Here is the short answer first: a 8 LPA CTC works out to roughly ₹56,863 a month in hand. 8 LPA means a cost to company of ₹8,00,000 a year, or ₹66,667 a month. The difference is not a hidden charge; it is mostly money set aside for your own future (PF and gratuity) plus statutory deductions, and I've broken each one down below.
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.
8 LPA salary breakup (monthly and yearly)
Read this table from top to bottom. The first block is money your employer spends on you but keeps out of your salary; what remains is the gross pay printed on your payslip. The second block is what gets deducted from that gross before the ₹56,863 reaches your account.
| Component | Yearly | Monthly |
|---|---|---|
| CTC (8 LPA) | ₹8,00,000 | ₹66,667 |
| Employer PF (12% of basic) | ₹48,000 | ₹4,000 |
| Gratuity provision (4.81% of basic) | ₹19,240 | ₹1,603 |
| Gross salary | ₹7,32,760 | ₹61,063 |
| of which Basic (50% of CTC) | ₹4,00,000 | ₹33,333 |
| of which HRA (40% of basic) | ₹1,60,000 | ₹13,333 |
| of which Special allowance | ₹1,72,760 | ₹14,397 |
| Employee PF (12% of basic) | ₹48,000 | ₹4,000 |
| Professional tax | ₹2,400 | ₹200 |
| Income tax (new regime, incl. cess) | ₹0 | ₹0 |
| In-hand salary | ₹6,82,360 | ₹56,863 |
Of the gap between CTC and take-home, the largest piece is PF. You and your employer together put ₹96,000 a year into your EPF account, where it earns 8.25% (FY 2025-26 rate) and can be withdrawn tax-free after five years of service. The gratuity provision of ₹19,240 a year is paid out only if you stay at least five years, so treat it as a loyalty bonus rather than salary.
Why there is no income tax on 8 LPA
Tax is worked out on gross salary, not on CTC. Start with the gross of ₹7,32,760, take off the ₹75,000 standard deduction that every salaried person gets in the new regime, and you arrive at ₹6,57,760 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% | ₹2,57,760 | ₹12,888 |
| Tax on slabs | ₹12,888 | ||
| Less: Section 87A rebate | − ₹12,888 | ||
| Add: 4% health & education cess | ₹0 | ||
| Income tax payable | ₹0 |
Your taxable income of ₹6,57,760 is within the ₹12 lakh limit for the Section 87A rebate, so the slab tax of ₹12,888 is fully cancelled. You still have about ₹5,42,240 of headroom, so a raise that adds less than that to your taxable income keeps you at zero tax.
Old vs new tax regime at 8 LPA
The new regime is the default, and you have to opt out of it with your employer if you want the old one. The comparison below uses two old-regime cases: someone whose only investment is their EPF, and someone who fills the full 80C limit and pays ₹25,000 for health insurance. HRA exemption is left out because it depends on your rent and city.
| New | Old (PF only) | Old (full 80C + 80D) | |
|---|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 | ₹50,000 |
| Other deductions | None | PT + PF ₹48,000 | PT + ₹1.5L 80C + ₹25k 80D |
| Taxable income | ₹6,57,760 | ₹6,32,360 | ₹5,05,360 |
| Income tax / year | ₹0 | ₹40,531 | ₹14,115 |
| In-hand / month | ₹56,863 | ₹53,486 | ₹55,687 |
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 ₹14,115 more a year. With the new regime already at zero tax, there is nothing for the old regime to beat.
How much loan can you get on 8 LPA?
When you apply for a loan, the bank will ask for your payslips, so it is the ₹56,863 take-home that counts. A common comfort zone is to keep all EMIs, including any car or personal loans, at 40% to 50% of that figure: about ₹22,745 to ₹28,432 a month.
As a rough illustration, an EMI of ₹22,745 supports a home loan of about ₹26,20,964 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.
If your employer caps PF at ₹15,000 basic
One question to ask before you accept a 8 LPA offer: is PF calculated on your full basic of ₹33,333 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 | ₹4,000 | ₹1,800 |
| Income tax / year | ₹0 | ₹0 |
| In-hand / month | ₹56,863 | ₹61,263 |
| Total EPF saving / year | ₹96,000 | ₹43,200 |
With the cap, your take-home rises by about ₹4,400 a month, but you put ₹52,800 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 8 LPA a good package?
8 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 ₹56,863 covers a comfortable single life in most cities, and the new regime keeps your tax at zero.
What a raise from 8 LPA really adds
A percentage hike on CTC does not translate one-to-one into your take-home, because PF grows with basic pay and tax can start or step up. Here is what common hikes would do to your monthly in-hand:
| Hike | New CTC | New in-hand / month | Change / month |
|---|---|---|---|
| 10% hike | ₹8,80,000 | ₹62,570 | +₹5,706 |
| 20% hike | ₹9,60,000 | ₹68,276 | +₹11,413 |
| 30% hike | ₹10,40,000 | ₹73,982 | +₹17,119 |
When negotiating, compare offers on in-hand pay and on the fixed part of CTC. Variable pay, joining bonuses and ESOPs often sit inside the headline figure but are not guaranteed every month. You can try any number in the salary hike calculator.
8 LPA compared with nearby packages
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 |
|---|---|---|---|
| 6.5 LPA in-hand salary | ₹6,50,000 | ₹46,164 | ₹0 |
| 7 LPA in-hand salary | ₹7,00,000 | ₹49,730 | ₹0 |
| 7.5 LPA in-hand salary | ₹7,50,000 | ₹53,297 | ₹0 |
| 8 LPA (this page) | ₹8,00,000 | ₹56,863 | ₹0 |
| 8.5 LPA in-hand salary | ₹8,50,000 | ₹60,430 | ₹0 |
| 9 LPA in-hand salary | ₹9,00,000 | ₹63,996 | ₹0 |
| 9.5 LPA in-hand salary | ₹9,50,000 | ₹67,563 | ₹0 |
How this was calculated
Employer PF = 12% × basic = ₹48,000; Gratuity = 4.81% × basic = ₹19,240
Gross = CTC − employer PF − gratuity = ₹7,32,760
Taxable (new regime) = gross − ₹75,000 = ₹6,57,760 → tax ₹0
In-hand = gross − employee PF ₹48,000 − PT ₹2,400 − tax ₹0 = ₹6,82,360
Assumptions behind every number on this page:
- 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.
8 LPA in-hand salary: FAQs
What is the in-hand salary for 8 LPA per month?
On a standard structure, a 8 LPA CTC gives an in-hand salary of about ₹56,863 per month in FY 2026-27 under the new tax regime, or ₹6,82,360 a year.
How much PF is deducted on 8 LPA?
If PF is calculated at 12% of a basic pay of ₹33,333 a month, your own PF deduction is ₹4,000 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 8 LPA?
No. Taxable income works out to ₹6,57,760, which is within the ₹12 lakh limit for the Section 87A rebate under the new regime, so the tax payable is zero.
8 LPA means how much salary per month?
8 LPA means ₹8,00,000 per year, which is ₹66,667 per month of CTC. After deductions, the monthly in-hand is about ₹56,863.
Which tax regime is better for 8 LPA?
For most people the new regime is better at 8 LPA: it costs ₹0 versus ₹14,115 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.