If you recently received a job offer of 20 LPA, or you are aiming for it soon, one big question must be on your mind: What will be my in hand salary? Many people get confused between CTC, LPA, tax deductions, and actual take-home salary. So in this guide, we will explain everything in very simple language so that anyone can understand every rupee of their salary.
Here is the complete breakdown of 20 LPA in hand salary, including tax calculation, PF deduction, bonuses, and take-home salary per month in 2025 as per the new tax regime and also the old regime for comparison.
What does LPA mean and why does it not match the in hand salary?
LPA means Lakh Per Annum, which is your total yearly salary before any deductions. For example:
-
20 LPA means ₹20,00,000 salary in a year.
But your in hand salary is the money that actually comes to your bank account every month after removing:
-
Income tax
-
PF contribution
-
Professional tax (where applicable)
-
Insurance or medical premium (if part of company policy)
-
Other deductions (food card, gratuity, etc. if applicable)
This is why 20 LPA CTC is not equal to 20 LPA in hand salary.
CTC vs In-Hand Salary Explained in Simple Terms
| Component | Meaning |
|---|---|
| CTC | Total salary announced by employer including benefits |
| Gross Salary | Salary before tax but excluding bonuses and some benefits |
| In-Hand Salary | Actual take-home salary after tax and deductions |
| PF | Provident Fund contribution for retirement savings |
| Bonus | Variable pay depending on performance or company policy |
Companies often include PF, insurance, joining bonus, retention bonus, and other benefits in the CTC, so a part of your salary is not directly given to you.
20 LPA Salary Breakdown in 2025 (New Tax Regime)
Let us calculate the 20 LPA in hand salary per year and per month in India as per the new tax regime with no deductions or exemptions.
Example Salary Structure for 20 LPA CTC
| Component | Amount (approx yearly) |
|---|---|
| Basic Salary | ₹7,00,000 |
| House Rent Allowance HRA | ₹3,50,000 |
| Special Allowance | ₹7,50,000 |
| Employer PF Contribution | ₹1,80,000 |
| Bonus (Variable 10 percent) | ₹2,00,000 |
PF and bonus are part of the CTC but not fully paid monthly.
Deductions
| Type | Approx Yearly Deduction |
|---|---|
| Employee PF | ₹90,000 |
| Income Tax (New Regime after standard taxpayer deduction) | Around ₹2,23,200 including cess |
| Professional Tax | ₹2,400 (varies by state) |
Net Take-Home Salary Calculation
| Item | Amount |
|---|---|
| Gross Salary | ₹18,20,000 |
| Total Deductions | ₹3,15,600 |
| In Hand Salary Per Year | ₹15,04,400 |
| 20 LPA In Hand Salary Per Month | ₹1,25,366 (approx) |
So the 20 LPA in hand salary after tax in India in 2025 comes to around 1.25 lakh per month.
This may slightly vary based on your city, PF structure, tax savings, and company policy.
20 LPA Salary Breakdown under Old Tax Regime (for comparison)
If someone uses the old tax regime with exemptions, the in-hand salary can be slightly higher or lower depending on deductions like:
-
HRA exemption
-
80C investments
-
Health insurance 80D
-
Home loan deductions
Typical in hand salary under the old regime may be around:
-
₹1,27,500 to ₹1,30,500 per month if tax saving investments are done properly.
20 LPA In Hand Salary in India vs Different IT Companies
The in hand salary also depends on the company structure. For example:
-
TCS 20 LPA in hand salary may be around 1.18 to 1.22 lakh per month due to higher PF and variable pay.
-
Cognizant 20 LPA in hand salary may be around 1.23 to 1.27 lakh per month due to lower fixed PF and higher fixed pay
-
Startups may offer even more take-home pay since they keep PF lower.
So if your offer letter says CTC 20 LPA, the exact in-hand depends on the salary breakup.
Where does PF go and can you get the money back?
PF is your retirement savings contribution.
A part goes from your salary and a part from your employer. You can withdraw PF:
-
When you quit your job and are unemployed for 2 months, or
-
When you retire
So PF is not a loss. It is your money for the future.
How bonuses affect 20 LPA salary
Many companies include bonuses in CTC. For example:
-
If your CTC is 20 LPA and bonus is 2 LPA
-
Monthly salary calculation is based on 18 LPA
-
Bonus is paid quarterly or yearly and is taxable
So if my package is 20 LPA in hand salary is not true because bonuses also reduce monthly take-home.
Tips to Increase In-Hand Salary legally
You can improve your take-home salary without breaking any rules. Some useful tips:
-
Negotiate more fixed pay instead of high variable bonus.
-
Ask the employer to shift more income to Special Allowance instead of PF to reduce PF deduction.
-
Choose the new tax regime if you do not invest much.
-
Choose the old tax regime if you invest in 80C, home loan, and insurance.
-
Use company benefits like fuel allowance or LTA if available.
Even a small restructuring can increase your in-hand salary for 20 LPA by ₹5,000 to ₹12,000 per month.
Quick Salary Comparison Table
| CTC | Approx In-Hand Per Month |
|---|---|
| 5 LPA | ₹32,000 to ₹36,000 |
| 10 LPA | ₹67,000 to ₹75,000 |
| 20 LPA | ₹1,23,000 to ₹1,30,500 |
| 30 LPA | ₹1,85,000 to ₹2,05,000 |
Conclusion
Understanding your salary is extremely important whether you are a student, fresher, experienced professional, or planning a job switch. A CTC package might look big, but the real thing that matters is your in hand salary. For a 20 LPA CTC, the usual in hand salary per month in India in 2025 is around 1.25 lakh, depending on company policies and tax regime.
If you know PF, tax, allowances, bonus, and deductions, you can plan your income smartly and increase your take-home pay. Salary awareness gives you financial confidence, better negotiation power, and better savings for the future.
Frequently Asked Questions (FAQs)
1. What is the in hand salary for 20 LPA in India?
The approximate in hand salary for 20 LPA is around ₹1.23 lakh to ₹1.30 lakh per month in 2025 depending on tax regime, PF, and deductions.
2. Is 20 LPA in hand salary possible without tax?
No, income tax is mandatory. But tax savings under old regime can reduce taxable income.
3. How much salary will I get in hand for 20 LPA in the new tax regime?
Around ₹1,25,000 per month on average.
4. Does a higher PF mean lower in hand salary?
Yes, if PF contribution is high, in hand decreases. But PF is your retirement saving and can be withdrawn later.
5. Is 20 LPA a good salary in India?
Yes, very good. It places you among high-earning professionals and provides comfortable financial stability in most Indian cities.
Read more
11 LPA In Hand Salary: Exact Salary Breakdown After Tax, PF & Deductions
