Dinesh Divekar
Business Mentor, Consultant And Trainer
Abhijeet123
Software Developer

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I have an offer from world-renowned software MNC for senior software engineer role. They have offered me 13 lac as fixed salary and 7 lac as variable bonus.
As per offer my current CTC will rise by almost 60% but fixed salary will be just 13% higher then what I am getting in my current organisation.
My query is, is this right salary structure which MNC is offering me? should I accept this? Is there any scope of negotiation, where I can ask for more fixed salary and less variable bonus amount?
I would appreciate any quick response.

Dear Abhijeet,

Congrats for getting a job in world-renowned company!

Bifurcation of salary into two components, one fixed and another variable is common in software industry. Former is paid monthly and latter quarterly or half-yearly and it is linked to the performance. In your post, you have not mentioned the cycle of disbursement of the variable bonus.

In your case, your future employer has offered ratio of 2/3 : 1/3 as fixed and variable salary. In my personal opinion this ratio is fine. In some cases, I have seen this ratio to be 50:50.

However, my query will be about CTC. You say that your CTC would be increased by 60% However, in all practical aspects what matters to a jobseeker is Gross Salary and not CTC. Let me believe you are completely aware about definitions of CTC, Gross Salary and Take-home Salary. In view of this, I recommend you redoing your calculations based on "Gross Salary" per annum or per month. Please do not include variable component in the gross salary.

Once you identify when the performance bonus will be disbursed and gross salary, find out whether there is any scope for negotiations.

Thanks,

Dinesh Divekar

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