Method of calculation of Pension for Central Government and Railway employees (including Running Staff)

Basic Pension

     Basic Pension is calculated as the last month emoluments or average of last 10 month emoluments which is higher. Normally higher of this will be last month emoluments unless the employees Pay was reduced in last months due to a punishment etc.

Emoluments

     For Doctors - Basic Pay(Pay + GP)  plus NPA(Non Practicing Allowance)

     For other employees - Basic Pay(Pay + GP)

     For Railway Running staff (Loco Pilots, Asst Loco Pilot, Guards) 55% of Basic Pay is added to the basic pay for all pension calculations.

One Rank one Pension.

   On the recommendations of PMO, a Committee was set up under the Chairmanship of Cabinet Secretary in June, 2009 to look into the issue of `One Rank One Pension and other related matters`. After considering all aspects of the matter, the Committee keeping in mind the spirit of the demand, suggested several measures to substantially improve pensionary benefits of Personnel Below Officer Rank (PBOR) and Commissioned Officers, which have been accepted by the Government and orders for implementation of all the recommendations have been issued.

Re-Employment to Ex-Servicemen.

   Central Government provides 10% reservation for Ex- servicemen in civil jobs in Group `C` posts and 20% in Group `D` posts. Most State Governments provide reservation for Ex-servicemen which varies from State to State as it is based on the total population of Ex- servicemen domiciled in the State and the rehabilitation policy of the concerned State.