Work out your monthly pension, commutation lump sum, gratuity and leave encashment under the SBI Pension Fund rules, with the steps shown so you can check every figure.
Every figure above follows the SBI Employees' Pension Fund Regulations, the SBI Handbook for Retiring Officials (March 2023) and the Payment of Gratuity Act. Here is each rule in plain words.
You retire on the last day of the month in which you turn 60. In law you turn 60 on the day before your 60th birthday, so if you were born on the 1st of a month you retire on the last day of the previous month. Born on 1 March 1966: you retire on 28 February 2026.
SBI works out two figures and pays the lower one:
Because 360 months is 30 years, you reach the full 50% pension after 30 years of pensionable service. With fewer years, your pension is proportionally lower. You need at least 10 years of pensionable service to get any pension at 60.
DR is added to your full basic pension, even after you commute. It is revised every February and August, and the rate depends on when you retired.
| You retired | DR on basic pension |
|---|---|
| On or after 1 Nov 2022 | 27.83% |
| 1 Nov 2017 to 31 Oct 2022 | 62.37% |
| 1 Nov 2012 to 31 Oct 2017 | 136.90% |
| 1 Nov 2007 to 31 Oct 2012 | 265.50% |
| 1 Nov 2002 to 31 Oct 2007 | 343.26% |
Retiring after January 2027? The rate will change before then, and a new wage settlement is due from November 2027. The calculator uses today's rate and tells you so.
You can take up to one-third of your basic pension as a lump sum. The lump sum is one-third of basic pension x the commutation factor x 12. SBI's factor for someone retiring at 60 is 6.60 (the factor for age 61, your next birthday). Your basic pension is reduced by the commuted amount for 15 years and then restored. DR stays on the full basic pension throughout.
SBI pays gratuity to Pension Fund members under the Payment of Gratuity Act: 15 days' wages for each completed year, using a 26-day month. Wages are basic pay + DA + PQP + FPP increment part (award staff also add personal and officiating allowances). A part year of more than six months counts as a full year. The maximum is ₹20 lakh, unchanged as of August 2026.
You can encash up to 255 days of privilege leave if you retire on or after 1 April 2024, when the 12th Bipartite Settlement (award staff) and the 9th Joint Note (officers) raised the limit. Before that date the limit was 240 days. The calculator uses one day's pay as (basic + DA) / 30. For non-government employees, leave encashment at retirement is tax-free up to the government-notified limit of ₹25 lakh, in force since 1 April 2023 and now covered by section 19 of the Income-tax Act, 2025. For most SBI retirees it is fully tax-free.
These are the official documents behind every number on this page:
This is an independent estimate, not an official SBI tool. For your final figures, apply through HRMS and confirm with the PPG department at your Local Head Office at least three months before you retire.
Send us the SBI circular and we will check it and update the calculator.