How Family Pension is to be Calculated?

The normal rate of family pension calculation formula is as follows: 30% of the latest drawn emoluments (Pay+Spl.Pay+Personal Pay+Grade Pay). The family pension must be expressed in whole numbers and fixed at monthly rates; if it contains a fraction of a rupee, it must be rounded up to the next higher rupee: With a disclaimer that no family pension in excess of the maximum authorised by the rule shall ever be permitted.

How family pension is calculated?

Apart from the normal rate, there is also an enhanced rate. The family of a government employee who had not less than 7 years of continuous service at the time of death is eligible for an enhanced family pension, at 50% of emoluments (Pay+Spl.Pay+Personal Pay+Grade Pay last drawn) which is payable for 7 years or until the employee or pensioner reaches age 65, whichever comes first.

You can also visit this

portal, to calculate your normal rate and enhanced rate of family pension. You will just need to input the sum of last month’s emoluments (Basic Pay + NPA + SI + DP) (in Rs.), to get the output of Normal Family Pension (in Rs.), and Enhanced Family Pension (in Rs.)

After understanding how is family pension calculated, let us know,

• Wife in the case of a male service member, or husband in the case of a female service member

• A legally separated wife or husband, provided that the separation was not granted due to adultery and the person who survived was not found guilty of adultery

• An unmarried son under the age of 25 and an unmarried, widowed, or divorced daughter, including such son and daughter who were legally adopted

• Dependent parents; and

• Dependent disabled siblings (i.e., brother or sister) of a member of service.

I hope this family pension calculation formula will help you!

Read More:

The family pension is the sum of money given to the beneficiaries of a government employee who passes away while still on the job. The widow or widower receives the family pension. The family pension is given to a government employee's children who began working in a pensionable company on or after January 1, 1964, if there is no widow or widower. Let me guide you more on family pension calculation after death of pensioner.

How to make the calculation of family pension?

The pension is based on the wages the employee received while working for the government. Salary in this context refers to the base salary. The average basic pay during the previous 10 months of service is calculated in cases where pay varies. Depending on which is more advantageous, the pension is equal to 50% of basic pay or the average basic pay. While the maximum upper limit is 50% of the highest wage in the Indian government, the minimum monthly pension is Rs. 9000. You will get a better idea about the family pension calculator after death in the above answer.

What are family pension rules after death of pensioner?

• The paying bank branch will require you to present your pensioner's Pension Payment Order (PPO) as well as the death certificate.

• The above paperwork is all that is required to begin a pension if you have a bank account (or a joint account with the deceased spouse) in the branch.

• The bank will require documents proving your identity, including your PAN, Aadhar, and joint photos.

• The pension will be initiated by the bank upon an update to the pensioner's death date.

• The PPO is returned in half to you.

• The bank notifies CPPC once the procedure is complete, and it then begins to credit your account with the pension.

You are now aware of family pension calculation after death of pensioner.

What I have understood over the years is that family pension is a huge perk for the family members of a retired government employee. My father is also a retired government employee and we have been lucky enough to receive a family pension too. But what fascinated me always was how family pension is to be calculated. I even asked my father and his peers about this and they explained to me how exactly the pension is calculated. I am going to share the method with you along with some examples.

How to calculate family pension?

The family of a government employee is given a family pension in the event of the employee's passing both during the course of employment and after retirement, provided that the employee was receiving a pension or compassion allowance on the date of death.

As of January 1, 2006, the normal rate of family pension will be determined at a steady rate of 30% of basic pay derived on the date of death or retirement, as applicable, and will be subject to a minimum of Rs. 3500 per month and a highest of 30% of the highest salary in the government (the highest pay in the government is Rs. 90,000 per month).

The meaning of basic pay is it includes any non-practicing allowance and stagnation increment that was drawn on the day of retirement or death.

Beginning date of the family pension:

Family pension payments begin on the day after the government employee's passing.

How to calculate family pension after death of pensioner while in service?

I am going to explain the process of calculating family pension after the death of the pensioner while in service with the help of the following example.

Family pension calculation formula for the death after retirement

I am going to explain the process of calculating family pension after the death of the pensioner after retirement with the help of the following example.

I hope I was able to explain to you how family pension is to be calculated.