How to Evaluate a Job Offer in India — Beyond the CTC Number
A ₹30 LPA offer from Startup A and a ₹30 LPA offer from MNC B are not the same thing. The headline CTC number obscures the real value — variable pay realisability, equity upside, notice period lock-in, and growth trajectory all matter enormously.
Step 1: Calculate Your Actual In-Hand Salary
Start by calculating your actual monthly take-home. A ₹30L CTC at a service company with high employer PF, gratuity provisions, and reimbursements might net ₹1.8L/month in-hand. The same CTC at a product startup with a cleaner structure might net ₹2.1L/month.
Use our CTC to In-Hand Calculator to find out before you compare offers.
Step 2: Scrutinise the Variable Pay Component
Variable pay above 20% of CTC with no defined KPIs is effectively discretionary income you may never receive. Ask these questions:
- What % of employees received 100% of variable last year?
- Are the KPIs individually measurable or tied to company performance?
- "At the sole discretion of management" = treat it as ₹0 in your planning.
Step 3: The Notice Period Tax
A 90-day notice period has real economic costs. If your next offer expires while you're serving notice, you lose it. If you need to buy out the notice, you pay 3 months' salary. Factor this in:
- Is notice period buyout allowed?
- At what rate? (Gross CTC ÷ 12 × months = your buyout cost)
- Will the new employer wait or cover the buyout?
Step 4: Equity — What Is It Actually Worth?
Don't just look at the number of shares. You need:
- Current FMV per share
- Strike price (ESOP) — is this below FMV?
- Vesting schedule and cliff
- Expected future dilution rounds
- Realistic exit probability and timeline
Use the Equity Explorer to model 3×, 5×, and 10× exit scenarios with dilution and tax.
Step 5: Total Compensation Scorecard
| Component | What to check | Weight |
|---|---|---|
| Fixed Cash (in-hand) | Use CTC calculator | High |
| Variable Pay | Is it defined? Historical payout? | Medium |
| Equity (ESOP/RSU) | Exit probability × net after tax | Depends on stage |
| Joining Bonus | Clawback period? | Medium |
| Notice Period | Is buyout permitted? | High |
| WFH flexibility | Real commute cost & time | Medium |
| Growth rate | Historical hike % at company | Very high |
Red Flags to Watch For
- Variable > 30% with no defined targets
- ESOP with a strike price above current FMV (already underwater)
- Bond period without a specific training investment cited
- Clawback on joining bonus lasting more than 12 months
- Notice period over 60 days with no buyout clause