Expected Government Pension Calculator 2025

Government Pension Calculator

Expected Government Pension Calculator

🏛 Key Changes / Rules (2025)

  • The government has shifted to calculating pension based on the average of pensionable emoluments during the last 24 months of service (rather than final salary) for most cases. Business Recorder+2The Express Tribune+2
  • Increment(s) in the final year of service are excluded from the average calculation. The Express Tribune+1
  • Pensioners may no longer receive multiple pensions (in most cases) under the new rules. The Express Tribune+1
  • Future increases (adjustments) in pension are to apply on the baseline pension amount. Finance Division

📐 Pension Formula (General Outline)

Here’s a step-by-step to estimate your pension:

  1. Gather data
    • Your pensionable emoluments (basic pay + allowances considered “pensionable”) for the last 24 months of service (excluding final year increments)
    • Total qualifying service years (or months) up to retirement
    • Any reduction factors (if retiring early, etc.)
    • Commutation / gratuity rules (if you opt to commute part of pension)
  2. Compute average pensionable emoluments (APE) APE=Sum of monthly pensionable pay over last 24 months24\text{APE} = \frac{\text{Sum of monthly pensionable pay over last 24 months}}{24}APE=24Sum of monthly pensionable pay over last 24 months​
  3. Apply pension rate / factor
    Typically, pension is a percentage of this average, multiplied by service years. \text{Gross Pension} = \text{APE} \times \text{(service years fraction)} \times \text{pension rate %} The “service years fraction” might be e.g. full years + months converted proportionally.
  4. Apply reductions / ceilings
    If retiring before full age, a reduction factor may apply.
    If any other rules (maximum percentage, ceilings) exist, adjust accordingly.
  5. Subtract commutation (if opted)
    If you choose to commute (i.e. exchange a portion of pension for lump sum), deduct that portion to get net pension.

📊 Example (Hypothetical)

  • Last 24 months’ pensionable pay averages to PKR 200,000/month
  • Qualifying service: 30 years
  • Pension rate: say 70% of APE (for example)
  • Then: Gross Pension=200,000×0.70=140,000 per month\text{Gross Pension} = 200,000 \times 0.70 = 140,000 \text{ per month}Gross Pension=200,000×0.70=140,000 per month (This is a simplified illustration — actual services and rate policy may differ.)