Offer letter decoded: CTC vs in-hand salary, variable pay and bonds (5 checks for freshers)
Your CTC is not your monthly salary. Use these 5 checks to read your first offer letter properly: calculate in-hand pay, question variable pay, find the bond and clawback clauses, compare with the market and get everything in writing.
Published by Hirastra
Convert CTC to in-hand salary
CTC includes parts you never receive monthly. Subtract employer PF (12% of basic), gratuity (4.81% of basic) and any variable or joining bonus. Then subtract your own PF, professional tax and income tax. Example: a ₹6 LPA CTC with 40% basic and no variable pay comes to roughly ₹44,000 a month. Under the new tax regime, salary up to ₹12.75 lakh pays no income tax after the ₹75,000 standard deduction and the rebate.
In-hand/yr = CTC - employer PF (12% of basic) - gratuity (4.81% of basic) - variable/joining bonus - your PF (12% of basic) - professional tax - income taxQuestion the variable pay
Words like target or performance-linked mean that part is not guaranteed. Ask HR how much was actually paid out last year, and compare offers on fixed pay, not CTC.
Hi, could you share what % of the variable component was paid out to freshers last year, and is it paid quarterly or yearly?Find the bonus clawback and bond clauses
Search the letter and any attached agreement for these words. Note the bond amount and duration, the notice period, any joining-bonus clawback period, and whether original certificates will be kept. Any fee, deposit or paid training before joining is a scam.
clawback · recover · bond · service agreement · liquidated · original certificates · noticeCompare with the market rate
Check what freshers in the same role and city are paid before you accept. That tells you whether the offer is fair or low.
hirastra.com/salariesGet everything in writing
Before signing, send one polite email to HR. A verbal promise is not part of your offer.
Hi [Name], thank you for the offer. Before accepting, could you share: 1. Full CTC breakup (fixed/variable) 2. Joining date and work location 3. Bond / service agreement terms 4. Documents needed for BGV. Regards, [Your name]
Skip the searching: today's verified openings are posted three times a day with official apply links, and you can check your resume against any of them with the free ATS checker.