Pension:- Means a periodical payment made by Government" in consideration of the services rendered by a Gover-
nment servant in accordance with rules.

The minimum length of service required for pension is ten years while for the gratuity the required length of
service is five years or more but less than 10 years.

      1. Classes of Pension:

        1. Superannuation Pension: Granted on completion of age of superannuation which presently is 60 years
          under the law.

        2. Retiring Pension: Granted to a Government servant who is permitted or required by Government to retire
          after completing qualifying service of 25 years. The retiring pension is also granted to a Government servant
          who is compulsorily retired under the E & D Rules.

        3. Invalid Pension: Awarded to a Government servant who by bodily or mental infirmity is permanently incapacitated by the standing Medical Board or standing invaliding committee or Medical Superintendent as described below:-
          The standing Medical Board or standing invaliding committee in the case of Government servants in B-16
          and above. Medical Superintendent DHQ/Services Hospital in case of Government servant in B-1 to B-15.
          Note:- A Government servant should be invalided within thirty days of the receipt of Medical Certificate or
          if he is on leave or is granted leave as a special case, on the expiry of such leave whichever may be later.

        4. Compensation Pension: Granted on the eve of abolition of a permanent post, if an incumbent of such post
          is not absorbed in any other service/post.

      2. Family Pension: Granted to the family members of a Government servant in case of his death during service or
        to the family of a pensioner in the event of his death.

        1. In case the civil servant dies during service, the family pension shall be admissible at the rate 50 % of Gross pension. The gratuity in lieu of one fourth of gross pension on the basis of age of the deceased civil servant according to commutation table will also be paid. If the civil servant dies after retirement, the family pension
          would be admissible equal to 50 % of the net or reduced pension.

        2. The widow will get pension for life or till her remarriage. The husband of the deceased female servant will get pension for 10 years.

        3. In case the civil servant dies, and the widow is also a civil servant, the pension would only cease in case of
          death or remarriage of the widow.
          Family Includes:-
          a) Wife/Wives of a male Government servant. b) Husband of the deceased Government servant.
          c) Widow / widows and children of a deceased son of the Government servant.

        4. If the widow dies, the pension will be admissible to the sons, if any until they attain the age of 21 'years and the unmarried daughter, if any, until they are married or attain the age of 21 years, whichever is earlier.


      3. Extraordinary Pension:
        Is granted in addition to normal pension whose death, injury or disability etc is direct11 attributed to duty in service.


      4. Anticipatory Pension:-
        If there is an apprehension that finalization of pension case of a Government servant will be delayed, a pension upto
        80 % of the admissible pension may be issued by competent authority without reference to audit office.


      5. Compassionate allowance:-

No pension shall be admissible to a civil servant who dismissed or removed from service for reasons of discipline, but government may sanction compassionate a11owance to such a civil servant, not exceeding two thirds of t pension or gratuity which would have been admissible him had he been invalided from service on the date of S1J dismissal or removal.

Conditions for the Grant of Pension:

  • The service must be under Government.

  • The service must be pensionable.

  • The servant must be paid out of the consolidated fund.

Service Qualifying for Pension:

  • All periods of leave, other than extraordinary leave.

  • The period of suspension followed by re-installment.

  • Probationary period followed by confirmation.

  • Half of period of apprenticeship.

  • Military pensionable service which terminates before a pension has been earned in respect of it, when followed by Civil pensionable service, counts as part of such service provided that any bonus or gratuity received in lieu of pension on or since discharge from military service shall be refunded in lumpsum or in monthly installments not exceeding 36. The military service of the individual concerned and the amount of gratuity paid to him should be verified by reference to the Controller of Military Accounts.

  • Time occupied in transit from one appointment to another.

  • Period of training during service.

  • Periods spent in Foreign Service if pension contributions are paid.

Service which does not qualify for Pension:

  • Extraordinary leave (i.e. leave without pay).

  • Overstayal of joining time or leave.

  • Half of the Apprenticeship period.

  • Foreign service if pension contributions are not paid.

Forfeiture of past Service:

A Government servant forfeits his past service in the following cases:-

  1. Resignation of a post unless it is to take up another post, service in which counts for pension.

  2. Removal or dismissal from service on account of misconduct, insolvency or inefficiency.

  3. Absence from duty without leave.
    Note:- The pension sanctioning authority may commute retrospectively periods of absence without leave into extraordinary leave.

Condonation of interruption and deficiencies:


  1. The Administrative Department may for purpose of pension condone all gaps between qualifying service of a Government servant.

  2. The period of extraordinary leave shall not be treated as qualifying service for pension but only as a bridge between the two periods of qualifying service Interruption in service due to other reasons may be condoned provided such interruption is not due to any fault or willful act of the Government servant, like unauthorized absence, resignation or removal from service. Interruption due to removal on account of reduction and retrenchment of the post shall however be deemed to have been condoned. The periods of such interruptions shall not, however, count as qualifying service for pension.


  1. A deficiency in qualifying service upto 6 months is automatically condoned.

  2. A deficiency in service for more than 6 months but less than a year can be condoned by a competent authority subject to the following conditions:-

    1. The Government servant has died while in service or has retired under circumstances beyond his control, such as on invalidation or abolition of his post, and would have completed another year of qualifying service, if he had not died or retired.

    2. The service rendered by him had been meritorious;

  3. A deficiency of full one year or more cannot be condoned.

Factors involved in calculation of Pension:-

  1. Last Pay: i.e. Basic pay, additional pay / special pay, personal pay, technical pay, indexed pay, senior post allowance, increment accrued during L.P .R, Dearness allowance, any other addition to pay which may specially be declared by Govt: as emoluments reckoning for pension.

  2. Net Qualifying Service:

  3. Formula of Calculation of pension:

Last pay x Service (upto 30 years) x 7

Service benefit@ 2 % for each completed year of service in addition to 30 years subject to a maximum of 10 %.


  • An amount upto 50 % of the Gross pension can be commuted at the rate of commutation table with reference to the age of the Government servant on the next birthday.

  • The commuted value of pension shall be restored on outliving the period for which commuted value was paid. In restoration, fraction of a year shown in the commutation table which is less than six months will be ignored and that of six months and more will count as one year.

  • The gratuity has been abolished altogether w.e.f. 1.7.1986. However, the amount surrendered for gratuity before 1.7.1986 shall be restored after outliving the period for which gratuity was allowed.

  • Commutation is not subject to medical certificate if it is asked for within one year of the date of retirement. This is not applicable in the case of invalid pension. In the cases of premature retirement on medical grounds, the requirement of medical examination shall not be waived.

  • A civil servant after attaining the age of 60 years will be allowed commuted value of pension as applicable to the age of 60 years, instead of 61 years.

Amount of gratuity in the case of Govt:

servant having more than five but less than ten year service. Gratuity is paid at the rate of one month pension able emoluments for each completed year of service. In case of death or invalidation, gratuity at the rate of one and half month's emoluments is paid for each completed year of service.

General Orders:

  • Good conduct during and after service is an implied condition. The pension can be reduced or stopped if the conduct of Govt: Servant during service and or after retirement is not satisfactory.

  • There is no maximum limit of pension. * Except with the previous sanction of the Govt:, No pensioner shall with in a period of two years from the date of his retirement, take part in any election or engage in politics.

Pension Sanctioning Authority:

  1. The appointing authority can accord sanction of pension for civil servants in Grade- I 6 and below.

  2. The Secretary of the Department concerned shall have the powers. to grant/sanction all kinds of pension, excluding compassionate allowance to civil Servants in Grades I 7 to 19 who are or have been working under his administrative control immediately before retirement. The extraordinary pension shall be sanctioned with the prior concurrence of Finance Department.

  3. The Chief Secretary shall have powers to accord sanction of pension to Officers in B-20 and above.

Commutation Table

Age Next Birthday
Numbers of years purchased
Age Next Birthday
Numbers of years purchased
20 50.6304 607-5648 50 22.8911 274-6932
21 49.6676 596-0112 51 22.0658 264-7896
22 48.7066 584-4792 52 21.2563 255-0756
23 47.7464 572-9604 53 20.4638 245-5656
24 46.7884 561-4608 54 19.6896 236-2752
25 45.8314 549-9768 55 18.9348 227-2176
26 44.8758 538-5096 56 18.2002 218-4024
27 43.9215 527-0580 57 17.4860 209-8320
28 42.9688 515-6256 58 16.7925 201-5100
29 42.0179 504-2148 59 16.1191 193-4292
30 41.0089 492-1068 60 15.4649 185-5788
31 40.1218 481-4616 61 14.8290 177-9480
32 39.1767 470-1204 62 14.2105 170-5260
33 38.2336 458-8032 63 13.6090 163-3080
34 37.2929 447-5148 64 13.0239 156-2868
35 36.3551 436-2612 65 12.4549 149-4588
36 35.4203 425-0436 66 11.9017 142-8204
37 34.4885 413-8620 67 11.3643 136-3716
38 33.5603 402-7236 68 10.8428 130-1136
39 32.6361 391-6332 69 10.3371 124-0452
40 34.7160 380-5020 70 9.8472 118-1664
41 30.8007 369-6084 71 9.3729 112-4748
42 29.8907 358-6884 72 8.9142 106-9704
43 28.9800 347-7600 73 8.4708 101-6496
44 28.0891 337-0692 74 8.0427 96-5124
45 27.1990 326-3880 75 7.6299 91-5588
46 26.3172 315-8064 76 7.2322 86-8764
47 25.4444 305-3328 77 6.8496 82-1952
48 24.5816 294-9792 78 6.4818 77-7816
49 23.7301 294-7612 79 6.1287 73-5444
  80 5.7901 69-4812


                                      OTHER PENSION RULES


                                                                                        NO.FD/SO(SR-II)/4-111/2003 / Vol-II                                                                                 Dated Peshawar, 1st October 2003.


                     I am directed to refer to this Department's letter of even number dated: 9-7-2003 on the subject noted above and to say that queries have been received in this Department, as to whether 15% increase in pension is also admissible to those Government servants who would retire on or after 01-07-2003.

                    2. It is clarified that the said increase in pension is admissible until further orders to those Government servants as well who retired /may retire on or after 01-07-2003.


                     NO.SOSR.III (FE&TD) 4-36/76/Vol:IV
               Dated Peshawar, 26th June, 2000.


                         I am directed to refer to the subject noted above and to say that under Para 1(j) of the Finance Department's letter No.SO(SR.III)FD/4-36/76, dated 4-6-1977 all periods of suspension followed by re- instatement should qualify for pension regardless of the fact whether the Government Servant was or was nor  allowed full pay and allowances for the period of suspension. In other words, the mere act of re-instatement should be deemed to have rendered the period of suspension as qualifying for pension.

2.                     A question has been raised whether in the case of a Government Servant who dies during the period of suspension the intervening period between the date of suspension and death would qualify for pension or otherwise.

3.                     After examination of the matter it has been decided that  in cases similar to that as refereed to above the period of suspension would qualify pension as in the  case of reinstatement .

                       NO.SOSR.III (FE&TD) 4-199/76/Vol:III
                  Dated Peshawar, 20th October 2000


I am directed to refer to the subject noted above and to say that under the existing instructions the family pension will be admissible to :-

(i)  The widow or widower as the case may be, of the deceased Government Servant for life or until    re-marriage; and

(ii) failing (i) above to the Sons, if any, until they attain the age of 21 years and the un-married daughters, if any, till they are married or attain the age of 21 years, which-ever is earlier.

2.                     It has been decided that failing (i) and (ii) above the family pension will be admissible to the surviving un-married daughter till marriage. In case there are more then one such daughter the amount will be divided equally. No arrears will be allowed prior to 20-10-2000.


          NO.SOSR-III-II /FD/4-132/86/
                Dated Peshawar the 15th April 2002 


                        I am directed to refer to this Department letter of even number dated 2nd August 1986 on the subject noted above and to state that commutation upto 50% of gross pension was admissible to a Civil pensioner at his option. Under the existing procedure as contained in this Department letter No.FD(PRC) 1-1/2001, dated 27-10-2001 the entitlement of commuted value upto 40% of gross pension becomes valid as and when a government servant, while in service or on retirement, exercises his option for commuted value of pension on prescribed form  (C.S.R-25 Revised).

2.                     Some references have been received in this Department where government servants while having been retired compulsorily could not sign their pension papers due to their death. Consequently the bereaved families of deceased government servants were not given the benefit of the commuted value of pension under the existing rules.

3.                     The case has been considered and it has been decided that the family of a deceased government servant, who after having compulsorily retired could not sign his pension papers due to death, shall also be entitled for the commuted value of pension hence forth subject to fulfillment of all other conditions in this regard.


                                                        NO.SOSR-III-II (FD) 4-92/85/VOL-II
                                                         Dated Peshawar the 12th  September 2002.


                       I am directed to refer to para18 (e) of Finance Department Government of N.W.F.P letter No.FD (PRC) 1-1/2001, dated: 27-10-2001 under which the benefit of restoration of surrendered portion of pension in lieu of commutation / gratuity was withdrawn with effect from 01-12-2001 irrespective of an employees date of retirement. The old pensioners have requested for reconsideration of this decision in so much as that it may not be made applicable to Government servants who retired prior to 01-12-2001.

2.                     The case has been reconsidered and it has been decided that all those Government servants who retired prior to 01122001 others those who have opted to remain in Pay Scales of 1994 shall be entitled to the restoration of surrendered portion of pension in lieu of commutation /gratuity.

3.                     It has also been decided that all other benefits available under the 1994 scales shall continue for those who have opted to remain in the 1994 scales. Government servants who availed the benefit of presumptive fixation of pay in the 2001 scales i.e. those who retired between 01-7-2001 to 01-12-2001 shall be governed by the Pay and Pension Package of the 2001 pay scales.

                                           Dated Peshawar the 24th February 2004.


                      Reference your letter No.10973/A-2, dated: 22-10-2003 addressed to the Chief Secretary, Government of N.W.F.P Peshawar on the subject noted above. 

2.                     The Chief Minister N.W.F.P is pleased to approve the payment of last pay & allowances drawn by the Shaheed Police officials for the remaining period of their service (up to the age of superannuation ) with immediate effect subject to following conditions:- 

i)                    Pension will not be attracted in the matter as the bereaved families would qualify for pension only after the remaining period of service upto the age of superannuation has expired.

ii)                   The financial liability to be caused by this decision will be met out of existing budget and no additional funds will be demanded as savings in the head of pay and allowances are quite substantial every year.

iii)                 Widow of the Shaheed Police official shall be entitled to free medical facilities till the date of superannuation of the Shaheed or remarriage which ever is earlier. The children of Shaheed Police official shall also be entitled to free medical facilities in Government Hospital till attaining the age of 20 years or superannuation of the Shaheed Police official or whichever is earlier.

iv)                 It shall not have any retrospective effect.

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