IPL Retained Player Salary Rules 2026: How Retention Money is Paid

When an IPL franchise retains a player ahead of an auction, the player's salary is paid out under specific rules that affect the team's salary cap and the player's take-home. Here is the complete 2026 breakdown.

How retention money is paid

Retention money is paid to the player in full, exactly as advertised. A ₹18 crore retention = ₹18 crore to the player (before tax).

Salary-cap impact for the franchise

For the first 3 retentions, the full salary counts against the ₹120cr cap. For the 4th and 5th retentions, slab pricing applies (see IPL 2027 retention rules).

Uncapped player retention rules

Uncapped Indians can be retained cheaper at ₹4cr slab. This is how CSK kept MS Dhoni at uncapped pricing.

Right-to-Match (RTM) salary mechanic

RTM used at auction — franchise matches the winning bid. Full bid amount counts against cap.

Tax treatment

Retention earnings are taxed at India's 30% slab for residents; overseas players handle their own tax residency.

When retention money is paid

Split into 3 tranches: 15% at announcement, 65% during the IPL season, 20% at end of season.

Frequently Asked Questions

How much of retention salary actually goes to the player?

The full advertised amount, minus applicable tax.

Does retention count against the salary cap?

Yes — for the first three retentions at full price.

What is the uncapped retention slab?

₹4 crore for uncapped Indian players.

When do players receive their retention payments?

15% up front, 65% during IPL, 20% after the season.

Is retention money taxed?

Yes — India's top marginal rate (30%+) applies to resident players.

The takeaway

Bookmark the IPL 2026 points table, check the live schedule, and use our Dream11 tools before you lock your fantasy team. CricJosh updates every hub after every match — no stale data.