Worked example

15 LPA in-hand salary: what it actually pays you

"15 LPA" means an annual CTC of ₹15,00,000. Here's exactly how that number turns into a monthly bank credit, with every deduction explained in detail.

Starting point: the ₹15,00,000 CTC

At a typical 40% basic pay structure, a ₹15,00,000 annual CTC splits out like this. We've used the same assumptions as our CTC to In-Hand Salary Calculator: 12% employer PF and 4.81% gratuity provisioning on basic pay, ₹200 a month professional tax, a common state slab, and the new tax regime.

ComponentAnnualMonthly
CTC₹15,00,000₹1,25,000
Basic pay (40% of CTC)₹6,00,000₹50,000
Employer PF (12% of basic)₹72,000₹6,000
Gratuity provision (4.81% of basic)₹28,860₹2,405
Gross salary (CTC minus employer PF minus gratuity)₹13,99,140₹1,16,595
Employee PF (12% of basic)₹72,000₹6,000
Professional tax₹2,400₹200
Income tax (new regime)₹81,766₹6,814
In-hand salary₹12,42,974about ₹1,03,581

How this number was calculated

  1. Start with the CTC. ₹15,00,000 is treated as the full annual cost to company.
  2. Work out basic pay. At a common 40% structure, basic pay comes to ₹6,00,000 a year, or ₹50,000 a month.
  3. Set aside employer contributions. Employer PF and gratuity provisioning, which never reach your bank account, are subtracted from the CTC to arrive at the gross salary of ₹1,16,595 a month.
  4. Apply deductions. Employee PF, professional tax and income tax under the new regime are subtracted from the gross salary.
  5. Arrive at the in-hand figure. What's left, about ₹1,03,581 a month, is the amount that actually lands in the bank.

How much tax applies here

Income tax is a real part of the deduction here, calculated slab by slab under the new regime. If your 80C, 80D and HRA claims are large, it's worth comparing against the old regime using our Salary Tax Calculator, since at this level the old regime can sometimes work out cheaper.

Why in-hand works out to about 83% of CTC

In-hand salary here is still a healthy majority of CTC. PF takes the biggest single bite, with a modest amount of income tax layered on top.

Is 15 LPA a good salary in India?

That depends on where you live and what stage of your career you're at. A 15 LPA CTC is a strong salary for a mid to senior level professional in most Indian cities, and very comfortable in tier 2 or tier 3 towns where the cost of living is lower. In a metro city like Mumbai, Delhi or Bengaluru, it still supports a good lifestyle, though housing costs will take a noticeably bigger share of your monthly budget.

What could change this number

Your actual in-hand could differ if your employer sets basic pay at a different percentage of CTC, if your state's professional tax slab is different from what's assumed here, or if part of your CTC is structured as bonus, reimbursements or a signing amount rather than fixed monthly pay. If you have significant 80C, 80D or HRA claims, also check the old tax regime on our Salary Tax Calculator, since it can occasionally beat the new regime at this income level.

Frequently asked questions

Is 15 LPA a good salary in India?

It depends heavily on your city, industry and experience level. It's a strong salary for a mid to senior level professional in most Indian cities, and very comfortable in tier 2 or tier 3 towns.

Does the in-hand amount change if my state doesn't levy professional tax?

Yes. States like Delhi and Haryana don't levy professional tax, so your in-hand salary would be slightly higher than shown here if you work in one of those states. States that do levy it, like Maharashtra, Karnataka and West Bengal, typically cap it at a small monthly amount.

This example uses standard assumptions for illustration. Your actual payslip depends on your specific employer's CTC structure. Use the calculator below with your own numbers for a precise figure.
Try this with your own CTC

See also