Indian offers are quoted as CTC - cost to company - which mixes money you'll definitely get with money you might get, money you'll get once, and money that isn't really yours to spend. Negotiate the right part.
Step 1: decode the CTC
| Component | Counts as |
|---|---|
| Fixed / base (basic, HRA, special allowance) | Real, monthly, the base for future hikes |
| Employer PF (12% of basic) and gratuity | Yours, but locked up - not take-home |
| Variable / performance bonus | Depends on company and your rating; ask what the last two years actually paid |
| Joining bonus | One-time; often with a clawback if you leave within 12 months |
| Retention bonus | Paid later, conditional |
| ESOPs / RSUs | Vesting over years; private-company ESOPs may be worth a lot or nothing |
| Insurance, meal cards | Small, not negotiable usually |
Focus your ask on fixed pay. Every future hike is a percentage of it.
Step 2: pick your number
- Look at the range you can point to: the job post, peers at similar companies, other offers.
- Ask for a specific number slightly above what would make you happy.
- Prepare 2-3 reasons: scope of the role, a skill they need, an offer, market data.
Step 3: the current-CTC question
There's no law in India forcing you to share it, but many companies verify payslips - so never misstate it. Redirect: "I'm currently at ₹X fixed. For this role's scope, I'm looking at ₹Y fixed, which is in line with the market range I've seen."
Step 4: the email
Subject: Offer - Senior Product Manager
Hi Priya, thank you for the offer - I'm excited about the role and the team. Before I confirm, I'd like to discuss the fixed component. Given the scope (owning payments end to end) and the range I've seen for similar roles, I was hoping for ₹26 lakh fixed. If we can get there, I'm ready to accept and can work on an early joining date. Happy to talk today.
Step 5: pushback - and replies
- "This is the top of the band." → "I understand. Could we look at a joining bonus or a review at 6 months to bridge the gap?"
- "We gave you a 40% hike." → "I appreciate that. My ask is based on the role's scope and the market, not my current pay."
- "Other candidates are cheaper." → "I'm confident I'll deliver what you need from day one. What would it take to get to ₹X?"
- "We need an answer today." → "I want to say yes. Give me until tomorrow evening so I can confirm properly."
When base won't move
Ask for: joining bonus, notice-period buy-out, more ESOPs or a refresh, a title, a 6-month review written into the offer, relocation, WFH days.