7th CPC 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.
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 |
First 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.
The Department of Pension and Pensioners Welfare has issued the first and second option calculation examples who retired in 4th CPC, 5th CPC and 6th CPC with the OM No.38/37/2016-P&PW(A) dated on 12th May, 2017.
| Retired in 4th CPC regime (Retired on 31.12.1984) | ||
| S.No. | Description | 1st case |
| 1 | Date of Retirement | 31.12.1984 |
| 2 | Scale of Pay (or Pay Band & GP) at the time of retirement Or Notional pay scale as on 1.1.1986 for those retired before 1.1.1986 | 975 – 1660 (4th CPC Scale) |
| 3 | Pay on retirement Or Notional pay as on 1.1.1986 for those retired before 1.1.1986 | 1210 |
| 4 | Pension as on 1.1.2016 before revision | 4191 |
| 5 | Family pension as on 1.1.2016 before revision | 3500 |
| 6 | Family pension at enhanced rate as on 1.1.2016 before revision (if applicable) | NA |
| 7 | Revised pension by multiplying pre-revised pension by 2.57 | 10,771 |
| 8 | Revised family pension by multiplying pre-revised pension by 2.57 | 9,900 |
| 9 | Revised family at enhanced rate by multiplying pre-revised enhanced family pension by 2.57 | NA |
| 10 | Pay fixed on notional basis on 1.1.1996 | 3,710 (3200-4900) |
| 11 | Pay fixed on notional basis on 1.1.2006 | 8,910 (PB-1, GP 2000) |
| 12 | Pay fixed on notional basis on 1.1.2016 | 23,100 (Level-3) |
| 13 | Revised pension w.e.f. 1.1.2016 as per first formulation | 11,550 |
| 14 | Revised family pension w.e.f. 1.1.2016 as per first formulation | 9,000 |
| 15 | Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation | NA |
| 16 | Revised pension payable (Higher of S.No.7 and 13) | 11,550 |
| 17 | Revised family pension payable (Higher of S.No.8 and 14) | 9,000 |
| 18 | Revised family at enhanced rate payable (Higher of S.No.9 and 15) | NA |
| Retired in 4th CPC regime (Retired on 31.01.1989) | ||
| S.No. | Description | 2nd case |
| 1 | Date of Retirement | 31.01.1989 |
| 2 | Scale of Pay (or Pay Band & GP) at the time of retirement Or Notional pay scale as on 1.1.1986 for those retired before 1.1.1986 | 3000 – 4550 (4th CPC Scale) |
| 3 | Pay on retirement Or Notional pay as on 1.1.1986 for those retired before 1.1.1986 | 4,000 |
| 4 | Pension as on 1.1.2016 before revision | 12,600 |
| 5 | Family pension as on 1.1.2016 before revision | 7,560 |
| 6 | Family pension at enhanced rate as on 1.1.2016 before revision (if applicable) | NA |
| 7 | Revised pension by multiplying pre-revised pension by 2.57 | 32,382 |
| 8 | Revised family pension by multiplying pre-revised pension by 2.57 | 19,430 |
| 9 | Revised family at enhanced rate by multiplying pre-revised enhanced family pension by 2.57 | NA |
| 10 | Pay fixed on notional basis on 1.1.1996 | 11,300 (10,000-15,200) |
| 11 | Pay fixed on notional basis on 1.1.2006 | 27,620 (PB-3, GP 6600) |
| 12 | Pay fixed on notional basis on 1.1.2016 | 71,800 (Level-11) |
| 13 | Revised pension w.e.f. 1.1.2016 as per first formulation | 35,900 |
| 14 | Revised family pension w.e.f. 1.1.2016 as per first formulation | 21,540 |
| 15 | Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation | NA |
| 16 | Revised pension payable (Higher of S.No.7 and 13) | 35,900 |
| 17 | Revised family pension payable (Higher of S.No.8 and 14) | 21,540 |
| 18 | Revised family at enhanced rate payable (Higher of S.No.9 and 15) | NA |
| Retired in 5th CPC regime (Retired on 30.06.1999) | ||
| S.No. | Description | 3rd case |
| 1 | Date of Retirement | 30.06.1999 |
| 2 | Scale of Pay (or Pay Band & GP) at the time of retirement Or Notional pay scale as on 1.1.1986 for those retired before 1.1.1986 | 4000 – 6000 (5th CPC Scale) |
| 3 | Pay on retirement Or Notional pay as on 1.1.1986 for those retired before 1.1.1986 | 4,800 |
| 4 | Pension as on 1.1.2016 before revision | 5,424 |
| 5 | Family pension as on 1.1.2016 before revision | 3,500 |
| 6 | Family pension at enhanced rate as on 1.1.2016 before revision (if applicable) | NA |
| 7 | Revised pension by multiplying pre-revised pension by 2.57 | 13,940 |
| 8 | Revised family pension by multiplying pre-revised pension by 2.57 | 9,000 |
| 9 | Revised family at enhanced rate by multiplying pre-revised enhanced family pension by 2.57 | NA |
| 10 | Pay fixed on notional basis on 1.1.1996 | NA |
| 11 | Pay fixed on notional basis on 1.1.2006 | 11,330 (PB-1, GP 2400) |
| 12 | Pay fixed on notional basis on 1.1.2016 | 29,600 (Level-4) |
| 13 | Revised pension w.e.f. 1.1.2016 as per first formulation | 14,800 |
| 14 | Revised family pension w.e.f. 1.1.2016 as per first formulation | 9,000 |
| 15 | Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation | NA |
| 16 | Revised pension payable (Higher of S.No.7 and 13) | 14,800 |
| 17 | Revised family pension payable (Higher of S.No.8 and 14) | 9,000 |
| 18 | Revised family at enhanced rate payable (Higher of S.No.9 and 15) | NA |
| Retired in 6th CPC regime (Retired on 31.05.2015) | ||
| S.No. | Description | 4th case |
| 1 | Date of Retirement | 31.05.2015 |
| 2 | Scale of Pay (or Pay Band & GP) at the time of retirement Or Notional pay scale as on 1.1.1986 for those retired before 1.1.1986 | 67000-79000 (6th CPC Scale) |
| 3 | Pay on retirement Or Notional pay as on 1.1.1986 for those retired before 1.1.1986 | 79,000 |
| 4 | Pension as on 1.1.2016 before revision | 39,500 |
| 5 | Family pension as on 1.1.2016 before revision | 23,700 |
| 6 | Family pension at enhanced rate as on 1.1.2016 before revision (if applicable) | 39,500 |
| 7 | Revised pension by multiplying pre-revised pension by 2.57 | 1,01,515 |
| 8 | Revised family pension by multiplying pre-revised pension by 2.57 | 60,909 |
| 9 | Revised family at enhanced rate by multiplying pre-revised enhanced family pension by 2.57 | 1,01,515 |
| 10 | Pay fixed on notional basis on 1.1.1996 | NA |
| 11 | Pay fixed on notional basis on 1.1.2006 | NA |
| 12 | Pay fixed on notional basis on 1.1.2016 | 2,05,100 (Level-15) |
| 13 | Revised pension w.e.f. 1.1.2016 as per first formulation | 1,02,550 |
| 14 | Revised family pension w.e.f. 1.1.2016 as per first formulation | 61,530 |
| 15 | Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation | 1,02,550 |
| 16 | Revised pension payable (Higher of S.No.7 and 13) | 1,02,550 |
| 17 | Revised family pension payable (Higher of S.No.8 and 14) | 61,530 |
| 18 | Revised family at enhanced rate payable (Higher of S.No.9 and 15) | 1,02,550 |
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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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