HERO
Complete Central Government pension planning calculator for eligible pension cases — estimate basic pension, retirement gratuity, commutation, dearness relief, family pension, net monthly pension and commutation breakeven. Always reconcile the result with the PPO, qualifying-service record and applicable pension rules.
50%Basic Pension Rate
₹25LMax Gratuity (2026)
40%Max Commutation
Service RecordQualifying Service Check
Rule 52DR on Full Pension
PPOFinal Pension Authority
📋
7th CPC Pension Formula – Basic Pension = 50% of Last Pay Drawn
Under the CCS (Pension) Rules 2021, the basic pension for Central Government employees is 50% of the last basic pay drawn (for qualifying service of 20 years and above) OR 50% of average emoluments of the last 10 months, whichever is more beneficial. Minimum qualifying service: 10 years. Full pension: 20 years qualifying service. Maximum gratuity: ₹25 lakh (revised from ₹20L; increased by 25% whenever DA crosses 50%). DR is payable on full basic pension before commutation (DoPPW clarification).
📌 Jump to Section
Pension Formula
Gratuity Rules
Commutation
Family Pension
Dearness Relief
Qualifying Service
Types of Pension
OPS vs NPS
CALCULATORS
🏦
Basic Pension Calculator – 7th CPC
Calculate basic pension based on last pay drawn and qualifying service
Basic pay at the time of retirement (excluding DA, HRA)
Auto-calculated from DOJ/DOR; max 33 years counted
Current DA: ~55% (2026 estimate). Check latest gazette.
If basic pay changed in last 10 months, enter average. Pension = max(50% last pay, 50% avg emoluments)
🏦 Basic Pension Calculation
Last Basic Pay Drawn—
Qualifying Service—
Service Counted (max 33 yrs)—
Type of Retirement—
50% of Last Pay Drawn—
50% of Average Emoluments—
✅ Basic Pension (Higher of two)—
Minimum Pension (7th CPC)—
Final Basic Pension Payable—
DA on Full Pension (@ rate%)—
Pension + DR (Total Monthly)—
🏦 Basic Pension / Month
—
💰 Pension + DR / Month
—
🎁
Retirement Gratuity Calculator
Calculate retirement gratuity lump sum (max ₹25 lakh) and death gratuity
Emoluments = Basic Pay + DA at retirement
Gratuity ceiling of ₹20L increases by 25% each time DA crosses 50%
Needed for death gratuity calculation
🎁 Gratuity Calculation
Emoluments (Basic + DA)—
Qualifying Service—
Type of Gratuity—
Gratuity Formula Applied—
Calculated Gratuity (before ceiling)—
Current Gratuity Ceiling—
✅ Gratuity Payable (min of calculated & ceiling)—
Tax-Free Status—
🎁 Retirement Gratuity (Lump Sum)
—
💵
Commuted Pension Calculator
Calculate lump sum from commutation, monthly deduction, breakeven period, and restoration date
Commutation factor depends on age next birthday
Commutation effective from date pension becomes due (or 1 month after application)
DR is payable on FULL pension before commutation (DoPPW Rule 52)
💵 Commutation Details
Basic Pension—
Commutation % Selected—
Commuted Pension Amount—
Age at Retirement—
Commutation Factor (table value)—
Commuted Value (Lump Sum)—
Reduced Pension (after commutation)—
DR on FULL Pension (not on reduced)—
Net Monthly Pension (reduced + DR)—
Pension Restored After 15 Years—
Breakeven Period—
💵 Lump Sum Received
—
📅 Pension Restored On
—
📊 Commutation % Comparison
| Comm % | Commuted Pension | Lump Sum (₹) | Reduced Monthly Pension | Net Monthly (with DR) | Breakeven (yrs) |
|---|
👨👩👧
Family Pension Calculator
Calculate enhanced and normal family pension for spouse, children, and dependent parents
Enter basic pension if employee retired; last basic pay if death in service
Enhanced FP payable for first 7 years (or until age 67 of deceased, whichever earlier)
👨👩👧 Family Pension Details
Basic Pension / Last Pay—
Case Type—
Enhanced Family Pension (50% of basic pension)—
Enhanced FP Payable For—
Normal Family Pension (30% of basic pension)—
Normal FP Payable After Enhanced Period—
DR on Enhanced FP—
DR on Normal FP—
Total Enhanced FP (with DR)—
Total Normal FP (with DR)—
📅 Enhanced FP (first 7 yrs)
—
📅 Normal FP (thereafter)
—
📊
Net Monthly Pension (Take-Home)
Complete pension slip — basic pension, DR, medical allowance, CGHS, income tax, and net pension
Monthly amount deducted during 15-year commutation period
DR is always on FULL pension (before commutation deduction)
FMA: ₹1,000/month for pensioners not covered under CGHS
CGHS contribution deducted; enter if covered under CGHS
Pension is fully taxable; estimate annual tax ÷ 12
Recovery of over-payments, house rent, etc.
📊 Monthly Pension Slip (Estimated)
💼 Monthly Pension Breakup
Basic Pension—
Dearness Relief (DR)—
Fixed Medical Allowance (FMA)—
GROSS PENSION (before deductions)—
(−) Commuted Pension Deduction—
(−) CGHS Contribution—
(−) Income Tax (estimated)—
(−) Other Recoveries—
🏦 NET MONTHLY PENSION (Take-Home)—
💰 Gross Monthly Pension
—
🏦 Net Take-Home Pension
—
🎯
Retirement Planner – Complete Summary
One-stop: pension, gratuity, commutation, family pension, and retirement corpus overview
🎯 Complete Retirement Benefits Summary
Qualifying Service—
Basic Pension—
DR on Full Pension—
Monthly Pension (Pension + DR)—
Retirement Gratuity (Lump Sum)—
Commuted Pension Lump Sum—
Reduced Pension (after commutation)—
Pension Restored After 15 Years—
Family Pension (Enhanced – 7 yrs)—
Family Pension (Normal – thereafter)—
🏦 Basic Pension
—
🎁 Total Lump Sum
—
💰 Monthly (Pension+DR)
—
INFO SECTIONS
📐 Pension Formula – 7th CPC (CCS Pension Rules 2021)
The basic pension under the 7th Pay Commission is governed by Rule 44 of CCS (Pension) Rules 2021. Unlike previous commissions, the 7th CPC eliminated the proportionate reduction for service less than 33 years — any employee with 20 or more years of qualifying service gets the full 50% of last pay drawn.
Standard Formula
50% of Last Pay Drawn
Basic Pension = 50% of last basic pay drawn. This is the primary formula for all employees with 20+ years of qualifying service. The “last pay drawn” means the basic pay in the Pay Matrix (excluding DA, HRA, allowances) on the last day of service.
Alternative Formula
50% of Average Emoluments
Pension is also computed as 50% of average emoluments of the last 10 months. The employee receives the higher of the two — 50% pension benchmark (subject to applicable emoluments/service rules) or 50% of 10-month average. Relevant when pay was revised or incremented in the last 10 months.
Minimum
₹9,000/month (7th CPC)
Minimum basic pension under 7th CPC is ₹9,000 per month (effective 01.01.2016). Even if the calculated pension is lower, ₹9,000 is paid. This minimum is revised whenever the Pay Commission recommends revisions. Currently stands at ₹9,000.
Qualifying Service
20 Yrs = Full 50%
Under 7th CPC, 20 years qualifying service entitles to full 50% pension (changed from 33 years under 6th CPC). Minimum qualifying service: 10 years for pension eligibility; below 10 years = service gratuity only, no pension.
Maximum
50% of ₹2,50,000 = ₹1,25,000
Maximum basic pension = 50% of the highest basic pay in the Pay Matrix = 50% × ₹2,50,000 = ₹1,25,000/month. DR is additional and not capped. Most employees in Level 7–10 retire with pension in the ₹22,000–₹56,000 range.
Compulsory Retirement
2/3rd of Normal Pension
In case of compulsory retirement as punishment under CCS(CCA) Rules, the pension is restricted to 2/3rd of the normal pension (minimum 2/3rd of ₹9,000 = ₹6,000/month). The authority can grant between 2/3rd and full pension as deemed appropriate.
🎁 Retirement Gratuity Rules
Retirement gratuity is a tax-free lump sum paid at retirement. The maximum ceiling was ₹20 lakh under 7th CPC (effective 01.01.2016), and it increases by 25% each time the Dearness Allowance crosses 50%. With DA having crossed 50% (DA reached 50% in Jan 2024), the ceiling has now increased to ₹25 lakh.
| Type | Formula | Maximum | Min Service | Tax Status |
|---|---|---|---|---|
| Retirement Gratuity | 1/4 × Emoluments × Completed 6-monthly periods of service | ₹25 lakh (2024 onwards) | 5 years | Fully Tax-Free (Govt employees) |
| Death Gratuity | Based on service slabs: 2× to 33× monthly emoluments | ₹25 lakh | No minimum | Fully Tax-Free to nominee |
| Service Gratuity | ½ × Last month’s emoluments × Each completed 6-monthly period (max 10 yrs) | No monetary cap but limited to 5× annual emoluments | 5 years | Taxable beyond ₹20L (for non-govt) |
| Invalid Gratuity | Same as Retirement Gratuity formula | ₹25 lakh | — | Tax-Free |
Death Gratuity Slabs (7th CPC): Less than 1 year: 2× monthly emoluments | 1–5 years: 6× | 5–11 years: 12× | 11–20 years: 20× | 20+ years: ½ × emoluments × completed 6-monthly periods (subject to ₹25L max). Emoluments = Basic Pay + DA for gratuity purposes.
💵 Commutation of Pension – Rules & Factors
Commutation allows a pensioner to receive a lump sum in exchange for a permanent reduction in monthly pension. The maximum commutable portion is 40% of basic pension. The commuted amount is calculated using the Commutation Factor Table (based on age next birthday). After 15 years, the full pension is restored (the commuted portion is added back). DR is always paid on the full original pension — not on the reduced post-commutation pension.
| Age (Next Birthday) | Commutation Factor | Example: ₹10,000 commuted | Lump Sum (₹) |
|---|---|---|---|
| 55 | 14.17 | ₹10,000 × 14.17 × 12 | ₹17,00,400 |
| 56 | 13.73 | ₹10,000 × 13.73 × 12 | ₹16,47,600 |
| 57 | 13.28 | ₹10,000 × 13.28 × 12 | ₹15,93,600 |
| 58 | 12.83 | ₹10,000 × 12.83 × 12 | ₹15,39,600 |
| 59 | 12.35 | ₹10,000 × 12.35 × 12 | ₹14,82,000 |
| 60 | 11.87 | ₹10,000 × 11.87 × 12 | ₹14,24,400 |
| 61 | 11.37 | ₹10,000 × 11.37 × 12 | ₹13,64,400 |
| 62 | 10.86 | ₹10,000 × 10.86 × 12 | ₹13,03,200 |
| 63 | 10.33 | ₹10,000 × 10.33 × 12 | ₹12,39,600 |
| 64 | 9.81 | ₹10,000 × 9.81 × 12 | ₹11,77,200 |
| 65 | 9.27 | ₹10,000 × 9.27 × 12 | ₹11,12,400 |
Formula: Commuted Lump Sum = Commuted Pension Amount × Commutation Factor × 12. Example: Basic Pension = ₹39,400, commute 40% = ₹15,760. Age 60, Factor = 11.87. Lump Sum = ₹15,760 × 11.87 × 12 = ₹22,44,710. Reduced monthly pension = ₹39,400 − ₹15,760 = ₹23,640. DR paid on ₹39,400 (full). Pension restored to ₹39,400 after 15 years.
👨👩👧 Family Pension Rules – CCS Pension Rules 2021
| Period | Rate | Payable To | Duration |
|---|---|---|---|
| Enhanced Family Pension | 50% of basic pension (or 50% pension benchmark (subject to applicable emoluments/service rules) for in-service death) | Spouse / eligible family member | 7 years from date of death, OR until the deceased would have turned 67, whichever is earlier |
| Normal Family Pension | 30% of basic pension (minimum ₹9,000/month) | Spouse (for life or until remarriage) | After enhanced period, until death/remarriage of spouse |
| Children’s Family Pension | Same as spouse; shared equally among eligible children | Children below 25 years (or disabled children – lifetime) | Until age 25, marriage, or gainful employment |
| Dependent Parents | 30% of basic pension | Parents (if no spouse/children) | For life (not eligible if spouse/children available) |
Key Rule – In-Service Death: If a government employee dies while in service, the family pension is calculated as 50% pension benchmark (subject to applicable emoluments/service rules) drawn (enhanced rate) for the first 7 years. The gratuity in lieu of pension (25% of basic pension × 10) is also paid as a lump sum. Additionally, the full leave encashment balance is paid. Dearness Relief is payable on family pension at the same rate applicable to pensioners.
📈 Dearness Relief (DR) on Pension
Dearness Relief (DR) is the inflation-linked relief paid to pensioners — equivalent to DA for serving employees. It is revised twice a year (January and July) and is payable on the full basic pension before commutation, not on the reduced post-commutation pension.
Rule 52 CCS 2021
DR on Full Pension
DR is payable on the original basic pension before commutation even if part of the pension has been commuted. A DoPPW clarification confirmed this — commuted pensioners do not lose DR on the commuted portion.
Current DR (2026)
~55% (Estimated)
DR for central govt pensioners is approximately 55% as of early 2026 (subject to official gazette notification). Revised every January and July based on AICPI index. Always check the latest MoF notification before calculating.
Formula
AICPI-Based Calculation
DA% = ((Average AICPI (Base 2016=100) for past 3 months − 126.33) / 126.33) × 100. Rounded to nearest whole number. Announced by Cabinet Committee on Economic Affairs (CCEA) twice yearly.
On Family Pension
Same DR Rate
DR is also payable on family pension at the same rate. Enhanced and Normal family pension both attract DR. The DR rate for family pensioners is identical to that for regular pensioners.
✅ Qualifying Service for Pension
| Service | Entitlement | Amount |
|---|---|---|
| Less than 10 years | Service Gratuity only (no pension) | ½ × last month’s emoluments × each completed 6-monthly period |
| 10–20 years | Pension (proportionate) + Retirement Gratuity | Pension proportionate to service (not full 50%) |
| 20 years and above | Full Pension (50% pension benchmark (subject to applicable emoluments/service rules)) + Retirement Gratuity | 50% of last basic pay (7th CPC rule) |
| Maximum counted | 33 years | Excess service beyond 33 years doesn’t increase pension |
Rounding Rule: Qualifying service is rounded to the nearest completed 6-monthly period. Fractions less than 3 months are ignored; 3 months or more but less than 6 months = 6 months; 6 months or more but less than 12 months = 1 year. For example, 29 years 8 months = 30 years qualifying service.
📋 Types of Pension – Central Government
Most Common
Superannuation Pension
On retiring at the age of 60 (mandatory retirement age for Central Govt employees). Full entitlements: pension, gratuity, commutation, leave encashment.
Voluntary
VRS / Voluntary Retirement
Minimum 20 years qualifying service. Full pension and gratuity as on date of retirement. No penalty for leaving early after 20 years. Notice: 3 months (90 days).
Medical
Invalid Pension
If declared permanently unfit for service by Medical Board. No minimum service requirement. Pension computed as if retired on normal date. Gratuity also admissible.
Punishment
Compulsory Retirement
As a punishment under CCS(CCA) Rules. Pension is minimum 2/3rd of normal pension. No commutation allowed unless specifically permitted. Gratuity is reduced proportionately.
Emergency
Compensation Pension
When a government servant’s post is abolished and they cannot be accommodated elsewhere. Full pension if 10+ years service; otherwise service gratuity.
Exceptional
Extraordinary Pension
For disability or death attributable to government service (accidents, occupational hazards). Higher rates than normal pension. Covered under CCS (Extraordinary Pension) Rules.
⚖️ Old Pension Scheme (OPS) vs NPS – Key Differences
| Feature | OPS (Pre-2004 Joiners) | NPS (Post-Jan 2004 Joiners) |
|---|---|---|
| Pension Type | Defined Benefit – guaranteed 50% pension benchmark (subject to applicable emoluments/service rules) | Defined Contribution – market-linked, no guarantee |
| Corpus Risk | Zero – fully govt guaranteed | Market risk – returns depend on fund performance |
| Gratuity | Yes – 1/4 × emoluments × service (max ₹25L) | Yes – same rules (NPS gratuity rules notified 2024) |
| Dearness Relief | Yes – twice yearly, same as DA for employees | On annuity only; annuity income taxable |
| Commutation | Up to 40% of basic pension (restored after 15 yrs) | Up to 60% lump sum at exit (tax-free) |
| Family Pension | 50% (enhanced) + 30% (normal) of basic pension | Spouse can opt for annuity from NPS corpus |
| Employee Contribution | Zero – govt bears full cost | 10% of basic + DA (mandatory) |
| Employer Contribution | Notional (unfunded, budgetary provision) | 14% of basic + DA (Central Govt) |
| Pension Revision | Auto-revised every Pay Commission (every ~10 yrs) | No revision – fixed annuity (unless annuity is inflation-linked) |
| Taxability | Pension fully taxable; gratuity tax-free | 60% lump sum tax-free; annuity fully taxable |
FAQ
Pension Calculation Workflow: From Service Record to PPO
A pension estimate is most useful when the inputs come from official records rather than memory. Start with the last admissible basic pay, retirement date, qualifying service and pension category. Then compare the calculator result with the pension papers and the final Pension Payment Order (PPO). For a quick second calculation, use the Revised Pension Calculator; for retirement-age planning, use the Retirement Age Calculator.
1. Verify the pay figure first
The pension base should not be guessed from gross salary. Gross pay can include DA, HRA, transport allowance and other components that are treated differently from pensionable emoluments. Cross-check the last basic pay with the Pay Matrix Calculator, the Pay Matrix Browser and the Salary Slip Format. If a promotion or MACP changed pay shortly before retirement, verify the fixation through the Promotion Pay Fixation Calculator.
2. Treat qualifying service as a record-based input
Qualifying service can differ from simple calendar service because certain periods, interruptions or service categories may require separate treatment. Use the calculator as an estimate, then reconcile service length with the service book and pension papers. The Retirement Benefits Calculator can help combine pension planning with gratuity and leave-related components.
3. Separate pension, DR and commutation
Basic pension, Dearness Relief and the commuted portion should be read as separate components. DR is not the same as basic pension, and the amount temporarily reduced after commutation should not be mistaken for a permanent reduction in the sanctioned basic pension. Compare the lump-sum estimate with the Pension Commutation Calculator and check the age factor through the Pension Commutation Table. For DR-only scenarios, use the DA Calculator for Pensioners.
4. Gratuity and leave encashment are separate retirement benefits
Do not add a guessed gratuity amount to pension. Gratuity depends on the applicable rules, emoluments and qualifying service, while leave encashment depends on admissible leave balance and the applicable calculation base. Use the Gratuity Calculator and Leave Encashment Calculator separately, then reconcile the combined retirement package with the sanction orders.
5. Family pension requires its own check
Family pension is not simply the retiree’s monthly pension transferred to a nominee. Eligibility, rate, enhanced-period treatment and dependency conditions can differ. Use the Family Pension Calculator for a separate estimate and compare it with the family-pension authorization in the PPO.
6. NPS and pension-rule cases should not be mixed
An employee covered by NPS should not use an old-pension calculation as though it were the retirement benefit payable under NPS. For market-linked corpus planning use the NPS Calculator and the Retirement Corpus Calculator. This page is best treated as a pension-rule estimator for cases where pension under the applicable government pension rules is relevant.
Final pension audit checklist
- Match last basic pay with the final pay slip, service book and pay-fixation order.
- Confirm the retirement date and qualifying-service figure used by the pension sanctioning authority.
- Check the sanctioned basic pension separately from DR and commuted pension.
- Compare commutation factor, commuted percentage and restoration date with the PPO.
- Calculate gratuity and leave encashment independently instead of embedding assumptions in monthly pension.
- Retain copies of PPO, gratuity order, leave-encashment order and bank pension-credit statements for reconciliation.
7th CPC Pension
Revised Pension
Family Pension
Gratuity
Commutation
Retirement Benefits
Frequently Asked Questions – 7th CPC Pension
Common queries on pension calculation, gratuity, commutation, and family pension
What is the pension for a Central Government employee retiring at Level 7 after 30 years of service?▾
For an employee at Level 7 maximum basic pay (₹1,42,400) retiring after 30 years: Basic Pension = 50% × ₹1,42,400 = ₹71,200/month. DA/DR at 55% = ₹39,160. Monthly pension with DR = ₹71,200 + ₹39,160 = ₹1,10,360/month. If commuting 40%: commuted amount = ₹28,480/month, lump sum = ₹28,480 × 11.87 × 12 = ~₹40.5 lakh. Reduced monthly pension = ₹42,720 + DR on full ₹71,200 = ₹42,720 + ₹39,160 = ₹81,880/month. Retirement gratuity (30 yrs, emoluments = ₹1,42,400 + 55% DA = ₹2,20,720): 1/4 × ₹2,20,720 × 60 (30 yrs × 2) = ₹33,10,800, capped at ₹25,00,000.
Is pension income taxable for Central Government pensioners?▾
Yes. Basic pension is fully taxable as income from salary. Dearness Relief is also taxable. However, the following are tax-free: (1) Retirement Gratuity – fully exempt for government employees under Section 10(10)(i); (2) Commuted Pension – fully tax-free for government employees under Section 10(10A); (3) Leave Encashment at retirement – fully exempt. Pensioners can claim the standard deduction of ₹75,000 (FY 2025-26) under both old and new tax regimes from pension income. Additionally, deduction for medical expenses (Section 80D: ₹50,000 for senior citizens) is available under old regime. Family pension received by nominee is taxable as “income from other sources” with a deduction of ₹15,000 or 1/3rd of family pension, whichever is less.
What is the commutation of pension and should I opt for it?▾
Commutation allows you to convert up to 40% of your monthly pension into a one-time lump sum. The lump sum = commuted pension amount × commutation factor × 12. At age 60, the factor is 11.87. For a pension of ₹40,000: commuting 40% (₹16,000) gives ₹16,000 × 11.87 × 12 = ₹22.8 lakh lump sum but your monthly pension reduces by ₹16,000 for 15 years, after which it is restored. The breakeven period is typically 12–13 years — if you live beyond that, you lose money by commuting. Key consideration: DR is paid on the full pension (₹40,000) even after commutation, which partially offsets the reduction. For Central Government pensioners with CGHS coverage and secure retirement, commutation is generally beneficial only if you have a specific immediate need for the lump sum.
How is gratuity ceiling calculated after DA crosses 50%?▾
The 7th CPC set the maximum gratuity ceiling at ₹20 lakh (effective 01.01.2016). This ceiling increases by 25% each time DA crosses a multiple of 50%: when DA crossed 50% (January 2024, DA = 50%), the ceiling increased to ₹25 lakh. When DA next crosses 100%, the ceiling will rise to ₹31.25 lakh. When DA crosses 150%, it becomes ₹39.06 lakh, and so on. This applies to all types of gratuity — retirement, death, and invalid gratuity. The increase is automatic — no separate notification required once the DA revision is notified. Employees who retired before the DA-triggered revision also benefit from the higher ceiling on arrears if applicable.
How is family pension calculated when both husband and wife are Central Government employees?▾
When both spouses are Central Government employees: (1) Both independently earn their own pension based on their own qualifying service. (2) If one spouse dies, the survivor continues to receive their own pension in full. (3) In addition, the survivor is entitled to the family pension of the deceased spouse (enhanced rate for 7 years, then normal rate). However, the combined total of the survivor’s own pension + family pension cannot exceed the basic pay of the highest post held by either of them. The family pension is added to the survivor’s own pension, and if the combined amount exceeds the cap, the family pension is reduced accordingly. Both pensions attract Dearness Relief separately.
What happens to pension if an employee dies within the 15-year commutation period?▾
If a pensioner who has commuted a portion of pension dies within the 15-year commutation period: (1) The commuted portion is NOT restored to the estate — the lump sum already received is the final settlement for the commuted portion; (2) The family pension is calculated on the FULL basic pension (before commutation), not on the reduced pension; (3) The family receives the enhanced family pension (50% of full basic pension) for the first 7 years, then normal (30%) thereafter; (4) The monthly deduction for commutation stops immediately on death — the family does not continue paying back the commutation. This is an important benefit — the family is fully protected regardless of when the pensioner dies during the 15-year period.