Watch: NRI Salary Negotiation: How to Find the Right Salary & Negotiate Smartly When Returning to India
Complete guide for NRIs returning to India covering salary conversion rules, CTC breakdown, benchmarking websites, and negotiation strategies.
The full write-up, with the numbers and the links.
Chapters
- 0:00 Introduction
- 2:17 Best Websites for Salary Benchmarking
- 4:16 CTC vs. In-Hand Salary Breakdown
- 8:45 Salary Negotiation Strategies
Transcript
Auto-generated captions, lightly cleaned
0:03 Hello there welcome back thinking of moving back to India and taking a new role or doing an internal transfer how can you ensure that you're getting the right salary in today's video we are going to talk about the best salary benchmarking websites breakdown of CTC versus inhand salary especially if you're some one who has not worked in India and some tips for negotiations so let's dive in if you're moving from abroad you know what salary can you expect for your experience for your skills in India that's a question lot of people have as a general rule of thumb you can expect anywhere between 30 to 60% of your salary from abroad again this number depends on the location where you're moving from and
1:05 The location where you're moving to in India as you can imagine the pay parity index comes into picture you know the cost of living abroad the specific City you know for example San Francisco versus a Midwest versus East Coast so it can vary to a tier one city to tier two city in India so that's one big factor the demand for the skills that you have your experience and the niche all these plays quite a bit of a role in terms of the range that you can expect in India so we have a lot of data points from several people who mentioned that they got about onethird of their us salary when they moved back from us to India to places like Bangalore and Hyderabad when they take the internal transfer so that's a very general guidelines in terms of what salary to expect but the best way to know the
2:05 Right salary is to compare industry benchmarks so the websites provide real insights into the salary so let's look into these websites
2:18 First class door employee reported salaries by role and Company this is good for industry as well as company Benchmark in terms of the salaries that each company can provide next LinkedIn salary insights salary estimates based on the location and experience so this is good for location specific pay scales ambition Box Company wise salary Trends and reviews so this is good for Indian company salaries you have pay scale personalized salary reports based on your skills this is for your IND individual salary evaluation levels. FY if you are someone who is working in Fang or a high paying Tech roles this is a good website to have a lot of valuable information in terms of the salaries bands and actual data points this is good for High-Tech
Read the full transcript (9 more sections)
3:19 Roles so the best way to use these websites is to check salaries based on your experience location and you know the exact role that you're looking for also look at multiple sources the websites and not just one because some of the websites are not up to date with certain roles or certain functions so always cross check and triangulate the information from multiple sources the best thing is to network ask your network reach out to people in your network get a range of salaries to expect for a particular kind of a role in a particular industry and a location there are lot of good professional groups on LinkedIn Reddit WhatsApp you can reach out to them get some insights in terms of the salary packages that you can expect so now that you have an idea let's understand the CTC versus
4:18 Inhand salary so what's a CTC so it's a cost to company which includes four major components you have your fixed salary which is your BAS basic salary and also includes your HRA which is house rent allowances special allowances then you have your variable pay which is based on your performance bonuses or your joining bonus you have stock options which is esops or rsus which are vested over a period of time typically which is four years and you have employer contributions which includes your Provident fund which is generally the 12% you know gratuity perks like you know meals coupons Insurance all these are part of employer contribution so what is not part of your in-hand salary your Provident fund contribution gratitud performance-based variable pay
5:20 Esops and stocks these are not part of your inhand salary typically for a take-home salary for a fan based companies is anywhere between 50 to 60% of your CTC for service based companies it's anywhere from 70 to 80% of CTC and in the case of a startups you're looking anywhere between 55 to 65% of CTC again if you are a senior role in the company your fixed salary would be a small percentage of CTC because most of the compensation is based on stock options and the variable performance payment so keep that in mind I think this is important to know because in Western world everything is based on your base salary and then you have your variable pay and so on but in India it's the CTC but you need to understand what's the real inhand salary that you're getting in now let's look at an example for a 160 lakh CTC offer what
6:25 That means for an inhand salary you have your basic salary which is about 40% of the CTC in this case it is 24 lakhs per year and it is taxable and you get it on a monthly basis next you have your house rent allowances which is 50% of your base salary in this case it will be 12 lakhs perom and it's partially taxable so depending on whether you're renting your location and so on so this comes into picture and it is also something that you get on a monthly basis next you have your performance bonus which is a variable pay it's around 15% of your CTC which is around 9 lakhs and it is taxable but you get it on a quarterly or annual basis depending on your company policies then you have your employee stock options rsus which is let's say around 10 lakhs and it gets vested on a
7:26 4-year period and it is taxable based on the vesting then you have your Provident fund employer contribution which is around 12% which comes to 2.9 lakhs and this is not taxable and this is paid when you exit or later you have other perks gratuities Insurance food coupons which let's say it's around 2.1 lakhs and it's not taxable and these are employer provided so when you look at this your fixed pay which includes your base pay and H comes to 36 lakhs which is around 60% of your CTC you have your variable pay which includes your bonus rsus which is around 19 lakhs which is comes around 30% of your CTC approximately and it is not guaranteed every year and this is where you need to understand how much of that is recurring how much is that at one time like a sign on bonus or anything like that and then you have
8:26 Employer paid benefits Provident fund which comes to around 5 lakhs so effectively your take home is around 60% of your CTC that is your fixed salary now that you understand the CTC versus fixed salary now let's get into the salary negotiation strategies so the
8:47 First thing is research and have a good Benchmark information ready always ask for more than what they offered you know based on the information you can provide this is The Benchmark that you have and that's your expectation always ask for 20 to 30% more than what they offered initially second it's always good to have multiple offers so that you can counter them you know having a multiple offers can help you to say that you have this offer in hand and you are interested in this company if if they can offer so and so that would help definitely in the negotiation third tip focus on your fixed pay not just your total CTC you know not only just your esops rsus like how much are you going to get on a monthly basis fourth if there is a lot of variable pay esops try to understand the schedule of these vesting of the esops
9:48 Or rsus when can you cash them out and then also there's a variable pay confirm the payout history of this variable pay at this particular company last you can definitely negotiate other perks whether it includes work from home insurance whether it's the re relocation allowances and so on so this can definitely add extra value so let's summarize our discussion today so how do you ensure that you get the right salary Benchmark it break down your CTC properly and negotiate smartly use multiple sources to research salaries understand the CTC versus inhand so just don't look at the high offer blindly negotiate a strong pick salary and perks if you like the content please like share and subscribe and we also have a thriving WhatsApp
10:49 Group for all the people who are ring and feel free to join all the links are available in the link below and until next time take care
