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Calculate Pension and Commute! Calculation of Pension The calculation of Pension and Commute is very simple. An employee can calculate his/her pension and commute himself/herself. The main things in pension calculation are basic pay and total service at the time of retirement. The formula for pension calculation is as under: Gross Pension = Basic Pay x Service (Maximum 30 years) x 70/3000 Basic Pay The basic pay is taken the pay at the time of retirement the individual is drawing. If an employee retires from service on 1 st June or after it then 1x Usual Increment is added in his/her basic pay for the pension purpose only. If an employee is drawing PP (Personal Pay), it is also included in his/her basic pay. Same is the case with Special Pay. Service The maximum length of service for the pension purpose is 30 years. If an employee has a service more than 30 years then only 30 years service is considered for the pension purpose. Ordinary Pension Here is to m...