# How to Calculate Pension in Pakistan

How to Calculate Pension in Pakistan

If you are retiring after June, you have to add one increment in your Current Basic pay.
For Example, if your basic pay is 64870/- (BPS-17) and you are retiring after June you should have to add one increment with your basic pay. Your basic pay will be 67170/-

For example, if your appointment date is 22-01-1987 and date of Retirement is 31-03-2020.
Date of retirement: 2020-03-31
Date of Appointment: 1987-01-22
_______________
Length of service: 33y,02m,09d
Your Service is 33years, 02 Months and 09 days. One year is to be added if service is more than six months. Your service is 33 years. But remember that more than 30 years of service is not multiplied in formula. Only 30 years is counted and multiplied.

## Step 1.

Pension Calculation formula
Gross Pension= Basic Pay *service*7/300
Gross Pension = 64870*30*7/300
Gross Pension = 45409/-.

Step 2.

Now you have to calculate your commuted amount. Commuted amount is 35% of Gross Pension.
Commuted amount= 45409*35/100
Commuted amount= 15893.15
_______________
Age of retirement: 51y, 11m, 11d
Your age will be 51 years, 11 months and 11 days.
You should see rate of 52 years next age is 204.06
Commuted amount = 204.06*15893.15
Commutation = 3243156.19

## Step 3.

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

## Step 4.

Medical is 25% from Scale1 to scale 15 and 20% from Scale 16 to Scale 22.
Medical = 29515.85*20% for Gazetted and 29515.85*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*15/100
15% Increase of 2011 = 4427.38
Total after increase of 2011 = 33943.23
Step 6.
10% Increase of 2015 = 33943.23*10/100
10% Increase of 2015 = 3394.32
Total after increase of 2015 = 37337.55

Step 7.

10% Increase of 2016 = 37337.55*10/100
10% Increase of 2016 = 3733.75
Total after increase of 2016 = 41071.30
Step 8.

10% Increase of 2017 = 41071.30*10/100
10% Increase of 2017 = 4107.13
Total after increase of 2017 = 45178.43
Step 9.

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

Step 10 .

10% Increase of 2019 = 49696.27*10/100
10% Increase of 2019 = 4969.63
Total after increase of 2019 = 54665.90
Total Emoluments: =64870.00
Gross Pension: = 45409.00
35% Commuted Portion: =15893.15
Net Pension: =29515.85
Commutation Rate: = 204.0600
Commutation Amount: =3243156.19
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
Medical Allowance =7378.96
Net Pension Payable Rupees. =62044.86