LPA full form and meaning in salary
LPA stands for lakhs per annum: ₹1 lakh is ₹1,00,000, so a 12 LPA package is ₹12,00,000 of CTC a year. In hand it is about ₹90,200 a month in FY 2026-27, not ₹1,00,000, because employer PF, income tax, your own EPF and professional tax come out first.
FY 2026-27 figures, rules verified 3 Sep 2026. Numbers assume basic at 40% of CTC, employer PF inside CTC and ₹2,400 professional tax unless stated.
Indian offer letters quote salary in LPA because the numbers are large and the annual cost to company is what HR budgets. The figure is almost always CTC, not gross and not take home.
To convert LPA to a monthly figure, divide by 12 for the CTC per month and then remove employer PF, gratuity provision, income tax, employee EPF and professional tax. The gap between the two is usually 15 to 30 percent.
Quick reference for FY 2026-27 under the new regime with a standard structure: 5 LPA is ₹37,467 a month, 10 LPA is ₹75,133, 12 LPA is ₹90,200, 20 LPA is ₹1,36,097 and 30 LPA is ₹1,89,894.
See the figure for your own salary on the in hand calculator.
Questions
Related terms
- CTC — CTC stands for cost to company: the total amount an employer spends on you in a year, including your gross salary, the employer share of provident fund, any gratuity provision, insurance premiums and sometimes the value of perks.
- CTC vs gross vs in hand — CTC is what the company spends, gross is CTC minus the employer's PF and gratuity contributions, and in hand is gross minus income tax, your own EPF and professional tax.
- In hand salary — In hand salary, also called take home or net salary, is the amount credited to your bank account each month after income tax, employee provident fund and professional tax are deducted from gross salary.