Anyone working in tech, consulting, finance, or product management can consider a salary package of 24.5 LPA an excellent accomplishment. It’s a figure that helps a resume or LinkedIn message stand out. Although your monthly gross income is great, what amount does that really leave you with at the end of the month?
It’s from here on that the situation becomes difficult.
After all the deductions are taken from your pay, what you actually take home as salary can be much lower than the Cost to Company. A lot of the 24.5 LPA is taken away by taxes, EPF, gratuity, professional tax, and other expenses.
The guide explains all of this in a way that’s easy to understand. The amount of money that will come out of your pay, the average you can count on every month and year in 2025, and some tips for getting even more when you’re paid.
Interested in seeing what 24.5 LPA would look like in your paycheck? That’s why you found this post. Let’s crack the code.
Understanding CTC vs In-Hand Salary
Before delving into the figures, it is crucial to distinguish between in-hand salary and CTC (Cost to Company):
| Term | Description |
| CTC (Cost to Company) | The total annual expenditure incurred by the employer for an employee, including benefits, bonuses, and statutory contributions. |
| Gross Salary | The total salary before taxes and deductions, excluding employer contributions. |
| Net Salary / In-Hand Salary | The actual amount received by the employee after deductions such as tax, PF, and professional tax. |
Estimated Salary Structure for a 24.5 LPA Package
Organizations may have different pay systems, however the following is a typical breakdown of a 24.5 LPA CTC:
| Salary Component | Annual Amount (₹) | Monthly Amount (₹) |
| Basic Salary | ₹9,80,000 | ₹81,667 |
| House Rent Allowance (HRA) | ₹4,90,000 | ₹40,833 |
| Special Allowance | ₹6,70,000 | ₹55,833 |
| Performance Bonus (Variable) | ₹2,50,000 | N/A |
| Employer’s Contribution to PF (12% of Basic) | ₹1,17,600 | ₹9,800 |
| Gratuity (4.81% of Basic) | ₹47,138 | ₹3,928 |
| Total CTC | ₹24,54,738 | – |
The performance bonus will not be included in this study; instead, we will solely concentrate on the fixed components. Because of this, the annual effective fixed salary is ₹22,04,738.
Deductions Breakdown
The following deductions are applicable to calculate the actual in-hand salary:
Employee Provident Fund (EPF)
Employee contribution: 12% of Basic Salary
= ₹1,17,600 annually
You have to set aside ₹9,800 from your salary every month.
Note: Employer contributions do not change the amount of take-home pay.
Gratuity
4.81% of Basic Salary
= ₹47,138 annually (~₹3,928/month)
This is a component of the CTC, though the payment comes just once per year.
Professional Tax
Some states such as Maharashtra and Karnataka permit people to use it.
= ₹200 per month
There is a shift in the tax system to the new Income Tax (TDS).
For FY 2024–25, these are the tax slabs in the new tax regime.
| Income Range | Tax Rate |
| 0 – 3L | 0% |
| 3 – 6L | 5% |
| 6 – 9L | 10% |
| 9 – 12L | 15% |
| 12 – 15L | 20% |
| 15L+ | 30% |
Taxable income (excluding bonus) = ₹22,04,738
Tax Calculation:
- 0 – 3L → 0% = ₹0
- 3 – 6L → 5% of 3L = ₹15,000
- 6 – 9L → 10% of 3L = ₹30,000
- 9 – 12L → 15% of 3L = ₹45,000
- 12 – 15L → 20% of 3L = ₹60,000
- 15L – 22.04L → 30% of 7.04L = ₹2,11,200
Total Tax (Before Cess) = ₹3,61,200
Health and Education Cess (4%) = ₹14,448
Total Income Tax = ₹3,75,648 annuallyMonthly TDS = ₹31,304
Total Monthly Deductions
| Deduction | Monthly Amount (₹) |
| Employee PF | ₹9,800 |
| Income Tax (TDS) | ₹31,304 |
| Professional Tax | ₹200 |
| Total Deductions | ₹41,304 |
Net Monthly In-Hand Salary
Monthly Gross Fixed Salary = ₹1,83,728
Deductions = ₹41,304
The monthly net in-hand salary is ₹1,42,424.
Annual In-Hand Salary (Including Bonus)
| Component | Amount (₹) |
| Fixed In-Hand (Monthly × 12) | ₹17,09,088 |
| Performance Bonus (if paid fully) | ₹2,50,000 |
| Total Annual In-Hand | ₹19,59,088 |
FAQs
What will a 24.5 LPA package be worth once it is paid out in 2025?
The amount you can take home every month will depend on the tax plan you choose, which can be ₹1.42–₹1.48 lakhs. The amount received annually (including all bonuses) is close to ₹19.5 lakhs.
If you earn 24.5 LPA, what income tax will you be liable for?
With the new rules, the annual tax a person must pay (including cess) is roughly ₹3.75 lakhs. Under the exemption system, it is possible to save ~₹3 lakhs.
Is the bonus included in your salary when it is handed over?
Usually, the bonus is given separately from the regular monthly income.
Should I opt for the old tax law or the new one?
If you can benefit from HRA, 80C (EPF/ELSS), and 80D, the old tax regime has the potential to save you more money. If you take this option, the smaller tax rates are available, but you still won’t be allowed any exemptions.
Am I able to get my salary raised with the employer?
Yes. You can request:
- A higher fixed salary component
- Reimbursements (fuel, internet, travel)
- Food coupons or Sodexo
- Quarterly rather than annual bonuses
Conclusion
Having a package of 24.5 LPA is very helpful, especially for those working at ages 25 to 35. Once tax and all necessary deductions are made, the actual take-home salary is between ₹1.42 to ₹1.48 lakhs.
When you know how your salary is broken up, you can organize your money appropriately, make good investment choices, and reduce the amount of tax you pay. It is important to know what you will take home after taxes, whenever you budget or think about a new job offer.
