Decrease/Increase in Pension and Commute with Age, Basic Pay and Service

Last Updated on November 3, 2022 by Galaxy World

 I shall explain in detail the Decrease/Increase in Pension and Commute with Age, Basic Pay and Service after the revision of Basic Pay Scales 2022 for Federal and Provincial Govt employees. You can easily find the amount of pension, gratuity, or commute with the factors of age, length of service, and basic pay.

Decrease/Increase in Pension / Commute with factors of Age, Basic Pay, and Service


The increase/decrease in a pension depends on the following factors:


  • Last Drawn Basic Pay
  • Age at the time of retirement
  • The total length of service at the time of retirement


Although the employee can take retirement at any time after 25 years of service, however, these above factors can increase or decrease the pension/gratuity or commute amount. I have already explained in detail about the right time to get retirement from the service of an employee. Let’s check the various values of pension and commute with various factors.


Example of calculation


To know in detail the effect of the factors on pension and gratuity we shall take the example of an employee of BPS-16 with 25 years’ service, Rs. 61970/- Basic pay, and 55 years of age. If Government doesn’t revise the basic pay scales during the next 5 years, the basic pay of the said employee will be as under during the next five years:


  • 61970/- (Current)
  • 64230/- (01-12-2022)
  • 66490/- (01-12-2023)
  • 68750/- (01-12-2024)
  • 71010/- (01-12-2025)


The current age of the employee = is 55 years

Total Service (current) = 25 years


Calculation of Pension with Various Factors


Now let’s calculate the amount of commute or gratuity and pension taking the above values:



Increase in Pension and Commute with Age, Basic Pay and Service


At 55 Years of Age


  • Basic Pay = Rs. 61970/-
  • Age= 55 Years
  • Service = 25 years


Basic Pay 61970
Total Service 25
Age Rate 15.1478
Ardali Allowance (if any) 0
For BPS-16
Gross Pension 36149.17
65% Pension 23496.96
35% Pension 12652.21
Commute 2299837.46
Pension without Medical 33405.33
Medical 5874.24
Net Home Take Pension 39279.57
At 56 Years of Age
  • Basic Pay = Rs. 64230/-
  • Age= 56 Years
  • Service = 26 years


Basic Pay 64230
Total Service 26
Age Rate 14.5602
Ardali Allowance (if any) 0
For BPS-16
Gross Pension 38966.20
65% Pension 25328.03
35% Pension 13638.17
Commute 2382893.79
Pension without Medical 36008.54
Medical 6332.01
Net Home Take Pension 42340.55
At 57 Years of Age


  • Basic Pay = Rs. 66490/-
  • Age= 57 Years
  • Service = 27 years
Basic Pay 66490
Total Service 27
Age Rate 13.9888
Ardali Allowance (if any) 0
For BPS-16
Gross Pension 41888.70
65% Pension 27227.66
35% Pension 14661.05
Commute 2461085.12
Pension without Medical 38709.22
Medical 6806.91
Net Home Take Pension 45516.13
At 58 Years of Age


  • Basic Pay = Rs. 68750/-
  • Age= 58 Years
  • Service = 28 years


Basic Pay 68750
Total Service 28
Age Rate 13.434
Ardali Allowance (if any) 0
For BPS-16
Gross Pension 44916.67
65% Pension 29195.83
35% Pension 15720.83
Commute 2534324.10
Pension without Medical 41507.35
Medical 7298.96
Net Home Take Pension 48806.31
At 59 Years of Age


  • Basic Pay = Rs. 71010/-
  • Age= 59 Years
  • Service = 29 years


Basic Pay 71010
Total Service 29
Age Rate 12.8953
Ardali Allowance (if any) 0
For BPS-16
Gross Pension 48050.10
65% Pension 31232.57
35% Pension 16817.54
Commute 2602405.91
Pension without Medical 44402.95
Medical 7808.14
Net Home Take Pension 52211.09

You may also like: Increase in Salary Chart December 2022 (Annual Increment)


Table of Comparison of Pension and Commute/Gratuity


The comparison of the table on the basis of different factors is as under:


Sr. No Basic Pay Age Length of Service Commute/Gratuity Pension
1 61970 55 Years 25 Years 2299837.46 39279.57
2 64230 56 Years 26 Years 2382893.79 42340.55
3 66490 57 Years 27 Years 2461085.12 45516.13
4 68750 58 Years 28 Years 2534324.10 48806.31
5 71010 59 Years 29 Years 2602405.91 52211.09

The employees should also check their service records before they get retirement. The mistakes in records may cause difficulties for the employees. Especially the date of birth, if there is an issue with the date of birth, the employee should get it corrected well in time. I have explained in detail the procedure to correct the date of birth of the employee as per the service record and CNIC. This will really help the employees. After checking all the observations, the employee can decide his exact time of retirement.

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4 thoughts on “Decrease/Increase in Pension and Commute with Age, Basic Pay and Service

  1. Akhtar Pervez Akhtar · Edit

    Dear Sir

    Plz inform about the status of group insurance payment for federal employees. I’m retired from wapda since 2003, am I entitled to get that sum of amount?
    Secondly at the age of 80, will there be any further increase in my pension as it gets double in 72 years?

    Thanking in anticipation

    Akhtar Pervez Akhtar

    1. If you retired at the age of 60 years then at the age of 72 only the pension doubles. However, there is sometimes a special increase in pension for employees of the age of 80/85.


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