Calculate your retirement lump-sum payout and remaining monthly pension using official Finance Division age factor rates.
Enter your retirement details to compute lump-sum and net pension
Enter your basic pay and service or gross pension to view your lump-sum commutation payout.
When a Pakistani civil servant or armed forces personnel retires, they are entitled to convert a portion of their monthly gross pension into an immediate tax-free lump-sum cash payment. This process is officially known as Commutation of Pension.
As per Government of Pakistan Finance Division rules, the formula for calculating commutation is:
The Age Factor (also referred to as the Purchase Factor) is determined by your age on your next birthday at the date of retirement:
| Age Next Birthday | Age Factor | Retirement Category |
|---|---|---|
| 60 Years | 12.3719 | Superannuation (Standard retirement age) |
| 59 Years | 12.4841 | Voluntary Retirement |
| 58 Years | 13.0347 | Voluntary Retirement |
| 57 Years | 13.5979 | Voluntary Retirement |
| 56 Years | 14.1729 | Voluntary Retirement |
| 55 Years | 14.7592 | Early / Voluntary Retirement (25 years service) |
| 50 Years | 17.8384 | Invalid / Compulsory Retirement |
| 45 Years | 21.1218 | Early Medical Board / Armed Forces |
A major benefit for Pakistani pensioners is the Restoration of Commuted Pension. If an employee retires at age 60, their age factor is 12.3719 years (approximately 12 years and 4 months). Once they survive this period (reaching approximately age 72), the deducted 35% share is restored back to their monthly pension, along with all cumulative percentage increases announced in previous national budgets.