I shall explain here the Difference of Pension with New Pay Scales 2022 and Old Pay Scales 2017. As per the Increase in Pension 2022 Federal, the 5 increases in pension during 2016, 2017, 2018, 2019, and 2021 ceased to exist. In this way, the pension of the employee/pensioner should decrease. But we shall also have to look at the Basic pay that is counted towards pension. The examples with old pay scales and new pay scales 2022 are as under for the understanding of the employees/pensioners:

Difference of Pension with New Pay Scales 2022 and Old Pay Scales 2017

Suppose an employee of BPS-19 was drawing basic Pay Rs. 120,210/- at his pay scales 2017 last stage. After fixing his/her pay in the Revised Pay Scales 2022 Chart his/her new pay becomes Rs.178,440/-. Now we calculate the pension with both the basic pays. With Old pay including five increases and with new pay excluding five increases if he/she retired at the age of 60 years with a minimum of 30 years’ service.

Pension/Commute with 2017 Scales (BPS-19)

Pension/Commute with RPS- 2022 (BPS-19)

Example for BPS-03 Employees

An employee of BPS-03 has reached his pay scale last stage (peak). If the BPS-03 employee retires at the age of sixty years with a minimum of 30 years of service. His last pay drawn is 21310/- in old pay scales. In new pay scales, his pay becomes 31,660/-. as per the Last Pay Certificate (LPC).  Now we again calculate the pension with new pay scales and old pay scales.

In 2017 Pay Scales Pension and Commute

In 2022 Pay Scales Pension and Commute BPS-03 Employee

Note:  These calculations are based on the formula in which we first granted a 10% increase with effect from 1st April and 5% on the result after granting 10%. If we grant a total of 15% increase with effect from 1st July 2022, the pension may decrease a little bit. 

Increase in Leave Encashment

The higher the basic pay, the more leave encashment. The employees will get more leave encashment now. Leave encashment is calculated on Basic pay. Suppose an employee of BPS19 being at his pay scales the last stage had 12 months or 365 days leave in his/her credit, his calculations of leave encashment is as under:

Conclusion

So if we look at the above comparison of both pay scales pension, the pension with new pay scales 2022 is more and better. The most interesting thing is that the Commutation or Gratuity is nearly 1.5 Times greater in New Pay Scales as compared to the old pay scales of 2017. So the employees/pensioners have more benefits with the new pay scales regarding pension and commutation/gratuity. In the same way, the employee will get leave encashment nearly 1.5 times more.