5.5 LPA means a cost to company of ₹5,50,000 a year, or ₹45,833 a month. After the employer's PF and gratuity share, your own PF and professional tax, the take-home settles at about ₹39,031 per month for FY 2026-27. This page shows exactly how that number is built and what can push it up or down.
All figures below follow one consistent set of assumptions, so you can compare packages fairly: basic pay is 50% of CTC (the minimum share for 'wages' under the Labour Codes in force since November 2025), PF is 12% of basic on each side, gratuity is provisioned at 4.81% of basic, professional tax is ₹200 a month, and tax is worked out under the new regime for FY 2026-27.
Full payslip breakdown of a 5.5 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 (5.5 LPA) | ₹5,50,000 | ₹45,833 |
| Employer PF (12% of basic) | ₹33,000 | ₹2,750 |
| Gratuity provision (4.81% of basic) | ₹13,228 | ₹1,102 |
| Gross salary | ₹5,03,773 | ₹41,981 |
| of which Basic (50% of CTC) | ₹2,75,000 | ₹22,917 |
| of which HRA (40% of basic) | ₹1,10,000 | ₹9,167 |
| of which Special allowance | ₹1,18,773 | ₹9,898 |
| Employee PF (12% of basic) | ₹33,000 | ₹2,750 |
| Professional tax | ₹2,400 | ₹200 |
| Income tax (new regime, incl. cess) | ₹0 | ₹0 |
| In-hand salary | ₹4,68,373 | ₹39,031 |
In plain terms, 85.2% of your CTC is spendable cash. Another 12.0% is saved for you in EPF (₹5,500 a month, earning 8.25%), and 2.4% is the gratuity provision you collect after five years with the employer. Only professional tax are true costs.
5.5 lakh per annum in monthly terms
LPA stands for lakh per annum, so 5.5 LPA is ₹5.5 lakh a year. Divided by 12, that is ₹45,833 a month of CTC, but only ₹39,031 a month actually lands in your account.
| Per year | Per month | Per day (365) | |
|---|---|---|---|
| CTC | ₹5,50,000 | ₹45,833 | ₹1,507 |
| Gross salary | ₹5,03,773 | ₹41,981 | ₹1,380 |
| In-hand salary | ₹4,68,373 | ₹39,031 | ₹1,283 |
Measured against working time, the in-hand pay is about ₹1,774 per working day (22 working days a month) or ₹222 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.
Income tax on 5.5 LPA: zero, and here is why
Tax is worked out on gross salary, not on CTC. Start with the gross of ₹5,03,773, take off the ₹75,000 standard deduction that every salaried person gets in the new regime, and you arrive at ₹4,28,773 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% | ₹28,773 | ₹1,439 |
| Tax on slabs | ₹1,439 | ||
| Less: Section 87A rebate | − ₹1,439 | ||
| Add: 4% health & education cess | ₹0 | ||
| Income tax payable | ₹0 |
Your taxable income of ₹4,28,773 is within the ₹12 lakh limit for the Section 87A rebate, so the slab tax of ₹1,439 is fully cancelled. You still have about ₹7,71,228 of headroom, so a raise that adds less than that to your taxable income keeps you at zero tax.
Do you need to file an ITR on 5.5 LPA?
Yes. Your salary income after the standard deduction is about ₹4,28,773, which is above the ₹4 lakh basic exemption limit of the new regime. Filing is compulsory once income crosses that limit, even though the 87A rebate brings your actual tax to zero. The due date for salaried individuals is normally 31 July.
Filing also builds an income record that banks ask for when you apply for a home loan, a credit card or a visa.
PF on full basic vs the ₹15,000 wage ceiling
One question to ask before you accept a 5.5 LPA offer: is PF calculated on your full basic of ₹22,917 a month, or on the ₹15,000 statutory ceiling? The answer moves your monthly cash noticeably:
| 12% of full basic | Capped at ₹15,000 | |
|---|---|---|
| Employee PF / month | ₹2,750 | ₹1,800 |
| Income tax / year | ₹0 | ₹0 |
| In-hand / month | ₹39,031 | ₹40,931 |
| Total EPF saving / year | ₹66,000 | ₹43,200 |
With the cap, your take-home rises by about ₹1,900 a month, but you put ₹22,800 a year less into EPF. If you take the cap, consider moving at least part of that extra cash into a SIP or PPF so your long-term saving doesn't quietly shrink.
Is 5.5 LPA a good salary in India?
5.5 LPA is a solid salary for a fresher or someone with a couple of years of experience. Engineering graduates from tier-2 and tier-3 colleges, analysts, and many mid-size company roles start around this range. A take-home of ₹39,031 covers a comfortable single life in most cities, and the new regime keeps your tax at zero.
EMI and home-loan capacity at 5.5 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 ₹39,031 a month, that means total EMIs of about ₹15,612 to ₹19,516.
As a rough illustration, an EMI of ₹15,612 supports a home loan of about ₹17,99,032 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.
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 |
|---|---|---|---|
| 4 LPA in-hand salary | ₹4,00,000 | ₹28,332 | ₹0 |
| 4.5 LPA in-hand salary | ₹4,50,000 | ₹31,898 | ₹0 |
| 5 LPA in-hand salary | ₹5,00,000 | ₹35,465 | ₹0 |
| 5.5 LPA (this page) | ₹5,50,000 | ₹39,031 | ₹0 |
| 6 LPA in-hand salary | ₹6,00,000 | ₹42,598 | ₹0 |
| 6.5 LPA in-hand salary | ₹6,50,000 | ₹46,164 | ₹0 |
| 7 LPA in-hand salary | ₹7,00,000 | ₹49,730 | ₹0 |
The formula, with your numbers
Employer PF = 12% × basic = ₹33,000; Gratuity = 4.81% × basic = ₹13,228
Gross = CTC − employer PF − gratuity = ₹5,03,773
Taxable (new regime) = gross − ₹75,000 = ₹4,28,773 → tax ₹0
In-hand = gross − employee PF ₹33,000 − PT ₹2,400 − tax ₹0 = ₹4,68,373
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.
5.5 LPA in-hand salary: FAQs
What is the in-hand salary for 5.5 LPA per month?
On a standard structure, a 5.5 LPA CTC gives an in-hand salary of about ₹39,031 per month in FY 2026-27 under the new tax regime, or ₹4,68,373 a year.
How much PF is deducted on 5.5 LPA?
If PF is calculated at 12% of a basic pay of ₹22,917 a month, your own PF deduction is ₹2,750 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.
Is there any income tax on 5.5 LPA?
No. Taxable income works out to ₹4,28,773, which is within the ₹12 lakh limit for the Section 87A rebate under the new regime, so the tax payable is zero.
5.5 LPA means how much salary per month?
5.5 LPA means ₹5,50,000 per year, which is ₹45,833 per month of CTC. After deductions, the monthly in-hand is about ₹39,031.
Why is my in-hand lower than CTC divided by 12?
Because ₹6,802 a month goes to employer PF, gratuity, your own PF and professional tax. Most of it is saved for you in EPF and gratuity, not lost.