Job Offer Comparison: Which Offer Provides You More?
Input two offers to see which gives more monthly in-hand pay and first-year cash after considering PF, income tax, variable pay, joining bonus, and commuting. In our example, a ₹7.2 lakh offer with variable pay, a joining bonus and 2 office days leaves ₹65,080 more in the first year than an ₹8 lakh offer with 5 office days.
First year, after tax and commuting
—
| Per year | Offer A | Offer B |
|---|---|---|
| In hand a month (fixed pay) | ||
| Gross salary | ||
| Your PF | ||
| Professional tax | ||
| Variable pay expected | ||
| Joining bonus | ||
| Income tax on the year | ||
| Commute | ||
| First-year cash | ||
| A year without the joining bonus |
Income tax is for the whole year's income under the new regime for FY 2026-27, for a salaried person under 60 with no other income. Commute = office days × 52 weeks × cost a day.
Compare the old and new tax regimes in the salary calculator →
What the numbers don't tell you
- Growth: how often salary is reviewed, and where the position could take you in the next two or three years.
- Notice period and joining-bonus conditions: how long you must remain, and what you repay if you leave early.
- Location: consider both travel time and cost, and the cost of living if relocation is required.
- Learning: the team, the projects, and the skills you will gain.
- Benefits outside CTC: family health insurance, leave, and working hours.
Example Comparison: Two Offers Side by Side
Offer A: ₹8 lakh fixed, no variable pay, 5 office days a week. Offer B: ₹7.2 lakh fixed, ₹80,000 variable pay projected at 80%, a ₹50,000 joining bonus, 2 office days. Both: ₹150 daily commuting cost, basic pay 40% of fixed CTC, PF of 12% of basic from both sides (within CTC), ₹2,400 professional tax, new tax regime.
| Per year | Offer A | Offer B |
|---|---|---|
| Fixed CTC a year | ₹8,00,000 | ₹7,20,000 |
| In hand a month (fixed pay) | ₹60,067 | ₹54,040 |
| Gross salary (fixed CTC less employer PF) | ₹7,61,600 | ₹6,85,440 |
| Your PF | −₹38,400 | −₹34,560 |
| Professional tax | −₹2,400 | −₹2,400 |
| Variable pay expected (80% of target) | ₹0 | +₹64,000 |
| Joining bonus | ₹0 | +₹50,000 |
| Income tax on the year | ₹0 | ₹0 |
| Commute (5 vs 2 days a week × 52 × ₹150) | −₹39,000 | −₹15,600 |
| First-year cash | ₹6,81,800 | ₹7,46,880 |
| A year without the joining bonus | ₹6,81,800 | ₹6,96,880 |
Offer B results in ₹65,080 more in year one. Without the joining bonus, Offer B gives ₹15,080 more. Offer A gives more monthly, but Offer B's variable pay, joining bonus, and fewer office days compensate for that.
How it's calculated
- Monthly in-hand pay is based solely on the fixed CTC, as shown in our salary calculator: first, employer's PF is deducted from CTC, followed by your PF and professional tax, and then income tax on fixed pay.
- Expected variable pay = variable pay × expected payout ÷ 100.
- Income tax is calculated on the yearly income: gross salary + expected variable pay + joining bonus, minus the ₹75,000 standard deduction, using the new-regime slabs for FY 2026-27, with the Section 87A rebate up to ₹12 lakh of taxable income (and marginal relief above it) and a 4% cess.
- Commute = office days a week × 52 weeks × cost a day.
- First-year cash = gross salary − your PF − professional tax + expected variable pay + joining bonus − income tax − commute.
When to Use Job Offer Comparison
Consider using this tool when you have multiple job offers and need to understand which one gives more monthly take-home pay. It's helpful before you accept an offer, allowing you to weigh your options based on real numbers. This can give you clarity as you decide which role fits your financial goals.
Use it after getting an offer and before you resign your current position. Input the offers to see how each impacts your finances over the year. By entering details like bonuses and commuting costs, you compare not just salaries but overall packages. This fits well with your job search or transition using IT & Tech Jobs.