12 LPA salary breakdown
| Item | Per year | Per month |
|---|---|---|
| CTC | ₹12,00,000 | ₹1,00,000 |
| Employer PF (inside CTC, not paid to you) | − ₹72,000 | − ₹6,000 |
| Gratuity (inside CTC, paid later when you leave) | − ₹28,860 | − ₹2,405 |
| Gross salary | ₹10,99,140 | ₹91,595 |
| Your PF | − ₹72,000 | − ₹6,000 |
| Professional tax | − ₹2,400 | − ₹200 |
| Income tax and cess (FY 2026-27) | − ₹0 | − ₹0 |
| In-hand salary | ₹10,24,740 | ₹85,395 |
How your offer letter changes it
Companies split the same CTC differently. Monthly in-hand pay for 12 LPA under each change, with everything else at the defaults:
| Common defaults (above) | ₹85,395 |
| PF capped at ₹1,800 a month | ₹93,795 |
| Gratuity not part of CTC | ₹87,800 |
| Basic pay 40% of CTC (structure used before the Labour Codes) | ₹88,276 |
| 10% of CTC is yearly variable pay (regular monthly credit) | ₹75,395 |
Questions
What is the in-hand salary per month for 12 LPA?
About ₹85,395 a month in FY 2026-27 under the new regime, with basic pay at 50% of CTC, PF on full basic, gratuity inside CTC and ₹2,400 professional tax. Your offer's structure can move this up or down.
How much income tax is paid on 12 LPA?
None under the new regime: taxable income stays under ₹12 lakh after the ₹75,000 standard deduction.
How much PF is deducted from a 12 LPA salary?
With PF at 12% of a basic pay of 50% of CTC, your share is about ₹6,000 a month, and the employer adds the same amount inside your CTC. If PF is capped at the ₹15,000 wage ceiling, each share is ₹1,800 a month and in-hand pay is about ₹93,795.
What is 12 LPA in hand without PF?
If no PF is deducted at all, monthly in-hand pay rises to about ₹97,395. Companies covered by the EPF scheme usually deduct it, so check your offer letter.
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