7th CPC Pension Calculation
New 7th Pay Commission Pension Calculation – Pay Matrix Pension Calculation
Generally pay commission recommendations are not only for existing employees, also retired employees. 7th pay commission has directed two types of proposals to fix the pension for the pensioners who retired before January 2016. The determination of basic pension as per 7th pay commission after 1st January 2016 initially got confused.
As per the first proposal of calculation method, determination of the pension and family pension little bit hard and take some time to check the earlier records. The second proposal of calculation method is the basic pension amount determined at the time of 6th pay commission, will be multiplied into 2.57 and get an alternate amount for new pension.
Examples of New Pension Determination
In case of employee retired in 1989 at the time of 4th pay commission, his new pension determination as follows…
| Retired on | 31.01.1989 |
| Pay band at the time of retirement | 3000 – 4500 (4th CPC Scale) |
| Final Pay on retirement | 4,000 |
| Old Pension as on 1.1.2016 | 12,600 |
| Revised pension (multiply with 2.57) | 32,382 |
| Pay determined on notional basis on 1.1.1996 | 11,300 (10,000-15,200) |
| Pay determined on notional basis on 1.1.2006 | 27,620 (PB-3, GP 6600) |
| Pay determined on notional basis on 1.1.2016 | 71,800 (Level-11) |
| New pension w.e.f. 1.1.2016 as per first method | 35,900 |
| New pension payable | 35,900 |
In case of employee retired in 1999 at the time of 5th pay commission, his new pension determination as follows…
| Retired on | 30.06.1999 |
| Pay band at the time of retirement | 4000-6000 (5thCPC Scale) |
| Final Pay on retirement | 4,800 |
| Old Pension as on 01.01.2016 | 5,424 |
| Revised pension (multiply with 2.57) | 13,940 |
| Pay determined on notional basis on 1.1.2006 | 11,330 (PB-1, GP-2400) |
| Pay determined on notional basis on 1.1.2016 | 29,600 (Level-4) |
| New pension w.e.f. 1.1.2016 as per first formulation | 14800 |
| New Pension w.e.f. 1.1.2016 (Higher of 5 & 8) | 14800 |
In case of employee retired in 2015 at the time of 6th pay commission, his new pension determination as follows…
| Retired on | 31.05.2015 |
| Pay band at the time of retirement | 67000-79000 (6thCPC Scale) |
| Final Pay on retirement | 79,000 |
| Old Pension as on 1.1.2016 | 39,500 |
| Revised pension (multiply with 2.57) | 1,01,515 |
| Pay determined on notional basis on 1.1.2016 | 2,05,100 (Level- 15) |
| New pension w.e.f. 1.1.2016 as per first formulation | 1,02,550 |
| New pension payable (Higher of S.No.5 and 7) | 1,02,550 |
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Is pension increase with pay commission?
Yes, the pension and family pension are under the purview of the Central Pay Commission.
What is 7th CPC for pensioners?
The 7th pay commission recommended two types of pension fixation for the pensioners retired before 2016 in its report.
What is the first method pension calculation?
The 7th pay commission recommended the first proposal is called Increment method. Revision of pension is based on increment earned in the last post.
What is the second method pension calculation?
The second proposal of calculation method is called as Fitment method. The basic pension amount determined at the time of 6th pay commission, will be multiplied into 2.57 and get an alternate amount for new pension.
