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# How to calculate Railway Employees Retirement Benefits?

## How to calculate Railway Employees Retirement Benefits? – Formulae, Calculation Methods and Illustration

Formulas for calculating settlement dues are given below. For convenience, an illustration is also given. In case of an employee serving in Pay Band-2 ScaleRs.9300-34800 in Grade Pay Rs.4200 who was drawing Last Pay Rs.20000/- retires on superannuation after completing 33 years of qualifying service. 40% commutation of Pension opted.

 Item Formula Illustration Pension(Minimum Rs.3500/-) = 50% of LP + DR = 50% of 20000= Rs.10000/- + DR Family pension (FP) (Minimum Rs.3500/-) = 30% of Last Pay (LP)= 30% of LP + DR = 30% of 20000= Rs.6000/- + DR Family pension at the enhanced rate in case of death of serving employee (for a period of 1st ten years or remarriage, whichever earlier ) = 50% of the last pay drawn or twice the normal family pension or the retirement pension whichever is less= 50% of LP or NFP x 2 = 50% of 20000 = 10000 or= 6000 x 2 = 12000 i.e.  Rs.10000/- + DR DCRG(Maximum Rs.10,00000/-) Retirement = LP + DA x No. of SMCS4 = 20000 + 9000 x 66 = Rs.478500/-4 Death    = LP + DA x No. of SMCS2 = 20000 + 9000 x 66 = Rs.957000/-2 Commutation Amount (CA) = Pension x % of Pension Commuted = 10000 x 40% = Rs.4000/- Commutation of Pension = CA x CV x 12 = 4000 x 8.194 x 12 = Rs.393312 Leave encashment = LP + DA x No. of LAPs30 = 48920+22014×300  = Rs.70934030

Abbreviations used

LP        –    Last Pay

DA        –    Dearness Allowance

DR       –    Dearness Relief

FP        –    Family Pension

SMCS  –    Six Months Completed Service

CV       –    Commutation Value (as applicable see Commutation Table at Page 26)

CA        –    Commutation Amount

LAP      –    Leave on Average Pay

### Check links below for more details on each of Retirement Benefit applicable to Railway Employees

Source: Indian Railways