

Basic pay 48040 servis 34 years