By Vishvas Yadav
About the author
Founder of HR Calcy and an independent HR and payroll consultant with 16+ years in Indian HR and payroll. PGDM in Human Resources from XLRI Jamshedpur, ISO 9001:2015 and ISO 27001:2022 Lead Auditor, with HR and payroll software implementations for multinational companies across several countries. Advises on payroll and statutory compliance, labour law (PF, ESI, CLRA, gratuity and bonus) and wage structuring. Based in Bengaluru, Karnataka.
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DR · Commutation · 7th CPC
Pension Calculator: Central Government Pension, DR and Commutation: This free pension calculator works out the monthly pension of Central Government employees under the CCS (Pension) Rules, 2021, with Dearness Relief at the current 60% (from 1 January 2026). It gives:
- basic pension at 50% of last basic pay or the 10-month average, whichever is higher, within the ₹9,000 minimum and ₹1,25,000 maximum;
- family pension at the ordinary 30% or enhanced 50% rate;
- commutation of pension: the commuted amount, the lump sum by the official commutation table and the reduced pension, with restoration after 15 years;
- Dearness Relief on the full pension, additional pension from age 80, and a year-wise pension table and chart;
- the 7th Pay Commission pension revision for pre-2016 pensioners (pension × 2.57).
Pension Calculation Formula
Under Rule 44 of the CCS (Pension) Rules, 2021, a Government servant with at least 10 years of qualifying service gets 50% of emoluments or average emoluments, whichever is more beneficial, subject to a minimum of ₹9,000 and a maximum of ₹1,25,000 a month. Service of 9 years 9 months or more counts as 10 years. Since 1 January 2006 there is no cut for service below 20 or 33 years. Pension and DR are rounded up to the next rupee.
Pension Calculation Example (Calculator Default)
Last basic pay ₹80,000, 30 years of service, retiring at 60, commuting 40%, DR 60%:
| Item | Working | Amount |
|---|---|---|
| Basic pension | 50% × ₹80,000 | ₹40,000 |
| Commuted pension | 40% × ₹40,000 | ₹16,000 a month |
| Commuted lump sum | ₹16,000 × 12 × 8.194 (age next birthday 61) | ₹15,73,248 |
| Dearness Relief | 60% × ₹40,000 (full pension) | ₹24,000 |
| Monthly pension (first 15 years) | ₹40,000 − ₹16,000 + ₹24,000 | ₹48,000 |
| From age 75 (restored) | ₹40,000 + ₹24,000 | ₹64,000 |
| From age 80 (20% additional) | ₹48,000 + 60% DR of ₹48,000 | ₹76,800 |
Without commutation the monthly pension is ₹64,000 from the start. The pension is the same whether the service is 10 years or 30 years, as long as it is at least 10 years.
Commutation of Pension: Table and Rules
You can commute up to 40% of your pension for a one-time lump sum. The value depends on your age on the next birthday after retirement. The commuted part is restored after 15 years, and DR stays on the full pension throughout.
| Age next birthday | Commutation value | Age next birthday | Commutation value |
|---|---|---|---|
| 56 | 8.572 | 61 | 8.194 |
| 57 | 8.512 | 62 | 8.093 |
| 58 | 8.446 | 63 | 7.982 |
| 59 | 8.371 | 64 | 7.862 |
| 60 | 8.287 | 65 | 7.731 |
Values per ₹1 of yearly pension, from the commutation table in force since 1 January 2006. The calculator holds the full table for ages 20 to 81.
Family Pension and Additional Pension
| Type | Rate | Limits |
|---|---|---|
| Ordinary family pension | 30% of last pay | ₹9,000 to ₹75,000 a month |
| Enhanced family pension | 50% of last pay: 10 years after death in service; after death in retirement, 7 years or until the pensioner would have turned 67, whichever is less | ₹9,000 to ₹1,25,000 a month |
| Additional pension (pension and family pension) | 20% at 80, 30% at 85, 40% at 90, 50% at 95, 100% at 100 | Of the basic pension; DR is paid on it |
About the Calculator
7th Pay Commission Pension Revision (Pre-2016 Pensioners)
Under DoPPW OM dated 4 August 2016, the pension or family pension as on 31 December 2015 is multiplied by 2.57 and rounded up to the next rupee, with a minimum of ₹9,000. Additional pension for those aged 80 or more is worked out on the revised pension, and any commuted portion continues to be deducted.
Example: ₹20,000 × 2.57 = ₹51,400. With DR at 60% (₹30,840), the monthly pension is ₹82,240. At age 80, 20% additional pension (₹10,280) raises it to ₹98,688.
Pre-2016 pensioners get the higher of this figure and 50% of the notional pay fixed in the 7th CPC Pay Matrix; check your revised PPO. Choose Revise old pension (× 2.57) in the calculator.
Dearness Relief on Pension
DR is 60% of basic pension from 1 January 2026 (Cabinet approval, 18 April 2026). The July 2026 instalment had not been announced as of mid-October 2026; enter the new rate when it is notified.
DR is paid on the original pension before commutation (DoPPW OM dated 25 October 2022), and on additional pension too. Track DA and DR changes with the dearness allowance calculator.
Which Pension Calculator Should You Use?
- Central Government (old pension scheme): this calculator.
- Private sector EPS pension: the EPF pension calculator.
- Bank employees: the bank pension calculator.
- Projection for the 8th Pay Commission: the 8th Pay Commission pension calculator.
State governments have their own pension rules, and employees under NPS or UPS get benefits under those schemes.
How to Use This Pension Calculator
- Choose Pension on retirement, or Revise old pension (× 2.57) if you retired before 2016.
- Select the pension type and enter the last basic pay; add the 10-month average if it is higher.
- Enter qualifying service and age at retirement. For family pension, enter the family pensioner's age.
- Choose commutation and the percentage (up to 40%), and check the DR rate.
- Read the monthly pension, lump sum and chart; open Year-wise pension to see the pension each year, including restoration and additional pension. Use Copy to save it.
Frequently Asked Questions
How is pension calculated for Central Government employees?
50% of the last basic pay or the average of the last 10 months, whichever is higher, for 10 or more years of qualifying service. It is at least ₹9,000 and at most ₹1,25,000 a month, and DR is added on top.
What is the minimum service for pension?
10 years of qualifying service; 9 years 9 months counts as 10. With less service, a service gratuity is paid instead of pension.
Is pension reduced if service is less than 20 years?
No. For retirement on or after 1 January 2006, the link between full pension and 33 years of service was removed. Anyone with 10 years or more gets 50% of emoluments.
How is commuted pension calculated?
Commuted pension × 12 × commutation value for your age next birthday. Commuting 40% of a ₹40,000 pension at age 60 gives ₹16,000 × 12 × 8.194 = ₹15,73,248.
What is the commutation factor at age 60?
A person retiring at 60 commutes at age next birthday 61, so the value is 8.194. For age next birthday 62 it is 8.093, and for 60 it is 8.287.
When is commuted pension restored?
After 15 years. The full pension is then paid again, so a pensioner who retired at 60 gets the full pension from about age 75.
Is DR paid on the full pension or the commuted pension?
On the full (original) pension before commutation. With a ₹40,000 pension and 40% commuted, DR at 60% is ₹24,000, not ₹14,400.
What is the current DR rate for pensioners?
60% of basic pension from 1 January 2026. The rate is revised twice a year, from January and July.
How much is family pension?
30% of last pay at the ordinary rate (₹9,000 to ₹75,000), or 50% at the enhanced rate (up to ₹1,25,000) for a limited period. On ₹80,000 last pay, that is ₹24,000 or ₹40,000, plus DR.
What is additional pension at 80?
Pensioners and family pensioners get 20% more basic pension from age 80, 30% from 85, 40% from 90, 50% from 95 and 100% from 100, with DR on it.