7th Pay Commission New Pension Calculation Method, Examples and Calculator

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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