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Compare a 6 LPA Offer with a 7 LPA Offer That Has Variable Pay

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The short answer

A bigger CTC is not always more money. A 6 LPA fixed offer leaves about ₹44,038 a month. A 7 LPA offer with 1.5 lakh variable leaves ₹38,911 to ₹51,411 a month, depending on whether the variable is paid. The fixed part decides which is safer.

I will type amounts in
Offer A

Paid only if targets are met. 0 if none.

Optional: rent, food and travel in that city.

Offer B

Paid only if targets are met. 0 if none.

Optional: rent, food and travel in that city.

Settings used for both offers

Offer A

₹44,038 in hand a month

CTC a year

₹6,00,000

Fixed pay only

₹44,038

In hand a year

₹5,28,456

Income tax a year

₹0

Offer B · leaves more

₹51,411 in hand a month

CTC a year

₹7,00,000

Fixed pay only

₹38,911

In hand a year

₹6,16,932

Income tax a year

₹0

If the variable pay is paid in full: Offer B leaves you ₹7,373 more every month than Offer A.
If you get only the fixed pay: Offer A leaves you ₹5,127 more every month than Offer B.

Money is not everything: growth, learning, location and the team matter too. These figures are estimates under the new tax regime (see the CTC to In-Hand Salary tool for the rules), and your offer letter has the real split.

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How to: Compare a 6 LPA Offer with a 7 LPA Offer That Has Variable Pay

  1. 1Type offer A's CTC in lakh, and its variable pay if any.
  2. 2Type offer B's CTC and its variable pay.
  3. 3Add the monthly rent in each city if the offers are in different places.
  4. 4Read which offer leaves more each month, with and without the variable pay.

At a glance

Offer A
6 LPA fixed: ₹44,038 a month
Offer B
7 LPA with 1.5 lakh variable: ₹38,911 to ₹51,411 a month
The difference
Depends on whether the variable is paid in full

Frequently asked questions

How often is the variable pay paid in full?

It depends on the company and the year. Ask the HR team what percentage of employees received the full amount last year, and plan with the fixed pay.

Should I look at anything besides pay?

Yes: the role, the learning, the city, the notice period and the company's future. A few hundred rupees a month should not outweigh a much better role.

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