Railway Pension and Gratuity Calculator

Monthly pension, dearness relief and retirement gratuity.

Estimate your pension and gratuity

Move a slider and everything updates. The whole calculation runs in your browser — nothing is sent anywhere.

%
years
Monthly Pension (with DR)
Emoluments for pension
Basic pension (50%)
Dearness relief
Half-years counted
Retirement gratuity

How pension is worked out

Emoluments = Basic × 1.55 (running staff) × (1 + DA%)
Basic pension = 50% of the pension base  ·  DR = Basic pension × DA%

For pay you carry a 30% pay element; for pension the running allowance is reckoned at 55%. That single difference is why running staff pension is well above a stationary post on the same basic pay.

How gratuity is worked out

Half-years = min( floor(Service × 2), 66 )
Gratuity = Emoluments × Half-years ÷ 4, capped at ₹25,00,000
Worked example. Running staff, last basic ₹78,800, DA 60%, 33 years of service.
Pension base = ₹1,22,140  ·  emoluments = ₹1,95,424
Basic pension ₹61,070 + DR ₹36,642 = ₹97,712 per month
Half-years = 66  →  gratuity = ₹25,00,000 (calculated ₹32,24,496, capped)

Two ceilings to watch

Half-years stop counting at 66, which is 33 years of qualifying service, and gratuity itself is capped at ₹25,00,000. Long service beyond those points raises your pension through higher pay, but not the gratuity multiplier.

Your accounts office settles the real figure on your verified service record, including any breaks or non-qualifying periods. Use this to plan, not to argue a case.

Common questions

How is railway pension calculated?

Basic pension is half of the last drawn emoluments used for pension. For running staff, emoluments are basic pay raised by a 55% pay element for pensionary purposes. Dearness relief is then paid on the basic pension at the current rate.

Why is the running staff figure 55% and not 30%?

For pay purposes running staff carry a 30% pay element, but for pensionary benefits the running allowance is reckoned at 55% of basic pay. That is why the pension base is higher than the pay base, and why running staff pension is noticeably better than a stationary post on the same basic pay.

How is retirement gratuity calculated?

Gratuity is emoluments multiplied by the number of completed half-years of service, divided by four. Half-years are capped at 66, which is 33 years of service. The total is subject to a ceiling of ₹25,00,000.

What is the maximum gratuity?

Retirement gratuity is capped at ₹25,00,000. Once your calculated figure crosses that, extra service does not raise the gratuity any further.

How many years of service count for full gratuity?

Half-years are counted up to a maximum of 66, so 33 years of qualifying service gives the maximum multiplier. Service beyond that does not increase the half-year count.

Is pension taxable?

Yes. Monthly pension is taxable as salary income. Retirement gratuity for government employees is exempt from tax. Commuted pension for government employees is also exempt.

Official sources

Rules and rates on this page come from the departments below. Where a figure matters to you, check it against the current order — RailStaff is not the authority for it.

Related calculators

Pension CommutationTake part of the pension as a lump sum Leave EncashmentUp to 300 days at retirement Current DA RateDR follows the DA rate

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