For 3 LPA salary, your gross salary will be ₹25,000, and your in-hand salary will be around ₹22,000 to ₹23,000 after all deductions. The common deductions are EPF, health insurance premium, professional tax, etc.
3 LPA stands for Three Lakh Rupees Per Month. It is a good salary to start off your career with, as it will help you earn more with experience.
3 LPA Monthly & Annual Estimated Salary Breakdown
| Per Month | Per Annum | |
| EARNINGS | ||
| Basic Wage | 11250 | 135000 |
| House Rent Allowances @ 40% on basic wage | 4500 | 54000 |
| Conveyance/Transport Allowances | 1600 | 19200 |
| Medical Allowances | 1250 | 15000 |
| Other Allowances | 6400 | 76800 |
| DEDUCTIONS | ||
| EPF | 1350 | 16200 |
| Health Insurance | 500 | 6000 |
| Professional Tax | 200 | 2400 |
| NET SALARY | ₹22,950 | ₹2,75,400 |
- In the above example, the basic wage is calculated at 45% of the gross wage. In general, the basic wage should be around 40-50% of the gross and it should be adjusted according to the minimum wage rates fixed by the state government.
- HRA (House rent allowances) are calculated at 40% of the basic wage for non-metro cities and 50% for cities (Delhi, Mumbai, Kolkata, and Chennai).
- Conveyance and medical allowances are fixed rates.
- The balance allowances remain after all earnings are called other (or) special allowances.
- In Deductions, EPF is calculated at a rate of 12% on basic wage. Whatever amount is deducted from the employee’s salary, the same amount will be contributed by the employer to the employee’s EPF account.
- Health insurance premium depends on the insurance plan and scheme benefits.
- Every state has its fixed professional tax slab rates, each month PT will be deducted from the salary.
FAQs
1. Does PF deduct for 3 LPA salaries?
Yes, EPF will be deducted if your salary is 3 LPA.
2. Does ESI deduct if my salary is 3LPA?
No, ESI will not be deducted. It is applicable only if the gross salary of the employee is less than or equal to 21,000 Rs. Otherwise, employees should register for any group health insurance scheme provided by the company.
3. If my salary is 3LPA what is my In-hand (or) net salary?
It will be around ₹22k to ₹23k after all the deductions.
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