7th Pay Commission Pension Calculator

The Pay Commission doesn’t only affect the salary, it also affects the pension. The pension of an individual who retired prior to 1 January 2016 on the basis of the 7th Pay Commission, can be ascertained using a Pension Calculator.

Pension fixation has been suggested by the 7th Central Pay Commission for civil employees (inclusive of Central Armed Police Forces personnel) whose retirement date was prior to January 1, 2016. The Commission has provided two formulations along with illustrations for pension fixation – one for those whose retirement date was prior to 2016 and the other for those whose retirement date was prior to 2006.

The initial formulation of pension fixation is expected to take a while because each pensioner’s records must be verified so that the number of time they have earned increments in the retiring levels are ascertained.

7th Central Pay Commission’s Recommendations for Pension Fixation

All civilian personnel, inclusive of those employed by the Central Armed Police Forces, whose retirement date was before January 1, 2016, will be changed in the Pay Matrix after recommendations from the Commission. The fixing of pension will be based on the grade pay and pay band at the time of retirement for these personnel.

In order to determine the retiree’s notional pay, the amount will be increased through the addition of the number of increments the individual has earned in the particular level while serving the forces. The rate at which the increments will be added is 3%, and 50% of the overall amount arrived at will be the personnel’s revised pension.

For the computation of the second formulation, the pension which was fixed when the 6th Central Pay Commission’s recommendations were implemented, will be multiplied into 2.57 in order to determine the revised pension’s alternative value.

Illustration of Pension Fixation

In case a pensioner has retired and the last pay he had received was Rs.79,000 on May 30, 2015, when the recommendations of the 6th Central Pay Commission were implemented, having received three increments between Rs.67,000 and Rs.79,000:

Particulars Amount
Basic pension fixed in the 6th Central Pay Commission Rs.39,500
First pension fixed in the 7th Central Pay Commission (with the use of multiple of 2.57) Rs.1,01,515 (Option I)
Minimum of the corresponding pay level in the 7th Central Pay Commission Rs.1,82,200
Notional Pay fixation on the basis of three increments Rs.1,99,100
50% of the notional pay arrived at Rs.99,550 (Option II)
Pension amount admissible (Higher of Option I or Option II) Rs.1,01,515

In the second case, if a pensioner has retired and the last pay he received was Rs.4,000 on January 31, 1989, after the implementation of the recommendations made by the 4th Central Pay Commission, having received nine increments in the 3000-100-3500-125-4500 pay scale, the pension fixation will be as follows:

Particulars Amount
Basic pension fixed in the 4th Central Pay Commission Rs.1,940
Basic pension after revisions in the 6th Central Pay Commission Rs.12,543
First pension fixed in the 7th Central Pay Commission (with the use of multiple of 2.57) Rs.32,236 (Option I)
Minimum of the corresponding pay level in the 7th Central Pay Commission Rs.67,700
Notional Pay fixation on the basis of nine increments Rs.88,400
50% of the notional pay arrived at Rs.44,200 (Option II)
Pension amount admissible (Higher of Option I or Option II) Rs.44,200

7th Pay Commission Pension Calculator FAQs

  1. Which Central Government employees are eligible for pension fixation?
  2. All the Central Government employees including personnel from Central Armed Police Forces are eligible for pension fixation whose retirement date was prior to 1 January 2016.

  3. What is the fixing of the pension dependent on?
  4. The fixing of the pension will be based on the grade pay and the pay band at the time of retirement of the personnel.

  5. How is the retiree’s notional pay determined?
  6. The notional pay of a retiree is determined by increasing the amount through the addition of a number of increments which the employee has earned at the particular level while serving. The rate at which the increments are added will be 3%. 50% of the total amount post the increment will be the revised pension of the employee.

  7. What is the basic pension fixed under the 6th Central Pay Commission?
  8. The basic pension fixed under the 6th Central Pay Commission is Rs.39,500.

News About 7th Pay Commission Pension

  • The central government allows Invalid Pension for Armed Forces personnel who have served for less than 10 years

    The central government has decided that Invalid Pension will be given to the personnel who have less than 10 years of service. This has been done for the benefit of pension holders who are in the Armed Forces. The proposal was approved by Rajnath Singh, Defence Minister of India and the benefit will be available for the personnel of the Armed Forces who have been in the service on or after January 4th, 2019.

    Previously, the minimum period of service required to qualify for the pension was a minimum of 10 years. For the person who had served for less than 10 years, invalid gratuity was offered.

    With this decision, any personnel who has served the country for less than 10 years and has been out of service due to bodily or mental infirmity which is Neither Attributable to Nor Aggravated by military service and has permanently incapacitated them from service or civil employment will be benefited.

  • No arrears of 7th pay commission to state employees of Maharashtra

    All employees of the Maharashtra government will not be getting their instalment to clear the arrears this year for the seventh pay commission. The government is now struggling with a financial crisis and hence this decision has been made to the defer the payment.

    The finance department had said that they had made a decision to defer the instalment arrears of seventh pay commission for one year. This was a decision made based on the impact on the economy over the past few months. The state has now taken a decision to implement all recommendations of the seventh pay commission from 1 January, 2019. This amount of arrears had been divided into five instalments. The year’s instalment of Rs.5,000 crore for the 18 lakh employees had been due on 1 July

  • Government Releases Rs.868 Crore Pension

    The Employees Provident Fund Organisation (EPFO) recently released Rs.868 crore pension with anther Rs.105 crore as arrear on account of restoration of commuted value of pensions by the government. This announcement had been made by the Ministry of Labour and Employment. The Labour Ministry had also said that the government had accepted the EPFO Trust and their recommendation on the longstanding demands that workers would be allowed restoration of commuted value of pension after their 15 years, and this would allow all pensioners to get their pension.

  • Personnel Ministry issues new guidelines to all banks for disbursing pension

    In an attempt bid to offer relief to more than 65 lakh central pensioners working with the government, on Friday, the Personnel had issued a few new guidelines for all the banks with regard to the disbursing of pension. The Personnel Ministry had said that the banks will be adopting a different kind of procedure when it comes to releasing the pension and certificates from the pensioners. The ministry has also gone on to issue a few consolidated guidelines for the chairman and managing directors of banks that pension disbursing in order to create awareness among the Central Pension Processing Center and bank branches and also keep them updated regarding the rules and instructions.

    This move has come after the analysis of all grievances that were received by the Department of Pension and Pensioners' Welfare under the Personnel Ministry. The department had said that they have observed that the consolidated instructions will improve the processing of all pensioner's requests.

    In the wake of these new guidelines, pension distributions banks will also receive Aadhaar-based digital 'life certificate' from these pensioners. Other than this, the pensioners who are of the age 80 and above can submit the life certificate in October. The 7th pay commission rules say that a pensioner has to submit the life certificate in November.

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