The government has introduced significant changes to pension calculations, modifying the formula for determining pension amounts and imposing new restrictions
According to media reports, a notification issued on Wednesday outlined the revisions, including a shift from calculating pensions based on the final salary to an average of the last 24 months’ earnings. Additionally, employees will no longer be eligible to receive multiple pensions.
The notification clarified that the revised calculation method will not apply to employees opting for voluntary retirement. It also stated that incremental raises in the final year of service will be excluded from pension calculations.
Further adjustments have been made to the pension increment mechanism for existing pensioners, including a revision in the calculation of family pensions, which will now be based on net pension values.
According to the notification, any days worked in the month of retirement will count as a full month for pension calculations. The government has emphasized that these changes are aimed at standardizing pension payments and ensuring sustainability in the pension system.
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