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Basic Pension Formula:
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The Basic Pension calculation is used for both pre-2006 and post-2006 pensioners in India. It determines the monthly pension amount based on the employee's last drawn pay, dearness allowance, and qualifying years of service.
The calculator uses the Basic Pension formula:
Where:
Explanation: The formula calculates the pension amount by combining the last pay and dearness allowance, then multiplying by the proportion of qualifying service to the maximum service period of 66 years.
Details: Accurate pension calculation is crucial for retirement planning, ensuring financial security for pensioners and their families after retirement from service.
Tips: Enter the last pay drawn in rupees, dearness allowance in rupees, and qualifying service in years. All values must be valid positive numbers with qualifying service not exceeding 66 years.
Q1: Who is eligible for this pension calculation?
A: This calculation applies to both pre-2006 and post-2006 pensioners in India as per government pension rules.
Q2: What is the maximum qualifying service considered?
A: The maximum qualifying service considered for pension calculation is 66 years as per pension rules.
Q3: Is dearness allowance always included?
A: Yes, dearness allowance at the time of retirement is a crucial component in the pension calculation formula.
Q4: Are there any minimum pension amounts?
A: Yes, there are minimum pension amounts specified by government rules which may apply if the calculated pension is below certain thresholds.
Q5: How often is pension revised?
A: Pensions are typically revised based on government recommendations, often linked to pay commissions and dearness allowance revisions.