How Much Pension Will You Earn on a Salary of Rs 15,000?

Kokila Chokkanathan
Understanding Pension Calculation in India

Pension is an important financial consideration for government employees, retirees, and others contributing to pension schemes. If your monthly salary is Rs 15,000, the pension you are entitled to depends on whether you are under the old pension scheme (OPS) or the National Pension System (NPS)/new pension rules.

Pension Under the Old Pension Scheme (OPS)

For employees covered under the Old Pension Scheme, the pension is generally calculated as 50% of the last drawn basic salary.

Example Calculation:

  • Last Drawn Basic Salary: Rs 15,000
  • Pension (50% of Basic): Rs 15,000 × 50% = Rs 7,500 per month
Additional benefits such as Dearness Relief (DR) may be added periodically to adjust for inflation. DR is calculated as a percentage of the basic pension and can significantly increase the take-home pension over time.

Pension Under the New Pension Scheme (NPS)

For employees under the National Pension System:

  • Employees contribute a fixed percentage of their basic salary to a pension fund during their service.
  • The pension amount depends on:
    • Total contributions
    • Accumulated interest over the years
    • Annuity purchased at retirement
Unlike OPS, NPS does not guarantee 50% of the last salary; the pension varies based on the corpus accumulated and the type of annuity chosen.

Dearness Relief (DR) on Pension

Government pensioners receive Dearness Relief (DR) to offset inflation.

  • Example: If DR is 34% of Rs 7,500 pension:
    • DR = 7,500 × 34% = Rs 2,550
    • Total pension including DR = 7,500 + 2,550 = Rs 10,050 per month
DR rates are revised every six months by the government.

Key Factors Affecting Pension

Type of Pension Scheme – OPS or NPS

Last Drawn Basic Salary

Years of Service – More years mean higher contributions and benefits

Dearness Relief (DR) Rate – Adjusted periodically for inflation

Optional Annuity Choices – For NPS subscribers

Takeaway

  • Under OPS: On a Rs 15,000 salary, the basic pension will be approximately Rs 7,500, with DR adding to the total amount.
  • Under NPS: Pension depends on your contributions, accumulated corpus, and annuity selection; the final monthly payout can vary.
Proper planning and understanding your pension scheme are essential to ensure a comfortable retirement.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.


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