Calculating Your In-Hand Salary: An Analysis at Accenture for Packages of 7.5 LPA, 9 LPA, and 10.5 LPA

Congratulations on landing a position at Accenture! Understanding your in-hand salary, especially with variable pay, is crucial. This article breaks down the calculation for different package structures, including 7.5 LPA, 9 LPA, and 10.5 LPA, with variable pay, to help you prepare for financial planning and tax-saving strategies.

7.5 LPA Package with Variable Pay: 15%

When your package is 7.5 LPA and includes a variable pay of 15%, the calculation involves several components:

Fixed Pay: 750,000/12 62,500 Employer's PF: 2,500 Employee's PF: 2,500 Tax: Approx. 2,000

Therefore, your in-hand salary would be:

62,500 - 2,500 - 2,500 - 2,000 55,500

Note that this is an approximation. Actual figures may vary based on specific tax-saving options and deductions.

9 LPA Package with Variable Pay: 21%

Your in-hand salary for a 9 LPA package with a variable pay of 21% would be around 65,000 - 70,000, depending on your tax-saving strategies:

Fixed Pay: 750,000/12 62,500 Employer's PF: 2,500 Employee's PF: 2,500 Tax: Approx. 1,750 (since you're seeking tax savings)

So, your in-hand salary would be:

62,500 - 2,500 - 2,500 - 1,750 55,700

If you do not opt for any tax savings, the amount would be slightly lower.

10.5 LPA Package with Variable Pay: 15%

Your in-hand salary for a 10.5 LPA package with a variable pay of 15% can be calculated as follows:

Fixed Pay: 1,050,000/12 89,250 Employer's PF: 2,500 Employee's PF: 2,500

Old Tax Regime Calculation

If you are operating under the old tax regime, the calculation is as follows:

Total Salary Monthly (with Home Loan): 892,500 ÷ 12 74,375 Total Professional Tax and PF: 2,000

With tax savings options:

Standard Deduction: 50,000 80C Investments: 150,000 (employee’s PF contribution, investments in PPF, VPF, ELSS, etc.) NPS: 50,000 HRA Exemption: If HRA is 142,500 or more, tax can be exempted fully.

Calculation Example: No HRA Exemption: If HRA is less than 142,500, the calculation involves a taxable amount of:

{642,500 - HRA exempted amount} x

250,000 to 500,000: Tax 12,500 PA 500,000 to x: Tax (x - 500,000)20% per annum

Total tax paid per month: (12,500 x - 500,000 / 5) / 12

Total in-hand:

74,375 - 2,000 - (12,500 x - 500,000 / 5) / 12

New Tax Regime Calculation

Under the new tax regime, the calculation is simpler:

Total Salary Monthly: 892,500 ÷ 12 74,375 Standard Deduction: 50,000 250,000 to 500,000: Tax 12,500 PA 500,000 to 750,000: Tax 25,000 PA 750,000 to 842,500: Tax 13,875 PA

Therefore, the total tax paid per month is:

51,375 ÷ 12 4,281.25