“IIT-B student offered highest package of Rs 1.42 crore,” “Four students turn down Rs 1 crore offer,” are some headlines that catch our eye and force us to think how on Earth could anyone do that? Right? Well, let’s decode their offer letter and have a look at what exactly a 1 crore salary looks like!

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The offer letters of many big shot companies like Facebook, Microsoft, and Oracle comprise of one-time joining incentive/bonus and stock benefits. Tower Research Capital India has a position which promises a performance incentive of Rs 8 lakh a year, while an offer from IIT Varanasi of Rs 77.5 lakh package included $15,000 worth of joining bonus.

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Many salary heads that are not guaranteed would depend on several factors such as the performance of the individual, company or department’s progress, the general business environment and other factors. Some of these might even be beyond the control of the candidate.

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There is something called overtime allowance or shift allowance, which may be handed over only if one needs to work overtime, which may or may not be required. Also, the maximum amount that would be offered as overtime allowance would be mentioned here, which would prop up your salary offer.

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Insurance covers are offered by most companies. But this wouldn’t translate to actual benefits in hand but the total sum assured of say Rs 3-5 lakh would be inclued in the offer. 

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There are many other unseen deductions that will happen from your salary such as heavy Income Tax, employee provident fund, professional tax, gratuity and the likes.

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So in short the candidate might get 30-40% in hand of what he thought he might be getting earlier. But nevertheless 30-40% of 1 crore is really a big salary to start, not to mention the recognition one gets!