If your offer letter says 23 LPA, the honest monthly figure is about ₹1,45,837, not ₹1,91,667. 23 LPA means a cost to company of ₹23,00,000 a year, or ₹1,91,667 a month, and around ₹45,829 of that never reaches you as cash each month. Below, I've worked through every rupee of the gap, line by line, so you can match it against your own payslip.
I have assumed a typical post-Labour-Code salary structure: half the CTC as basic pay, PF of 12% on basic from both you and the employer, a 4.81% gratuity provision, ₹200 a month of professional tax, and the FY 2026-27 new tax regime (Budget 2026 did not change the slabs). If your offer letter is different, the calculator in the sidebar lets you change these.
Full payslip breakdown of a 23 LPA CTC
The table follows the order your payroll team uses: first the employer's own costs come out of the CTC, which gives your gross salary, and then your deductions come out of the gross.
| Component | Yearly | Monthly |
|---|---|---|
| CTC (23 LPA) | ₹23,00,000 | ₹1,91,667 |
| Employer PF (12% of basic) | ₹1,38,000 | ₹11,500 |
| Gratuity provision (4.81% of basic) | ₹55,315 | ₹4,610 |
| Gross salary | ₹21,06,685 | ₹1,75,557 |
| of which Basic (50% of CTC) | ₹11,50,000 | ₹95,833 |
| of which HRA (40% of basic) | ₹4,60,000 | ₹38,333 |
| of which Special allowance | ₹4,96,685 | ₹41,390 |
| Employee PF (12% of basic) | ₹1,38,000 | ₹11,500 |
| Professional tax | ₹2,400 | ₹200 |
| Income tax (new regime, incl. cess) | ₹2,16,238 | ₹18,020 |
| In-hand salary | ₹17,50,047 | ₹1,45,837 |
Two lines deserve a second look. The ₹1,93,315 a year of employer PF and gratuity is part of your CTC but never shows up on a monthly payslip. And the ₹1,38,000 of employee PF is not lost: together with the employer's share, ₹2,76,000 a year goes into your EPF account, which currently earns 8.25% (the rate EPFO declared for FY 2025-26).
Income tax on 23 LPA, slab by slab
Tax is worked out on gross salary, not on CTC. Start with the gross of ₹21,06,685, take off the ₹75,000 standard deduction that every salaried person gets in the new regime, and you arrive at ₹20,31,685 of taxable income. That amount then runs through the FY 2026-27 slabs below.
| Taxable income slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹4,00,000 | ₹60,000 |
| ₹16,00,000 – ₹20,00,000 | 20% | ₹4,00,000 | ₹80,000 |
| ₹20,00,000 – ₹24,00,000 | 25% | ₹31,685 | ₹7,921 |
| Tax on slabs | ₹2,07,921 | ||
| Add: 4% health & education cess | ₹8,317 | ||
| Income tax payable | ₹2,16,238 |
That is an effective tax rate of 9.4% of your CTC, even though your top slab is 25%. Your employer deducts it as TDS spread evenly across the year, roughly ₹18,020 a month, and adjusts it in the last quarter once your investment proofs are in.
Which tax regime is better for 23 LPA?
You can still choose the old regime if it suits you, but it only makes sense if your deductions are large. Below, the new regime is set against two old-regime taxpayers: one who relies only on EPF for 80C, and one who invests the full ₹1.5 lakh and buys ₹25,000 of health cover. HRA is excluded since it depends entirely on your rent.
| New | Old (PF only) | Old (full 80C + 80D) | |
|---|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 | ₹50,000 |
| Other deductions | None | PT + PF ₹1,38,000 | PT + ₹1.5L 80C + ₹25k 80D |
| Taxable income | ₹20,31,685 | ₹19,16,285 | ₹18,79,285 |
| Income tax / year | ₹2,16,238 | ₹4,02,881 | ₹3,91,337 |
| In-hand / month | ₹1,45,837 | ₹1,30,284 | ₹1,31,246 |
The new regime wins here, and by a margin: even if you use the full ₹1.5 lakh of 80C and ₹25,000 of health insurance, the old regime still costs ₹1,75,099 more a year. To make the old regime cheaper you would need about ₹7,36,214 of total deductions (80C, 80D, HRA exemption, home-loan interest and so on, on top of the standard deduction and professional tax). That is realistic mainly if you pay high rent in a metro or are repaying a home loan.
EMI and home-loan capacity at 23 LPA
Lenders look at your net monthly income, not your CTC. Most banks are comfortable when all your EMIs together stay within roughly 40% to 50% of take-home pay. On ₹1,45,837 a month, that means total EMIs of about ₹58,335 to ₹72,919.
As a rough illustration, an EMI of ₹58,335 supports a home loan of about ₹67,21,980 over 20 years at 8.5% interest. Your actual eligibility depends on your credit score, existing loans, employer category and the bank's own policy, so treat this as a ballpark, not an offer.
The one deduction that still works for 23 LPA in the new regime
The new regime removes almost every deduction, but one survives: your employer's contribution to NPS under Section 80CCD(2), up to 14% of basic pay. If your company offers it, you can ask HR to move part of your special allowance into NPS. At 14% of basic, that is ₹1,61,000 a year going into your retirement account instead of your salary.
| Current structure | With 14% employer NPS | |
|---|---|---|
| Income tax / year | ₹2,16,238 | ₹1,47,614 |
| In-hand / month | ₹1,45,837 | ₹1,38,139 |
| NPS contribution / year | ₹0 | ₹1,61,000 |
Your monthly cash goes down by ₹7,698, but you save ₹68,624 of tax a year and build ₹1,61,000 of retirement savings. The trade-off is liquidity: NPS money stays locked until 60, with only partial withdrawals before that. Note also that employer contributions to PF, NPS and superannuation together are tax-free only up to ₹7.5 lakh a year.
Is 23 LPA a good package?
23 LPA is a senior-professional salary in India, typical of experienced engineers, managers and specialists. With a take-home of ₹1,45,837 a month, the real lever is no longer getting more salary but keeping more of it: tax planning, employer NPS and disciplined investing make a bigger difference at this level than small salary bumps.
23 lakh per annum in monthly terms
LPA stands for lakh per annum, so 23 LPA is ₹23 lakh a year. Divided by 12, that is ₹1,91,667 a month of CTC, but only ₹1,45,837 a month actually lands in your account.
| Per year | Per month | Per day (365) | |
|---|---|---|---|
| CTC | ₹23,00,000 | ₹1,91,667 | ₹6,301 |
| Gross salary | ₹21,06,685 | ₹1,75,557 | ₹5,772 |
| In-hand salary | ₹17,50,047 | ₹1,45,837 | ₹4,795 |
Measured against working time, the in-hand pay is about ₹6,629 per working day (22 working days a month) or ₹829 an hour for an 8-hour day. That hourly figure is useful when you're weighing overtime, a side project or a freelance rate against your job.
How nearby salaries compare
Use this to see how your take-home moves as the CTC changes. Each row links to its own full breakdown.
| Package | CTC | In-hand / month | Tax / year |
|---|---|---|---|
| 20 LPA in-hand salary | ₹20,00,000 | ₹1,29,339 | ₹1,57,435 |
| 21 LPA in-hand salary | ₹21,00,000 | ₹1,34,884 | ₹1,76,487 |
| 22 LPA in-hand salary | ₹22,00,000 | ₹1,40,429 | ₹1,95,539 |
| 23 LPA (this page) | ₹23,00,000 | ₹1,45,837 | ₹2,16,238 |
| 24 LPA in-hand salary | ₹24,00,000 | ₹1,50,986 | ₹2,40,053 |
| 25 LPA in-hand salary | ₹25,00,000 | ₹1,56,134 | ₹2,63,868 |
| 27 LPA in-hand salary | ₹27,00,000 | ₹1,66,431 | ₹3,11,497 |
The formula, with your numbers
Employer PF = 12% × basic = ₹1,38,000; Gratuity = 4.81% × basic = ₹55,315
Gross = CTC − employer PF − gratuity = ₹21,06,685
Taxable (new regime) = gross − ₹75,000 = ₹20,31,685 → tax ₹2,16,238
In-hand = gross − employee PF ₹1,38,000 − PT ₹2,400 − tax ₹2,16,238 = ₹17,50,047
The working above rests on these assumptions:
- Basic pay at 50% of CTC, HRA at 40% of basic, the remainder as special allowance.
- Employer PF and gratuity are part of CTC; no insurance premium, meal card or variable pay is assumed.
- Professional tax is taken as ₹200 a month (₹2,400 a year). It varies by state: Delhi, Haryana and Uttar Pradesh do not levy it, and Karnataka exempts gross pay up to ₹25,000 a month.
- Tax uses FY 2026-27 new-regime slabs, the ₹75,000 standard deduction, the Section 87A rebate up to ₹12 lakh with marginal relief, surcharge where relevant and 4% cess.
If your company uses a different basic percentage or caps PF, put your own numbers into the CTC to in-hand calculator, or use the quick calculator on this page.
23 LPA in-hand salary: FAQs
What is the in-hand salary for 23 LPA per month?
On a standard structure, a 23 LPA CTC gives an in-hand salary of about ₹1,45,837 per month in FY 2026-27 under the new tax regime, or ₹17,50,047 a year.
How much PF is deducted on 23 LPA?
If PF is calculated at 12% of a basic pay of ₹95,833 a month, your own PF deduction is ₹11,500 a month and your employer adds the same amount. If your employer caps PF at the ₹15,000 wage ceiling, the deduction is ₹1,800 a month instead.
How much income tax is deducted on 23 LPA?
About ₹2,16,238 a year, or roughly ₹18,020 a month as TDS, under the new regime for FY 2026-27, including 4% cess.
23 LPA means how much salary per month?
23 LPA means ₹23,00,000 per year, which is ₹1,91,667 per month of CTC. After deductions, the monthly in-hand is about ₹1,45,837.
Which tax regime is better for 23 LPA?
For most people the new regime is better at 23 LPA: it costs ₹2,16,238 versus ₹3,91,337 in the old regime even with full 80C and ₹25,000 of 80D. The old regime only wins if your HRA exemption, home-loan interest and other deductions are unusually large.