You’ve received a job offer letter for a 4.5 LPA salary package. It sounds impressive to get Rs. 4.5 lakhs per year. But the reality is different, you will not receive Rs. 4.5 in your account per year, the take-home amount will be less. Many professionals worry, “How much is the 4.5 LPA in hand salary?” In actual, 4.5 LPA in hand salary per month will be Rs. 33000 to Rs. 35000.
In this article, we will learn more about the 4.5 LPA salary structure, deductions, tax details, etc.
What CTC Actually Means?
CTC is the cost to the company, meaning the amount the company bears for you per year. 4.5 lpa in hand salary CTC means your company will spend Rs. 4.5 lakhs per year on you. The entire amount will not be credited in cash. The CTC includes Basic pay, HRA, Special Allowances, Employer Provident Fund, Medical insurance, gratuity, etc.
4.5 LPA In-Hand Salary – Full Breakdown
Let’s understand a 4.5 LPA salary with an example. Not every company follows the same salary structure, but some components remain the same. A typical 4.5 LPA salary structure example is mentioned below:
| Salary Component | Amount (Yearly) |
| Basic Salary | ₹1,80,000 |
| HRA | ₹72,000 |
| Special Allowance | ₹1,50,000 |
| Employer PF Contribution | ₹21,600 |
| Gratuity | ₹8,654 |
| Medical Insurance | ₹3,746 |
| Total CTC | ₹4,50,000 |
Why is the 4.5 LPA in-hand salary lower?
If you divide Rs. 4.5 lakhs by 12, it will be Rs. 37500 per month. But you get a lower amount in your bank account every month. It is because of various deductions, including Provident fund, professional tax, Income tax, etc.
Read Also: 4 LPA in hand salary | 2.5 LPA in hand salary
What will you actually receive in Your Bank Account monthly?
Your monthly deductions and final 4.5 LPA in hand salary is:
| Component | Approx Amount (Monthly) |
| Employee PF | ₹1,800 – ₹2,200 |
| Professional Tax | ₹200 |
| Income Tax (if applicable) | ₹0 – ₹300 |
| Final Monthly In-Hand Salary | ₹34,000 – ₹35,000 |
Annual take-home salary
Here are the annual take-home salary details for 4.5 LPA:
| Component | Approx Amount (Yearly) |
| Employee PF | ₹21,600 – ₹26,400 |
| Professional Tax | ₹2,400 |
| Income Tax (if applicable) | ₹0 – ₹3,600 |
| Final Yearly In-Hand Salary | ₹4,08,000 – ₹4,20,000 |
Is 4.5 LPA a Good Salary in India?
A 4.5 lpa in hand salary does not hold the same value for everyone. Here are the main 3 factors that decide whether 4.5 LPA is a good salary for you or not.
- Your city
The living costs in your city matter a lot. If you reside in metro cities or Tier 1 cities such as Mumbai, Delhi, or Bangalore, you may find 4.5 LPA a lower salary to meet expenses. On the other hand, in the tier 2 cities, you can easily lead a comfortable lifestyle with 4.5 LPA.
- Experience level
If you have more than 4 years of experience in your industry, 4.5 LPA is a lower salary for you. On the other hand, a fresher or a 1-2 year experience holder will find 4.5 LPA a good start.
- Industry
4.5 LPA is a common salary package in IT services, sales, banking, BPO/KPO, and digital marketing.
Income Tax Situation at 4.5 LPA
With a 4.5 lpa in hand salary, you will be paying very little or no income tax. You get the standard deduction of Rs. 50,000. Your taxable income will be Rs. 4,00,000. Depending on the different tax regimes, your tax will be:
Under the New Tax Regime
| Component | Amount (₹) |
| Income up to ₹3,00,000 | 0 |
| Remaining income | 1,00,000 |
| Section 87A Rebate | 5,000 |
| Final Tax Payable | 0 |
Under the Old Tax Regime:
| Component | Amount (₹) |
| Income up to ₹2,50,000 | 0 |
| Remaining income | 1,50,000 |
| Section 87A Rebate | 7,500 |
| Final Tax Payable | 0 |
Benefits of a 4.5 LPA Salary
4.5 lpa in hand salary is Rs. 33000 to Rs. 35000 per month, but you get additional benefits such as:
- PF savings
The PF deduction may reduce your salary, but you get long-term benefits. It accumulates as your retirement corpus.
- Gratuity Eligibility
After 5 years of service, you will be eligible to get gratuity, leading to more in hand salary.
- Health Insurance
The health insurance benefits help you save money on medical bills. The company covers your medical needs.
Common Myths About 4.5 LPA
There are common misconceptions among employees about the 4.5 LPA package. The reality check is below:
- 4.5 LPA in hand salary will be Rs. 37,500
The actual in hand salary from 4.5 LPA will be less. You will get approximately Rs. 33000 to Rs. 35000 per month after deductions.
- Lower salary means no tax.
Your income tax may be zero, but you still need to pay PF and professional tax.
- Higher basic pay is better.
Higher basic pay leads to higher PF deductions. It reduces your in-hand amount but enhances your long-term savings.
Conclusion
If you are a fresher or a 1-2 years experience holder in your field, 4.5 LPA will be a decent start for you. The 4.5 LPA in hand salary will be Rs. 33,000 to Rs. 35,000 per month. It is enough to meet your basic expenses and start small savings. The salary will increase with your experience. The in hand salary is always lower than CTC because of some deductions such as income tax, PF, and professional tax.
FAQs
Q1)What will be in hand salary for a 4.5 LPA?
The 4.5 lpa in hand salary in hand monthly salary ranges from Rs. 34,000 to Rs. 35,000, depending on your company’s salary structure. The common deductions are the Provident fund and professional tax. The income tax is almost zero.
Q2)Do I need to pay income tax on a 4.5 LPA package?
Usually, the income tax on 4.5 LPA is zero in the old and new tax regimes. You must consult your HR to know more details about your income tax deduction based on your company policy and salary structure.
Q3)Is 4.5 LPA a good salary for freshers?
Yes, 4.5 LPA is a good start for freshers. It provides stability and good career growth. If you are living in Tier 2 and Tier 3 cities, you will manage expenses very comfortably.
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