It usually arrives in the first call. The recruiter has your resume open, the conversation is going well, and then: "So, what are your salary expectations?" Or, in many Indian companies, "What is your current CTC and expected CTC?" Answer too low and you may leave a large sum on the table for years. Answer too high without a reason and you risk being screened out. Freeze, and you give the other side the advantage.
The answer is not a clever phrase. It is preparation: knowing three numbers before the call and having a calm way to say them. This guide shows how to work them out and how to use them.
Why this question matters so much
Your starting salary sets the base for future raises, bonuses calculated as a percentage, and often your next employer's offer, because many recruiters anchor on what you earn now. A difference of ₹1.5 lakh a year at the start can compound into a much larger gap over a few years.
The company also has a range for the role. Your answer tells them where in that range to start, or whether you fit it at all. A prepared, reasoned answer lands you in the right part of the range; a vague one lets them pick.
Know your three numbers
Before any salary conversation, decide:
- Walk-away figure. The lowest offer you would genuinely accept. Below this, you would stay where you are or keep looking.
- Target. The figure you want to end up with after negotiation.
- Opening ask. The figure you say first, a little above your target, so there is room to negotiate down to it.
The Salary Calculator works these out from your current pay. Enter your fixed pay and the variable pay you actually receive, choose the increase you want (or type your own), and it shows your walk-away (10 percentage points less than your target increase), your target and an opening ask about 10 percent above the target, with monthly figures and amounts in LPA for rupees.
For example, with ₹10 lakh fixed and ₹1 lakh variable (₹11 lakh total) and a 30 percent target increase:
| Increase | Yearly | |
|---|---|---|
| Walk-away | 20% | ₹13.2 lakh |
| Target | 30% | ₹14.3 lakh |
| Opening ask | about 43% | ₹15.7 lakh |
Choose the increase from evidence, not hope
The right increase depends on your field, city, experience and how in demand your skills are. Typical job-switch increases vary widely between industries and from year to year, so build your figure from evidence:
- Recent offers for similar roles, from colleagues, friends and your network.
- Salary ranges in job posts for comparable roles; the Remote Job Hunter can filter remote roles to those that show a salary.
- Salary surveys and company review sites, treated as rough guides rather than exact figures.
- Your leverage: a competing offer, a scarce skill, or a strong track record in exactly what the job needs.
If your evidence says similar roles pay ₹14 to 17 lakh, a 30 percent target from ₹11 lakh is reasonable; a 60 percent target would need a strong reason.
Fixed pay, variable pay and CTC
In India, offers are often quoted as CTC (cost to company), which can include much more than the salary you take home:
- Fixed pay: basic salary and allowances paid every month.
- Variable pay or performance bonus: paid if targets are met, sometimes partly or not at all.
- Employer PF contribution and gratuity: real value, but not cash in hand.
- Insurance, meal cards and other benefits.
- Joining bonus: paid once, sometimes with a clawback if you leave early.
- Equity (ESOPs or RSUs): valuable but uncertain, and vested over years.
Two offers with the same CTC can mean very different monthly incomes. When you state expectations, say which you mean ("I'm looking for around ₹15 lakh fixed"), and ask for the breakdown when an offer arrives. The "Value an offer" mode of the Salary Calculator turns a package into yearly and monthly figures and compares it with your current pay. If you have more than one offer, our guide on comparing two job offers goes further.
As a rule, ask for most of your increase in fixed pay. Variable pay depends on performance and company results; fixed pay does not.
What to say: example answers
Early in the process, before you know enough about the role:
"I'd like to understand the responsibilities and the full package first. Could you share the range budgeted for this role?" Many recruiters will share it, and then you know where you stand.
When asked directly for a number:
"Based on the scope of this role and what similar positions pay, I'm looking for around ₹15 to 16 lakh fixed." Give a range that starts near your target, not your walk-away figure, and say what it is based on.
When asked for current CTC:
Be accurate; it is often verified. Then move to the future: "My current CTC is ₹11 lakh, including ₹1 lakh variable. For this role I'm looking for around ₹15 lakh fixed, given the larger scope."
When the offer is below your target:
"Thank you, I'm excited about the role. The offer is below what I was expecting based on the responsibilities. Is there flexibility to bring the fixed component closer to ₹14.5 lakh?"
Negotiating after the offer
- Respond in writing where possible, so terms are clear.
- Negotiate the parts that matter most to you: fixed pay first, then joining bonus, notice-period buyout, leave or remote days.
- Use real leverage honestly: a competing offer is powerful; an invented one is risky.
- Know when to stop. Once an offer is at or above your target, accepting gracefully protects the relationship you are about to start.
- Get the final breakdown in the offer letter before resigning from your current job.
Mistakes to avoid
- Giving your walk-away figure as your expectation. You will rarely get more than you ask for.
- Quoting a single exact number. A range starting near your target leaves room.
- Comparing CTC with take-home pay. Compare like with like.
- Ignoring variable pay terms. Ask how the bonus was paid out last year.
- Accepting before seeing the breakdown.
Make sure your resume gets you to this point
Salary conversations come after your resume has done its job. Check it reads well for both software and people with the ATS Resume Checker, and see our guide on tailoring your resume to a job description.
Frequently asked questions
Should I tell the recruiter my current salary?
In India it is usually expected and often verified, so be accurate. Then base your expectation on the new role's scope and market pay, not only on your current figure.
Is a 30 percent increase reasonable?
It depends on your field, demand for your skills and the role. Use evidence from similar roles to decide.
Are the calculator's figures before tax?
Yes. Take-home pay depends on your tax regime and deductions.
What if they say the budget is fixed?
Ask about the other levers: joining bonus, notice-period buyout, a salary review after six months, or extra leave.
You cannot control the company's budget, but you can control how prepared you are. Work out your walk-away, target and opening ask with the Salary Calculator before your next call, practise one sentence out loud, and say it calmly when the question comes.
