BSNL Pension Commutation Formula & Table for DoT Recruited Employees

Around 1.6 lakhs employees are working in the BSNL. Most of these officers/staff has started the career from Department of Telecommunication as a central government servant. Thousand of officials are retiring in each passing month.  You can find a similar situation in the MTNL where also central govt recruited staff absorbed in the Navratna PSU.




I am getting many messages about the calculation of commuted pension and lump sum amount received by an employee after choosing an option for the Commutation of Pension.

I have prepared the formula for the calculation of the same. Here you just need to put your basic pay at the time of retirement. You will get the pension and lump-sum money as per the government rules.

Check: BSNL/MTNL VRS Calculator



Commuted Pension Rules for exercising the option

  • Maximum 40% portion of Basic Pay can be commuted.
  • The employees will receive a reduced pension after retirement
  • The commuted portion will get restore after 15 years
  • The employee should take option within one year of retirement
  • After one year he/she has to go for a medical test

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