How to Compare Two Job Offers in India

Remove everything from each CTC that is not guaranteed cash paid to you during the year: employer PF, the gratuity provision, insurance premiums, notional perks, one-time joining bonuses and any variable or performance-linked component. What remains is guaranteed annual fixed pay, and it is the only figure that compares cleanly across employers.

If an offer letter does not break this down, ask for a detailed salary structure before you accept. A reluctance to provide one is itself information.

Variable pay is not free money and it is not guaranteed money. Ask two questions: what percentage of target has actually been paid out in the last two or three cycles, and is payout tied to company performance, team performance or your own rating. A 20% variable that historically pays at 70% is worth 14% in expectation — and worth zero in a bad year you cannot control.

A job change carries costs the offer letter does not mention: notice period buyout if you cannot serve your full notice, an unvested or clawed-back joining bonus at your current employer, lost variable pay for the current cycle if you leave before payout, and relocation. Convert each into rupees and subtract them from the first year of the new offer.

Both offers below look like “12 lakh” packages. They are not the same offer.

On guaranteed pay the gap is over two lakh. Even after crediting expected variable, Offer A is ahead — and Offer A’s income is far more predictable, which matters if you are planning an EMI.

A strong offer you cannot start on time can fall apart. Work out your last working day from your notice period, then the earliest realistic joining date after background verification and any break you need. If the new employer’s date is earlier than your earliest possible date, raise it before signing, not after.

• Role scope and whether the work builds skills you want in three years.
• Manager and team — the strongest predictor of whether you stay.
• Commute, hybrid policy and realistic working hours.
• Company stability and funding stage, especially for large variable components.
• Notice period in the new contract: a 90-day clause limits your future options.

The arithmetic above is something you can and should do precisely. The judgement — risk appetite, career direction, how much predictability is worth to you — is not a calculation. Use the tools to remove the arithmetic uncertainty so the real decision is about the things that actually differ.