A yearly salary of 75 LPA looks huge, and many people imagine that most of it will directly reach their bank account. But the real in hand salary is always different because of tax, PF, and other deductions. Understanding these components is very important for job seekers, students, and working professionals.
Salary terms like CTC, LPA, PF, tax regime, and take home pay often look complicated, but when explained in simple language, everything becomes easy. This guide breaks down the 75 LPA in hand salary, shows how salaries work in India, and explains how deductions affect what you actually receive every month.
Understanding LPA, CTC, and In Hand Salary
To calculate any salary, especially something like 75 LPA in hand salary, first understand the basic terms.
What is LPA
LPA means Lakh Per Annum.
If your package is 75 LPA, it simply means your total yearly salary is 75 lakh rupees.
What is CTC
CTC means Cost To Company.
It is the total amount the company spends on you.
CTC includes
• monthly salary
• PF contribution
• gratuity
• insurance
• bonuses
• food coupons
• other benefits
CTC is not equal to your in hand salary.
What is In Hand Salary
In hand salary means the actual money that reaches your bank account every month after all deductions.
Basic formula
In hand salary = CTC minus PF minus tax minus other deductions plus monthly allowances
Common Deductions That Reduce Your In Hand Salary
Many people feel confused when their in hand salary is much lower than their CTC. These deductions explain why this happens.
1. PF Deduction
PF is the Provident Fund.
Employees contribute 12 percent of their basic salary.
Companies also contribute a similar amount.
Only the employee part is deducted from your salary.
2. Income Tax
This is the biggest deduction in high salary packages like 75 LPA.
Most people use the new tax regime because it has simpler slabs and lower tax rates.
3. Professional Tax
Some states charge a small amount each month, usually around 200 rupees.
4. Standard Deduction
The new tax regime offers a standard deduction that reduces taxable income.
5. No ESI
ESI applies only for lower salaries. For a package like 75 LPA, there is no ESI deduction.
Common Salary Components and Their Meaning
| Component | Meaning | How it Affects In Hand |
|---|---|---|
| Basic Salary | Fixed part of salary | PF calculated on this, so affects deductions |
| HRA | House rent allowance | Tax benefits in old regime |
| PF | Provident Fund | Reduces in hand but helps long term savings |
| Gratuity | Long term benefit | Part of CTC but not paid monthly |
| Bonus | Variable pay | Fully taxable, paid separately |
| Special Allowance | Additional income | Fully taxable |
This table helps you understand what affects your take home and what does not.
75 LPA In Hand Salary in 2025 (New Tax Regime)
Now let us calculate the actual in hand salary for 75 LPA CTC.
Step 1: Remove employer contributions
From 75 LPA, around 1.5 to 2 lakh is employer PF, gratuity, and insurance.
Taxable income becomes around 73 lakh.
Step 2: Income tax calculation
Under the new regime, tax plus cess for this income range is around 19 to 21 lakh.
Step 3: PF employee deduction
Employee PF contribution is around 1.08 to 1.44 lakh based on basic salary.
Final yearly in hand salary
73 lakh minus 20 lakh tax minus 1.3 lakh PF
Final in hand per year = around 51.7 lakh
Monthly in hand salary
51.7 lakh divided by 12 = around 4.3 lakh per month
So the 75 LPA in hand salary per month is approximately 4.2 to 4.35 lakh, depending on the company structure.
75 LPA Salary Breakdown (Approximate)
| Salary Component | Amount (Yearly) |
|---|---|
| CTC | 75,00,000 |
| Employer Contributions | 1,50,000 to 2,00,000 |
| Taxable Salary | Around 73,00,000 |
| Total Income Tax (New Regime) | 19,00,000 to 21,00,000 |
| Employee PF Deduction | 1,08,000 to 1,44,000 |
| Final In Hand Salary | Around 51,50,000 |
| Monthly Take Home | 4,20,000 to 4,35,000 |
This table gives a clear snapshot of how the 75 LPA CTC converts into final in hand salary.
Examples of In Hand Salary for Other Salary Slabs
Many people also search for common salary ranges like 5 LPA or 20 LPA. Here are simple examples to understand how much you actually get in hand at different levels.
1. 5 LPA Salary
Tax is negligible due to rebates.
Monthly in hand = 32k to 35k.
2. 10 LPA Salary
Taxable salary becomes around 9 lakh.
Monthly in hand = 62k to 70k.
3. 15 LPA Salary
After tax and PF, monthly in hand = 90k to 1 lakh.
4. 20 LPA Salary
New tax regime results in monthly in hand = 1.25 to 1.35 lakh.
Monthly In Hand Salary Comparison
| CTC | Monthly In Hand (Approx) |
|---|---|
| 5 LPA | 32,000 to 35,000 |
| 10 LPA | 62,000 to 70,000 |
| 15 LPA | 90,000 to 1,00,000 |
| 20 LPA | 1,25,000 to 1,35,000 |
| 75 LPA | 4,20,000 to 4,35,000 |
This comparison makes it easy to understand how salary grows with experience.
How Bonuses Influence Your Salary
Bonuses are included in CTC but not in your monthly in hand salary. These include
• performance bonus
• joining bonus
• retention bonus
• annual bonus
If you receive a 5 lakh bonus, around 30 to 32 percent will usually go as tax.
So bonuses increase yearly income but do not change your monthly take home.
How PF, Allowances, and Other Components Are Calculated
Companies usually structure salary in a simple way.
Basic Salary
Usually 40 to 50 percent of CTC.
PF is always calculated on basic salary.
HRA
Can be around 40 to 50 percent of basic salary.
Special Allowance
This is the remaining component, and fully taxable.
Variable Pay
Paid quarterly or yearly based on performance.
Understanding this structure helps you estimate your real salary even before joining a company.
How To Increase Your In Hand Salary
Even though you cannot change tax laws, you can still optimize your take home salary with these tips.
1. Request tax friendly salary components
Ask HR to include
• food allowance
• internet reimbursement
• LTA
2. Reduce PF deduction
Some companies allow you to cap PF to a basic salary of 15k.
3. Invest in tax saving products
NPS, ELSS, health insurance, and home loan interest can reduce taxation.
4. Prefer higher fixed salary
Avoid very high variable pay if you want stable monthly income.
5. Manage EMIs smartly
Lower EMI means more money left every month.
Real Life Scenario: 75 LPA Job Offer
Imagine you receive a 75 LPA CTC offer from a top company.
HR explains that:
• fixed salary = 55 LPA
• bonus and variable = 20 LPA
Many people think they will get around 6 lakh per month but that is never the case.
After tax and PF, the amount becomes around 4.25 lakh per month.
Understanding your salary breakdown helps avoid misunderstandings and helps you negotiate better.
Why Understanding Salary Structure Matters
Knowing the difference between CTC, LPA, and in hand salary helps you
• compare job offers better
• plan savings
• understand PF and tax deductions
• negotiate the right components
• avoid salary shock on the first payday
This knowledge is especially helpful for freshers, young professionals, and people switching jobs.
Conclusion
A package of 75 LPA is impressive, but the actual in hand salary becomes around 51 to 52 lakh per year due to PF, tax, and employer contributions. Understanding how your salary is structured gives you more control over your financial planning. Whether you earn 5 LPA or 75 LPA, learning how CTC converts into take home salary helps you make smarter decisions. Keep exploring salary basics, PF structure, allowances, and tax saving opportunities to build a stronger financial future.
FAQs
1. How much is the 75 LPA in hand salary per month
The monthly in hand salary is around 4.2 to 4.35 lakh depending on PF and allowances.
2. Is the new tax regime better for high salary packages
Yes, for salaries like 75 LPA, the new regime usually results in lower tax.
3. Does PF reduce the final in hand salary
Yes, PF reduces monthly take home but helps build long term savings.
4. Is bonus included in monthly salary
No, bonuses are paid separately and do not increase monthly in hand salary.
5. How much PF is deducted from a 75 LPA salary
Employee PF deduction is around 1.08 to 1.44 lakh per year depending on basic salary.
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