LPA meaning in salary: what is LPA (Lakh per Annum)?
LPA meaning in salary: lakh per annum, a yearly amount in lakh, where one lakh is 1,00,000 rupees. A package of 12 LPA is Rs 12,00,000 a year, normally quoted as CTC. Dividing by 12 gives a monthly figure, but in-hand pay is lower because of deductions and the structure of the package.
How to read an LPA figure
LPA describes a whole year of pay, not one month. Three things decide what you actually receive:
- What the figure includes. An LPA number is usually CTC, so it may count employer PF, gratuity and variable pay that you do not take home monthly.
- How much is fixed. Fixed pay arrives every month; variable pay depends on targets.
- Deductions. Employee PF, professional tax where it applies, and income tax (TDS) come off before you are paid.
Quick conversions
| Quoted | In rupees per year | Simple monthly average |
|---|---|---|
| 6 LPA | Rs 6,00,000 | Rs 50,000 |
| 12 LPA | Rs 12,00,000 | Rs 1,00,000 |
| 24 LPA | Rs 24,00,000 | Rs 2,00,000 |
The monthly column is only the total divided by 12. It is not what reaches your account.
Lakh and crore
One lakh is 1,00,000 and one crore is 1,00,00,000 (100 lakh). Indian digit grouping puts the first comma after three digits from the right and then every two digits.
Example
The US-dollar value depends on the exchange rate; check the day's RBI reference rate.