The full breakdown of a ₹20,000 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 ₹20,000 a month is ₹2.40 L a year, written as 2.4 LPA on a job listing. Your in-hand salary is about ₹16,954 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 | ₹20,000 |
| Employer PF (not paid to you) | ₹960 |
| Gratuity provision (not paid to you) | ₹385 |
| Employer ESI (not paid to you) | ₹606 |
| Gross salary | ₹18,049 |
| Basic | ₹8,000 |
| HRA | ₹3,200 |
| Other allowances | ₹6,849 |
| Deductions | |
| Your PF (12% of ₹8,000) | ₹960 |
| Your ESI (0.75%) | ₹135 |
| Professional tax | ₹0 (state-dependent) |
| Income tax | ₹0 |
| In hand | ₹16,954 |
The modelled gross for this CTC is ₹18,049 a month. The ESI wage ceiling is ₹21,000 a month (₹25,000 for employees with disabilities). On this model that corresponds to a CTC of roughly ₹22,400 a month — but the ceiling applies to wages as defined under the ESI Act, which may not equal your gross salary or your CTC.
So a raise across that ceiling can end ESIC cover for your family. You would stop paying the ₹135 and stop receiving outpatient care, hospitalisation, medicines, sickness benefit and maternity benefit for the household. Confirm your position from your payslip rather than assuming it from CTC.
That is not an argument against the raise. It is an argument for knowing that you will need to buy health insurance the month it happens — and for budgeting for it before the raise, not after the first hospital bill.
Coverage also does not necessarily end on the day wages cross the ceiling. ESI operates in six-month contribution periods, and continuation rules apply within a period — confirm the detail with your employer or ESIC, as the treatment depends on when in the period the change occurs.
| 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 ₹20,000 per month means your total annual package is ₹2.40 L — 2.4 LPA on a job listing. It is not your salary: it includes employer PF of ₹960 a month and a gratuity provision of ₹385, neither of which reaches your account.
Approximately ₹16,954 a month, or ₹2.03 L a year — about 84.8% of CTC. Your gross is ₹18,049, from which ESI of ₹135 and provident fund of ₹960 are deducted. Professional tax is excluded because it varies by state — subtract the amount applicable in your employment jurisdiction.
None. Your annual gross of ₹2.17 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 →