Knowing how much you make is very important, particularly when you’re at the beginning of your career. Most of the freshers and new joiners get confused between CTC, gross salary, and actual in-hand salary. 2 lpa in hand salary is one of the most searched topics these days because ₹2 lac pa is a typical starting package in India nowadays.
In this post, we will help you understand what exactly is a 2 LPA package and how much money ends up in your account every month once you salary is processed What deductions are there from the salary and how should one manage their expenses based on this income? All is told in easy language so that even a tyro may comprehend it.
What Does 2 LPA Salary Mean?
2 LPA is short for ₹2,00,000 per annum. LPA is short for “Lakhs Per Annum.” This is often referred as CTC (Cost to Company), the actual money that will come in your bank account would be different.
CTC includes:
- Basic salary
- House Rent Allowance (HRA)
- Other allowances
- Employer contributions
- Mandatory deductions
Due to these factors, 2 lpa in hand salary is always less than ₹2,00,000 per annum.
Difference Between CTC and In-Hand Salary
A 2 LPA is generally considered as ₹16,666 per month, but it’s not. In-hand salary is the money which you get after deductions.
| Term | Meaning |
|---|---|
| CTC | Total annual cost paid by employer |
| Gross Salary | Salary before deductions |
| In-Hand Salary | Salary after deductions |
So, when you listen to 2 lpa in hand salary, it is the net take home pay, not CTC.
2 LPA Salary Monthly Breakdown
Let us know the monthly breakup of a ₹2,00,000 yearly package.
Annual to Monthly Salary Calculation
| Salary Component | Amount (₹) |
|---|---|
| Annual CTC | 2,00,000 |
| Monthly CTC | 16,667 |
Now let us look at deductions.
Deductions Applicable on 2 LPA Salary
Even at a low salary, some deductions still apply.
Common Deductions
| Deduction Type | Monthly Amount (₹) |
|---|---|
| Provident Fund (PF) | 800 – 900 |
| Professional Tax | 200 (state-dependent) |
| Income Tax | 0 (below exemption limit) |
Since income is below the taxable limit, no income tax is deducted.
Actual 2 LPA In Hand Salary Per Month
After deductions, here is the realistic take-home amount.
| Description | Amount (₹) |
|---|---|
| Gross Monthly Salary | 16,667 |
| Total Deductions | 1,000 – 1,100 |
| 2 lpa in hand salary (monthly) | 15,500 – 15,700 |
So, your 2 lpa in hand salary is approximately ₹15,500 per month.
Yearly In-Hand Salary from 2 LPA
| Type | Amount (₹) |
|---|---|
| Annual CTC | 2,00,000 |
| Annual In-Hand Salary | 1,85,000 – 1,88,000 |
This confirms that 2 lpa in hand salary is slightly lower than the advertised package.
Read More: Bipin Rawat Salary . IPS Salary After 10 Years / 3.5 Lakh Per Annum in Month
Is 2 LPA Salary Taxable in India?
No. A 2 LPA package is not taxable under the current Indian tax rules because:
- Income is below the basic exemption limit
- Standard deduction covers the remaining amount
Therefore, 2 lpa in hand salary does not involve income tax deduction.
Who Usually Gets a 2 LPA Salary?
This salary range is common for:
- Fresh graduates
- Entry-level BPO employees
- Call center executives
- Junior office assistants
- Data entry operators
- Trainees and interns
For many people, 2 lpa in hand salary is the starting point of their career.
Can You Live Comfortably on 2 LPA In Hand Salary?
It depends on your city and lifestyle.
Monthly Expense Example
| Expense | Approx Amount (₹) |
|---|---|
| Rent (shared room) | 4,000 |
| Food | 3,000 |
| Transport | 1,500 |
| Mobile & Internet | 500 |
| Miscellaneous | 2,000 |
| Total | 11,000 |
With a 2 lpa in hand salary, you may save around ₹4,000 per month if expenses are controlled.
How to Increase Income from a 2 LPA Salary
If you start with 2 lpa in hand salary, growth is still possible.
Practical Ways to Grow
- Upgrade skills through online courses
- Gain experience for 1–2 years
- Switch jobs strategically
- Learn high-demand skills
- Take freelance or part-time work
Many professionals move from 2 lpa in hand salary to 5 LPA or more within a few years.
Advantages of a 2 LPA Salary
- Easy entry into job market
- No income tax burden
- Opportunity to gain experience
- Basic financial stability
- Scope for growth
Even though 2 lpa in hand salary is modest, it helps build a foundation.
Limitations of a 2 LPA Salary
- Limited savings
- Difficult in metro cities
- No luxury spending
- Requires strict budgeting
Understanding these limits helps you plan better.
Conclusion
A 2 lpa in hand salary means you clear around ₹15,500 per month in after-deductions. It’s not a lot of money, but it is a standard starting salary in India and good work experience. With financial smarts, training and patience, this salary can be the start of a successful career that makes considerably more.
FAQs
1. What is the monthly 2 LPA in hand salary?
A. The monthly 2 lpa in hand salary is usually between ₹15,500 and ₹15,700 after basic deductions like PF and professional tax.
2. Is 2 LPA salary calculated as CTC or take-home pay?
A. Most companies mention 2 LPA as CTC, not take-home pay. The actual in-hand amount is always lower than the CTC.
3. Does a 2 LPA salary attract income tax?
A. No. A 2 LPA in hand salary does not attract income tax because the total annual income is below the basic exemption limit in India.
4. What deductions are applied to a 2 LPA salary?
A. Common deductions include:
Provident Fund (PF)
Professional Tax (depends on the state)
There is usually no income tax deduction at this salary level.
5. Can a fresher survive on a 2 LPA in hand salary?
A. Yes, a fresher can manage with a 2 lpa in hand salary, especially in small cities or shared accommodation, by maintaining a basic and controlled lifestyle.
