Understanding your salary structure in India can feel confusing, especially when you see terms like LPA, CTC, PF, TDS and allowances in your offer letter. If you are earning or expecting a package of 27 LPA, one question becomes most important: How much will I actually receive in hand every month
This guide breaks down the complete structure of 27 LPA In Hand Salary, explains PF and tax deductions, and provides helpful tables to understand everything clearly.
Let’s begin.
What Does 27 LPA Mean
LPA stands for Lakh Per Annum.
So a salary of 27 LPA means the company is paying you 27 lakh rupees per year.
But this is not your in hand salary.
It is your CTC which includes many components that never reach your bank account.
Difference Between CTC, Gross Salary and In Hand Salary
Understanding these three terms is the biggest key to decoding your salary.
| Term | Meaning | What You Actually Receive |
|---|---|---|
| CTC | Total cost the company spends on you | Includes bonuses, PF employer contribution, insurance, gratuity |
| Gross Salary | CTC minus employer benefits | Before your personal deductions |
| In Hand Salary | Amount credited to your bank | After PF, tax and professional tax deductions |
Sample Salary Structure for 27 LPA CTC
Below is a common and realistic salary breakup for a 27 LPA package in India.
Table: Sample 27 LPA Salary Structure
| Component | Annual Amount (Approx) |
|---|---|
| Basic Salary | 9,45,000 |
| HRA | 4,72,500 |
| Special Allowance | 10,00,000 |
| PF Employer Contribution | 1,13,400 |
| Gratuity | 45,576 |
| Other Benefits | 1,23,524 |
| Total CTC | 27,00,000 |
PF Deduction in 27 LPA Salary
| PF Type | Percentage | Annual Amount |
|---|---|---|
| Employee PF | 12 percent of basic | 1,13,400 |
| Employer PF | 12 percent of basic | 1,13,400 |
Only the employee PF is deducted from your in hand salary.
27 LPA In Hand Salary New Tax Regime
Under the new tax regime, you get simplified slabs but fewer exemptions.
Table: 27 LPA Approx Deductions Under New Tax Regime
| Deduction | Annual Amount |
|---|---|
| Employee PF | 1,13,400 |
| Professional Tax | 2,400 |
| Income Tax + Cess | 3,80,000 to 4,20,000 |
| Other Deductions | 0 to 10,000 |
Final Take Home
| Detail | Amount |
|---|---|
| Net Annual In Hand Salary | 19.5 to 20 lakh approx |
| Monthly In Hand Salary | 1.55 to 1.65 lakh approx |
This is the average 27 LPA In Hand Salary per month in major Indian cities.
More Salary Breakdowns for Comparison
Understanding other salary slabs helps you compare and negotiate better.
Table: Popular Salary Slabs and Monthly In Hand Salary
| CTC | Monthly In Hand Salary (Approx) |
|---|---|
| 5 LPA | 32,000 to 34,000 |
| 10 LPA | 60,000 to 68,000 |
| 15 LPA | 95,000 to 1,10,000 |
| 20 LPA | 1,15,000 to 1,30,000 |
| 27 LPA | 1,55,000 to 1,65,000 |
How Bonuses Impact 27 LPA In Hand Salary
Many companies include bonuses inside the CTC.
Below is how it affects your salary.
Bonus Types Table
| Bonus Type | Meaning | Paid Monthly |
|---|---|---|
| Performance Bonus | Based on company and individual performance | No |
| Joining Bonus | One time payment | No |
| Retention Bonus | Paid after completing fixed duration | No |
If your 27 LPA CTC includes a 3 LPA variable bonus, your fixed salary, and therefore your in hand salary, becomes lower.
Understanding PF, ESI and Professional Tax
| Component | Applies To | Amount |
|---|---|---|
| PF | All salaried employees | 12 percent of basic |
| Professional Tax | Depends on state | Around 200 per month |
| ESI | Salary below 21,000 | Not applicable for 27 LPA |
Quick 27 LPA In Hand Salary Calculator
You can calculate your in hand salary using this simple formula.
In Hand Salary =
Gross Salary
minus Employee PF
minus Income Tax
minus Professional Tax
minus Optional Deductions
Use this method anytime you want a quick estimate.
Tips to Increase Your In Hand Salary
Here are practical and simple strategies.
1. Ask for more fixed pay instead of benefits you do not use.
2. Choose the new tax regime if you do not make many investments.
3. Use HRA properly by submitting rent receipts.
4. Reduce optional deductions like food card or extra insurance if you want more cash in hand.
5. Invest in 80C, 80D or NPS if using the old regime for tax savings.
These tips can increase your take home salary by a good margin.
Why Salary Structure Matters
Knowing your salary structure helps you:
-
Negotiate better packages
-
Plan savings and investments
-
Predict your monthly cash flow
-
Avoid confusion after joining
-
Understand PF, in hand salary and CTC differences clearly
A package like 27 LPA looks big from the outside, but understanding its breakup helps you know the true value.
Conclusion
A 27 LPA salary is a strong and competitive income in India, but the actual in hand salary is always lower because of PF and tax deductions. On average, the 27 LPA In Hand Salary falls in the range of 1.55 lakh to 1.65 lakh per month under the new tax regime.
With the help of simple explanations, tables and clear breakdowns, you now know exactly how your salary structure works and how to increase your take home amount.
If you want salary breakup tables for old tax regime or other CTC packages, feel free to ask.
Frequently Asked Questions
1. What is the in hand salary for a 27 LPA package
The average in hand salary is around 1.55 lakh to 1.65 lakh per month depending on deductions.
2. How much PF is deducted from a 27 LPA salary
About 1,13,400 per year is deducted as employee PF.
3. Is the new tax regime better for 27 LPA
For most people, yes, because tax is generally lower and simpler.
4. Are bonuses included in in hand salary
No. Bonuses are part of CTC but not part of your monthly take home.
5. How can I increase my in hand salary
Choose the right tax regime, negotiate fixed salary, optimize HRA and reduce optional deductions.
Read more
20 LPA In Hand Salary in 2025: Full Breakdown with Tax Slabs & PF Calculation
