How to negotiate your salary after an offer

This guide is for anyone holding a job offer in India, from a first switch to a senior move. Asking politely, with reasons, is a normal part of hiring, not a sign of greed. Here is how to do it calmly and get the result in writing.

1. When to negotiate

• After you have a written offer or a clear number, not in the first interview. Before that, if asked, give a researched range; our guide on answering the salary expectations question covers this.
• Before you accept. Once you sign, there is little room left.
• Once, with everything you want in one message. Coming back three times for small items wears goodwill thin.
• When you have a reason: market pay, your skills, a competing offer, or the cost of moving cities.

2. Research the range

1. Check what similar roles pay in your city at your experience. Highlisted’s salary pages show pay by field, role, city and experience from live job posts.
2. Read the stated pay in job posts for the same role and level.
3. Ask two or three people you trust in the field about ranges, not their exact pay.
4. Work out your floor: the lowest monthly in-hand amount that covers your costs and makes the move worth it.
5. Pick a target in the upper part of a fair range, and write down the reason for it.

3. CTC vs in-hand, in plain words

CTC (cost to company) is everything the employer spends on you in a year. In-hand is what reaches your bank account each month. The gap can be large, so ask for the full salary breakup before you negotiate.

• Provident Fund (PF). You contribute 12% of basic pay plus DA, deducted from your salary, and the employer adds another 12%, part of which goes to your pension. The employer’s share usually sits inside CTC. Some employers pay PF on your full basic; others only up to the government wage ceiling, which rose from ₹15,000 to ₹25,000 a month on 17 September 2026. Ask which applies.
• Gratuity. Paid when you leave after at least five years of continuous service, or after one year on a fixed-term contract. It is 15 days’ wages for each completed year (monthly wages ÷ 26 × 15 × years), up to ₹20 lakh. If it is shown inside CTC, you don’t receive it monthly, and you won’t get it if you resign before you qualify.
• Variable pay. A bonus tied to your performance and the company’s. Ask what share was actually paid last year, and when it is paid.
• Insurance. Group health or life cover premiums are sometimes counted inside CTC. Useful, but not cash.
• Deductions. Your own PF, income tax (TDS, which depends on your total income and the tax regime you choose) and, in some states, professional tax, which can never be more than ₹2,500 a year.

Since the labour codes came into force on 21 November 2025, if allowances make up more than half of your total pay, the extra counts as wages for PF and gratuity. So an offer with a very low basic may still have higher PF than you expect. Ask HR for the monthly in-hand figure, and check your tax on the Income Tax Department’s calculator on incometax.gov.in.

4. What you can negotiate besides fixed pay

• Joining bonus: a one-time amount, often to cover a bonus you lose by leaving. Check whether you must repay it if you leave within a year.
• Notice buyout: the new employer pays your current employer for the unserved notice so you can join sooner.
• Relocation: travel, a few weeks’ stay and moving costs.
• Variable pay share: a larger fixed portion, or a guaranteed first-year payout.
• Title or level: it shapes your next raise and your next job.
• Start date: time to serve your notice properly or take a short break.
• Remote or hybrid days, a laptop, and phone or internet allowance.
• An early salary review, such as after six months, written into the offer.

5. Scripts you can use

Example email after the offer (the names and numbers are illustrative): “Dear Ms Rao, thank you for the offer for the Senior Analyst role. I’m excited about the team and the work. Before I confirm, I’d like to discuss the fixed pay. Posts for similar roles in Bengaluru at four years’ experience show ₹14 to ₹18 lakh, and joining before March means I give up my annual bonus. Could you consider a fixed CTC of ₹16.5 lakh, or ₹15.5 lakh with a joining bonus of ₹1 lakh? If we can get close, I’m ready to accept this week. Regards, Arjun.”

Example on a call: “Thank you, I’m really keen on this role. Based on what similar roles pay and the two skills you said matter most, I was hoping for something closer to ₹9 lakh fixed. Is there flexibility there?” Then stop and wait.

6. When they say “this is our best offer”

• Take them at their word on fixed pay, and ask about the other items: a joining bonus, an early review, a notice buyout or a better title.
• Ask, “What would I need to show in six months for a pay review?” and get the answer in an email.
• Judge the whole package against your floor. If it clears your floor and the role is right, accept warmly.
• If it doesn’t, decline politely and keep the door open. People move, and companies remember a graceful no.

7. Counter-offers from your current employer

When you resign, your manager may offer more to keep you. Before you say yes, remember why you started looking. If the reason was the work, the manager or growth, more money alone may not fix it, and your commitment may now be questioned. If you do accept a counter-offer, get it in writing and tell the new employer quickly and honestly.

8. Get it in writing

Before you resign, get a revised offer letter or email that states the fixed pay, variable pay and how it is decided, any joining bonus and its repayment terms, the notice buyout, joining date, location, title, and anything else you agreed. A verbal promise is not an offer.

Mistakes to avoid

• Negotiating on CTC without knowing your monthly in-hand pay.
• Naming a number with no reason behind it.
• Inventing a competing offer. It is easy to check and hard to undo.
• Asking again and again for small items.
• Resigning before the final offer is in writing.
• Being rude or making threats. The people you negotiate with may be your future colleagues.