Pension Commutation Calculator
A retiring government employee can take part of the pension as a lump sum now in exchange for a lower pension for a fixed period. This works out the lump sum and what it costs each month.
How to use this calculator
- Enter your basic pension.
- Enter the percentage you want to commute, up to 40%.
- Enter your age on your next birthday after retirement.
- Optionally enter the date the commuted value is paid, to see when your full pension comes back.
- Choose the date, and calculate.
How it is calculated
The lump sum is the monthly pension commuted, multiplied by the commutation factor for your age next birthday, multiplied by 12.
The commuted part is deducted from your pension until it is restored, fifteen years from the date the commuted value is paid. Dearness relief continues to be paid on the full pension.
Worked example
A basic pension of ₹40,000, commuting 40% at age 61 next birthday, paid on 1 August 2026: a factor of 6.93 gives ₹13,30,560, the pension falls to ₹24,000, and it is restored in full from 1 August 2041.
Run this worked exampleRelated calculators
- Old Pension Scheme CalculatorMonthly pension under the old defined-benefit scheme, pro-rated below full qualifying service.
- Gratuity CalculatorGratuity on retirement, under either the government formula or the Payment of Gratuity Act.
- Leave Encashment CalculatorPayment for unutilised earned leave at retirement, against the 300-day ceiling.
- Qualifying Service Calculator for Pension and GratuityLength of service for pension and gratuity, in the six-monthly periods those rules count in.
Where the jobs are
Indicative only. The official order or notification governs, and every figure should be checked against it before you act on it.