A number we often hear or read and are confused when it comes to using in India is ‘lakh’ such as 8 lakh per annum – this language issue came up with so many people. It even sounds amazing, but the bigger question is — How taken aback about 8 lakh per annum in month?
Your annual package and how to convert it to a monthly income should be something you understand well. It allows you to better plan your budget, your savings, investments and expenses.
Here in this article, we are going to share with you what’s the meaning of 8 lakh per annum by calculating your monthly salary, telling you the in-hand pay after tax deductions and how it varies due to job location and different types of salary structure.
What Does 8 Lakh Per Annum Mean?
The phrase “per annum” refers to per year. So, 8 Lakh per annum (or ₹ 8,00,000 per year) is the money that you earn in one year before any deductions like tax and provident fund (PF).
You want to determine how much your monthly salary is, so you divide by the number of months in a year (12 months).
Basic Calculation:
To determine the MRR, divide the ARR by 12: (₹8,00,000÷12) = ₹66,666.67/monthRussian[edit
So, if your salary is 8 lakh per annum, then your monthly gross will be around ₹66,667.
But that isn’t what you take home. There are all kinds of deductions and benefits that factor into how much you actually get in your bank account.
Salary Breakup of 8 Lpa For Freshers [Monthly Detailed]
Let’s find out how the ₹8 lakh salary package can be broken down into a typical job offer in India :-
| Component | Annual (₹) | Monthly (₹) | Description |
|---|---|---|---|
| Basic Salary | 3,60,000 | 30,000 | The fixed part of your salary used to calculate PF and HRA. |
| House Rent Allowance (HRA) | 1,80,000 | 15,000 | Given to employees who live on rent. |
| Conveyance Allowance | 24,000 | 2,000 | Travel expenses to and from work. |
| Medical Allowance | 15,000 | 1,250 | Covers basic medical expenses. |
| Special Allowance | 1,41,000 | 11,750 | Extra component to balance CTC. |
| Provident Fund (Employer Contribution) | 80,000 | 6,667 | Contribution made by employer for retirement benefits. |
| Gratuity | 20,000 | 1,667 | Long-term benefit for employees. |
| Total (CTC) | 8,00,000 | 66,667 | Your cost to company per month. |
CTC (Cost to Company) is one that includes all which will be paid by employer like salary, bonuses etc. But your in-hand salary is less than CTC, and there are deductions.
In-Hand Salary After Tax Deductions
Your net pay can also vary depending on factors such as your city, taxation system and whether you have any tax-saving investments.
Here is an approximate idea how much will be in hand your Monthly salary Under New tax regime (FY 2025-26):
| Annual CTC (₹) | Approximate Deductions (₹) | In-Hand Annual Salary (₹) | Monthly In-Hand (₹) |
|---|---|---|---|
| 8,00,000 | 1,20,000 (tax + PF + other) | 6,80,000 | ₹56,500–₹58,000 |
So, if your package is 8 LPA, you would be getting post around ₹56k to ₹58k inhand after all deductions.
Tax Calculation for 8 Lakh Per Annum
If you come under the purview of the new tax regime, here’s a simplified calculation on income tax for an annual income of ₹8,00,000:
| Income Slab | Tax Rate | Tax Amount (₹) |
|---|---|---|
| Up to ₹3,00,000 | 0% | 0 |
| ₹3,00,001 – ₹6,00,000 | 5% | 15,000 |
| ₹6,00,001 – ₹8,00,000 | 10% | 20,000 |
| Total Tax Before Cess | — | 35,000 |
| Health & Education Cess (4%) | — | 1,400 |
| Total Tax Payable | — | ₹36,400 per year |
So, if you earn ₹8 LPA then you will pay be paying about ₹3,033 per month as income tax.
8 Lakh Per Annum in Month for Different Cities
The price of the life you want makes a difference, too, as does your cost of living. Here is how ₹8 LPA monthly salary would look like in Indian cities:
| City | Monthly In-Hand (Approx.) | Living Cost (Rent + Food + Travel) | Savings Potential |
|---|---|---|---|
| Mumbai | ₹57,000 | ₹40,000 | ₹17,000 |
| Delhi | ₹58,000 | ₹35,000 | ₹23,000 |
| Bangalore | ₹56,000 | ₹38,000 | ₹18,000 |
| Hyderabad | ₹58,000 | ₹32,000 | ₹26,000 |
| Pune | ₹57,000 | ₹33,000 | ₹24,000 |
| Lucknow | ₹58,000 | ₹28,000 | ₹30,000 |
While ₹8 LPA is certainly not a bad salary, what you are actually getting out of it depends completely on where do you live.
Read More: 30 LPA In Hand Salary / SPG Salary
Is 8 Lakh Per Annum a Good Salary?
Yes for an average middle class professional in India 8lakh LPA is a good salary, at least if the person is experienced for 2–5 years around.
Here’s what you can afford on a median income.
- Affordable rental homes in Tier-2 cities
- Personal vehicle or EMIs
- Savings and SIP investments
- Occasional vacations
- Family and lifestyle expenses
But in metros like Mumbai or Bangalore, it might seem average, courtesy high rent and daily expenditure.
Tips to Increase Your Take-Home Salary
If you earn 8 LPA and want to take home more each month, here are a few smart tips:
- Opt for Tax-Saving Investments:
Invest under Section 80C (such as ELSS, PPF, or EPF) to lower taxable income. - Use HRA and LTA Benefits:
If you’re a renter, or if your job involves a lot of travel, file for these exemptions. - Ask for Performance Bonuses Instead of Allowances:
Bonuses are frequently taxed in a unique way and can serve to boost net earnings. - Choose the Right Tax Regime:
Compare old and new tax regimes before filing. - Avoid Unnecessary Deductions:
Review your payslip for cuts like insurance or subscriptions you don’t use.
Summary Table – 8 Lakh Per Annum in Month
| Details | Amount (₹) |
|---|---|
| Annual CTC | 8,00,000 |
| Monthly Gross Salary | 66,667 |
| Monthly Tax Deduction | ~3,000 |
| Monthly PF Contribution | ~2,000 |
| Monthly In-Hand Salary | ₹56,000 – ₹58,000 |
Conclusion
8 lakh per annum in month is a gross salary of appr ₹66,667 with a take-home pay somewhere between ₹56,000 to ₹58,000 after deductions and taxes. It’s a good income in India, particularly for people working as IT professionals, financial advisers or engineers.
Knowing your salary components, planning your taxes smartly, and managing expenses wisely can help you in making the most of whatever you earn and saving for the future.
FAQs
Q1. How much is 8 lakh per annum in month?
₹8,00,000 per annum equals ₹66,667 per month before tax deductions.
Q2. What will be my in-hand salary if my CTC is 8 LPA?
After tax and PF deductions, your in-hand salary will be around ₹56,000 to ₹58,000 per month.
Q3. Is 8 LPA a good salary in India?
Yes, it’s a good salary, especially in Tier-2 cities where the cost of living is lower.
Q4. How much tax do I need to pay on 8 LPA?
Under the new tax regime, you’ll pay around ₹36,400 annually, which is about ₹3,033 per month.
Q5. How can I increase my take-home salary?
Use tax-saving investments, claim HRA and LTA benefits, and choose the right tax regime to maximize in-hand income.
