The two methods used by the 7th CPC
The 7th Central Pay Commission recommended two "formulations" for revising the pension of people who retired before 2016. The Government implemented them in two steps, and every pre-2016 central civil pensioner is entitled to whichever gives the higher pension.
Method A — the 2.57 multiplier (DoPPW OM dated 4 August 2016)
The pension or family pension "as had been fixed at the time of implementation of 6th CPC recommendations" was multiplied by 2.57 and rounded off to the next higher rupee, with effect from 1 January 2016. The existing pension here is the basic pension including any commuted portion and excluding additional pension for age. Anything below ₹9,000 was stepped up to ₹9,000. Banks applied this automatically, without a fresh authority.
Method B — notional pay fixation (DoPPW OM dated 12 May 2017)
The pensioner's pay is fixed notionally in the 7th CPC pay matrix, at the level corresponding to the pay scale (or pay band and grade pay) at which they retired, by carrying it through each intervening pay commission's fixation formula. 50% of that notional pay as on 01.01.2016 is the revised pension; 30% is the normal family pension and 50% the enhanced family pension, each rounded up to the next rupee. The OM then says that "higher of the two Formulations" shall be granted. Unlike Method A, this revision is done by the Head of Department and Pay & Accounts Office, who issue a revised authority under the existing PPO number.
Same limits for both: minimum ₹9,000 (excluding additional pension); maximum 50% of the highest pay of ₹2,50,000 for pension (₹1,25,000) and 30% for family pension (₹75,000). Additional pension for age (20% at 80 … 100% at 100) is added on top of the revised basic.
Worked examples from the official order
These are the four pension examples printed in Annexure I of the 12 May 2017 OM. The calculator above reproduces each of them exactly.
| Retired on | Pension before revision | Method A (×2.57) | Notional pay on 1.1.2016 | Method B (50%) | Payable |
|---|---|---|---|---|---|
| 31.12.1984 (4th CPC notional) | ₹4,191 | ₹10,771 | ₹23,100 | ₹11,550 | ₹11,550 |
| 31.01.1989 (4th CPC) | ₹12,600 | ₹32,382 | ₹71,800 | ₹35,900 | ₹35,900 |
| 30.06.1999 (5th CPC) | ₹5,424 | ₹13,940 | ₹29,600 | ₹14,800 | ₹14,800 |
| 31.05.2015 (6th CPC) | ₹39,500 | ₹1,01,515 | ₹2,05,100 | ₹1,02,550 | ₹1,02,550 |
In all four cases Method B was higher — but the gap varies from about 1% to 11%. For family pension in the same order, case 1 shows why the minimum matters: ₹3,500 × 2.57 = ₹8,995, stepped up to ₹9,000.
Why the calculator asks for your notional pay instead of working it out
Method B needs your exact pay scale on retirement, the fixation rules of every pay commission since then, and the concordance tables that DoPPW circulated on 6 July 2017 to map old scales to 7th CPC levels. Getting any one of those wrong gives a confident but wrong answer, so this site does not guess it. Instead:
- Enter your notional pay as on 01.01.2016 if it is written on your revised PPO or revision authority. The calculator then compares both methods.
- If you don't have it, leave it blank: you will see Method A, which is the minimum you are entitled to.
- The Department of Pension's Pensioners' Portal has an official "Revised Pension Calculator for pre-2016 Pensioners" that uses the concordance tables; you can use it to find your notional figure.
What the 8th Pay Commission could mean for pre-2016 pensioners
Whatever method fixed your pension, the result became your basic pension from 1 January 2016, and Dearness Relief has been paid on it since (60% from 1 January 2026). The calculator's 8th CPC figure applies the fitment factor you choose to that basic pension — the same approach the 7th CPC took for everyone through Method A. It is an estimate: no fitment factor has been announced as of 28 October 2026, and nobody yet knows whether the 8th CPC will again offer older pensioners a notional-pay option, or a different method altogether. Pensioner associations have raised the treatment of older pensioners in their submissions; the Commission's report is due around May 2027.
For defence pensioners, note that the two OMs above apply to central civil pensioners (including CAPFs, railway and All India Services pensioners). Armed forces pensions were revised through separate Ministry of Defence orders; see the defence pension page.
यह पेज हिंदी में पढ़ें — 2016 से पहले रिटायर पेंशनभोगियों के दोनों तरीकों की पूरी जानकारी।
Who this page is for
Central civil pensioners and family pensioners whose pension started before 1 January 2016, including CAPF, railway and All India Services pensioners. It is also useful if you suspect your pension was never revised under the 12 May 2017 notional-pay order.
How to use the calculator
- Enter your pension as on 31.12.2015 (before the 2.57 revision), from your old PPO or the bank's revision entry.
- If your revised authority shows notional pay as on 01.01.2016, enter it to compare Method B.
- Enter age and pension type, choose an 8th CPC factor and calculate.
- If Method B is higher but you are still being paid Method A, write to your Head of Department / Pay and Accounts Office with a copy of the OM dated 12.05.2017, or file a grievance on CPENGRAMS (pgportal.gov.in).
Common mistakes
- Multiplying today's basic by 2.57 again. The 2.57 revision already happened in 2016; today's basic is the result.
- Including additional pension before multiplying. Only basic pension was multiplied.
- Expecting arrears before 2016. The 2017 OM allowed none before 01.01.2016.