Govt revises pension system, introduces new calculation method

The government has announced significant changes to pension calculations, introducing new conditions and restrictions, reported.

A notification issued on Wednesday stated that pension will now be calculated based on the average salary of the last 24 months, rather than the final salary. Additionally, employees will no longer be allowed to receive multiple pensions.

According to the notification, the new calculation will not apply to employees opting for voluntary retirement. Furthermore, incremental raises in the final year of service will not be included in the average pension calculation.

The government has also revised the pension increment mechanism for existing pensioners, ensuring that family pensions will now be calculated based on net pension values.

The notification provides additional clarifications:

Days worked in the retirement month will count as a full month for pension calculations.

Final-year increments will not be factored into pension calculations.

Family pensions will be determined based on net pension figures.