The full breakdown of a ₹18,000 monthly package — what it is annually, what reaches your bank, and what comes out along the way.
Updated 29 August 2026. Professional tax is no longer applied to these national figures, because it varies by state. What changed →
Short answer: a CTC of ₹18,000 a month is ₹2.16 L a year, written as 2.2 LPA on a job listing. Your in-hand salary is about ₹15,258 a month — 84% of the package. Income tax is zero at this level.
New tax regime, FY 2026-27 · Assumes 40% basic, no variable pay · Figures are indicative, as of August 2026
| Component | Monthly |
|---|---|
| Total CTC | ₹18,000 |
| Employer PF (not paid to you) | ₹864 |
| Gratuity provision (not paid to you) | ₹346 |
| Employer ESI (not paid to you) | ₹546 |
| Gross salary | ₹16,244 |
| Basic | ₹7,200 |
| HRA | ₹2,880 |
| Other allowances | ₹6,164 |
| Deductions | |
| Your PF (12% of ₹7,200) | ₹864 |
| Your ESI (0.75%) | ₹122 |
| Professional tax | ₹0 (state-dependent) |
| Income tax | ₹0 |
| In hand | ₹15,258 |
Your basic is ₹7,200 a month, below the ₹15,000 statutory ceiling. That means your provident fund is 12% of your actual basic: ₹864 from you, and the same again from your employer.
Above ₹15,000 of basic, employers may apply the statutory ceiling and contribute ₹1,800 a month — the assumption used throughout this site — or contribute on actual basic wages, which is also permitted. Where the ceiling is applied, your PF is a larger proportion of your salary now than it will be later.
You are also still inside ESI at this level, which adds free family medical cover on top.
| Monthly CTC | Annual | In hand | ESI cover | You keep |
|---|---|---|---|---|
| ₹15,000 | ₹1.80 L | ₹12,715 | yes | 84.8% |
| ₹18,000 | ₹2.16 L | ₹15,258 | yes | 84.8% |
| ₹20,000 | ₹2.40 L | ₹16,954 | yes | 84.8% |
| ₹25,000 | ₹3.00 L | ₹22,119 | — | 88.5% |
| ₹30,000 | ₹3.60 L | ₹26,543 | — | 88.5% |
| ₹35,000 | ₹4.20 L | ₹30,967 | — | 88.5% |
| ₹40,000 | ₹4.80 L | ₹35,631 | — | 89.1% |
| ₹45,000 | ₹5.40 L | ₹40,535 | — | 90.1% |
| ₹50,000 | ₹6.00 L | ₹45,438 | — | 90.9% |
| ₹65,000 | ₹7.80 L | ₹60,150 | — | 92.5% |
| ₹70,000 | ₹8.40 L | ₹65,054 | — | 92.9% |
| ₹75,000 | ₹9.00 L | ₹69,958 | — | 93.3% |
| ₹80,000 | ₹9.60 L | ₹74,862 | — | 93.6% |
| ₹90,000 | ₹10.80 L | ₹84,669 | — | 94.1% |
40% basic, no variable pay, new regime FY 2026-27, professional tax excluded (state-dependent). ESI applies where gross is ₹21,000/month or less.
A CTC of ₹18,000 per month means your total annual package is ₹2.16 L — 2.2 LPA on a job listing. It is not your salary: it includes employer PF of ₹864 a month and a gratuity provision of ₹346, neither of which reaches your account.
Approximately ₹15,258 a month, or ₹1.83 L a year — about 84.8% of CTC. Your gross is ₹16,244, from which ESI of ₹122 and provident fund of ₹864 are deducted. Professional tax is excluded because it varies by state — subtract the amount applicable in your employment jurisdiction.
None. Your annual gross of ₹1.95 L is below the ₹12.75 lakh threshold, so the section 156(2)(a) rebate reduces income tax to zero. Provident fund is deducted separately and is not tax.
That depends on your city and stage. What is useful to know is the mechanics: at this level you keep 84.8% of your package as annual net cash before state professional tax, and are covered by ESI, which gives your whole family medical treatment at ESIC facilities.
Related: What CTC, LPA and in-hand actually mean · Salary Calculator · In-Hand Salary by Annual CTC · Your First Salary · All monthly CTC levels
A note on section numbers. The Income-tax Act, 2025 replaced the Income-tax Act, 1961 with effect from 1 April 2026. Section numbers on this page are those of the 2025 Act. Where you know a provision by its old number, the mapping is: 115BAC → 202, 87A → 156, 16(ia) → 19, 80CCD(2) → 124, 112A → 198, 10(10) → 19(1) Table Sl. Nos. 3-6.
The official pages this page is checked against. If one of them disagrees with us, it wins.
Written and checked by the PaisaSamajh editorial desk · Last reviewed: 29 August 2026 · How we check this →