Gross pension in Pakistan is pensionable emoluments x qualifying service x 7/300, with service capped at 30 years, so the most anyone gets is 70% of emoluments. For federal employees retiring on or after 1 January 2025, emoluments are the average pay of the last 24 months, not the last pay.
You may commute up to 35% of the gross pension for a lump sum. The other 65% is your monthly net pension. The example loaded above is a federal employee retiring at 60 on 20 August 2026; change the dates and pay to your own.
How pension is calculated, step by step
1. Qualifying service
Count from your date of appointment to your retirement date. A shortfall of up to six months is condoned, so a part year of 6 months or more counts as a full year and anything less is dropped. So 28 years 7 months counts as 29 years, and 28 years 5 months as 28. Only 30 years count, however long you served. Periods that do not qualify, such as extraordinary leave without pay, come off first; your accounts office does this.
2. Pensionable emoluments
This is basic pay plus pay the rules treat as pensionable, such as special pay, personal pay, qualification pay and current charge pay. Allowances such as house rent, conveyance and the ad hoc relief allowances are not pensionable unless merged into basic pay. Under the Finance Division order of 1 January 2025, the federal figure is the average of the last 24 months. A part month counts as a full month. If you complete six months after the 1 December increment, that is if you retire on or after 1 June, one increment is added after the average is taken.
3. Gross pension
Emoluments x counted years x 7 / 300. Each year of service earns 2.33% of emoluments.
4. Commutation and net pension
You may give up to 35% of the gross pension for a one-off payment: commuted amount x 12 x the years purchase for your age next birthday. What is left is the net pension paid each month. See the commutation calculator for the full table.
Pension by years of service on Rs 100,000
Gross and net pension for an average pensionable pay of Rs 100,000 a month.
| Qualifying service | Share of emoluments | Gross pension on Rs 100,000 | Net after 35% commuted |
|---|---|---|---|
| 10 years | 23.33% | Rs 23,333 | Rs 15,167 |
| 15 years | 35.00% | Rs 35,000 | Rs 22,750 |
| 20 years | 46.67% | Rs 46,667 | Rs 30,333 |
| 25 years | 58.33% | Rs 58,333 | Rs 37,917 |
| 28 years | 65.33% | Rs 65,333 | Rs 42,467 |
| 30 years | 70.00% | Rs 70,000 | Rs 45,500 |
Worked example: retiring at 60 in August 2026
Born 20 August 1966, appointed 15 January 1998, retiring at 60 on 20 August 2026. Pay in the last 24 months: Rs 110,000 for 3 months, Rs 114,000 for 12, Rs 118,000 for 7 and Rs 130,000 for 2. One increment of Rs 4,000.
| Step | Working | Result |
|---|---|---|
| Service | 28 years 7 months 5 days; 7 months is six or more | 29 years |
| Average pay | (110,000 x 3 + 114,000 x 12 + 118,000 x 7 + 130,000 x 2) / 24 months | Rs 116,000 |
| Emoluments | Rs 116,000 + Rs 4,000 increment | Rs 120,000 |
| Gross pension | Rs 120,000 x 29 x 7/300 | Rs 81,200 |
| Commuted 35% | 35% of Rs 81,200 | Rs 28,420 |
| Lump sum | Rs 28,420 x 12 x 12.3719 | Rs 4,219,313 |
| Net pension | Rs 81,200 minus Rs 28,420 | Rs 52,780 a month |
| Family pension | 75% of Rs 52,780 | Rs 39,585 |
On superannuation the commutation is worked out at age 60, the rate of 12.3719. Rule 13(4) of the KP Pension Rules 2021 says so directly, and the Punjab and federal pension calculators we checked use the same age 60 rate.
Voluntary retirement after 25 years
You may ask to retire after 25 years of qualifying service. Since the Finance Division order of 10 September 2024, the federal gross pension is cut by 3% for each year left to age 60, counted in completed months, up to a limit of 20%.
Example: average emoluments Rs 150,000, 26 years 2 months of service, retiring at exactly 55. That is 60 months early, so the cut is 15%.
- Gross pension: Rs 150,000 x 26 x 7/300 = Rs 91,000
- After the 15% cut: Rs 77,350
- Commuted 35%: Rs 27,072.50; lump sum at age next birthday 56 (14.5602): Rs 4,730,172
- Net pension: Rs 50,278 a month
Short service, invalid pension and death in service
Under 10 years. Pension needs 10 years of qualifying service. With 5 to 10 years, federal employees get a gratuity of one month's emoluments for each completed year instead. On Rs 120,000 with 8 years 3 months that is Rs 120,000 x 8 = Rs 960,000. The AGPR pension manual gives one and a half months per year when service ends through invalidity or death. The gratuity calculator works this out too.
Invalid pension. If a medical board finds you permanently unfit, the same formula applies to the service you have, with at least 10 years.
Death in service. A quarter of the gross pension is paid to the family as a one-off gratuity at the commutation rate for the deceased's age next birthday, and three quarters is paid as family pension. For 22 years 4 months of service, emoluments of Rs 120,000 and death at 52: gross pension Rs 61,600, family pension Rs 46,200 a month and gratuity Rs 3,025,361 (25% x 12 x 16.3710).
Federal and provincial rules compared
Pick your government in the calculator. The main differences are the pay used and the cut for early retirement.
| Rule | Federal | Punjab | KP | Sindh |
|---|---|---|---|---|
| Pay used | Average of pensionable emoluments drawn in the last 24 months of service | Average of basic pay (with personal pay) drawn on 1 July of each of the last three financial years | Last pay drawn plus special pay, personal pay, technical pay and senior post allowance | Not confirmed: Sindh approved moving to the average of the last three years' pay, but we could not read the August 2025 amendment |
| Formula | Emoluments x years (max 30) x 7/300 | Emoluments x years (max 30) x 7/300 | Emoluments x years (max 30) x 7/300 | Emoluments x years (max 30) x 7/300 |
| Commutation | Up to 35% of gross | Up to 35% of gross | Up to 35% of gross | Up to 35% of gross |
| Voluntary retirement | 3% of gross pension for each year (counted in completed months) left to superannuation, capped at 20% | Reduction factor by age at retirement: 59 years 2, 58 years 4, 57 years 6, 56 years 8, 55 years 10 (applied here as a percentage of gross pension, as in the identical Sindh table) | No reduction in the 2021 Rules; retiring pension allowed after 25 years or at age 55, whichever is later | Reduction by age at retirement: 59 years 2%, 58 years 4%, 57 years 6%, 56 years 8%, 55 years 10% (notification of 18 August 2025) |
| Family pension | 75% of pension drawn | Not confirmed | 100% of pension drawn | Not confirmed |
| Minimum pension | Rs 12,000 (family Rs 9,000) | Not confirmed | Not confirmed | Not confirmed |
Punjab, Khyber Pakhtunkhwa and Sindh have their own pages with examples: Punjab, KP and Sindh.
Increases in pension since 2024
The calculator shows the pension on the day you retire. Budget increases are added later by the accounts office.
| Government | Budget | Increase | From | Applied to |
|---|---|---|---|---|
| Federal | 2024-25 | 15.0% | 1 July 2024 | Net pension |
| Federal | 2025-26 | 7.0% | 1 July 2025 | Net pension on 30 June 2025 minus medical allowance (the baseline) |
| Federal | 2026-27 | 7.0% | 1 July 2026 | Baseline pension |
Since the 2025 reforms, federal increases are worked out on a baseline pension, the net pension without medical allowance, and are kept separate from it, so they do not compound. The baseline is to be reviewed every three years. The minimum federal pension is Rs 12,000 a month and the minimum family pension Rs 9,000, both from 1 July 2023.
This calculator applies the published rules to the figures you enter. It is not an official AGPR or Accountant General calculation. Your pension sanctioning authority decides what counts as qualifying service and pensionable pay. Civil servants appointed on or after 1 July 2024 are in the contributory pension fund (10% employee, 12% government), not this formula.
Pension questions
What is the pension formula in Pakistan?
Gross pension = pensionable emoluments x qualifying service in years x 7/300, with service capped at 30 years. For federal employees retiring from 1 January 2025, emoluments are the average of the last 24 months' pay. Net pension is the gross pension less the part you commute, usually 35%.
How much pension will I get after 30 years of service?
70% of your pensionable emoluments as gross pension. On an average pay of Rs 100,000 that is Rs 70,000 gross. After commuting 35% you receive Rs 45,500 a month, plus a lump sum of Rs 24,500 x 12 x 12.3719 = Rs 3,637,339 if you retire at 60.
How is the 24-month average worked out?
Add the pensionable pay you drew in each of the last 24 months before retirement and divide by 24. A part month counts as a full month. The retirement-year increment, if you qualify for it, is added after the average. Enter each pay rate and the number of months you drew it, and the calculator does the rest.
What is the family pension after a pensioner dies?
For federal pensioners it is 75% of the pension being drawn, not the baseline, as the Finance Division clarified on 4 March 2025. The spouse draws it for life. After the spouse, other eligible members get it for up to 10 years, with children paid until 21 if that is later and disabled children for life.
Is pension taxable in Pakistan?
Under the FBR rate card for tax year 2026-27, a pensioner below 70 pays no tax on pension from a former employer up to Rs 10 million a year, and 5% on the amount above that. Most government pensions are well below this, so no tax is deducted. See the salary tax calculator for tax on a salary from re-employment.
Related calculators
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.