What sits inside CTC, what reaches your account each month, and what arrives only if variable pay is paid.
Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →
Short answer: you receive between 76.0% and 94.5% of CTC as annual net cash when all target variable pay is paid, and 69.1%–84.5% when none of it is. Your recurring monthly credit is a different, smaller figure.
Tax Year 2026-27 · model PS-A3 · 40% basic · 10% target variable, primary scenario assumes 100% of it is paid · provident fund on the capped ₹15,000 wage basis · professional tax excluded because it varies by state · employer NPS not modelled. Your employer’s structure will differ.
fixed_cash = CTC − employer_PF − gratuity_provision − target_variable
actual_variable = target_variable × payout_rate
salary_cash = fixed_cash + actual_variable
taxable_salary = salary_cash − ₹75,000 (s.19(1) Table Sl. No. 2)
annual_net_cash = salary_cash − employee_PF − income_tax
Employer provident fund. On the capped basis, ₹21,600 a year. It goes to your EPF account, not your salary.
Gratuity provision. About 4.81% of basic, set aside annually and payable after five years of service. It is an employer cost, not an employee tax deduction in the year provided.
Target variable pay. A target variable component may be paid separately. Any amount actually paid is salary cash and is taxable in that year; any amount not paid is neither received nor taxed.
| Step | Amount |
|---|---|
| CTC | ₹10,00,000 |
| Less employer PF | −₹21,600 |
| Less gratuity provision | −₹19,231 |
| Less target variable (paid separately) | −₹1,00,000 |
| Fixed annual cash | ₹8,59,169 |
| Plus variable actually paid (100% scenario) | +₹1,00,000 |
| Salary cash | ₹9,59,169 |
| Less employee PF | −₹21,600 |
| Less income tax | −₹0 |
| Annual net cash | ₹9,37,569 |
| Recurring monthly credit | ₹69,797 |
| CTC | Regular monthly net | Annual net cash | % of CTC |
|---|---|---|---|
| ₹5 LPA | ₹33,099 | ₹4.47 L | 89.4% |
| ₹6 LPA | ₹40,438 | ₹5.45 L | 90.9% |
| ₹8 LPA | ₹55,118 | ₹7.41 L | 92.7% |
| ₹10 LPA | ₹69,797 | ₹9.38 L | 93.8% |
| ₹12 LPA | ₹84,477 | ₹11.34 L | 94.5% |
| ₹15 LPA | ₹99,027 | ₹13.38 L | 89.2% |
| ₹18 LPA | ₹1,16,923 | ₹15.83 L | 87.9% |
| ₹20 LPA | ₹1,28,203 | ₹17.38 L | 86.9% |
| ₹25 LPA | ₹1,54,862 | ₹21.08 L | 84.3% |
| ₹30 LPA | ₹1,79,004 | ₹24.48 L | 81.6% |
| ₹40 LPA | ₹2,26,901 | ₹31.23 L | 78.1% |
| ₹50 LPA | ₹2,74,799 | ₹37.98 L | 76.0% |
At ₹20 lakh, annual net cash is ₹15.80 L with none of the target variable paid, ₹16.59 L with half paid, and ₹17.38 L with all paid. Income tax moves with it — ₹1,38,307, ₹1,59,107 and ₹1,79,907 respectively — because only variable actually paid is taxed.
Between 76.0% and 94.5% as annual net cash on the primary scenario (capped provident fund, professional tax excluded, all target variable actually paid), peaking at ₹12 LPA. At nil payout the range is 69.1% to 84.5% across the twelve CTC bands on these pages, capped provident fund.
Regular monthly net is your recurring bank credit and excludes variable pay. Annual net cash includes the variable actually paid. Dividing annual net cash by twelve gives an average, not a payslip figure.
A target variable component may be paid separately. Any amount actually paid is salary cash and is taxable in that year; any amount not paid is neither received nor taxed.
Related: What CTC and LPA mean · In-Hand Salary by CTC · Salary Calculator · Monthly CTC to In-Hand