A data analyst based in Gurugram, has sought advice from netizens on Reddit after he received a job offer for ₹36 lakh per annum salary in Mumbai, which gives him less in-hand pay compared to his current ₹25 lakh p.a. job.
The Redditor shared details in a post titled ‘My 36 LPA offer gives less in-hand than my 25 LPA ’, tagged under ‘Suggestions’.
“I currently live in Gurgaon (Gurugram). I have around 5.8 YOE in Analytics and Data Science, and my current CTC is ₹25.25 LPA which is fully fixed — so I get ₹1.72L per month in-hand (after deductions for Tax, PF, , and food coupons),” they laid out.
Deductions, location shift big concerns
About the new offer, they wrote, “I got a new job opportunity at a -based company and would have to relocate. The offer is ₹36 LPA, but here comes the interesting part: ₹30 LPA fixed + ₹6 LPA variable (it’s their policy and they’re not willing to change this)”.
They detailed that the company also has a mandatory 12% (PF) contribution rule, which is also non-negotiable per policy. “I did the in-hand calculation based on ₹30 LPA (since the ₹6L variable will only be credited at year-end), and it’s coming out to ₹1.68L/month (after yearly tax and PF deductions). So, my monthly in-hand at ₹36 LPA is actually lower than what I’m currently getting at ₹25 LPA,” the user explained.
‘What should I focus on during negotiations?’
While their current designation is Senior Analyst, Business Intelligence, the user added that their new designation will be Senior Data Scientist-Gen AI, and asked fellow Redditors for advice on the following:
- What should I focus on during , given they’ve already said no to increasing fixed component or reducing PF?
- How can my in-hand salary be increased further?
- Does accepting this offer even make sense, given that the in Mumbai is significantly higher than Gurgaon?
Here’s what Redditors said…
- Take higher CTC to boost shift
The top comment was a netizen advising the OP to take the job and use the higher CTC to make a good switch down the line. “Find out what is the average variable payout in the company. Considering 75%, you’ll get ~3L at one shot end of year, which will put your average in-hand to 1.95L approx. On top, you’ll get additional PF. If 100% , you’ll get over 2L on average. Also, it’ll help your next jump. Assuming you are at 36L CTC, you can easily ask for 45LPA plus in your next switch. It won’t be possible if on paper your salary is 25 LPA regardless of how good in-hand is. So, if you’re young, definitely worth it,” the commentor wrote.
- Not worth it, Mumbai too expensive
There were however a number of comments noting that housing requirements in Mumbai could alone make the higher worthless. One user wrote: “Not worth it in Mumbai. The rent will eat up your salary. You’ll most likely have to take a flat far from your office, and the commute will be a pain in the ass.”
Another shared, “Don’t move to Mumbai if salary is same. Lifestyle and savings will take a big hit. Have experienced this.” and another user cautioned, “Mumbai rent is very high, and you need a car in everything else is hell, wouldn’t recommend.”
- In-hand pay or PF, overall earnings are increased
There were also some who took the middle road, noting that PF or in-hand, the money belonged to OP regardless.
One user wrote, “In hand difference is small, and you’re not even counting the 6LPA variable in that. Anyway, you must be saving 50% of your current in hand at least (if not you should), so it seems fine, also PF contribution is larger which is good. Also, the new Senior Data Scientist GenAI title would help you more in the future. I’d suggest go with the new offer, provided you are okay to . Also ask them if some relocation benefit can be provided. Only thing to consider is whether you are okay with Mumbai cost of living, it’ll definitely be way more than you are used to in Gurgaon.”
Another added, “Take the job. PF is your only. Higher base would help your career in the long term. You can always switch to a different company/location later. Just make sure bonus payout is consistent and company culture is good.”
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.