What are the rules for pension calculation?

The rules for pension calculation in India can vary depending on the type of pension scheme you are enrolled in. 

However, some common factors include:

• Pensionable Salary: This is typically the average of your basic salary and dearness allowance over a specific period, often the last 60 months of service.
• Pensionable Service: This is the total number of years you have worked in a job that qualifies for pension benefits.
• Pension Formula: The specific method used to calculate your pension can vary depending on the pension plan.

Common approaches include:

• Percentage of Average Salary: This formula multiplies your average salary by a percentage determined by your years of service.
• Defined Benefit Formula: This formula uses a specific calculation, like the final average salary method or the career average salary method, to determine your pension.
• Commuted Value: If you opt for a lump sum payment instead of a monthly pension, a portion of your pension benefit will be deducted to calculate the commuted value.

Pension regulations in India can change over time. It is recommended to consult your employer's HR department for the most accurate and current information. Use the Pension Calculator to get a better understanding of how your pension salary is structured.