Salary and compensation
Know your worth. Negotiate with facts.
How Indian salary packages are built, how to find the market rate for your role, and how to compare and negotiate offers.
Understand the package
What makes up your CTC
| Component | What it is | Is it in your monthly pay? |
|---|---|---|
| Basic salary | Usually 40–50% of fixed pay. Other components are often calculated from it. | Yes |
| HRA and allowances | House rent allowance, special allowance and others. Tax treatment varies. | Yes |
| Employer PF contribution | Employer's contribution to your provident fund. | No, it goes to your PF account |
| Gratuity | Paid when you leave after eligible service, usually five years. | No |
| Variable pay or bonus | Paid on individual or company performance, often annually. | Only when paid out |
| Insurance and benefits | Health cover, meal cards, ESOPs and similar. | No, or partly |
In-hand pay is your monthly gross minus your PF contribution, professional tax and income tax. Always ask an employer for the full break-up.
Market rate
Find out what the role pays
Your increment is not the right benchmark. Base your expectations on what the new role pays in the market for your experience and city.
- Check the Believers HR salary guide for indicative ranges by role and experience.
- Compare the scope: team size, budget, revenue responsibility and seniority all move pay.
- Factor in city, working arrangement and travel.
- Ask your consultant. We see current offers in your market and will tell you what is realistic.
Negotiating
Five steps to a fair offer
- Prepare your numbers
Know your full current package, your realistic range for the new role, and the lowest figure you would accept.
- Give a range, not a number
Anchor with a researched range when asked. Explain it with the scope of the role, not your personal needs.
- Compare like with like
Separate fixed pay from variable, one-time and deferred pay. Check how and when variable pay is actually paid.
- Negotiate the whole offer
If fixed pay is capped, ask about joining bonus, notice buyout, title, review date, leave or remote days.
- Get it in writing
Confirm the final CTC break-up, joining date and any special terms in the offer letter before you resign.
Counter-offers
When your employer asks you to stay
A counter-offer is flattering, but think about why you started looking. If the reasons were pay alone, a counter-offer may solve them. If they were about growth, manager, or the type of work, they usually return within a year.
Decide before you resign what, if anything, would make you stay. Be honest with your recruiter and the new employer about where you stand; a late withdrawal affects your reputation in a small market.
Notice periods
Buyouts and early release
Notice periods of 60 to 90 days are common in India. If the new employer needs you sooner, they may offer a notice buyout, in which they pay the amount your current employer would deduct for early release. Confirm in writing who pays, how much, and the tax treatment before relying on it.
Questions
Frequently asked questions
Should I tell a recruiter my current salary?
Yes. It helps us set realistic expectations with the employer and negotiate on your behalf. We share it only for roles you apply to.
What is a reasonable increase when changing jobs?
It depends on the market for your skills, the level of the new role and how far below market you currently are. Use the salary guide and your consultant's view rather than a fixed percentage.
Is a higher CTC always better?
Not necessarily. A higher CTC with a large variable or deferred element can mean lower monthly pay. Compare fixed pay and the likely payout of variable pay.
Will Believers HR negotiate for me?
Yes. For roles we recruit, your consultant handles the offer conversation with the employer and keeps you informed.
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