Job Offer Comparison: Which Offer Gives You More?
Input two offers to see a comparison of the monthly in-hand pay and the total cash each provides in the first year, after accounting for PF, income tax, variable pay, joining bonus, and commuting costs. 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 →
Factors the numbers don't reveal
- Career growth: how often pay reviews happen, and where the role can take you in two or three years.
- Notice period and joining bonus conditions: how long you must stay, and any repayment required if you leave early.
- Location considerations: travel time and costs, and living expenses if relocating.
- Learning opportunities: the team, the work you'll do, and skills to gain.
- Extra benefits not in the CTC: health insurance for your family, leave, and work hours.
Example: a comparison of two offers
Offer A: ₹8 lakh fixed, no variable pay, 5 office days weekly. Offer B: ₹7.2 lakh fixed, ₹80,000 expected variable pay at 80%, a ₹50,000 joining bonus, 2 office days. Both: ₹150 daily commuting cost, basic pay is 40% of fixed CTC, PF of 12% of basic from both parties (included in 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 during the first year. Without the joining bonus, Offer B still provides ₹15,080 more. Offer A has higher monthly pay; the variable pay, joining bonus, and reduced office days of Offer B balance out the difference.
How it's calculated
- The monthly in-hand pay is calculated from the fixed CTC alone, as in our salary calculator: first, the employer's PF is taken from the CTC, followed by your PF and professional tax, then income tax on the fixed pay.
- Expected variable pay = variable pay × expected payout ÷ 100.
- Income tax is calculated for the entire year's income by adding the gross salary, expected variable pay, and joining bonus, then subtracting the ₹75,000 standard deduction. This uses the new-regime slabs for FY 2026-27, with a Section 87A rebate for taxable income up to ₹12 lakh (and marginal relief for amounts above this), plus a 4% cess.
- Commute = office days a week × 52 weeks × cost a day.
- To calculate first-year cash, subtract your PF and professional tax from the gross salary, then add expected variable pay and joining bonus, and finally subtract income tax and commute costs.
How to Use the Offer Comparison Tool
First, use Careerwood Jobs to find and apply for IT and Technology positions. Once you have job offers in hand, it's time to evaluate them. Our Job Offer Comparison tool helps you look closely at what each offer means in real terms.
Enter the offers into the tool to compare monthly in-hand pay and cash savings for the first year. This allows you to see which offer might suit your needs better, considering PF, income tax, and more. Use this information before making a decision on which job to accept.