I have an offer from a world-renowned software MNC for a senior software engineer role. They have offered me 13 lac as fixed salary and 7 lac as a variable bonus. As per the offer, my current CTC will rise by almost 60%, but the fixed salary will be just 13% higher than what I am getting in my current organization.
My query is, is this the right salary structure that the MNC is offering me? Should I accept this? Is there any scope for negotiation, where I can ask for a higher fixed salary and a lower variable bonus amount? I would appreciate a quick response.
From India, Noida
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My query is, is this the right salary structure that the MNC is offering me? Should I accept this? Is there any scope for negotiation, where I can ask for a higher fixed salary and a lower variable bonus amount? I would appreciate a quick response.
From India, Noida
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Dear Abhijeet,
Congratulations on securing a job in a world-renowned company!
The bifurcation of salary into two components, one fixed and another variable, is common in the software industry. The former is paid monthly, while the latter is paid quarterly or half-yearly and is linked to performance. In your post, you have not mentioned the cycle of disbursement of the variable bonus.
In your case, your future employer has offered a ratio of 2/3 fixed to 1/3 variable salary. In my personal opinion, this ratio is fine. In some cases, I have seen this ratio be 50:50.
However, my query is about CTC. You mentioned that your CTC would be increased by 60%. However, in all practical aspects, what matters to a job seeker is Gross Salary, not CTC. I assume you are fully aware of the definitions of CTC, Gross Salary, and Take-home Salary. In light of this, I recommend that you recalculate based on "Gross Salary" per annum or per month. Please do not include the variable component in the gross salary.
Once you determine when the performance bonus will be disbursed and the gross salary, find out if there is any room for negotiations.
Thank you,
Dinesh Divekar
From India, Bangalore
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8036Congratulations on securing a job in a world-renowned company!
The bifurcation of salary into two components, one fixed and another variable, is common in the software industry. The former is paid monthly, while the latter is paid quarterly or half-yearly and is linked to performance. In your post, you have not mentioned the cycle of disbursement of the variable bonus.
In your case, your future employer has offered a ratio of 2/3 fixed to 1/3 variable salary. In my personal opinion, this ratio is fine. In some cases, I have seen this ratio be 50:50.
However, my query is about CTC. You mentioned that your CTC would be increased by 60%. However, in all practical aspects, what matters to a job seeker is Gross Salary, not CTC. I assume you are fully aware of the definitions of CTC, Gross Salary, and Take-home Salary. In light of this, I recommend that you recalculate based on "Gross Salary" per annum or per month. Please do not include the variable component in the gross salary.
Once you determine when the performance bonus will be disbursed and the gross salary, find out if there is any room for negotiations.
Thank you,
Dinesh Divekar
From India, Bangalore
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