How it is calculated
The formulas under the Pensions Act 1980 (Act 227), as described by KWAP:
- Monthly pension = 1/600 × months of service × last basic salary
- With 360 months (30 years) of service or more, pension = 60% (3/5) of last basic salary
- The minimum pension is RM1,000 for 300 months (25 years) of service or more, since 1 January 2018
- Gratuity = 7.5% × months of service × last basic salary
- GCR = leave days (maximum 180) ÷ 30 × (last basic salary + fixed allowances)
According to JPA, these formulas are unchanged under the Public Service Remuneration System (SSPA); the SSPA adjustment is made to the final salary. The compulsory retirement age is 60 for those appointed on or after 1 January 2012. For EPF members, use the retirement savings calculator.
Worked example
Last basic salary RM5,000, 300 months of service, RM800 fixed allowances, 60 leave days:
- Pension: 5,000 × 300 ÷ 600 = RM2,500.00 a month
- Gratuity: 7.5% × 300 × 5,000 = RM112,500.00
- GCR: 60 ÷ 30 × (5,000 + 800) = RM11,600.00
RM6,000 salary with 360 months: the 60% limit gives RM3,600.00. RM3,000 salary with 120 months: pension RM600.00, gratuity RM27,000.00.
Why your number may differ
This is an estimate only; KWAP and JPA set the final amounts. The calculator does not check eligibility conditions such as minimum service or optional retirement age, and does not cover derivative pensions or adjustments for earlier retirees. The months of service counted can differ from your actual working time, for example because of unpaid leave.