How To Calculate Commute Pension 2021

Commute is one time amount given to the pensioners at the time of his/her retirement. The amount of commutation always depends on the age rates calculation. So now, is it possible to know how to calculate the commute pension easily and correct with the formula.

Now we will see what is the formula of commutation of pension;


Total Commute = 12 x Age Rate x Commuted Pension


The above formula regarding to calculate total commute with the following three main factors;

1). Multiplication Factor of 12

2). Select the Age Rate according to the service length

3). Amount of commuted pension


Multiplication Factor of 12


The multiplication factor of 12 represents about the 12 months of a year. So this factor is very important to find out the exact amount of commute.


Age Rate


Government of Pakistan issues the notification regarding revised age rates accordingly. If you are going to retired after 25 years then the factor of 25 age rate is 36.6651 is used for the calculation of commutation. We are sharing the revised age rates 1981 from the given link;

Revised Age Rates 2020


Commuted Pension


The gross pension is divided into two main categories for monthly pension and commute pension;

a). 65% of Gross Pension is sued for Monthly Pension

b). 35% of Gross Pension is used for Commute Pension.

You can easily find the commuted pension from the given formula;


Total Commute = Gross Pension x 35 / 100


I hope now everyone can easily calculate their total commute pension amount from the given instruction and in case you are found anything ambiguous then you can ask in comments for the more detailed.

How To Calculate Commute Pension 2020

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