How emoluments and service set a pension and its commutation
A federal pension depends on your average emoluments, your qualifying service and how much of the pension you commute for a lump sum. This calculator applies the 7/300 formula, which gives 70% of average emoluments after 30 years, then splits the gross pension into the commuted part, paid once at the official age factor, and the net monthly pension. For service under 10 years, it shows the service gratuity instead.
Each qualifying year earns 7/300 of average emoluments, up to 30 years or 70%, and six months or more beyond whole years counts as a year for ordinary retirement. Voluntary retirement after 25 years loses 3% for each year left until superannuation, capped at 20%. Commuting up to 35% turns part of the monthly pension into a one-time payment at the official age factor. Amounts are rounded to the nearest rupee.
A 30-cell ladder shows each year's 7/300 step, and the split bar shows how the gross pension divides into net monthly pension and the commuted part.
Emoluments, service, early exit and commutation in the pension sum
Emoluments and qualifying service set the gross pension, the retirement type can cut it, and the commuted share and age factor divide it between a lump sum and the monthly amount.
- Average pensionable emoluments
- This is the average of pension-counting pay over the last 24 months, not the final month's pay or gross salary with allowances. Gross pension rises in direct proportion: at 30 years, every Rs 10,000 of average emoluments adds Rs 7,000 of gross pension. Including ad-hoc relief allowances, which do not count, overstates the result.
- Qualifying years and months
- Each year adds 7/300, about 2.33%, of emoluments up to 30 years. For ordinary retirement, six extra months count as a full year, so 24 years and 6 months give the same Rs 87,500 gross as 25 years in the example. Service past 30 years adds nothing, and below 10 counted years the result switches to a service gratuity.
- Type of retirement and months early
- Voluntary retirement needs 25 years and loses 0.25% of gross pension for each completed month left until superannuation, capped at 20%. Sixty months early cuts the 25-year pension from Rs 87,500 to Rs 74,375. Extra months are not rounded up on this route, so 25 years and 8 months still count as 25.
- Share commuted
- Commuting turns up to 35% of gross pension into a one-time payment, and the monthly pension falls by the same share. In the example, 20% pays Rs 3,117,719 once and leaves Rs 84,000 a month, while 35% pays Rs 5,456,008 and leaves Rs 68,250. Entries above 35 are refused.
- Age next birthday
- This picks the commutation factor, which falls with age from 40.5043 at 20 to 4.6321 at 80. It changes only the lump sum: commuting the same 35% at age 62 instead of 60 pays Rs 5,013,464 rather than Rs 5,456,008. Entering your current age instead of age next birthday picks a factor for one year too young.
Steps
- Choose ordinary or voluntary retirement and enter your average pensionable emoluments for the last 24 months.
- Enter qualifying service in completed years and extra months; for voluntary retirement, also enter the months left until superannuation.
- Enter the percentage to commute, up to 35%, and your age next birthday, then calculate.
Reading tip: Get your average emoluments from your accounts office or last 24 pay slips: include only pay that counts for pension, and leave out ad-hoc relief allowances. Try commuting 0% and 35% to see the trade-off between monthly income and the lump sum.
Retirement choices a pension estimate helps weigh
Prepare for retirement
Estimate gross pension, net pension and the commutation lump sum before you apply.
Decide how much to commute
Compare 0%, 20% and 35% commutation to balance monthly income against a lump sum.
Weigh voluntary retirement
See how the 3% a year reduction changes pension if you retire after 25 years but before 60.
Check an accounts office figure
Recompute a pension sanction with the same emoluments, service and factor.
How the calculation works
- E
- Average pensionable emoluments drawn in the last 24 months, in rupees per month.
- Y
- Qualifying service in years, with six months or more counted as a year for ordinary retirement.
- c%
- The share of gross pension you commute, from 0% to the maximum of 35%.
- F
- Commutation factor for your age next birthday from the 2001 table; 12.3719 at 60.
Rupee amounts are rounded to the nearest rupee at each step, with 50 paisa rounded up.
What every part means
- E
- Average pensionable emoluments drawn in the last 24 months, in rupees per month.
- Y
- Qualifying service in years, with six months or more counted as a year for ordinary retirement.
- c%
- The share of gross pension you commute, from 0% to the maximum of 35%.
- F
- Commutation factor for your age next birthday from the 2001 table; 12.3719 at 60.
Calculate it step by step
E is average emoluments for the last 24 months; Y is qualifying years. The reduction is zero except for voluntary retirement.
c is the commuted share, at most 35%; F comes from the commutation table of 4 September 2001.
Below 10 years, pension is not admissible and the service gratuity is one month's emoluments per completed year from 5 years.
The 7/300 rate and 30-year cap come from CSR Article 474-B and the Liberalized Pension Rules, the 24-month average from the Finance Division OM of 1 January 2025, the 35% limit from the OM of 1 July 2005, and the 3% a year reduction capped at 20% from the OM of 10 September 2024. Factors are from the table annexed to OM F.1(5)Imp/2001, for ages 20 to 80. For ages 76 and 77 the Compendium's copies disagree; this page uses 5.7858 and 5.4797, as printed in the AGPR manual and the KP gazette of 2021, which equal 0.8 × the 1986 factors. For voluntary retirement, the OM cuts the gross pension, and commutation is 35% of gross pension, so this page commutes the reduced figure and applies 0.25% per completed month. Asked how the 3% is applied, the Finance Division's clarification of 3 January 2025 gave no method, so AGPR's sanction is final.
See how Calculation Guide tests examples and handles calculation limits.
See it in practice
- Type of retirement
- Superannuation or other ordinary retirement
- Average pensionable emoluments, last 24 months
- 150000 Rs per month
- Qualifying service: completed years
- 30 years
- Qualifying service: extra months
- 0 months
- Share of pension to commute
- 35 %
- Age next birthday when commuting
- 60 years
150,000 × 30 × 7 ÷ 300 = Rs 105,000 gross. 35% = Rs 36,750; lump sum = 36,750 × 12 × 12.3719 = Rs 5,456,008. Net = 105,000 − 36,750 = Rs 68,250 a month.
- Gross monthly pensionRs 105,000
- Commuted portionRs 36,750 a month
Interpretation & limitations
How to read your result
Example: average emoluments of Rs 150,000 and 30 years give 150,000 × 30 × 7 ÷ 300 = Rs 105,000 gross pension, which is 70%. Commuting 35% sets aside Rs 36,750 a month. At the age-60 factor of 12.3719, the lump sum is 36,750 × 12 × 12.3719 = Rs 5,456,008, and net monthly pension is Rs 68,250. Yearly increases announced by the government are paid on top of this baseline.
Where this estimate stops
This is a federal civil-servant formula. It does not apply to employees appointed on or after 1 July 2024, who are in the contributory scheme, and provincial, armed forces and corporation rules can differ. It does not include yearly pension increases, the Rs 12,000 minimum pension, family pension, invalidation or compensation pensions, or arrears. The accounts office's verified figures decide the actual pension.
Frequently asked questions
01Why is pension based on a 24-month average?
Finance Division OM No. 9(3)R-6/2024-401 of 1 January 2025 directs that pension be calculated on the average of pensionable emoluments drawn during the last 24 months of service, with immediate effect.
02Can I commute more than 35%?
No. The maximum commutable share is 35% of gross pension under Finance Division OM of 1 July 2005, which leaves at least 65% as monthly pension.
03What commutation factor should I use?
Use the factor for your age next birthday on the day after retirement. A superannuation retiree who applies while still in service is allowed the age-60 factor, 12.3719.
04How much is family pension?
Family pension is 75% of the pensioner's gross or net pension under current rules. From 10 September 2024, after the spouse, other family members receive it for a limited period. This calculator does not compute it.
05Is the voluntary retirement reduction restored at 60?
No. The Finance Division clarified on 3 January 2025 that the reduction is not restored on reaching the age of superannuation.
06Do pension increases compound?
Since 1 January 2025, increases are calculated on a fixed baseline pension and kept as separate amounts, so they do not compound on each other.
07What happens at 9 years and 6 months of service?
For ordinary retirement, six months or more beyond completed years count as a year, so 9 years and 6 months reach the 10-year condition and earn a pension: Rs 35,000 gross on Rs 150,000 emoluments. At 9 years and 5 months the result is a service gratuity of nine months' emoluments instead, Rs 1,350,000.
Sources & references
Articles that use this calculator
- Federal Pension in Pakistan: The 7/300 Formula and CommutationGross federal pension is average emoluments × qualifying years (up to 30) × 7/300. Commuting up to 35% turns that share into a lump sum of 12 × the age factor months, 12.3719 at age 60, and leaves the rest as net monthly pension.
- Gratuity in Pakistan: Standing Orders vs Federal Service RulesPrivate-sector Standing Orders pay one month's wages a year (two in Balochistan) and count a part year of more than six months; federal service gratuity pays one month's emoluments per completed year, only for five to under ten years.
- Superannuation Date and Qualifying Service: The Six-Month RuleA federal civil servant's last day of service is the day before the 60th birthday. For an ordinary pension, a remainder of six months or more after completed years counts as one more year, so a few days at joining can decide a pension year.