Knowing what’s included / not included in the 4.8 LPA in hand salary is crucial for anyone who is joining a new job, especially if you’re a freshers. Most companies specify the annual package in CTC terms, but the money that is reflected in your bank account every other month or so will invariably be less than the CTC. The variance occurs due to other deductions made from your salary like EPF, professional tax, TDS and other elements present in the salary structure.
This article will give you a very basic and straightforward explanation of the nature of your take home from a package of 4.8 LPA. You will also know the salary pay, in-hand salary, deductions and all other factors which impact the final amount of money in your hand each month.
What Does 4.8 LPA Mean?
4.8 LPA is indicating that company have given you a CTC ( cost to company) at 4,80,000 per anum. This is not the number that will appear in your bank account. CTC consists of various elements such as basic salary, allowances, in lieu components like the employer’s contribution to PF, gratuity and other benefits.
To understand 4.8 LPA in hand salary we have to see the breakup of this package:
Standard Salary Structure for 4.8 LPA
While the structure of salaries is different from one organization to another, most Indian companies adhere to a similar pattern. A sample CTC of a structure using 4.8 LPA is as follows:
Estimated Salary Structure of 4.8 LPA
| Component | Amount (Annual) | Amount (Monthly) |
|---|---|---|
| Basic Salary | ₹1,92,000 | ₹16,000 |
| House Rent Allowance (HRA) | ₹96,000 | ₹8,000 |
| Special Allowance | ₹1,32,000 | ₹11,000 |
| Conveyance + Other Allowances | ₹36,000 | ₹3,000 |
| Employer PF Contribution | ₹23,040 | ₹1,920 |
| Gratuity | ₹9,216 | ₹768 |
| Total CTC | ₹4,80,256 | ≈₹40,020 |
This is typically the mold on which companies cast entry-level positions.
Deductions from the Monthly Salary
In order to find out the in hand salary 4.8 LPA we have to deduct all the deductions.
Common Deductions
- Employee PF Contribution – 12% of Basic Salary
- Employer PF Contribution (not paid to you) – Part of CTC
- Professional Tax is different for every state – Around RUPEE SEVEN HUNDRED (INR 700) to be paid annually. ₹200 per month
- TDS (Income Tax) – According to tax slab and exemptions
- Health Insurance (if applicable) – ₹200–₹500 per month
We’ll now identify how much discount you can avail for the above plan.
Monthly Deductions from 4.8 LPA
| Deduction Type | Amount (Monthly) |
|---|---|
| Employee PF (12% of basic) | ₹1,920 |
| Professional Tax | ₹200 |
| TDS (Approx.) | ₹800 |
| Insurance / Other Deductions | ₹200 |
| Total Deductions | ₹3,120 |
4.8 LPA In Hand Salary (Monthly and Yearly)
Now we calculate the take-home:
Step-by-Step Calculation
- Monthly Gross Salary:
₹16,000 + ₹8,000 + ₹11,000 + ₹3,000 = ₹38,000 - Monthly Deductions:
Approx. ₹3,120 - Monthly In-Hand Salary:
₹38,000 – ₹3,120 = ₹34,880 - Yearly In-Hand Salary:
₹34,880 × 12 = ₹4,18,560
Final Figures
| Salary Type | Amount |
|---|---|
| Gross Monthly Salary | ₹38,000 |
| Monthly In-Hand Salary | ₹34,880 |
| Gross Annual Salary | ₹4,56,000 |
| Annual In-Hand Salary | ₹4,18,560 |
So, the 4.8 LPA in hand would be somewhere around ₹34k-36k per month (Yes this number varies with employer’s deductions and tax regime).
Why Is the In-Hand Salary Lower Than the CTC?
Some aspirants get confused, when their salary in hand is less than they had assumed it to be. This is the result of CTC containing a lot of parts which are not directly paid to you in every month.
Reasons for the Difference
- Employer PF contribution is included in CTC
- Gratuity is part of CTC but not paid monthly
- Insurance premium is deducted
- Professional tax applies in most states
- Income tax reduces take-home pay
These factors reduce the final 4.8 LPA in hand salary.
How Tax Regime Affects 4.8 LPA In Hand Salary
India currently has two tax regimes:
- Old Regime (with exemptions)
- New Regime (lower rates, no exemptions)
At 4.8 LPA, employees generally pay low or zero tax if they use Section 80C (PF, LIC, ELSS, etc.).
Comparison
| Tax Regime | Approx. Yearly Tax | In-Hand Impact |
|---|---|---|
| Old Regime | Very Low (after exemptions) | Higher in-hand |
| New Regime | Low but exemption-free | Slightly lower in-hand |
After tax adjustments, the 4.8 LPA in hand salary remains mostly stable in both regimes.
Read More: 2.5 LPA In Hand Salary / 3.6 LPA In Hand Salary
Variation Based on Company Type
Different industries follow slightly different salary structures. This also affects the final in-hand amount.
Industry-Wise Differences
| Company Type | In-Hand Salary Range |
|---|---|
| IT/Software | ₹33,000 – ₹35,500 |
| BPO / Customer Support | ₹34,000 – ₹36,000 |
| Manufacturing | ₹32,500 – ₹34,500 |
| Sales Roles (High Incentives) | ₹30,000 – ₹33,000 + incentives |
Overall, the 4.8 LPA in hand salary mostly falls within the ₹33,000–₹36,000 per month range.
Can Your In-Hand Salary Increase?
Yes, the in-hand salary can increase depending on several factors.
Ways to Increase Take-Home Pay
- Choose the tax regime that suits you best
- Invest in Section 80C to reduce tax
- Opt for salary restructuring
- Claim HRA if you live in rented accommodation
- Reduce optional policy deductions
With the correct planning, the 4.8 LPA in hand salary can be improved by ₹1,000–₹2,000 every month.
Is 4.8 LPA a Good Salary for Freshers?
For freshers in India, 4.8 LPA is considered a good starting salary. It offers:
- Stable income
- Better savings potential
- Good PF contribution
- Decent growth opportunities
The cost of living even in Tier 2 and Tier 3 city is good! But, in metropolitan cities like Mumbai, Hyderabad, Pune and Bangalore prices are on the higher side.
Conclusion
In hand salary is 4.8 LPA Typically it comes around between ₹34,000 to ₹36,000 per month after all dedcuting. The actual take-home could vary with your organization and structure, PF rules of your state, tax slab and some other factors. Knowing the total split can better assist you with your spending, saving, and future financial goals.
This is a good salary for freshers and entry-level professionals in most of the sectors. Through proper tax planning and by taking the right approach to allowances, you can increase your take home pay and have a more robust financial foundation.
FAQs
1. What is the 4.8 LPA In Hand Salary?
A. The in-hand salary for 4.8 LPA usually ranges between ₹34,000 and ₹36,000 per month depending on deductions like PF, professional tax, and TDS.
2. How much is the monthly take-home salary from 4.8 LPA?
A. The monthly take-home is approximately ₹34,000 – ₹35,000 after all deductions.
3. How is the in-hand salary calculated from 4.8 LPA?
A. The in-hand salary is calculated by subtracting PF, professional tax, insurance, and TDS from the gross monthly salary. The remaining amount is your actual take-home.
4. Does PF deduction reduce the in-hand salary from 4.8 LPA?
A. Yes. Employee PF deduction (12% of basic salary) reduces the in-hand amount. But it also increases long-term savings as PF earns interest.
5. How much PF is deducted in a 4.8 LPA salary package?
A. Approximately ₹1,920 per month is deducted from the employee’s basic salary as PF.
