How to Negotiate a Job Offer

Before accepting, review the entire offer — not just the headline CTC.

1. Understand the offer

Break the package into:

• Fixed salary
• Variable salary
• Performance bonus
• Joining bonus
• Retention bonus
• ESOPs / equity
• Employer PF
• Gratuity
• Insurance
• Other benefits

2. Calculate your guaranteed compensation

Your first question should be: how much of this CTC am I guaranteed to receive?

Offer B has the higher CTC but potentially lower guaranteed compensation.

3. Decide what you want to negotiate

You don't necessarily need to negotiate everything. Prioritise:

• Fixed salary
• Joining bonus
• Variable structure
• Equity
• Designation
• Review timeline
• Notice-period buyout
• Other benefits

4. Give HR a reason

Don't say: "I need ₹15 LPA because I want ₹15 LPA." Instead:

"Given my experience in X, my work on Y and the scope of this role, I was expecting the fixed component to be closer to ₹X."

Your argument should connect your value to the role.

5. Ask for clarity on variable pay

• What percentage of employees achieve the target?
• Is variable pay guaranteed?
• What metrics determine it?
• How frequently is it paid?
• Is there a cap?
• What happens if targets change?
• Is it included in the CTC?

A simple negotiation script

"I'm genuinely interested in the role. After reviewing the offer and considering my experience and the scope of the position, I'd like to discuss whether there is flexibility on the fixed component. I was targeting approximately ₹X–₹Y LPA fixed. Is there room to move closer to that?"

Professional, specific and non-confrontational.