7th CPC Pension Calculation : Fixation for Pre-2016 Pensioners
Pension modification is slightly confused due to two part of determination of pension suggested by 7th Pay Commission for Union Govt Pensioners and Family Pensioners
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Revision of Pension as per 7th CPC for Pre-2016 Pensioners: Orders issued on the report of Pension Committee
The DoPPW issued orders on 12.5.2017 regarding the revision of pension for Pre-2016 pensioners
Pre-2016 Pensioners means, employees who retired before 1.1.2016, Pre-2006 Pensioners means, employees who retired before 1.1.2006.
7th CPC recommended to fix the revised pension from 1.1.2016 for all pensioners and family pensioners in two methods.
“The feasibility of the first option recommended by 7th CPC has been examined by a Committee headed by Secretary, Department of Pension Pensioners’ Welfare.
The aforesaid Committee has submitted its Report and the recommendations made by the Committee have been considered by the Government.
Accordingly, it has been decided that the revised pension/family pension w.e.f 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died.”
Click to read the complete order
The 7th Pay Commission has recommended the fixation of pension for civil employees including CAPF personnel, who have retired before 01.01.2016, given two formulations with illustrations for fixing of pension.
And also recommended, the first formulation of fixing the pension may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. The first instance the revised pension may be calculated as in the second formulation and the same may be paid as an interim measure. In the event calculation as per the formulation of fixing the pension yields a higher amount the difference may be paid subsequently.
And one more important recommendation of option given to the pensioners for choosing whichever is beneficial to them.
Recommendations on fixing of Pension by 7th CPC : All the civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.
1.This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.
2. The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.
Check also detailed four illustrations
Illustration on fixation of pension :
Better to understand, follow the illustrations are given below…
Case I : Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 30 May, 2015 under the VI CPC regime, having drawn three increments in the scale Rs. 67,000 to 79,000:
| S.No. | Description | Amount in Rs. |
| 1. | Basic Pension fixed in VI CPC | 39,500 |
| 2. | Initial Pension fixed under Seventh CPC (using a multiple of 2.57) | 1,01,515-Option 1 |
| 3. | Minimum of the corresponding pay level in 7 CPC | 1,82,200 |
| 4. | Notional Pay fixation based on 3 increments | 1,99,100 |
| 5. | 50 percent of the notional pay so arrived | 99,550-Option 2 |
| 6. | Pension amount admissible (higher of Option 1 and 2) | 1,01,515 |
Case II : Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of Rs. 3000-100-3500-125-4500:
| S.No. | Description | Amount in Rs. |
| 1. | Basic Pension fixed in IV CPC | 1,940 |
| 2. | Basic Pension as revised in VI CPC | 12,543 |
| 3. | Initial Pension fixed under Seventh CPC (using a multiple of 2.57) | 32,236 Option 1 |
| 4. | Minimum of the corresponding pay level in 7 CPC | 67,700 |
| 5. | Notional Pay fixation based on 9 increments | 88,400 |
| 6. | 50 percent of the notional pay so arrived | 44,200 Option 2 |
| 7. | Pension amount admissible (higher of Option 1 and 2) | 44,200 |
| 7th CPC Pension Calculator for 6th CPC Pensioners |
| 7th CPC Pension Calculator for 5th CPC Pensioners |
The concept of minimum pension and the method of computing it have not been explained by any of the pay commissions or the Government, it is clear that the Minimum Pension is 50% of the Minimum Wage. The rationale behind the percentage has nowhere been explained. We however think that in order to ensure that it is adequate, 100% of the minimum wage should be the Minimum Pension. The very concept of Need Based Minimum Wage is that this is a level of wage below which a worker’s family cannot subsist / survive and remain capable to perform. That being the concept of minimum wage, it should also apply in the case of Minimum Pension on the premise that any pension lower than the Minimum pay is insufficient to enable a pensioner / family pensioner to live or survive.
The DoPPW issued orders on 12.5.2017 regarding the revision of pension for Pre-2016 pensioners
“The feasibility of the first option recommended by 7th CPC has been examined by a Committee headed by Secretary, Department of Pension Pensioners’ Welfare. The aforesaid Committee has submitted its Report and the recommendations made by the Committee have been considered by the Government. Accordingly, it has been decided that the revised pension/family pension w.e.f 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died.”
Click to read the complete order
The 7th Pay Commission has recommended the fixation of pension for civil employees including CAPF personnel, who have retired before 01.01.2016, given two formulations with illustrations for fixing of pension. One for the pensioners retired before 2016 and another one is for the pensioners retired before 2006.
And also recommended, the first formulation of fixing the pension may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. The first instance the revised pension may be calculated as in the second formulation and the same may be paid as an interim measure. In the event calculation as per the formulation of fixing the pension yields a higher amount the difference may be paid subsequently.
And one more important recommendation of option given to the pensioners for choosing whichever is beneficial to them.
Recommendations on fixing of Pension by 7th CPC : All the civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.
1.This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.
2. The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.
First & Second Option issue
After a long deliberation of all pensioners associations, the Government has decided to constitute a high-power committee to examine the feasibility of implementation of first option for pre-2016 pensioners.
The Cabinet Committee decided on the recommendations of high power committee, the revised pension/family pension w.e.f 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died.
So, as per the decision of Government of India, the first formulation of pesnion revision is implemented to all civil pre-2016 pensioners.
Few illustrations are given below to understand the first and second option calculation who retired in 4th CPC, 5th CPC and 6th CPC…
| Retired in 4th CPC regime (Retired on 31.12.1984) | ||
| 1. | Date of Retirement | 31.12.1984 |
| 2. | Pay Scale at the time of retirement | 975 – 1660 (4th CPC Scale) |
| 3. | Basic Pay on retirement | 1210 |
| 4. | Pension as on 1.1.2016 before revision | 4191 |
| 5. | Revised pension by multiplying pre-revised pension by 2.57 | 10,771 |
| 6. | Pay fixed on notional basis on 1.1.1996 | 3,710 (3200-4900) |
| 7. | Pay fixed on notional basis on 1.1.2006 | 8,910 (PB-1, GP 2000) |
| 8. | Pay fixed on notional basis on 1.1.2016 | 23,100 (Level-3) |
| 9. | Revised pension w.e.f. 1.1.2016 as per first formulation | 11,550 |
| 10. | Revised pension payable (Higher of S.No.5 and 9) | 11,550 |
| Retired in 4th CPC regime (Retired on 31.01.1989) | ||
| 1. | Date of Retirement | 31.01.1989 |
| 2. | Pay Scale at the time of retirement | 3000 – 4550 (4th CPC Scale) |
| 3. | Basic Pay on retirement | 4,000 |
| 4. | Pension as on 1.1.2016 before revision | 12,600 |
| 5. | Revised pension by multiplying pre-revised pension by 2.57 | 32,382 |
| 6. | Pay fixed on notional basis on 1.1.1996 | 11,300 (10,000-15,200) |
| 7. | Pay fixed on notional basis on 1.1.2006 | 27,620 (PB-3, GP 6600) |
| 8. | Pay fixed on notional basis on 1.1.2016 | 71,800 (Level-11) |
| 9. | Revised pension w.e.f. 1.1.2016 as per first formulation | 35,900 |
| 10. | Revised pension payable (Higher of S.No.5 and 9) | 35,900 |
| Details of Pensioner | ||
| 1. | Date of Retirement | 30.06.1999 |
| 2. | Pay Scale at the time of retirement | 4000-6000 (5thCPC Scale) |
| 3. | Basic Pay on retirement | 4,800 |
| 4. | Pension as on 01.01.2016 before revision | 5,424 |
| 5. | Revised pension by multiplying pre-revised pension by 2.57 | 13,940 |
| 6. | Pay fixed on notional basis on 1.1.2006 | 11,330 (PB-1, GP-2400) |
| 7. | Pay fixed on notional basis on 1.1.2016 | 29,600 (Level-4) |
| 8. | Revised pension w.e.f. 1.1.2016 as per first formulation | 14800 |
| 9. | Revised Pension w.e.f. 1.1.2016 (Higher of 5 & 8) | 14800 |
| Details of Pensioner | ||
| 1. | Date of Retirement | 31.05.2015 |
| 2. | Pay Scale at the time of retirement | 67000-79000 (6thCPC Scale) |
| 3. | Basic Pay on retirement | 79,000 |
| 4. | Pension as on 1.1.2016 before revision | 39,500 |
| 5. | Revised pension by multiplying pre-revised pension by 2.57 | 1,01,515 |
| 6. | Pay fixed on notional basis on 1.1.2016 | 2,05,100 (Level- 15) |
| 7. | Revised pension w.e.f. 1.1.2016 as per first formulation | 1,02,550 |
| 8. | Revised pension payable (Higher of S.No.5 and 7) | 1,02,550 |
7th Pay Commission Pension Calculation (Fixation for Pre-2016 Pensioners)
The motive of constitution of Pay Commission is not only for existing employees, also for retired employees (Pensioners), including Railway and Defence Pensioners. Revision of Pension and Retirement Benefits are very important aspects in the report of Pay Commission.
Old Pension Scheme and National Pension System
OPS and NPS: There is a main difference between the employees, appointed on and after 1.1.2004 are covered by the National Pension System (NPS). And all others (appointed on or before 31.3.2003) are covered by the Old Pension Scheme.
The pension and family pension calculation methodology recommended in 7th pay commission for the pensioners who are retired under Old Pension Scheme.
Calculation Methodology as per 7th CPC
The 7th Central Pay Commission has recommended two options for calculating revised pension for Civil Pensioners who retired before 1.1.2016.
First option is the revised pension will be fixed in the Pay Matrix on the basis of 6th CPC pay. To arrive notional pay, the amount of minimum of his corresponding level and adding the number of increments earned in service. And then pension and family pension will be calculated.
The second option is basic pension (Fixed at the time of 6th CPC) multiply with 2.57 fitment factor to arrive at an alternative value for the revised pension.
One of the biggest and familiar federation which is established in 1955, Bharat Pensiners Samaj (BPS) submitted a memorandum to 7th Pay Commission related to pensioners issue.
Pension Entitlement – Emoluments for Pension: 3.1 The entire income in form of basic pay, special pay or personal pay if any, deputation duty allowance etc are the elements of pay proper and therefore confining the emoluments to the basic pay as recommended by the IV and V CPCs is arbitrary an dtherofre should be undone.
The Dearness Allowance is meant to restore the purchasing power of pay and therefore is only an addition to pay. In many countries there is no system of DA. Periodically the Pay is revised / indexed taking into account the rise in cost of living. Here also there is a system of merging the DA as DP for purposes of pensionery benefits.
In respect of gratuity already the DA is being included with Pay and therefore there is no reason for excluding the DA from the emoluments. We therefore suggest that the emoluments for the calculation of pension should include:
(a) Basic Pay (b) Any Special pay or personal pay, or deputation duty allowance. (c) Dearness Allowance (d) Non-practicing allowance in respect of Doctors (e) 75% of the running allowance in respect of Railway Running Staff retired after 4.12.1988.
3.2 There are persons who retire after having served for full year since their last increment. The next increment which has already accured to them is however not added to their amoluments for purposes of computing pension and other pensionery benefits.
It is therefore submitted that the Commission may kindly consider and recommend that if a person retire on the day he has completed 12 months of service since his last increment, the increment accrued to him may be added notionally to his basic pay and then the pension computed.
3.3 The VI CPC has already recommended that the ten monthly average emoluments or the last pay drawn, whichever is more beneficial, should be the basis of computation of pension. We have therefore no further suggestion to place before the Commission on this issue.
Minimum Pension: The concept of minimum pension and the method of computing it have not been explained by any of the pay commissions or the Government, it is clear that the Minimum Pension is 50% of the Minimum Wage. The rationale behind the percentage has nowhere been explained.
We however think that in order to ensure that it is adequate, 100% of the minimum wage should be the Minimum Pension. The very concept of Need Based Minimum Wage is that this is a level of wage below which a worker’s family cannot subsist / survive and remain capable to perform.
That being the concept of minimum wage, it should also apply in the case of Minimum Pension on the premise that any pension lower than the Minimum pay is insufficient to enable a pensioner / family pensioner to live or survive.
Reference Orders:
- Revision of pension of pre-2016 pensioners / family pensioners in implementation of Governments decision on the recommendations of the 7th Central Pay Commission- Concordance tables-OM No.38/37/2016-P&PW(A) Dated 06/07/2017
- Revision of Pension of pre-2016 Pensioners and Family Pensioners – DoPPW OM dt. 12.5.2017
- Revision of Pension of Pre-2016 Pensioners and Family Pensioners – DoPPW OM dt. 4.8.2016
7th CPC Concordance Table for All Group of Pre-2016 Pensioners:
- (PB-1 GP1800 TO 2800 7CPC LEVEL 1 TO 5)
- (PB-2 GP4200 TO 5400 7CPC LEVEL 6 TO 9)
- (PB-3 GP5400 TO 7600 7CPC LEVEL 10 TO 12)
- (PB-4 GP8700 TO 10000 7CPC LEVEL 13 TO 14)
Other Important Orders & Calculators:
4th, 5th , 6th and 7th Pay Scale Table for 7th CPC Pension Calculator
7th CPC Pension Ready Reckoner Concordance Tables 1 to 58 7th CPC Defence Pension Calculation as per DESW Orders issued on 5.9.2017
Sir kya such ma army ma retirement age 57 years ho rahi hai
I retired on 27feb 2004 as assistant in the ministry of I &b(DG:,AIR)
My basic pay was 7950 at the
Of retirement. As per 7th làtest report of 7th pay commission what will be my total pension as on date. Contact no 9990311056
Mention your scale of pay in 5th CPC.
Formula for Gratuity calculation = ( Basic Pay + DA) x15 days x15days xNo.of years of service]/26 is available in some website. If this is correct ,please intimate OM /order No. for under which order ,this formula adopted. I have informed to office regarding this formula for calculation of my gratuity for 07th pay commission. They want new order for calculation of my grauity
Common formula is : (Basic + D.A.) X Number of completed years of service X 15/26.. You have not mentioned you worked in Government service or private. if it is government, you can log on to http://www.pensionersportal & calculate. There is no O.M. for this. The revised gratuity (amendment) Act, 2018 brought in force on 29/3/2018.
Sir,
My father took voluntary retirement in 2004..He was working in Mumbai port trust.
Now he gets total pension of 16313 rs.. in may he’ll complete 15years of restoration.
What pension he should expect from may 2019.
Minus his commuttation of monthly deduction plus 3% of D.R. of his pension amount.
My father is retired from Army w. e. f. 1980 as a ALD ( acting land defedar) . Is he also eligible for revision of pension according 7th CPC
Sir I will be retire from 35 yrs service my basic pay will be 62200/- what will my pension at matric level 6
50% of your last basic pay of Rs.31,100/- plus applicable D.R.
I AM A CENTRAL GOVERNMENT EMPLOYEES INTEND TO VOLINTEER RETIREMENT AFTER 20YEARS CENTRAL GOVERNMENT EMPLOYEES TAK
Sir, I have retired on 31st July 2016 on basic pay 23800/=PB( 9300-34800) Go 4600/=with 33yrs qualifying service.Bank paying my pension as follow. Basic pension 11900/=Reduced pension 7140/=DR. 595/=+Med Allowance 1000/=total payable 8735/= Is it correct or something else. Kindly guide me.
What ever little justice of lowest pay rise by any pay commission since independence could have been done by the matrix table of 7th cpc has been further harmed by the concordance table I as a pensioner am deprived the benefit of one increment
Why concordance table when pay matrix can fix the revised pay/ pension by concordance table I am deprived of the pensionary benifit of one increment
I was retired under superannuation on 30.06.2013. With last basic pay of Rs.17770/- pay of 9300-34800 -GPS 4200. My pension was fixed at the retirement is 8885/- on 6th CPC. what will be my actual pension will be fixed?what will be arrears accumulated? kindly help me out please.
My father in law retired from the post of District Education Officer Faridabad in Haryana in December 2003. His basic pay at that time was Rs. 10975/-. I don’t know scale of District Education Officer at that time. But his pension on December 2015 was Rs. 12404/-. What would be his pension on 1.1.2016. and pension on 1.9.2017 .
What about pension for persons who retired in 2017. When is the revised pension been given as per 7 cpc.
My basic pay in the pay scale of 14300-400-18300 under 5th pay commission was Rs.16, 700/- (with 6 increments). My basic pay fixed in the PB-4 pay scale of 37400-67000 was Rs.49, 590/-, in effect considered only 3 increments as against 6 increments I earned. As per option -1, my basic pay under 7th Pay Commission is likely to be fixed at Rs.65,300 /- based on revised ‘ Index of Rationalisation’ for Level 13 Pay Matrix with enhancement from 2.57 to 2.67. , thereby, in effect allowing only 2 increments as against 3 considered under 6th. CPC vide level -13, row -3.
If not 6 increments, at least 3 increments as considered under the 6th. CPC shall have to be considered. In other words, the revised basic pension, that is applicable with effect from Jan 01, 2016, as per Index 4 for level 13 of the revised pay matrix shall be 67,250/.
I plead that the authorities concerned may kindly take note of the said inconsistencies in pay and pension fixation and take necessary corrective action in the pay and pension fixation.
I ALSO RETIRED IN THE SAME SCALE 14800-18300 WITH 3 INCREMENTS ON 31/10/2003 AND I HAVE NOT BEEN GIVEN ANY INCREMENT WHILE FIXING MY PENSION AS ON I/I/2016 I WAS GRANTED PENSION OF 61550 ( 50% of min pay in the scale I plead that the authorities concerned may kindly take note of the said inconsistencies in pay and pension fixation and take necessary corrective action in the pay and pension fixation.
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