How to answer “What's your expected CTC?” — and negotiate your offer

The first number said out loud tends to anchor the whole negotiation. Quote too low and it's hard to climb back; quote far too high without a reason and you may be screened out. The goal is a number that's ambitious, but that you can explain.

Cost to company is everything an employer spends on you in a year, and much of it never reaches your bank account each month. Before you compare offers, break each one down:

• Fixed pay: basic salary and allowances — the part you can count on.
• Variable pay: performance bonuses that may or may not be paid in full.
• Employer contributions: provident fund, gratuity and insurance.
• One-time amounts: joining bonus, relocation allowance.
• Stock options or ESOPs, if any, with their vesting schedule.

Two offers with the same CTC can mean very different take-home pay. Compare the fixed part first.

1. 1Research the role's range: ask people in similar roles, talk to recruiters, and look at what comparable job posts mention.
2. 2Write down your current CTC, broken down the same way.
3. 3Decide three numbers: your target, the lowest you'd accept, and the point at which you'd walk away.
4. 4List the reasons your target is fair: the role's scope, skills that are scarce, results you've delivered.

Early in the process, try to learn more before committing to a figure:

“I'd like to understand the role and the team a bit more first. I'm confident we can agree on a number that's fair for both sides.”

When you're asked directly, give a range based on research, with your target at the bottom of it:

“Based on the scope of this role and what similar roles pay, I'm looking for ₹X to ₹Y fixed.”

When they ask about your current CTC, be honest — companies often verify it — and steer back to the new role:

“My current CTC is ₹X. My expectation is based on this role's responsibilities rather than my current salary.”

1. 1Thank them, and say clearly that you're excited about the role.
2. 2Ask for what you want, with a reason: “Given X, I was hoping for a fixed component of ₹Y. Is there flexibility?”
3. 3If fixed pay can't move, ask about the rest: a joining bonus to cover a bonus you'd forfeit, a notice-period buyout, an earlier review, or a better title.
4. 4Pause after you ask. Let them answer.
5. 5Get the final terms in a written offer before you resign from your current job.

• Inflating your current CTC. Payslips and background checks will show it.
• Ultimatums you aren't prepared to carry out.
• Accepting on a call and negotiating afterwards.
• Forgetting your notice period: if you have a long notice period, a joining date or buyout belongs in the negotiation.

If you'd like to practise the conversation first, a career coach can run a mock negotiation with you on video.