A ₹1 crore package is a cost-to-company (CTC) figure: everything the employer spends on you in a year. The amount that lands in your bank each month is smaller for three reasons. Part of the CTC is the employer's own PF contribution, which never reaches your account. Income tax at this level takes about a third of the rest. And many ₹1 crore offers include variable pay, a joining bonus or stock, which are not paid monthly at all.
The quick answer: ₹1 crore ÷ 12 is ₹8.33 lakh, but that is not your salary
₹1,00,00,000 ÷ 12 = ₹8,33,333. That would be the monthly figure only if the whole CTC were paid out with no tax and no PF. The worked example below shows the realistic monthly credit for a fully fixed ₹1 crore package, and the next section shows how a package with variable pay and stock changes it.
Try it on your numbersIncome Tax CalculatorOld vs New regime, side by side (FY 2026-27)Worked example: ₹1 crore, all fixed
Assumptions, so you can check every line: basic pay is 50% of the CTC (₹50 lakh); the employer pays 12% of basic into PF (₹6 lakh), and that ₹6 lakh is counted inside the CTC; there is no bonus, stock or NPS; you are in the new tax regime for tax year 2026-27. Professional tax (a few thousand rupees a year in some states) is left out.
Our arithmetic. Slabs: nil to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, 30% above. Slab tax = ₹3,00,000 on the first ₹24 lakh + 30% of ₹69,25,000. Monthly tax shown as the yearly total ÷ 12, which is roughly how TDS spreads it.
CTC
- Per year
- ₹1,00,00,000
- Per month
- ₹8,33,333
Less employer PF (12% of ₹50 lakh basic)
- Per year
- ₹6,00,000
- Per month
- ₹50,000
Gross salary
- Per year
- ₹94,00,000
- Per month
- ₹7,83,333
Taxable income (after ₹75,000 standard deduction)
- Per year
- ₹93,25,000
- Per month
Income tax at slab rates
- Per year
- ₹23,77,500
- Per month
Surcharge 10% (income above ₹50 lakh, up to ₹1 crore)
- Per year
- ₹2,37,750
- Per month
Health and education cess 4%
- Per year
- ₹1,04,610
- Per month
Total tax
- Per year
- ₹27,19,860
- Per month
- ₹2,26,655
Employee PF (12% of basic)
- Per year
- ₹6,00,000
- Per month
- ₹50,000
In hand
- Per year
- ₹60,80,140
- Per month
- ₹5,06,678
| Line | Per year | Per month |
|---|---|---|
| CTC | ₹1,00,00,000 | ₹8,33,333 |
| Less employer PF (12% of ₹50 lakh basic) | ₹6,00,000 | ₹50,000 |
| Gross salary | ₹94,00,000 | ₹7,83,333 |
| Taxable income (after ₹75,000 standard deduction) | ₹93,25,000 | |
| Income tax at slab rates | ₹23,77,500 | |
| Surcharge 10% (income above ₹50 lakh, up to ₹1 crore) | ₹2,37,750 | |
| Health and education cess 4% | ₹1,04,610 | |
| Total tax | ₹27,19,860 | ₹2,26,655 |
| Employee PF (12% of basic) | ₹6,00,000 | ₹50,000 |
| In hand | ₹60,80,140 | ₹5,06,678 |
Notice that the taxable income ends up at ₹93.25 lakh, below ₹1 crore. That matters: under the new regime the surcharge is 10% between ₹50 lakh and ₹1 crore of income, and 15% only above ₹1 crore. Because the employer PF and the standard deduction come out first, a ₹1 crore CTC usually sits in the 10% band, not the 15% one.
Source: Income Tax Department: Tax rates (new regime slabs, 4% health and education cess)
Work out your own: in-hand salary calculatorLPA to monthly in-hand: the 2 to 20 LPA tableWhen the ₹1 crore includes variable pay and stock
Many ₹1 crore offers are built like this: a fixed part, a yearly variable bonus 'at target', and stock (ESOPs or RSUs) valued over four years. Only the fixed part is paid every month. Take an example split of ₹70 lakh fixed (basic ₹35 lakh, employer PF ₹4.2 lakh inside it), ₹10 lakh variable and ₹20 lakh a year of stock.
- Fixed part: gross ₹65,80,000, taxable ₹65,05,000, tax with 10% surcharge and cess ₹17,52,036, employee PF ₹4,20,000.
- Monthly in hand from the fixed part: ₹44,07,964 ÷ 12 = about ₹3.67 lakh a month.
- Variable pay of ₹10 lakh, when it is paid, is taxed at your top rate: 30% × 1.10 surcharge × 1.04 cess = 34.32%. About ₹6.57 lakh of it reaches you, once a year, and only if the bonus pays out at target.
- Stock is not cash until it vests (and, for ESOPs, until you exercise and sell). At vesting, its value is taxed as part of your salary, and it can push your income past ₹1 crore into the 15% surcharge band.
So the same '₹1 crore package' can mean about ₹5.07 lakh a month if it is all fixed, or about ₹3.67 lakh a month plus a yearly bonus and some stock if it is not. Ask for the fixed component and the basic pay in writing before you compare offers.
Three things that change the number
- Basic pay share: PF is 12% of basic. A higher basic means more PF taken from both sides; a lower basic means more cash now but less in PF.
- Employer NPS: an employer NPS contribution reduces taxable income in the new regime too, which can cut tax. This example has none.
- Crossing ₹1 crore of taxable income: above that line the surcharge rises from 10% to 15%, and marginal relief stops the jump from costing more than the extra income itself.
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Frequently asked questions
- What is the in-hand salary for a 1 crore package?
- About ₹5.07 lakh a month if the whole ₹1 crore is fixed pay, under the new regime, with basic at 50% and employer PF inside the CTC. Tax with surcharge and cess is about ₹27.2 lakh a year and employee PF ₹6 lakh. If part of the package is variable pay or stock, the monthly credit is lower.
- Is 1 crore package 8.33 lakh per month?
- No. ₹8.33 lakh is ₹1 crore ÷ 12, which ignores income tax, surcharge, cess and both sides of PF. For a fully fixed package the realistic figure is about ₹5.07 lakh a month.
- Which surcharge applies on a 1 crore CTC?
- Usually 10%. After the employer PF and the ₹75,000 standard deduction, taxable income on a fixed ₹1 crore CTC is about ₹93.25 lakh, below the ₹1 crore line where the new-regime surcharge rises to 15%.
- How much tax is paid on a 1 crore salary?
- In our fixed-pay example: ₹23,77,500 at slab rates, ₹2,37,750 surcharge and ₹1,04,610 cess, about ₹27.2 lakh in total on a taxable income of ₹93.25 lakh, under the new regime for tax year 2026-27.
- Does a 1 crore package include ESOPs?
- Often, yes. Offers frequently count the yearly value of stock in the headline number. Stock is not paid monthly; it is taxed as salary when it vests, so ask for the fixed component separately.