8 LPA In Hand Salary – Complete Breakdown & Deductions

Understanding the 8 LPA in hand salary It’s important for everyone to know the figure of 8 LPA if you’re going to accept a new job or just comparing offers. CTC, gross and net salary: Many people mix these up and that’s exactly where the mistake lies. In India, 8 Lakh Per Annum package is a great looking package, but the figure you get to take home in salary every month is no where close to CTC.

In this write-up, you’ll find out everything in simple words. We will discuss how companies derive 8 LPA in hand salary, what are the deductions, and also we will know about how much money is going to be credit into bank every month. The information is as precise, explicit and intelligable.

Understanding CTC for 8 LPA

CTC (Cost to Company) is the expenditure a company inflicts on an individual in one year. This includes:

• Basic salary
• HRA
• EPF (employee and employer contribution)
• Professional tax
• Gratuity
• Allowances
• Bonuses (if any)

But CTC is not your take-home salary.

In-hand pay for a 8 LPA package generally comes out to be less because of tax and statutory deductions.

Monthly Breakdown of 8 LPA CTC

Let us first convert 8 LPA to monthly:

Component	Amount
Annual CTC	₹8,00,000
Monthly CTC	Around ₹66,667

But this is not how much you bring home.

To find the 8 LPA in hand salary, we need to subtract:

• Employee EPF contribution
• Professional tax (in applicable states)
• Income tax
• Other deductions (if applicable)

Typical Salary Structure for 8 LPA CTC

Below is a common salary structure used by many Indian companies (values may vary by employer):

Salary Component	Annual Amount	Monthly Amount
Basic Salary	₹3,20,000	₹26,667
House Rent Allowance (HRA)	₹1,60,000	₹13,333
Special Allowance	₹2,80,000	₹23,333
Employer PF Contribution	₹38,400	₹3,200
Gratuity	₹15,385	₹1,282
Total CTC	₹8,00,000	₹66,667

This is just a hypothetical structure to give an overview to make it clear on 8 LPA in hand salary.

Read More: 4 LPA Means How Much Per Month / 8 Lakh Per Annum in Month

Deductions From the Salary

To figure out how much money you actually receive, we need to subtract the following:

1. Employee Provident Fund (EPF)

12% of basic salary
₹3,200 per month

2. Professional Tax

Varies from state to state (₹200 is average).
Let’s consider ₹200 per month.

3. Income Tax (New Regime Example)

Income taxable after standard deduction (₹50,000):

Item	Amount
Annual CTC	₹8,00,000
Employer PF + Gratuity (not taxable)	–₹53,785
Taxable Salary	₹7,46,215
Standard Deduction	–₹50,000
Net Taxable Income	₹6,96,215

Now applying slab rates under the new regime:

Tax Slab	Tax Amount
Up to ₹3,00,000	Nil
₹3,00,001 – ₹6,00,000 (5%)	₹15,000
₹6,00,001 – ₹6,96,215 (10%)	₹9,621
Total Tax	₹24,621
Cess (4%)	₹984
Total Annual Income Tax	₹25,605

Monthly income tax: ₹2,134 per month

Final 8 LPA In Hand Salary Calculation

Now let’s calculate the take-home salary:

Particular	Monthly Amount
Monthly CTC	₹66,667
(-) Employer PF Contribution	–₹3,200
Gross Salary	₹63,467
(-) Employee PF Deduction	–₹3,200
(-) Professional Tax	–₹200
(-) Income Tax	–₹2,134
Final In-Hand Salary per Month	₹57,933

So, the in hand salary of 8 LPA is around ₹57,000 to ₹59,000 per month (based on company structure and tax regime).

Annual In-Hand Salary for 8 LPA

Details	Amount
Annual CTC	₹8,00,000
Employee PF Deduction (annual)	–₹38,400
Professional Tax (annual)	–₹2,400
Income Tax (annual)	–₹25,605
Annual Take-Home Salary	Approx ₹7,33,595

This implies that your in-hand salary, after all deductions will be well over ₹7.3 lakh per annum.

Factors That Affect Your 8 LPA In Hand Salary

8 LPA in hand salary can vary with respect to following:

1. Tax Regime Chosen

• New Regime → Higher in-hand
• Old Regime → Better for people with investments

2. City of Posting

HRA benefits will depend on if you remain in:

• Metro city
• Non-metro city

3. Company Salary Structure

Some provide more allowances, some provide more basic

4. Your Investments

If you invest in:

• ELSS
• PPF
• LIC
• NPS
• 80C deductions

By the old regime, you can save taxes and also increase your in-hand salary.

Is 8 LPA a Good Salary in India?

Yes 8 LPA is a good middle level package, particularly for :

• Freshers in premium companies
• IT professionals
• Finance and operations profiles
• Sales and marketing
• Engineering roles

Here is what you can do easily with about ₹58,000 as hand salary on an LPA 8:

• Rent
• Food
• Travel
• Savings
• Investments

The lifestyle is very good on this salary in most Tier 2 and Tier 3 cities.

How to Increase Your In-Hand Salary on 8 LPA?

Here are some simple methods:

1. Choose the right tax regime

If you don’t have investments, use the new regime.

2. Increase tax-saving investments

If you are on an old regime, claim 80C, 80D and other deductions.

3. Ask for a smart salary breakup

Request HR to:

• Reduce basic salary (lower PF)
• Increase special allowance
• Add food allowance
• Add performance-linked bonus

4. Avoid unnecessary deductions

Some employers subtract optional benefits that you can waive.

Conclusion

Knowing the 8 LPA in hand salary enables you to manage your finances better. Though CTC is high, final take-home per month almost reduces after PF, Tax & professional tax. You can end up making around ₹57,000 to ₹59,000 on an average as your in-hand salary in India with a package of 8 LPA.

This is a good salary both for new graduates and established staff, and still provides a good ratio of cost of living vs what you can save. The in-hand salary can increase by even more with best tax planning.

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