Pay Calculation of Pension, Family pension, Gratuity, Death gratuity

1. Pension will not be available if you have not completed 10-years of service, Gratuity will be available.
2. Pension and Gratuity will be available if you leave the job voluntarily after 20-years of full service.
3. If a teacher dies after working one day, he will get Death Gratuity but family pension will not be.
4. If a teacher dies after 1-year of full service, he will get Wife Family pension, Death gratuity.
5. If a teacher dies after working for less than 7-years, family pension will be at normal rate, Death gratuity.
6. If a teacher dies after working for 7-years or more, family pension will be increased at 7-years from the day after death, then family pension will be available at Ordinary rate. Death gratuity is available.

Pay Calculation of Pension, Family pension and Gratuity


How to diagnose Death Gratuity  

According to ROPA 2009

1. Less than 1 year
= (Last Basic + DA) * 2

2. 1 year to less than 5 years
= (Last Basic + DA) * 6

3. 5 years to less than 20 years
= (Last Basic + DA) * 12

4. 20 years & more
= (Last Basic + DA) * Qualifying service

Here qualifying service max. 33
Max. Death gratuity Rs. 600000. 00

Suppose a teacher dies after 26 years, 9 months and 3 days of service, at the time of his death, he gets Basic and DA combined Rs. 29700.00, then his death will be gratuity.

= Rs. 29700 * 27 = Rs. 801900. 00, but the maximum is Rs. 600000. 00
So he will get Rs.600000.00 i.e. Rs.6 lakh.


How to determine family pension according to Ropa-2009

Family pension is two type-
1. Enhanced rate
2. Ordinary rate

If a teacher dies after 1 year of service, his wife (or vice versa) will get family pension. You will get it at normal rate.

If he dies after working for less than 1 year to 7 years, he will get Wife Family pension at normal rate.

If a teacher dies after 7 years of full service, his wife will get family pension at the rate of 7 years after the death of the teacher and then at the normal rate. (Remember that if a teacher dies in the line of duty at the age of 60, his wife will get family pension at an increased rate up to 67 years and later at a normal rate.)

Increased family pension

= Last Basic pay / 2
Family pension at normal rate

= 30% of Last Basic pay
Suppose a teacher joins on 23. 04. 2002 Died in 16.12. 2016, take his Basic pay at the time of death Rs.12000.00
Enhanced rate = Rs. 6000.00 from 17. 12. 2016 to 16. 12. 2023
Ordinary rate = Rs. 3600.00 from 17. 12. 2023
(Remember Basic Rs. 3300 of minimum family pension)

                                                                     What is commute

When you retire you will be able to sell Pension from your Basic Pension. Pension sales can make up to a maximum of 40%. If you want, you can do less.

If you commute according to ROPA 2009, you will get-
Re.1 Basic pension = Rs. 98. 328.

Your Pension will be commuted only if you apply. Otherwise not. After 15 years you will get back the Basic Pension of your commute.

Suppose you have a basic pension during your retirement
Rs.10000.00 then you can commute a maximum of Rs. 4000.00 (40%) in your application.

You will get money
(4000 * 98. 328) = Rs. 393312. 00
Suppose a teacher is working for 19 years, 9 months and 9 days.


                                                                           So how many units will it have

19 years = 38 units
19 years 3 months = 39 units
19 years 6 months = 39 units
19 years 9 months = 40 units
20 years = 40 units 
In this way the unit has to be determined



                                       How to determine Pension and Retiring gratuity as per ROPA 2009

Suppose a teacher has worked in a school for 18 years 9 months and 10 days, his last basic pay is Rs. 18260,
DA = 85% = 15521. Unit = 38,

Pension = Last basic * unit of service / 80
= 18260 * 38/80
= Rs. 8674. 00

Gratuity = (Last basic + DA) * Unit of service / 4
= (18260+ 15521) * 38/4
= 33781 * 38/4
= Rs.1283678/4
= Rs. 320920.00
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