7th cpc New Pension Calculation Method, Examples
7th Pay Commission New Pension Calculation Method, Examples and Calculator
The motive of constitution of Pay Commission is not only for existing employees, also for retired employees (Pensioners), including Railway and Defence Pensioners. Calculation of new pension and retirement benefits are very important aspects in the report of Pay Commission.
7th CPC suggested 2 calculation methods for new pension for civil pensioners who retired earlier 2016.
Illustrations for 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 – 4550 (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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