Example
Example, not your resultCommuted value of pension (lump sum)
₹15,73,248
- Monthly pension after commutation
- ₹24,000
- Monthly pension before commutation
- ₹40,000
- Commuted each month (40%)
- ₹16,000
- Restored after 15 years
- at about age 75
- Commutation value at age 61
- 8.194
Estimate under central government rules. The figure your pension office works out is the final one.
Your pension, now and after 15 years
On commutation
Lump sum paid once
₹15,73,248
Each month for 15 years
Pension after commutation
₹24,000
After 15 years (about age 75)
Full pension restored
₹40,000
How this was worked out
Commuted pension = 40,000 × 40% = 16,000 a month (a fraction of a rupee is dropped)Lump sum = 16,000 × 12 × 8.194 = 15,73,248 (rounded up to the next rupee)Pension left = 40,000 − 16,000 = 24,000 a monthThe commuted 16,000 is added back after 15 years.
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Reviewed 30 Sept 2026 · by GoldC Team · How we calculate thisUses Indian rules and rupees.
What you need before you start, and where to find it
- Basic pension per month: on the pension payment order (PPO) or the pension calculation sheet. Use the basic pension, before dearness relief.
- Age on your next birthday: your age on the first birthday after the day you retire. Someone retiring at 60 is usually 61 on the next birthday.
- Share to commute: any share up to 40% of the basic pension, or up to 50% for armed forces pensioners.
- Dearness relief (optional): the rate on your latest pension slip, to see the monthly take-home.
No date of birth, name or PPO number is asked for, and nothing you enter is sent anywhere.
How to calculate the commuted value of pension
Commutation means taking part of the monthly pension as a one-time lump sum. The monthly pension is reduced by the part commuted, and that part is added back after 15 years.
- Commuted pension = basic pension × the share commuted; a fraction of a rupee is dropped
- Lump sum (commuted value of pension) = commuted pension × 12 × the commutation value for your age next birthday; the result is rounded up to the next rupee
- Pension after commutation = basic pension − commuted pension
Worked example: a basic pension of ₹40,000, 40% commuted, age 61 next birthday (value 8.194). Commuted pension ₹16,000; lump sum ₹16,000 × 12 × 8.194 = ₹15,73,248; pension after commutation ₹24,000 a month.
The age is counted on the date the commutation becomes absolute: the day after retirement when the application is made before retiring.
Restoration of commuted pension after 15 years
The commuted part is added back after 15 years, counted from the date the reduction started: the date the lump sum was received, or three months after the accounts officer's authority if that is earlier. When the lump sum is paid in the first month after retirement, the 15 years are counted from the retirement date. In the example, the ₹16,000 comes back at about age 75.
Dearness relief on a commuted pension
Dearness relief is paid on the full basic pension, not on the reduced one, so commutation does not lower it. With an example rate of 50% on the pension above: dearness relief ₹20,000; take-home ₹60,000 a month before commutation and ₹44,000 after it. Use the rate on your own pension slip.
Commutation factor table (age next birthday)
The value for a pension of Re. 1 a year, by age on the next birthday. The lump sum is the monthly amount commuted × 12 × this value. It applies to commutations that became absolute on or after 2 September 2008.
| Age | Value | Age | Value |
|---|---|---|---|
| 20 | 9.188 | 51 | 8.808 |
| 21 | 9.187 | 52 | 8.768 |
| 22 | 9.186 | 53 | 8.724 |
| 23 | 9.185 | 54 | 8.678 |
| 24 | 9.184 | 55 | 8.627 |
| 25 | 9.183 | 56 | 8.572 |
| 26 | 9.182 | 57 | 8.512 |
| 27 | 9.180 | 58 | 8.446 |
| 28 | 9.178 | 59 | 8.371 |
| 29 | 9.176 | 60 | 8.287 |
| 30 | 9.173 | 61 | 8.194 |
| 31 | 9.169 | 62 | 8.093 |
| 32 | 9.164 | 63 | 7.982 |
| 33 | 9.159 | 64 | 7.862 |
| 34 | 9.152 | 65 | 7.731 |
| 35 | 9.145 | 66 | 7.591 |
| 36 | 9.136 | 67 | 7.431 |
| 37 | 9.126 | 68 | 7.262 |
| 38 | 9.116 | 69 | 7.083 |
| 39 | 9.103 | 70 | 6.897 |
| 40 | 9.090 | 71 | 6.703 |
| 41 | 9.075 | 72 | 6.502 |
| 42 | 9.059 | 73 | 6.296 |
| 43 | 9.040 | 74 | 6.085 |
| 44 | 9.019 | 75 | 5.872 |
| 45 | 8.996 | 76 | 5.657 |
| 46 | 8.971 | 77 | 5.443 |
| 47 | 8.943 | 78 | 5.229 |
| 48 | 8.913 | 79 | 5.018 |
| 49 | 8.881 | 80 | 4.812 |
| 50 | 8.846 | 81 | 4.611 |
Source: Department of Pension and Pensioners' Welfare, Government of India, OM F. No. 38/37/08-P&PW(A), 2 September 2008, Annexure (basis: LIC (94-96) Ultimate Tables and 8.00% interest). The armed forces and All India Services orders print the same values. Reviewed 30 September 2026.
What this calculator does
- Works from three answers: basic pension, age on the next birthday and the share to commute
- Uses the central government commutation table in force since 2 September 2008, shown in full on the page with its source
- Applies the 40% limit for central civil, railway and All India Services pensioners and 50% for the armed forces
- Drops a fraction of a rupee from the commuted pension and rounds the lump sum up to the next rupee, as the rules do
- Shows the pension left, and the age at which the commuted part is restored after 15 years
- Optionally adds dearness relief on the full pension to show the monthly take-home before and after
- Asks for no date of birth, name or PPO number; runs in the browser, and the result can be copied or sent on WhatsApp
Quick answers
What is a commutation of pension calculator?
It works out the one-time lump sum (the commuted value of pension) for the share of the pension you give up, and the pension left each month. This one uses the central government table and rules.
How much pension can be commuted?
Up to 40% of the basic pension for central civil, railway and All India Services pensioners, and up to 50% for armed forces pensioners who retired on or after 1 January 2006.
Which age is used for the commutation value?
The age on the next birthday, on the date the commutation becomes absolute. For an application made before retirement, that date is the day after retirement.
How is the lump sum rounded?
Any fraction of a rupee in the commuted pension is dropped, and the lump sum is rounded up to the next rupee.
When is the commuted pension restored?
After 15 years, counted from the date the reduction started, or from the retirement date when the lump sum was paid in the first month.
Is commuted pension restored after 12 years?
Not at present. Pensioner associations have asked for a shorter period, such as 12 or 11 years, but as of 30 September 2026 no order changing the 15 years has been issued. This page will change if one is.
Is dearness relief paid on the full pension after commutation?
Yes. Dearness relief is paid on the original basic pension, before commutation.
What if I apply more than a year after retiring?
The commutation then needs a medical examination, and the age is counted on the later date when the commutation becomes absolute, so the value used can be lower.
Does this work for state government pensioners?
No. States set their own limits, tables and restoration periods, so this calculator does not cover them.
Does it apply to the NPS or the UPS?
No. Those schemes do not have this kind of commutation.
GoldC is independent and is not connected with any government body. Every figure here is an estimate; confirm it with your pension sanctioning authority before you decide. Reviewed 30 September 2026.