Understanding Your Monthly In-Hand Salary at Infosys: A 10 LPA Offer with 10% Variable Pay

When you receive an offer for a 10 LPA (Lakhs per Annum) position at Infosys with a 10% variable component, it's important to understand how your salary will break down. This article will walk you through the calculation of your monthly in-hand salary, including the fixed salary and variable pay. We'll also explore the impact of various deductions on your actual take-home pay.

Calculating Your Monthly In-Hand Salary

To begin, let's break down the components of your salary:

1. Calculating the Fixed Salary

10 LPA (Lakhs per Annum) means you would receive 10 lakhs per year. The variable pay is typically 10% of your total salary, which is 1 lakh (10%) of 10 lakhs. Therefore, your total fixed salary would be:

Total Fixed Salary 10 LPA - 1 LPA (Variable Pay) 9 LPA

Monthly Fixed Salary

Converting the annual fixed salary into a monthly figure, you would receive:

Monthly Fixed Salary 9 LPA / 12 months 0.75 LPA 75,000 per month

2. Calculating the Variable Pay

Assuming the variable pay is fully achieved, you will receive 1 lakh (10%) of 10 lakhs per year. To distribute the variable pay evenly throughout the year, you would receive:

Monthly Variable Pay (if distributed evenly) 1 LPA / 12 months 8,333 per month

3. Total Monthly In-Hand Salary

Combining your fixed and variable salaries, if you receive the variable pay monthly, your total monthly in-hand salary would be:

Total Monthly In-Hand Salary Monthly Fixed Salary Monthly Variable Pay (if applicable) 75,000 8,333 83,333

Summary

Monthly In-Hand Salary: 75,000 fixed 8,333 variable (if applicable) 83,333

Annual Variable Pay: 100,000 if fully achieved

It's important to note that your actual in-hand salary may vary due to deductions such as taxes, provident fund contributions, and other benefits:

Impact of Deductions on Your In-Hand Salary

After accounting for various statutory deductions, including IT, PF, professional tax, and others, your actual take-home pay might range between 61,000 to 65,000 per month. This variability can be influenced by factors such as:

Income taxes Provident fund contributions Professional taxes HRA (House Rent Allowance)

For instance, if you take 100% of the eligible HRA under the old tax regimen, your in-hand salary could be about ?71,000 per month on average, assuming you achieve 100% of the variable pay.

Final Takeaways

The key takeaways are:

Your fixed salary is calculated as 9 LPA (75,000 per month). The variable pay is distributed evenly, giving you approximately 8,333 per month if you achieve 100% of it. Your total monthly in-hand salary could range from 61,000 to 65,000, depending on statutory deductions.

Remember that your in-hand salary is subject to various conditions and can be influenced by different factors, which is why it's important to understand the nuances of your salary structure before accepting an offer.