An offer letter says, say, 6 LPA: ₹6 lakh per annum of cost to company (CTC). Dividing by 12 gives ₹50,000, but that is not what reaches your bank. Part of the CTC is money the employer pays for you and you never see monthly, mainly its PF contribution and gratuity. From what is left, your own PF, professional tax and any income tax are deducted. The table works all of that out, package by package.
The 2 to 20 LPA table
Our arithmetic with the same formula as the PaisaTools in-hand calculator: basic = 50% of CTC; employer PF 12% of basic and gratuity 4.81% of basic come out of the CTC; your PF 12% of basic and ₹200/month professional tax come out of the gross; income tax under the new regime for tax year 2026-27 (₹75,000 standard deduction, rebate up to ₹12 lakh taxable, marginal relief just above it, 4% cess).
2 LPA
- CTC ÷ 12
- ₹16,666
- Monthly gross
- ₹15,266
- Your PF
- ₹1,000
- Income tax / month
- ₹0
- In hand / month
- ₹14,066
3 LPA
- CTC ÷ 12
- ₹25,000
- Monthly gross
- ₹22,899
- Your PF
- ₹1,500
- Income tax / month
- ₹0
- In hand / month
- ₹21,199
4 LPA
- CTC ÷ 12
- ₹33,333
- Monthly gross
- ₹30,532
- Your PF
- ₹2,000
- Income tax / month
- ₹0
- In hand / month
- ₹28,332
5 LPA
- CTC ÷ 12
- ₹41,666
- Monthly gross
- ₹38,165
- Your PF
- ₹2,500
- Income tax / month
- ₹0
- In hand / month
- ₹35,465
6 LPA
- CTC ÷ 12
- ₹50,000
- Monthly gross
- ₹45,798
- Your PF
- ₹3,000
- Income tax / month
- ₹0
- In hand / month
- ₹42,598
7 LPA
- CTC ÷ 12
- ₹58,333
- Monthly gross
- ₹53,430
- Your PF
- ₹3,500
- Income tax / month
- ₹0
- In hand / month
- ₹49,730
8 LPA
- CTC ÷ 12
- ₹66,666
- Monthly gross
- ₹61,063
- Your PF
- ₹4,000
- Income tax / month
- ₹0
- In hand / month
- ₹56,863
9 LPA
- CTC ÷ 12
- ₹75,000
- Monthly gross
- ₹68,696
- Your PF
- ₹4,500
- Income tax / month
- ₹0
- In hand / month
- ₹63,996
10 LPA
- CTC ÷ 12
- ₹83,333
- Monthly gross
- ₹76,329
- Your PF
- ₹5,000
- Income tax / month
- ₹0
- In hand / month
- ₹71,129
11 LPA
- CTC ÷ 12
- ₹91,666
- Monthly gross
- ₹83,962
- Your PF
- ₹5,500
- Income tax / month
- ₹0
- In hand / month
- ₹78,262
12 LPA
- CTC ÷ 12
- ₹1,00,000
- Monthly gross
- ₹91,595
- Your PF
- ₹6,000
- Income tax / month
- ₹0
- In hand / month
- ₹85,395
13 LPA
- CTC ÷ 12
- ₹1,08,333
- Monthly gross
- ₹99,228
- Your PF
- ₹6,500
- Income tax / month
- ₹0
- In hand / month
- ₹92,528
14 LPA
- CTC ÷ 12
- ₹1,16,666
- Monthly gross
- ₹1,06,861
- Your PF
- ₹7,000
- Income tax / month
- ₹635
- In hand / month
- ₹99,026
15 LPA
- CTC ÷ 12
- ₹1,25,000
- Monthly gross
- ₹1,14,494
- Your PF
- ₹7,500
- Income tax / month
- ₹6,486
- In hand / month
- ₹1,00,308
16 LPA
- CTC ÷ 12
- ₹1,33,333
- Monthly gross
- ₹1,22,127
- Your PF
- ₹8,000
- Income tax / month
- ₹7,677
- In hand / month
- ₹1,06,250
17 LPA
- CTC ÷ 12
- ₹1,41,666
- Monthly gross
- ₹1,29,760
- Your PF
- ₹8,500
- Income tax / month
- ₹8,867
- In hand / month
- ₹1,12,192
18 LPA
- CTC ÷ 12
- ₹1,50,000
- Monthly gross
- ₹1,37,393
- Your PF
- ₹9,000
- Income tax / month
- ₹10,058
- In hand / month
- ₹1,18,134
19 LPA
- CTC ÷ 12
- ₹1,58,333
- Monthly gross
- ₹1,45,025
- Your PF
- ₹9,500
- Income tax / month
- ₹11,532
- In hand / month
- ₹1,23,793
20 LPA
- CTC ÷ 12
- ₹1,66,666
- Monthly gross
- ₹1,52,658
- Your PF
- ₹10,000
- Income tax / month
- ₹13,120
- In hand / month
- ₹1,29,339
| Package | CTC ÷ 12 | Monthly gross | Your PF | Income tax / month | In hand / month |
|---|---|---|---|---|---|
| 2 LPA | ₹16,666 | ₹15,266 | ₹1,000 | ₹0 | ₹14,066 |
| 3 LPA | ₹25,000 | ₹22,899 | ₹1,500 | ₹0 | ₹21,199 |
| 4 LPA | ₹33,333 | ₹30,532 | ₹2,000 | ₹0 | ₹28,332 |
| 5 LPA | ₹41,666 | ₹38,165 | ₹2,500 | ₹0 | ₹35,465 |
| 6 LPA | ₹50,000 | ₹45,798 | ₹3,000 | ₹0 | ₹42,598 |
| 7 LPA | ₹58,333 | ₹53,430 | ₹3,500 | ₹0 | ₹49,730 |
| 8 LPA | ₹66,666 | ₹61,063 | ₹4,000 | ₹0 | ₹56,863 |
| 9 LPA | ₹75,000 | ₹68,696 | ₹4,500 | ₹0 | ₹63,996 |
| 10 LPA | ₹83,333 | ₹76,329 | ₹5,000 | ₹0 | ₹71,129 |
| 11 LPA | ₹91,666 | ₹83,962 | ₹5,500 | ₹0 | ₹78,262 |
| 12 LPA | ₹1,00,000 | ₹91,595 | ₹6,000 | ₹0 | ₹85,395 |
| 13 LPA | ₹1,08,333 | ₹99,228 | ₹6,500 | ₹0 | ₹92,528 |
| 14 LPA | ₹1,16,666 | ₹1,06,861 | ₹7,000 | ₹635 | ₹99,026 |
| 15 LPA | ₹1,25,000 | ₹1,14,494 | ₹7,500 | ₹6,486 | ₹1,00,308 |
| 16 LPA | ₹1,33,333 | ₹1,22,127 | ₹8,000 | ₹7,677 | ₹1,06,250 |
| 17 LPA | ₹1,41,666 | ₹1,29,760 | ₹8,500 | ₹8,867 | ₹1,12,192 |
| 18 LPA | ₹1,50,000 | ₹1,37,393 | ₹9,000 | ₹10,058 | ₹1,18,134 |
| 19 LPA | ₹1,58,333 | ₹1,45,025 | ₹9,500 | ₹11,532 | ₹1,23,793 |
| 20 LPA | ₹1,66,666 | ₹1,52,658 | ₹10,000 | ₹13,120 | ₹1,29,339 |
Why the take-home is lower than CTC ÷ 12
- Employer PF (12% of basic) is counted in your CTC but goes straight to your PF account, not your salary.
- Gratuity (4.81% of basic in most CTC structures) is counted in CTC but paid only when you leave after five years.
- Your own PF (another 12% of basic) is deducted from the monthly gross; it is still your money, saved in PF.
- Professional tax is a few hundred rupees a month in the states that charge it; ₹200 is used here.
- Income tax: nil up to about 13 LPA in this structure under the new regime; from 14 LPA it rises, slowly at first because of marginal relief.
What changes the number for you
- Basic share: a higher basic means more PF from both sides and less cash each month; a lower basic means more cash now.
- PF ceiling: some employers pay PF only on the ₹25,000 wage ceiling (₹3,000 a month), not on full basic. At higher packages that raises your monthly take-home compared with this table.
- Old tax regime: if you claim HRA, section 123 (old 80C) and home-loan interest (section 22), the old regime can leave more in hand at higher packages. Compare both in the income tax calculator.
- Variable pay and bonus: if part of the LPA is variable, the monthly figure is lower still; the bonus comes when it is paid.
Frequently asked questions
- 3 lakh per annum is how much per month in hand?
- About ₹21,199 a month. A ₹3 lakh CTC is ₹25,000 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹22,899, and after your own PF (₹1,500) and ₹200 professional tax, with no income tax under the new regime, about ₹21,199 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- 4 lakh per annum is how much per month in hand?
- About ₹28,332 a month. A ₹4 lakh CTC is ₹33,333 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹30,532, and after your own PF (₹2,000) and ₹200 professional tax, with no income tax under the new regime, about ₹28,332 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- 5 lakh per annum is how much per month in hand?
- About ₹35,465 a month. A ₹5 lakh CTC is ₹41,666 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹38,165, and after your own PF (₹2,500) and ₹200 professional tax, with no income tax under the new regime, about ₹35,465 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- 6 lakh per annum is how much per month in hand?
- About ₹42,598 a month. A ₹6 lakh CTC is ₹50,000 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹45,798, and after your own PF (₹3,000) and ₹200 professional tax, with no income tax under the new regime, about ₹42,598 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- 7 lakh per annum is how much per month in hand?
- About ₹49,730 a month. A ₹7 lakh CTC is ₹58,333 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹53,430, and after your own PF (₹3,500) and ₹200 professional tax, with no income tax under the new regime, about ₹49,730 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- 10 lakh per annum is how much per month in hand?
- About ₹71,129 a month. A ₹10 lakh CTC is ₹83,333 a month on paper; after employer PF and gratuity come out, the monthly gross is about ₹76,329, and after your own PF (₹5,000) and ₹200 professional tax, with no income tax under the new regime, about ₹71,129 reaches your bank. Assumes basic at 50% of CTC; use the calculator for your own offer letter.
- Is there income tax on 12 LPA?
- Not in this structure under the new regime. A 12 LPA CTC gives a gross of about ₹10.99 lakh a year; after the ₹75,000 standard deduction the taxable income is about ₹10.24 lakh, under the ₹12 lakh rebate limit, so the tax is nil.