How to calculate the Pension and Gratuity of employees of the Government of Punjab.

Calculate the Pension and Gratuity of employees

Before, explaining the method for calculation of Pension and Gratuity of employees of the Government of Punjab, it is necessary to know the following basic knowledge.  Because these aspects will help a lot while said calculation.

Who can claim a pension?

The Government of Punjab is offering pension benefits to its employees based on the following terms and conditions.  The Government has framed Punjab Civil Services Pension rules for this purpose.  These rules provide guidance for the smooth process of the pension payment procedure.  In light of these rules following incumbents are not eligible to enjoy the pension benefits.

1. Those who are working on a contract get paid for the contingencies.
2. All those servants whose services are hired on work charged basis.
3. All employees are recruited on the basis of a contract.
4. All those employees who are not allowed by the competent authority to enjoy this benefit. 

Minimum criteria for pension benefits.

The competent authority has already prescribed the minimum criteria for qualifying these benefits.  There are three following conditions to enjoy the benefits of a Pension.

1. Those who are performing their services under the government of Punjab.
2. The service must be pensionable
3. Those who are getting paid from PCF i.e. Provincial Consolidated Fund.

Types of Pension

The Punjab Government has classified the pension in the following terms in rules ibid.

• Compensation Pension,
• Invalid Pension,
• Superannuation Pension,
• Retiring Pension.

All the above-stated type of pension has different method to calculate the pension and the gratuity.  Therefore, we have to understand them to proceed further.  Let’s learn about them one by one.

 (a) Compensation Pension

If Government decided to abolish a post due to any reason, it offers the incumbents of the such post to take the pension or transfer them to other posts in any other available establishment.  Such types of retirements fall under the category of compensation pension.

 (b) Invalid Pension

If any civil servant got injured while in service and due to that injury becomes permanently incapable to discharge his duty, he can get the benefit of this type of pension.  For this purpose, he has to produce a Medical Certified issued by the Health Department.

(c) Superannuation Pension

The Government has prescribed the maximum age for all civil servants.  60 years of age is generally the maximum age limit for rendering the service in any Government department.  When any employee reached the age of 60 years, he will not continue his services in any Government Department and he has to get retirement.  This type of retirement is known as Superannuation Pension.  It is also not worthless to mention here that some department offers different criteria for this type of pension i.e. Supreme Court of Pakistan.

(d) Retiring Pension

The Government has offered its employees to get voluntary retirement if they fulfill prescribed criteria.  The present criterion for this type of pension is as follows;

1.  Minimum 25 years of service or 55 years of age. (whichever is later)  

 

How to calculate Family Pension and Gratuity.

If you want to calculate the pension and gratuity, you have to need the following information;

• Last pay is drawn i.e. last Basic Pay (including all allowances that are pensionable i.e. personal pay, qualification pay, etc.
• Length of Service
• Age of Employee
• Age Rate (See in Punjab Civil Service Rules)

 Calculation of Gross Pension for all types of pension [H2]

Step 01:- Gross Pension= Last pay is drawn* x7/300x length of service of the deceased govt. servant.

 Note:- Admissible increases from time to time and medical allowance.

 Explanation: - You have to multiply the last pay drawn with 07 and the total length of service and divide the result by 300. After this, you will find the amount of gross pension.

Step 02:-  Calculation of Gratuity= Gross pension x1/4 x12x (Index from commutation table, according to age next birthday of the deceased).

Explanation: - You have to multiply Gross Pension by 12 and Index from the commutation table and divide the result by 04.  After this, you will find the amount of Gratuity.

Step 03:- Calculation of Monthly Family Pension.= Gross pension x75% + Admissible increases from time to time and medical allowance.

Explanation: - I already explained the method to calculate the Gross Pension.  You have to multiply the amount of Gross Pension by 75% and add all admissible increases allowed by the Government from time to time.

 

How to Calculate Pensioner's Death (Family Pension)

 Family Pension = Net / *Gross pension x75%

 *(Pension bring drawn by the deceased pensioner at the time of death).

How to calculate Superannuation / retiring pension

Step 1:- First Calculate Gross Pension= Last Pay Drawn* X 7/300 X length of service of the retiring government servant. *Include all emoluments reckonable for pension.

Step 2:- Calculate Commutation* (can opt up to 35% of the gross pension) 35% Gross Pension X 12 X Index from Commutation table 

*according to age next birthday (however this would be 60 years for those retiring on superannuation)

Step 3:- Calculate Monthly Pension= 65% of the gross pension. This would also include admissible increases from time to time and admissible medical allowance

Pension Calculator

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