Financial Calculators
Defence Service Pension Estimator
Fifty percent of reckonable emoluments, plus Dearness Relief. An estimate to plan around, not a PPO.
Estimated monthly service pension
₹1,07,045
₹67,750 basic plus ₹39,295 DR
- Reckonable emoluments
- ₹1,35,500
- Basic pension (50%)
- ₹67,750
- Per year
- ₹12,84,540
- Family pension at 30%, with DR
- ₹64,227
Illustrative only. Service pension is 50% of reckonable emoluments (basic pay plus MSP) subject to minimum qualifying service; Dearness Relief is revised twice a year. Enhanced family pension at 50% applies for a limited period in defined cases. Your PPO is the authority; this is a planning estimate.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The pension behind the plan
For officers and personnel who complete the minimum qualifying service, service pension is fifty percent of reckonable emoluments, which for the armed forces means last drawn basic pay plus Military Service Pay. Dearness Relief is added on top and revised twice a year in line with the DA paid to serving personnel.
Family pension is ordinarily thirty percent of the same emoluments, with an enhanced rate for a limited period in defined circumstances. These are the two numbers every post-service plan starts from, so it helps to have them in front of you before the Pension Payment Order arrives.
The 50% rule
Reckonable emoluments = basic pay + MSP\nBasic pension = 50% x emoluments\nDR = basic pension x DR rate\nFamily pension = 30% x emoluments, plus DRWorked example: on a last basic pay of Rs 1,20,000 with MSP of Rs 15,500, reckonable emoluments are Rs 1,35,500 and the basic pension Rs 67,750 a month. With Dearness Relief at 58% the pension is Rs 1,07,045 a month (Rs 12,84,540 a year); ordinary family pension with DR is Rs 64,227.
Frequently asked questions
Is this the OROP figure?
No. One Rank One Pension sets a floor for past retirees by rank and length of service, revised periodically. Your actual pension is the higher of the formula and the OROP table. This calculator shows the formula only.
What if I commute part of the pension?
The commuted portion is deducted for 15 years in exchange for a lumpsum. Take the basic pension from here to the Pension Commutation calculator to see both sides.
Does DR apply to the commuted portion?
Yes, Dearness Relief continues on the full basic pension even while a portion is commuted, which is one of the arguments in favour of commuting.
How often does Dearness Relief change?
Twice a year, effective January and July, in step with DA for serving personnel. Enter the currently notified rate; the default here is a recent figure and may be out of date.
The pension is the floor. Build above it.
We plan post-service income around the pension, the gap it leaves, and the terminal benefits that fill it.