Pension Calculator
Estimate your gross pension, gratuity lump sum and net monthly pension.
Uses the standard federal formula: gross = (emoluments x service capped at 30 years x 7) / 300. Gratuity = commuted monthly amount x 12 x commutation factor. This is a simplified estimator - medical and ad hoc allowances are excluded. Please verify your figures with the AGPR or your accounts office.
Retirement planning for a government servant in Pakistan runs on one formula — and most people never see it worked out until their pension papers are in someone else’s hands. Our free pension calculator applies the standard commutation-of-pension formula used by federal and provincial governments: pension scales at 2.33% per year of qualifying service, capping at 70% of your last draw. Enter your last pay and service, and see your gross pension, the commuted lump sum, and your monthly pension after commutation — fully worked out.
The Formula (How It Works)
Gross monthly pension = Last monthly emoluments × min(qualifying service years, 30) × 7 ÷ 300
- The “7/300” factor = 70% ceiling ÷ 30 maximum years — 30 years of service earns the maximum pension (70%)
- Service beyond 30 years doesn’t add more; less than 10 years of qualifying service generally earns gratuity instead of pension
- Commutation: pensioners may commute (cash out) up to 35% of the gross pension as a lump sum, using the age-based commutation table (gratuity/commutation factor; e.g. 14.0 used around common retirement ages)
- Net monthly pension = gross pension − commuted portion + applicable increases (governments announce pension increases in budgets)
How to Use
- Enter your last drawn monthly emoluments (basic pay + qualifying allowances).
- Enter your qualifying service years (capped at 30 in the formula).
- Choose your commutation percentage (0–35%).
- Click Calculate — gross pension, lump-sum commutation, and net monthly pension appear.
Worked Example
Emoluments Rs 150,000, service 30 years, commute 35%: gross = 150,000 × 30 × 7 ÷ 300 = Rs 105,000/month. Commuted portion = 35% × 105,000 = Rs 36,750/month-equivalent → lump sum = 36,750 × 12 × factor (14.0) ≈ Rs 61.7 lakh (exact factor is age-next-birthday dependent). Net monthly = 105,000 − 36,750 = Rs 68,250/month plus budget increases.
Notes
- The commutation factor column depends on age at next birthday — this calculator uses the standard factor; your AG office’s calculation is final.
- Family pension, restoration of commuted portion (usually after 12–15 years by formula), and minimum pension floors have separate rules per government.
- Budget increases apply to the pension per federal/provincial announcements — not automatic.
Frequently Asked Questions
How many years of service give full pension?
30 years of qualifying service earns the maximum 70% of last emoluments. Every year less costs 7/300 (~2.33%).
What is commutation?
Taking part of your future monthly pension as an immediate lump sum at retirement (up to 35%), at the age-based commutation table factor. You then draw the reduced pension.
Is government pension taxable?
Pension income is currently exempt from income tax in Pakistan — retirees file/declare under the applicable rules.
Can I restore my commuted pension later?
Yes — the surrendered portion restores after the commutation period (calculated from the factor, commonly ~12–15 years), per government rules.
Pension vs gratuity — what’s the difference?
Pension = monthly for life (+family pension after). Gratuity = one-time lump sum — for those with under 10 years’ qualifying service or in commutation/exchange tables.