Salryd
Offer IntelligenceHow-To5 min read

How to Compare Two Job Offers

Comparing job offers is not about picking the higher CTC. Here is a structured, step-by-step approach to compare two offers in-hand to in-hand — with the salary factors that actually matter.

Quick Answer

Quick answer

To compare two job offers fairly: calculate the in-hand salary for each offer using the same tax regime and assumptions, compare fixed vs variable split, check PF and retirement benefits, and factor in location cost-of-living. Never compare CTC headlines alone — two ₹12 LPA offers can differ by ₹8,000–₹15,000 per month in take-home.

Why this matters

Most professionals compare offer letters by CTC headline. That is how companies with inflated variable pay, low Basic structures, or hidden deductions win candidates who would be better off elsewhere. A structured comparison takes 15 minutes and can mean lakhs more over your career.

Step 1: Calculate in-hand for both offers

This is the single most important step. Convert both offers to monthly in-hand using the same tax regime and state. Why: A ₹12 LPA Offer A with 90% fixed can beat a ₹13 LPA Offer B with 40% variable — even before considering deductions. Use the same assumptions for both: • Same tax regime (old or new) • Same state (professional tax differs) • Same PF basis • Exclude variable from monthly comparison (compare fixed in-hand separately)

Step 2: Compare fixed vs variable split

For each offer, calculate: • Fixed CTC as a percentage of total CTC • Monthly in-hand from fixed components only • Variable amount and payout conditions A higher fixed-to-variable ratio means more predictable income. If Offer B pays ₹1,00,000/month fixed and Offer A pays ₹85,000 fixed + ₹30,000 variable, Offer B is safer even if total CTC is lower. Ask: What percentage of variable was actually paid to employees in my role last year?

Step 3: Compare retirement and statutory benefits

Check for each offer: • Basic salary (higher Basic = higher PF and gratuity accrual) • Employer PF contribution (part of CTC but valuable long-term) • Gratuity eligibility and vesting period • Group health insurance coverage (sum insured, family included?) • NPS contribution (if any) A slightly lower in-hand with higher Basic may be worth more over 10 years due to PF and gratuity accumulation.

Step 4: Note what salary cannot tell you

Salryd compares what can be calculated. These factors matter but cannot be scored from a salary structure alone: • Career growth and learning opportunities • Role scope and title accuracy • Work-life balance and commute • Manager and team quality • Company stability and culture • Location cost of living (₹10 LPA in Bengaluru vs Pune feels different) Use the salary comparison to narrow your choice — then weigh these factors separately.

Examples

Example: Comparing two ₹12 LPA offers

Offer A — Product company, Bengaluru CTC: ₹12,00,000 (100% fixed) Basic: 40% | Monthly in-hand: ~₹82,000 Offer B — Services company, Pune CTC: ₹12,00,000 (70% fixed + 30% variable) Basic: 35% | Monthly in-hand (fixed): ~₹74,000 Verdict on salary alone: Offer A pays ~₹8,000/month more in guaranteed in-hand. If Offer B's variable is fully paid: gap narrows to ~₹2,000/month. If Offer B's variable is 50% paid: Offer A is ~₹6,000/month ahead.

Example: ₹10 LPA vs ₹11 LPA — which is better?

Offer A: ₹10 LPA, Basic 50%, HRA 50% of Basic, new regime → In-hand: ~₹73,000/month Offer B: ₹11 LPA, Basic 30%, HRA 20% of Basic, new regime → In-hand: ~₹71,500/month Offer B has ₹1L higher CTC but lower in-hand because of a weaker breakup. Higher CTC ≠ higher take-home.

Common mistakes

  • Choosing the higher CTC without calculating in-hand for both offers.
  • Including variable pay in monthly salary expectations — variable is not guaranteed.
  • Ignoring Basic percentage — low Basic reduces PF, gratuity, and sometimes in-hand.
  • Not normalising for location — ₹10 LPA in Mumbai vs ₹9 LPA in Pune may feel similar after rent.
  • Deciding on salary alone — role, growth, and team matter, but salary comparison should come first.

Frequently asked questions

Should I compare CTC or in-hand when evaluating offers?

Always compare in-hand (fixed) for an apples-to-apples view. Use CTC only as a starting point to request the breakup. Salryd's Compare Offers tool calculates both side by side.

How much of a in-hand difference is worth switching jobs?

There is no universal rule. ₹5,000/month (₹60,000/year) is often considered meaningful. But factor in joining bonus, ESOPs, and career growth — a ₹3,000/month increase with better learning may outweigh a ₹8,000/month increase in a stagnant role.

What if one offer has ESOPs?

Treat ESOPs separately from salary comparison. They are valuable but illiquid, vest over time, and depend on company performance. Do not add paper ESOP value to in-hand — compare cash compensation first, then evaluate ESOPs as upside.

Can I negotiate after comparing offers?

Yes. Use your comparison as leverage. If Offer B has better in-hand, ask Offer A to improve the fixed component or Basic. Most companies expect negotiation — focus on fixed salary, not just CTC headline.

Continue learning

Build on what you just learned — these guides are the natural next step.

What is CTC?

CTC (Cost to Company) is the total annual amount your employer spends on you — not what lands in your bank account. Here is exactly what it includes, what it does not, and why the number on your offer letter is always bigger than your salary.

How to Calculate In-Hand Salary

A step-by-step guide to calculating your monthly in-hand salary from CTC — including PF, professional tax, and income tax — with worked examples at ₹6L, ₹10L, and ₹15L.

Put it into practice

Turn what you learned into a real number — use a Salryd tool with your own figures.

Compare your two offers now

Enter both offers in Salryd's Compare Offers tool — see in-hand salary, tax efficiency, and a transparent recommendation on which offer is stronger, with every reason explained.

Compare Offers

Related guides

CTC vs In-Hand Salary

CTC and in-hand salary are not the same thing — and the gap between them can be ₹2–4 lakh per year. Here is a clear side-by-side comparison with real numbers so you never confuse the two again.

Related tools

Calculate with your own numbers using a Salryd tool.

Compare two offers side by side

See two job offers side by side, in-hand to in-hand.

Calculate in-hand for each offer

Turn your CTC into a clear monthly take-home figure.

Prerequisites

What is CTC?

CTC (Cost to Company) is the total annual amount your employer spends on you — not what lands in your bank account. Here is exactly what it includes, what it does not, and why the number on your offer letter is always bigger than your salary.

How to Calculate In-Hand Salary

A step-by-step guide to calculating your monthly in-hand salary from CTC — including PF, professional tax, and income tax — with worked examples at ₹6L, ₹10L, and ₹15L.