How to Negotiate a Salary Increase

Walk in knowing four numbers: your current guaranteed fixed pay, your current CTC, the fixed pay implied by the offer or appraisal on the table, and the percentage difference between them. Asking for “a better number” without knowing which number you mean is how people accept a higher CTC that pays less each month.

If you are comparing an appraisal against an outside offer, convert both to guaranteed annual fixed pay before comparing. A hike percentage on CTC and a hike percentage on fixed pay are different claims about the same rupees.

A single number is easier to act on than a range, and a specific figure signals that you have done the work. Decide in advance which of these you want most, because you rarely get all of them: a higher fixed component, a larger total CTC, a shorter notice period, an earlier review date, a joining or retention bonus, or a title change.

Also decide what you will accept. Knowing your own floor before the conversation prevents an on-the-spot decision you regret.

• Fixed versus variable split — often more movable than total CTC, and usually more valuable to you.
• Joining bonus — commonly used when a manager cannot exceed a band. Check the clawback period.
• Review timing — an agreed review at six months can be worth more than a small immediate bump.
• Notice period and buyout support — some employers will reimburse a buyout to secure an earlier joining date.
• Level or band — sometimes the real constraint; a band change unlocks the number.

Statutory components like PF rates are not negotiable, and gratuity provisioning follows the structure rather than the conversation.

The arguments that travel well are specific and verifiable: work you delivered, scope you absorbed, problems you resolved, responsibilities added since your last revision. Personal expenses, rent increases and what a colleague earns are all weak ground, and the last one can damage the relationship.

Appraisal outcomes in most Indian organisations are decided before the conversation happens. If you want to influence a cycle, the useful discussions are the ones you have well before ratings are finalised, not the meeting where the letter is handed over. For an outside offer, negotiate before you verbally accept — leverage drops sharply afterwards.

A clear no with a reason is useful information. Ask what specifically would need to change for a different answer, and when it would be reviewed. If neither question gets a concrete response, that tells you something about whether waiting is worthwhile.

There is no reliable benchmark we can publish for what any individual should earn, because it depends on role, city, industry, company size and experience. We deliberately do not quote salary benchmarks we cannot verify. Use the calculators for the arithmetic, and use market conversations and real offers for the benchmark.