Pension · Federal Government · AGPR
Federal Government Pension Calculator
Gross pension, the commutation lump sum and the year it restores, then every annual increase from 2010 to 2026 laid out in order. Based on the average basic pay of your last 24 months.
Other pay and allowances
Year by year
How the annual increases build your pension
| Increase | Rate | Amount | Running pension | Note |
|---|
Each increase compounds on the total before it, and one you retired after does not apply to you at all — which is why two people on identical pay and service can draw very different pensions.
Step by step
How the pension is worked out
Qualifying service
Years between appointment and retirement, rounded up if the remainder passes five months, capped at 30.
Gross pension
Emoluments multiplied by service, times seven over three hundred. Thirty years earns 70% of pay.
Commutation
The share you commute is converted to a lump sum using an age factor, and returns to your monthly pension at restoration.
Increases and allowances
Each annual increase compounds on the one before, but only if you had retired by its cut-off. Medical allowance is added last.
Reading the result
Why the increases do not simply add up
Fifteen years of annual increases look like they should compound into one large percentage. They do not, because they are not all calculated on the same base. Some orders grant an increase on the original pension as sanctioned at retirement; others grant it on the pension being drawn at the time, which already includes earlier increases.
Adding the percentages together therefore overstates the result, sometimes badly. The order each increase was granted under decides its base, which is why they are applied in sequence here rather than summed.
Commutation is a trade, not a bonus
The lump sum is not extra money. You are selling part of your monthly pension for a number of years in exchange for cash now, and the monthly figure stays reduced until the commuted portion restores.
Whether that is a good trade depends on things a calculator cannot weigh: whether you have an immediate use for the capital that earns more than the pension you gave up, your health and family history, and whether you would actually invest the lump sum or spend it. Someone clearing a debt at a high rate is in a different position from someone who will leave it in a savings account.
Qualifying service is not the same as time served
Extraordinary leave, periods of suspension that were not later regularised, and service that was not pensionable can all reduce the qualifying figure below the number of years you were on the payroll. The AGPR record is what counts, and it is worth obtaining before retirement rather than discovering a discrepancy after.
Where this stops
This works the federal formula with the increases on record. Your Pension Payment Order is the document that governs, and it reflects your actual service record, your option on commutation, and any departmental particulars this cannot see.
FAQs
Federal Government Pension Calculator FAQs
How is the federal pension calculated?
Gross pension is your emoluments multiplied by qualifying service, times seven over three hundred. Thirty years of service therefore earns 70% of pay. AGPR takes emoluments as the average basic pay of your last 24 months, plus senior post, personal, qualification and other pay that counts as emoluments — not your last month alone, which is where federal and provincial figures start to diverge.
What counts as qualifying service?
The span from first appointment to retirement, capped at 30 years. A leftover of more than 30 days rounds up to another month, and more than five leftover months rounds up to another full year. So 29 years and 7 months qualifies as 30.
How much can I commute, and what is it worth?
Up to 35% of gross pension. The lump sum is that monthly amount multiplied by an age factor from the commutation table — 148.4628 at age 60, rising the younger you go. Commuting 35% of a Rs 70,000 gross pension at 60 pays about Rs 3.64 million now in exchange for Rs 24,500 a month.
Does the commuted part ever come back?
Yes. It is restored after the number of years equal to the factor divided by twelve — twelve years and four months at a factor of 148.46, so a 2026 retiree sees the full pension again from 2038. Live long enough past restoration and not commuting would have paid more.
Why do the annual increases not all apply to me?
Each increase carries a cut-off, and an increase does not apply to anyone who retired after it. Someone who retired in 2014 carries the 2010, 2012, 2013 and 2014 increases; someone retiring in 2026 carries none of them. This is the single biggest reason two people on identical pay and service draw very different pensions.
What is the difference between the federal 2025 and 2026 increases and a normal one?
They are 7% of the 2024 total rather than 7% of the running total, so they do not compound on each other. That is how AGPR computes them, and it is worth a few hundred rupees a month against the compounding version.
How is the medical allowance worked out?
It is 25% of the post-2010 pension below BPS 16 and 20% at BPS 16 and above, with a further 25% increase applied on the allowance itself. Both are added after all the annual increases, along with the orderly allowance above BPS 19.
What happens on death during service or after retirement?
Death during service fixes commutation at 25% and pays it as gratuity rather than commutation, with no restoration. Death after retirement pays the family 75% of the net pension. Both carry lower minimum-pension floors than an ordinary retirement.
Is this the figure AGPR will actually pay?
It reproduces the AGPR calculator's own arithmetic, but your pension is settled on your verified service record and the emoluments shown on your last pay slip. Treat this as a close estimate and confirm against the PPO your AG office issues.
Related tools
Retired from Khyber Pakhtunkhwa instead?
KP works from your last basic pay rather than a 24-month average, and its increase history differs.
Open the KP Pension CalculatorRelated tools
Retired from a Punjab department?
Punjab runs a different engine again — a fixed 35% commutation, whole years of service, and an official increase list that stops at 2018.
Open the Punjab Pension Calculator