What is the in-hand salary for 18 LPA?
A CTC of ₹18,00,000 (18 LPA) gives you roughly ₹1,18,126 per month in hand under the New Regime for FY 2026-27, assuming a standard structure (50% basic, employer PF and gratuity included in CTC, ₹2,500/year professional tax). That's about 79% of your CTC reaching your bank account.
New Regime
₹1,18,126
per month in hand
| Gross taxable earnings | ₹16,48,710 |
| Taxable income | ₹15,73,710 |
| Total tax (incl. cess) | ₹1,20,699 |
| Employee PF | − ₹1,08,000 |
| Professional tax | − ₹2,500 |
| Annual in-hand | ₹14,17,511 |
Old Regime
₹1,05,676
per month in hand
| Gross taxable earnings | ₹16,48,710 |
| Taxable income | ₹14,90,710 |
| Total tax (incl. cess) | ₹2,70,102 |
| Employee PF | − ₹1,08,000 |
| Professional tax | − ₹2,500 |
| Annual in-hand | ₹12,68,108 |
At 18 LPA, the New Regime saves you ₹1,49,403 per year versus the other regime.
Monthly salary breakdown (New Regime)
| Monthly gross (taxable earnings ÷ 12) | ₹1,37,393 |
| Employee PF | − ₹9,000 |
| Income tax (incl. cess) | − ₹10,058 |
| Professional tax | − ₹208 |
| Monthly in-hand | ₹1,18,126 |
What 18 LPA actually means
A senior salary, and the point where structure starts mattering more than headline CTC.
This bracket covers senior engineers with five to eight years of experience, and engineering or product managers.
At ₹18 LPA the composition of your offer starts to drive your monthly cash as much as its size. The split between fixed and variable, the basic percentage, whether gratuity and employer PF are counted inside the CTC: each of these moves your take-home by amounts that are no longer rounding errors.
This is also where employers start getting creative. Retention bonuses, stock, joining bonuses, and deferred variable components all get quoted inside a single CTC number, and they are not equivalent. A rupee of guaranteed fixed pay and a rupee of contingent variable pay are worth very different amounts, and only one of them pays your rent every month.
Your income tax is now a substantial line on your payslip, and old-regime deductions are worth real money if you have them. If you pay metro rent and run a full 80C, the comparison is no longer one-sided.
Past the rebate, this is ordinary slab tax now
Your taxable income of ₹15,73,710 is far enough above the ₹12,00,000 rebate limit that both the rebate and its marginal relief have run out. The ₹1,20,699 you pay is the plain slab tax on your income plus 4% cess. No cliffs, no relief, and no surprises from here.
Watch out: Compare offers on fixed pay first
A ₹20 LPA offer that is 25% variable can put less in your account each month than an ₹18 LPA offer that is entirely fixed. Put both on a monthly in-hand basis before you decide.
Your structure is different?
Adjust bonus, basic %, PF, gratuity, state and age. Results update live.
Calculate for your exact CTC →How this 18 LPA breakdown works
Out of the ₹18,00,000 CTC, the employer's PF contribution (₹1,08,000) and the gratuity provision (₹43,290) never reach your monthly pay, leaving gross taxable earnings of ₹16,48,710. From that, your own PF contribution (₹1,08,000), professional tax (₹2,500) and income tax are deducted to arrive at your in-hand salary.
Under the new regime, a ₹75,000 standard deduction applies and taxable income up to ₹12 lakh is fully rebated under Section 87A. Under the old regime, you get a ₹50,000 standard deduction plus 80C credit for your employee PF, and potentially much more if you claim HRA or other investments, which this standard estimate doesn't include. If you pay rent, check your HRA exemption before choosing a regime.
Frequently asked questions
What is the monthly in-hand salary for 18 LPA?
A 18 LPA CTC gives approximately ₹1,18,126 per month in hand under the New Regime for FY 2026-27, assuming a standard structure (50% basic, employer PF and gratuity inside CTC). That is about 79% of CTC reaching your bank account.
How much income tax do I pay on 18 LPA?
On a 18 LPA CTC you pay roughly ₹1,20,699 per year (₹10,058 a month) under the new regime, or ₹2,70,102 under the old regime without extra deductions.
18 LPA: should I pick the new or old tax regime?
With a standard salary structure and no large deductions, the New Regime is better at 18 LPA, and it saves ₹1,49,403 per year. The old regime can still win if you claim substantial HRA, 80C, and home-loan interest, so compare with your actual deductions.
How much PF is deducted from a 18 LPA salary?
With a 50% basic (₹9,00,000 a year), your employee PF contribution is ₹1,08,000 per year (₹9,000 a month). Your employer contributes a similar amount inside your CTC, which builds your retirement corpus but never appears in your monthly pay.
Why is my in-hand salary lower than 18 LPA ÷ 12?
Because CTC includes money you never receive monthly: the employer PF contribution (₹1,08,000), gratuity provision (₹43,290), and then income tax, your own PF, and professional tax are deducted. ₹1,50,000 of "CTC per month" becomes ₹1,18,126 in hand.
How much variable pay is normal at 18 LPA?
Ten to twenty percent is typical at product companies; sales and leadership roles run higher. The key questions are whether it has historically paid out in full, whether it is tied to company or individual performance, and whether it is paid annually or quarterly. Ask, because the answers vary enormously between employers.