Where the missing ₹6,600 a month goes
On paper, ₹8,00,000 ÷ 12 is ₹66,667 a month. In hand you get about ₹60,067. The ₹6,600 gap is not tax — it is provident fund. With a 40% basic (₹3,20,000 a year), the employer's PF of ₹3,200 a month sits inside your CTC and never reaches your account, and your own ₹3,200 employee PF is deducted from gross. Add ₹200 professional tax and the arithmetic closes exactly. The PF money is still yours — it is simply parked for retirement at EPF's interest rate.
Why income tax is zero at 8 LPA (new regime)
Gross salary is ₹7,61,600 after removing employer PF. The new regime's ₹75,000 standard deduction takes taxable income to ₹6,86,600. Slab tax on that is just ₹14,330 — and because taxable income is below ₹12 lakh, the §87A rebate (up to ₹60,000 for FY 2025-26) wipes it out completely. Your payslip should show zero TDS for income tax if you have no other income.
8 LPA in a metro vs a smaller city
₹60,000 a month is a genuinely different salary in different cities. In Mumbai or Bengaluru, a decent 1BHK near work can take ₹20,000–30,000 of it before utilities; in Indore, Jaipur or Coimbatore the same money rents far more and leaves room to save aggressively. At this level, city choice often moves your savings rate more than a 2 LPA hike would.
The 50% basic (labour-code) scenario
If wage-code definitions apply to your employer, basic may rise to at least 50% of CTC — ₹4,00,000 here. PF on both sides climbs to ₹4,000 a month each, and monthly in-hand slips to about ₹58,467 (₹1,600 less). Nothing is lost — the difference moves into your EPF corpus. As of June 2026, implementation timelines still vary by state and employer.
Month by month, nothing changes
This estimate is flat across all 12 months — a fixed-pay structure with zero tax means January's credit equals December's. Months only differ if your CTC includes variable pay, a joining bonus, or LTA paid out as a lump sum.