Concerned About a $60,000 Drop in Basic Salary Despite a 25% Hike – What Would You Do?

Hi friends,

I have a small query, and I hope to get an answer. I have received an offer letter for a recent interview. In the offer, I have been given a Basic salary that is $60,000 less compared to my current salary. They have made the overall offer with a 25% hike, but I am very concerned about the Basic salary. As an employee, all the increments are based on the basic salary...

Please help.

Hi,

Some organizations have a fixed percentage in which basic pay is apportioned, generally 35-45% of the Gross salary. Since many statutory components like gratuity, PF, Bonus, etc., depend on basic pay, many organizations put a cap on basic pay and keep it constant to the Gross Salary or at a minimum.

Compare both CTC structures and understand the difference in benefits on retirement that you may face due to the difference in basic pay.

Parul.

The industry standards for the basic amount range from 35% to 45% of the gross salary. If your salary structure meets this criterion, there is no need to worry. The rest would be mainly based on the fringe benefits provided.

Regards, Sundar

I have seen the package, and I don't think it's appropriate. Please negotiate on the basics a little more, and then it would be fine. The rest of the benefits are all very nicely mentioned and calculated; it's the take-home salary you can negotiate on.

All the best,
Archna