Commuted Pension Calculator for Central Govt Employees after 7th CPC

Most of the people choose the central government job due to the stability, security, and the peace of mind. The best part of a govt job is pension facility after the retirement from the service.

What is Commuted Pension?

At the time of retirement, an employee working in the government department can commute a portion of basic pay to get a lump-sum amount in advance.

By exercising this choice, the total pension gets reduced to some extent. The current ceiling for the commutation is 40% of the basic pay.

Here is the formula to calculate the commuted pension amount, reduced pension per month, and total advance received by an employee.

One has to enter the actual basic pay at the time of retirement/superannuation/resignation.

Rules for Opting Commuted Pension in Central Government Department

  • An Employee can commute the Maximum 40% portion of Basic Pay
  • On exercising this option, employees will get a reduced pension as per government rules
  • A government servant will get the full pension after the fifteen (15) years, from the date of exercising the choice
  • The employee needs to consider this option within one year of retirement otherwise he/she has to go for a medical test

I hope this will help to check the 40% pension commutation amount for all the employees working in any central government organization.

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