Understanding salary in India can be confusing. You receive an offer letter that says CTC 14 LPA, but the amount that finally reaches your bank account every month is much lower. Why does this happen? What deductions reduce the take-home salary? And how much is the 14 LPA in hand salary per month after PF and taxes?
This complete guide explains everything in the simplest way so that even a first-time job seeker can understand salary structure clearly.
What does 14 LPA actually mean?
LPA means Lakh Per Annum. So, 14 LPA means you are offered a salary package of 14 lakh rupees per year.
But it is important to understand that 14 LPA is not what you take home. Because the CTC includes multiple components such as:
• Fixed salary
• PF (Provident Fund)
• Gratuity
• Performance bonus or joining bonus
• Insurance premium
• Allowances
Some components are not paid every month. Some are added for tax benefits. And some are deducted from your salary.
That is why CTC 14 LPA in hand salary will always be lower.
CTC vs In-Hand Salary vs Gross Salary
A simple comparison:
| Salary Term | Meaning |
|---|---|
| CTC (Cost to Company) | Total amount a company spends on you in one year |
| Gross Salary | Salary before tax deductions |
| In-Hand Salary | Final amount you receive in your bank account |
So whenever someone says what is 14 LPA in hand salary, it means they want to know the real take-home pay after PF and taxes.
Salary breakup for 14 LPA: Simple explanation
Let us assume a common corporate salary structure (Infosys, TCS, Wipro, Accenture and similar companies use almost the same format).
CTC: ₹14,00,000 per year
Typical breakdown looks like:
| Component | Approx Amount (per year) |
|---|---|
| Fixed / Basic Salary | ₹6,30,000 |
| HRA | ₹2,52,000 |
| Special Allowances | ₹3,78,000 |
| PF Employer Contribution | ₹75,600 |
| Gratuity | ₹30,240 |
| Insurance and Benefits | ₹34,160 |
You do not receive PF employer contribution, gratuity, or insurance as monthly salary. They are part of CTC only.
So the annual gross salary reduces to around ₹12,60,000.
How deductions reduce 14 LPA in hand salary
Monthly deductions include:
• Employee PF contribution
• Income tax under the old or new tax regime
• Professional tax (in some states like Maharashtra and Karnataka)
PF deduction
Around 12 percent of basic salary is deducted.
Basic salary approx: ₹52,500 per month
PF employee share approx: ₹6,300 per month
Income tax
In the 14 LPA in hand salary new tax regime, the effective tax is lower for most employees compared to the old regime. After standard deduction and slab calculation, the annual tax for a 14 LPA salary comes to around ₹97,500 to ₹1,12,500 depending on investments and regime.
Professional tax
Approx ₹200 per month depending on the state.
Final monthly in hand salary for 14 LPA
After all deductions, the approximate monthly take-home looks like:
| Component | Approx Amount |
|---|---|
| Monthly Gross Salary | ₹1,05,000 |
| PF Employee Deduction | ₹6,300 |
| Income Tax Monthly Share | ₹8,500 to ₹9,500 |
| Professional Tax | ₹200 |
| Final In-Hand Salary | ₹89,000 to ₹90,500 per month |
So, 14 LPA in hand salary per month is around ₹89,000.
This estimation applies to most IT companies including Infosys, TCS, Deloitte, Wipro, Cognizant and Accenture with slight variations depending on bonuses and regional taxes.
How bonus affects 14 LPA in hand salary
Not all components are paid monthly. For example:
• Annual performance bonus
• Joining bonus
• Retention bonus
If performance bonus is ₹1,20,000 per year, you may receive it yearly or divided as ₹10,000 per month. So if your company adds ₹10,000 bonus monthly, the in hand salary becomes around ₹99,000 per month.
If the bonus is paid once a year, you will receive extra money at the time of payment but not monthly.
Example comparison of popular salary slabs
| CTC | Approx In-Hand Per Month |
|---|---|
| 5 LPA | ₹33,000 to ₹36,000 |
| 7 LPA | ₹47,000 to ₹51,000 |
| 10 LPA | ₹68,000 to ₹74,000 |
| 14 LPA | ₹89,000 to ₹90,500 |
| 20 LPA | ₹1,25,000 to ₹1,32,000 |
| 30 LPA | ₹1,85,000 to ₹2,00,000 |
This table helps job seekers quickly understand take-home pay expectations.
14 LPA in hand salary in old vs new tax regime
| Salary Regime | Estimated In-Hand |
|---|---|
| Old Tax Regime | ₹87,000 to ₹89,000 |
| New Tax Regime | ₹89,000 to ₹90,500 |
This is why most young employees choose 14 LPA in hand salary new tax regime 2025 unless they have high investments under 80C, 80D and HRA exemptions.
Tips to increase your in-hand salary
Even if your CTC remains 14 LPA, you can increase your take-home salary using smart planning.
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Opt for tax-saving investments such as ELSS, PPF, NPS and term insurance.
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If you pay rent, make sure you claim HRA exemption.
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Request more basic salary to reduce special allowances.
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If possible, ask HR to distribute bonus monthly rather than yearly.
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Choose company benefits wisely instead of taxable allowances.
Small adjustments can increase your monthly salary by ₹3,000 to ₹9,000 depending on the structure.
Why understanding salary structure is important
When job seekers understand the difference between CTC, gross salary and in hand salary, they make better decisions such as:
• Negotiating salary with HR
• Knowing whether relocation is financially suitable
• Calculating loans or EMIs smartly
• Planning savings and investments
Many freshers get confused thinking 14 LPA means ₹14,00,000 divided by 12 months, but real salary works very differently because of PF and taxes.
Key takeaways
• CTC 14 LPA does not mean 14 lakh in your bank account
• Employer PF, gratuity and insurance are part of CTC but not part of monthly in-hand salary
• Income tax and PF deductions reduce take-home salary
• 14 LPA in hand salary per month is approx ₹89,000 under the new tax regime
• Bonus can increase monthly salary depending on structure
FAQs on 14 LPA In Hand Salary
Q1: What will be the in hand salary for 14 LPA?
The in hand salary is approximately ₹89,000 to ₹90,500 per month after tax and PF deductions.
Q2: How much salary will I get in hand for 14 LPA under the new tax regime?
Under the 14 LPA in hand salary new tax regime, take-home is around ₹89,000 to ₹90,500 per month.
Q3: Does every IT company have the same 14 LPA salary breakup?
Companies like Infosys, TCS, Deloitte, Wipro, Accenture and Cognizant have similar structures, but bonus percentage and allowances may vary.
Q4: Is the bonus included in the monthly in-hand salary?
Sometimes yes and sometimes no. It depends on the company policy. If paid yearly, it does not increase the monthly salary.
Q5: How can I increase my in hand salary without changing my job?
Plan tax saving investments, use HRA exemption if renting a house, request flexible salary structure and optimize benefits instead of taxable allowances.
Read more
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