Easy steps to Calculate your Basic Pension in 7th Pay Commission

We here illustrate the method through easy 5 Steps to calculate your Basic Pension in  7th CPC  Recommendation

Easy steps to Calculate your Basic Pension in 7th Pay Commission

There are Two options have been given to Pensioners

First They have to calculate the Two options and whichever is benefit for them They can select higher amount as their Pension

Option No.1 . The existing Pension may be Multiplied by 2.57

Option No.2 . The Pay Scale on their retirement and Number of increments they earned to be taken for calculation

In that Case they should know their Pay Scale and Basic Pay drawn on the date of their Retirement and number increments they earned

By referring the Corresponding Pay scale in successive Pay Commission, they should identify their Sixth pay commission Pay band. If they Know their corresponding Pay Band in sixth Pay commission then it will be easy for them to arrive their Basic Pension to be fixed in VII pay commission.

After calculating the Basic Pension from the above two options, they can choose whichever is beneficial for them

Calculation for arriving your 7th CPC Basic Pension is described below through 5 Easy Steps

Assume You retired at last pay drawn of ₹4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ₹3000-100-3500-125-4500:

Your Basic Pension as revised in VI CPC = 12,543

Calculation Option -I


Multiply your Your Basic Pension with 2.57

Basic Pension (VI CPC) x 2.57

= 12543 x 2.57 = 32235.70 ( Paisa to be rounded off rupee)

Your basic Pension As per VII CPC = Rs.32236

Calculation Option-II


– Identify your corresponding Pay Level in Pay Matrix
– For that you should know your Pay Band in VI pay commission

[The Pay scale details will be informed you by Concerned Pension Paying Authorities when ever your basic Pension was revised as per the successive Pay commission Recommendation ]

for example for this pay scale of ₹3000-100-3500-125-4500, the corresponding Pay Scale and pay band for Fifth and Sixth CPC respectively is given below

In IV Pay Commission Your Pay Scale is 3000-100-3500-125-4500
In V pay Commission Your Pay scale is 10000-325-15200
In Sixth Pay Commission Your Pay Band is 15600-39100 – Grade Pay is 6600

In Seventh Pay commission your Pay Matrix Level is 11

Step -III

Minimum Pay at this level -11 is Rs. 67700

Total increment earned on your initial pay on the date of Retirement is 9

So Count nine cells from the cell assigned as Minimum Pay in that Level 11

your index number in that Particular Pay matrix Level 11 = 10

The figure in Level 11 and Index 10 = 88400

50% of this Pay will be fixed as your Basic Pension

Hence your Basic Pension will be fixed at Rs.44200/-

Step- IV

Choose whichever is higher to fix your Basic Pension
Basic Pension in Option -1 = 32236
Basic Pension in Option -2 = 44200

You can select option 2 as the fixation for Basic Pension in 7th Pay commission

Your basic Pension in 7th Pay commission = 44200/-

Note : 1.

Those who are retired in Sixth Pay commission regime would be aware of their increment and Pay Band details. It will be easy for them to calculate their Basic pension in VII Pay Commission using this matrix.

For others it will be very difficult to find out their Pay scale and quantum of increment details as of now. Also It will take little time for Concerned Department to verify the Pensioners records to ascertain the number of increments earned in the retiring level

Note -II

So 7th pay commission recommended that in the first instance the revised pension may be calculated using Calculation Option -I and the same may be paid as an interim measure

[ Your Present Basic Pension to be Multiplied by 2.57 = Rs .32236 ]

So Rs.32236 will be paid as Basic Pension as Interim Measure

After Checking the records of concerned individuals As per calculation Option -II

Then Rs.44200 will pe Paid as your Basic Pension

Subsequently the difference of higher amount also will be Paid as Arrears

Source: gservants

3 thoughts on “Easy steps to Calculate your Basic Pension in 7th Pay Commission”

  1. While it is appreciated that clarity is made available on the question of working out the no. of increments earned for computing the 7cpc option 2 pension,it is felt desirable that a slightly complicated case as shown below may kindly be taken and methodology shown.
    1. 4cpc scale……………………3000-4500
    2. gradepay………………………….6600
    3.pay as on 31.12.1995…………4375 (12th increment)
    4.pay fixed on 1.1.96 due to 5cpc…11950 (6th increment) in the 5cpc scale 1000-325-15200 and gradepay6600
    5 one increment due to anomaly in pay fixation with junior and pay refixed on 1.1.96…12250
    6 pay on 1.1.98 12925
    7. retirement on 30.04.1998
    8.total no. of increments earned under the same gradepay 12 plus 3 total 15
    9.no. of increments earned in the same gradepay in 5cpc scale 10000-15200…9
    thus it is seen that the no. of increments work out to 9 for the 7cpc pension purpose even though the actual no. is 15, thus the pensioner is likely to be put to loss.

  2. It is somewhat difficult to visualise the contents of the example quoted where a 4cpc regime employee gets 9 increments in the scale 3000-4500 after having a pay refixation arising out of the implementation of the 4cpc recommendations.He should have got his pay refixed on 1.1.86 at 3625\- probably with an increment of 125\- and thereafter with 3 more increments upto 1989. he would have retired, The question remains as to how he would get upto 3500 till 31.12.1985 in 5 years, is not understandable when he was working under the 3cpc regime.

  3. I retired on 30.04.2016. My PB 16790 GP 4600. in PB2. I had earned 15 Increments in the PB2. Kindly calculate my terminal benefit. I have completed 29 years service.

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