IPL salary structure explained: How much do players earn from their bids? What extras do they get?

The Indian Premier League (IPL) 2025 mega auction in Saudi Arabia’s Jeddah witnessed 182 players being sold across 24 and 25 November, while another 103 players remained unsold . India wicketkeeper-batter Rishabh Pant was the highest earner of the IPL 2025 auction , after Lucknow Super Giants (LSG) secured him for a record fee of Rs 27 crore.

Shreyas Iyer was the next highest earner, after he was acquired by Punjab Kings (PBKS) for Rs 26.75 crore. A total amount of Rs 639.15 crore was spent by 10 franchises during the IPL 2025 auction.

Now the big question is will the players pocket the whole money? For example, is Rishabh Pant free to take Rs 27 crore or does he have to share the salary with someone? Here, we explain exactly how the IPL salary structure works, and if in fact, the player receives all the money.

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IPL salary structure explained

Simply put, the amount for which a player has been acquired ultimately becomes his salary, post the deduction of taxes. The player receives the entire salary and there are no other claimants. The players receive their salary on a season-to-season basis. For instance, if a player’s salary is Rs 20 crore, he will get Rs 20 crore if he has played the 2025 season. Similarly, if the player plays for the franchise for three seasons between 2025 and 2027, he will receive a salary of Rs 60 crore.

Should a player be acquired on a three-year contract, and get retained for a fourth year when there is no upcoming auction, then the player’s contract gets extended for the same salary that was initially given to the player. This, however, can change depending on if the team wishes to offer the player a raise. In most cases, players are retained by teams with a salary hike.

Players’ participation in IPL

Should a player make himself available for an entire IPL season, he will receive the full salary amount, no matter how many matches he ends up playing in the season. Should a player withdraw due to injury ahead of an IPL season, the franchise is not required to pay the player his salary. Should the player is only available for a limited number of matches instead of the full season, the player gets paid on a pro-rata basis, plus a 10 per cent retainer.

Should a player get injured during an IPL season, it is the responsibility of his franchise to take care of the player’s medical expenses.

A player can ask the franchise to be released before the end of a contract if he wishes. On the other hand, should a team decide to release the player before the contract’s expiration, the franchise is bound to pay the player the entire salary of the full contract.

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Are players in IPL paid at once?

Franchises do pay the players their full salary amount at once, but that may not always be the case. Rich franchises provide players with cheques during the first pre-tournament team camp. A few teams might pay the players 50 per cent salary before the tournament and 50 per cent during the tournament.

Some franchises also use the 15-60-20 rule. In this, players receive 15 per cent of their salary a week prior to the start of the tournament, 65 per cent during the tournament, and the remaining 20 per cent after a certain time once the tournament concludes.

Is there any extra income for players in the IPL?

In addition to their auction bids, which determine their salary, players also receive daily allowances. These allowances vary from team to team and depend on whether the tournament is held in India or abroad. During a home IPL, players typically receive around Rs 5,000 per day to cover food and incidental expenses.

Foreign boards also make money when their players are picked

Overseas cricket boards also benefit financially when their players participate in the IPL. For overseas players, 20% of the final auction bid is shared with their respective national board, with this fee drawn from the IPL’s central revenue pool. For example, in the case of Jos Buttler, who was the highest-paid foreign player in the IPL Auction 2025, the England and Wales Cricket Board (ECB) will receive Rs 3.15 crore because the wicketkeeper-batter went for Rs 15.75 crore. This money comes from the IPL central revenue pool and not from the player’s salary.