Punjab pension is average basic pay x qualifying service (up to 30 years) x 7/300. Since 2 December 2024 the pay used is the average of your basic pay, including personal pay, as drawn on 1 July of each of the last three financial years. Special pay, qualification pay and the retirement-year increment no longer count.
Enter the three 1 July figures above with your dates. The example loaded retires at 60 in August 2026 with 28 years 7 months of service.
What changed for Punjab in December 2024
The Finance Department notification FD-SR-III-4-244/2023(B) of 2 December 2024 amended the Punjab Civil Services Pension Rules for anyone retiring, or dying in service, on or after that date:
- Pay for pension is the three-year average of basic pay with personal pay, taken from 1 July of each of the last three years. Earlier retirees keep the last-pay method.
- Family pension was limited to the spouse. An August 2025 amendment says it continues for life or until remarriage, shared equally between widows.
- Earlier increases dropped. The 2011 (15%), 2015 (7.5%) and 2022 (15%) increases, which used to be added for new retirees, no longer apply to them.
- Future increases are linked to half of the ad hoc relief allowance given to serving employees each year.
A further amendment of 24 February 2026 allows voluntary retirement after 25 years of qualifying service or at age 55, whichever is later.
Worked example
Basic pay on 1 July 2024, 2025 and 2026: Rs 105,000, Rs 110,000 and Rs 128,000. Service 28 years 7 months, retiring at 60.
| Step | Working | Result |
|---|---|---|
| Average basic pay | (105,000 + 110,000 + 128,000) / 3 | Rs 114,333 |
| Service | 28 years 7 months, 7 months counts as a year | 29 years |
| Gross pension | Rs 114,333 x 29 x 7/300 | Rs 77,366 |
| Commuted 35% | 35% of Rs 77,366 | Rs 27,078 |
| Lump sum | Rs 27,078 x 12 x 12.3719 | Rs 4,020,067 |
| Net pension | Rs 77,366 minus Rs 27,078 | Rs 50,288 a month |
At retirement on superannuation the commutation rate for age 60, 12.3719, is used.
Voluntary retirement before 60
The December 2024 notification added a reduction factor by age at retirement: 2 at 59, 4 at 58, 6 at 57, 8 at 56 and 10 at 55. Sindh adopted the same table in August 2025 and states it as a percentage of pension. The calculator applies Punjab's factor the same way, as a percentage cut in gross pension.
Example: same average pay, 27 years of service, retiring at 57 years 3 months.
- Gross pension before the cut: Rs 72,030
- Cut of 6%: Rs 4,322, leaving Rs 67,708
- Lump sum at age next birthday 58 (13.4340): Rs 3,820,286
- Net pension: Rs 44,010 a month
Punjab pension increases
Budget increases are added to the pension after retirement. They are not part of the figure above.
| Government | Budget | Increase | From | Applied to |
|---|---|---|---|---|
| Punjab | 2024-25 | 15.0% | 1 July 2024 | Net pension |
| Punjab | 2025-26 | 5.0% | 1 July 2025 | Net pension minus medical allowance; not for those retiring on or after 1 July 2025 |
| Punjab | 2026-27 | 3.5% | 1 July 2026 | Net pension minus medical allowance; not for those retiring on or after 1 July 2026 |
The 2025 and 2026 increases are paid on the net pension without medical allowance and do not apply to people retiring on or after 1 July of the same year. New Punjab employees are covered by the Punjab Defined Contribution Pension Scheme Rules 2025 instead.
Some Punjab calculators average 36 months of pay from 1 July instead of the three 1 July figures. The notification and the Punjab government's own explanation refer to basic pay as drawn on 1 July of each of the last three years, which is what we use. We could not confirm the family pension percentage after the 2024 and 2025 amendments, so the calculator leaves it out. Check your figures with the District Accounts Office or AG Punjab.
Punjab pension questions
How is pension calculated for Punjab government employees?
Take basic pay with personal pay on 1 July of each of the last three financial years and average them. Multiply by your qualifying service in years, up to 30, and by 7/300. That is the gross pension. Commute up to 35% for a lump sum; the rest is paid monthly.
Does the retirement-year increment still count in Punjab?
No, not for people retiring on or after 2 December 2024. The Punjab government said the notional increment, special pay and qualification pay are no longer part of pay for pension. Federal employees still get one increment added if they retire on or after 1 June.
What is the pension cut for voluntary retirement in Punjab?
A reduction factor from 2 at age 59 to 10 at age 55. On a gross pension of Rs 72,030 at 57 that removes Rs 4,322 a month under our reading of the factor as a percentage. Voluntary retirement needs 25 years of service or age 55, whichever comes later.
I retired before 2 December 2024. Which rules apply?
The earlier Punjab rules: pension on the last pay drawn, the old family pension rules and the earlier increases. This calculator follows the December 2024 rules only, so it will understate the pension of an earlier retiree whose pay rose in the last three years.
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.