Job Offer Dilemma: Should I Accept a Lower Basic Salary Despite a 20% Hike?

I have recently landed a job opportunity in a leading SW MNC in India. Though they are giving me a 20% hike over CTC, they are offering a lower basic salary. My current basic salary is about 24K, and they are offering around 20K. Please advise on how this impacts me and whether I should proceed with the offer.

Oh Brother, don't do this. They tricked you. Actually, all allowances, including gratuity, are calculated based on the Basic pay. When the basic pay is less, there is no meaning to a hike in CTC.

You need to speak to them on this ground as all components of salary, i.e., allowances, are completely dependent on the basic salary. It is a hidden adjustment that they have done just to show you that they are giving you a hike on your current salary. Request them to restructure the offered salary and send you the Offer Letter again. Good luck to you!

Take-home pay is increasing by 22%. The breakdown provided indicates that the monthly salary is X. I will receive X minus PF minus TDS. X is currently 22% higher than my current monthly salary (Y) before the deduction of PF and TDS.

Hello Windrider24584, I think you have misunderstood the definition of 'take-home' salary. The X that you mentioned is the Gross. Take-home (also known as 'Net Salary') is what you receive after the deductions you mentioned, such as PF, TDS, etc. The Gross can also be equivalent to CTC, though not necessarily so.

Without delving into the details, as Abikesh and Ashwini suggested, you should ask them to change the CTC structure so that the Basic is higher than what you currently have (how much higher to ask for is up to you). Please note that the standard line HR takes in such situations is 'we are covering you through other payment heads,' but do not accept this. Other allowances, etc., can always change later (depending on many factors), but the Basic must remain constant, except for performance-related aspects or situations. If they really want you, most IT companies, especially MNCs, have ways of handling such requests.

Hope you understand the point. All the best.

Regards, TS