# Pension Calculation Formula with easy Steps Manually

## Pension Calculation Formula for Pension and Gratuity Calculator

I am going to explain the method of Pension calculation manually. So, you can calculate your Pension if you have a calculator and your last basic Pay detail with your service detail and your age. Furthermore, if you are retiring after June, you have to add one increment to your Current Basic pay. How to Calculate Pension? Pension and Gratuity Calculator. Hence Pension Calculation in Pakistan. Pension Calculation Formula with easy Steps Manually. For Example, if your basic pay is 62570/- (BPS-17) and you are retiring after June you should have to add one increment with your basic pay. Your basic pay will be 64870/- Consequently, to calculate your service, you have to subtract your Date of Appointment from the current Date of retirement.

For example, if your appointment date is 22-06-1987 and the date of Retirement is 31-08-2021.

## Step 1

Pension formula
Gross Pension= Basic Pay x service x 7/300
Gross Pension = 64870 x 30 x 7/300
Total Gross Pension = 45409/-

You may also visit Employees News

#### Step 2

Hence now you have to calculate your commuted amount. However, the Commuted amount is 35% of the Gross Pension.
Commuted amount= 45409 x 35/100
Commuted amount= 15893.15

Now to calculate your Commutation you should consult the Commutation Table. Similarly, you should calculate your age by Subtracting your Date of birth from the retiring date.
For Example, if your date of birth is 20-09-1968 and your retiring date is 31-08-2021.
Date of retirement = 2021-08-31
Date of Birth = 1968-09-20
Age of retirement = 51y, 11m, 11d
Your age will be 51 years, 11 months, and 11 days.
You should see the rate of 52 years next age is 204.06
Commuted amount = 204.06 x 15893.15
Hence Payable Commutation = 3243156.19

#### Step 3

Now net pension can be calculated by the formula
Net Pension= Gross Pension x 65/100
Net Pension= 45409 x 65/100
So Net Pension= 29515.85

#### STEP 4

Most noteworthy, Medical is 25% from Scale 01 to scale 15 and 20% from Scale 16 to Scale 22.
Medical = 29515.85 x 20% for Gazetted and 29515.85 x 25% for non Gazetted
Medical 20 % = 5903.17
25% increase in medical = 1475.79
Total medical Allowance = 7378.96

#### Step 5

15% Increase of 2011 = 29515.85 x 15/100
15% Increase of 2011 = 4427.38
Total after increase of 2011 = 33943.23

#### Step 6

10% Increase of 2015 = 33943.23 x 10/100
10% Increase of 2015 = 3394.32
Total after increase of 2015 = 37337.55

#### Step 7

10% Increase of 2016 = 37337.55 x 10/100
10% Increase of 2016 = 3733.75
Total after increase of 2016 = 41071.30

#### Step 8

10% Increase of 2017 = 41071.30 x 10/100
10% Increase of 2017 = 4107.13
Total after increase of 2017 = 45178.43

#### Step 9

10% Increase of 2018 = 45178.43 x 10/100
10% Increase of 2018 = 4517.84
Total after increase of 2018 = 49696.27

#### Step 10

10% Increase of 2019 = 49696.27 x 10/100
10% Increase of 2019 = 4969.63
Total after increase of 2019 = 54665.90

#### Step 11

10% Increase of 2021 = 54665.90 x 10/100
10% Increase of 2021 = 5466.59
Total after increase of 2021 = 60132.49

#### Step 12

Total Emoluments =64870.00
Similarly Gross Pension = 45409.00
35% Commuted Portion =15893.15
Net Pension =29515.85
Commutation Rate = 204.0600
Commuted Amount =3243156.19
Finally Net Pension =29515.85
15% increase of 2011 =4427.38
Total after increase of 2011 =33943.23
10% increase of 2015 =3394.32
Total after increase of 2015 =37337.55
10% Increase of 2016 =3733.75
Total after increase of 2016 =41071.30
10% Increase of 2017 =4107.13
Total after increase of 2017 =45178.43
10% Increase of 2018 =4517.84
Total after increase of 2018 = 49696.27
10% Increase of 2019 =4969.63
Total after increase of 2019 =54665.90
10% Increase of 2021 = 5466.59
Total after increase of 2021 = 60132.49
Medical Allowance =7378.96
Net Pension Payable Rupees =67511.45