Monthly Pension Calculations: State and central government employees become eligible for a monthly pension post retirement if they have completed the the minimum number of years of service required for the facility.
Pension for employees following the Old Pension Scheme (OPS) depends on their basic pay scale, while those following the National Pension System (NPS) get it according to their contribution during service years.
The pension amount for pensioners following the OPS depends on their basic pay scale and dearness relief (DR).
A change in DR can change the total pay that they get.
But how is DR calculated?
How the total pension for a pensioner is calculated and how much monthly pension pensioners with basic pensions of Rs 26,000, Rs 38,000, Rs 47,000, Rs 66,000, or Rs 75,000 will get. Know this in this write-up.
What are different basic pay slabs for pensioners?
Central government employees have 18 pay scales.
The pensioner also has as many pay scales.
The pensioner depends on the years of service and basic pay of the last 10 months.
Minimum and maximum pension for central government employees
In the 7th Pay Commission, the minimum pension was increased to Rs 9,000, while the maximum is Rs 1,25,000.
What is dearness relief for pensioners?
DR is the same as DA for working employees. It is the amount given to employees to adjust their pension to the rising inflation.
How is DR calculated?
DR for pensioners is calculated on the basis of the All India Consumer Price Index (AICPI). The base year is taken as 2001.
What is current DR for central government employees?
The DR for central government employees is 53 per cent, which was revised in July 2024.
What is DR announced?
DR is announced twice a year- first in January and second in July.
Calculations for story
We will calculate the total pension for pensioners with basic pays of Rs 26,000, Rs 38,000, Rs 47,000, Rs 66,000, and Rs 75,000. The DR will be taken as 53 per cent in each case.
Total pension amount for pensioner with Rs 26,000 basic pension
Dearness Relief Amount= Rs 13,780
Total Pension= Rs 39,780
Total pension amount for pensioner with Rs 38,000 basic pension
Dearness Relief Amount= Rs 20,140
Total Pension= Rs 58,140
Total pension amount for pensioner with Rs 47,000 basic pension
Dearness Relief Amount= Rs 24,910
Total Pension= Rs 71,910
Total pension amount for pensioner with Rs 66,000 basic pension
Dearness Relief Amount= Rs 34,980
Total Pension= Rs 100,980
Total pension amount for pensioner with Rs 75,000 basic pension
Dearness Relief Amount= Rs 39,750
Total Pension= Rs 1,14,750
