Comparing Job Offers: Which Offer Leaves You Better Off?
Enter the details of two job offers to check how much in-hand pay you get each month and how much cash you'll have after a year. It calculates this after deducting PF, income tax, variable pay, joining bonus, and commuting expenses. 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 →
Things the numbers might not tell you
- Growth: consider how often your pay is reviewed and where this role could take you in two or three years.
- Notice period and joining-bonus terms: how long you have to stay, and what you need to repay if you leave early.
- Location: think about both travel time and costs, plus the living expenses if you were to move.
- Learning: the team, the work you will do, and the skills you will gain.
- Benefits outside the CTC: health insurance for your family, leave, and working hours.
Example comparison: two job offers
Offer A: ₹8 lakh fixed salary, no variable pay, 5 office days weekly. Offer B: ₹7.2 lakh fixed, ₹80,000 variable pay expected at 80%, a ₹50,000 joining bonus, 2 office days. Both offers include: commuting costs of ₹150 per day, basic pay as 40% of fixed CTC, PF of 12% of basic pay from both sides (inclusive of CTC), ₹2,400 professional tax, and based on the 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 after the first year. Without the joining bonus, Offer B still provides ₹15,080 more. Offer A offers higher monthly pay; however, Offer B's variable pay, joining bonus, and fewer office days make a difference.
How it's calculated
- Your monthly in-hand pay is calculated from just the fixed CTC, following our salary calculator: PF from the employer is deducted from the CTC first, followed by your PF, professional tax, and then income tax on the fixed pay.
- Expected variable pay = variable pay × expected payout ÷ 100.
- Income tax is calculated on the total income for the year: gross salary + expected variable pay + joining bonus, minus the ₹75,000 standard deduction, using the new-regime tax slabs for FY 2026-27. This includes the Section 87A rebate on taxable income up to ₹12 lakh (with marginal relief if higher) and a 4% cess.
- Commute = office days each week × 52 weeks × daily cost.
- First-year cash = gross salary − your PF − professional tax + expected variable pay + joining bonus − income tax − commute.
Understand Your Job Offers Clearly
Our job offer comparison tool is perfect when you have multiple offers and want to see which one fits your needs better. Use it once you have offers on the table. Before you make any decisions, enter the details of each offer. This can help you see which offer might leave more in your pocket each month, and over your first year.
This tool works well with the job search and application process on Daily Hirer. You start by searching and applying for IT roles in cities like Bengaluru, Chennai, and more. When offers come, turn to the tool for a closer look at the details that matter, beyond just the salary figure.