A superb friend of mine recently

A superb friend of mine recently changed his work. After receiving his first 30 days salary from the new company, they called me and told "I have changed my job with a 25 percent hike but my take home salary increased by 10 percent". The reason for this kind of disparity in the expense to company and the take home pay is because of lack of understanding of salary framework negotiations.

Before getting into the wage negotiation front, each one of us should certainly understand about the salary structure. Allow us understand how to increase the take home salary. You are able to increase your in hand salary by reducing tax payment.

- Basic pay off is a component of fixed portion. An increase in your basic pay is always attractive. Increase in basic pay will result in a greater contribution to employee provident provide for and gratuity by the employer. It doesn't evaporate reduce your tax but increase your near future savings.

- Try to get a major part of your salary component which can be returned. The reimbursement components of variable spend are as follows -

If you look at all these items, you have to submit proofs so you can get the reimbursements and hence it is not taxable.

Some reputed companies also supply mortgage debt the options to the employees to change all their salary structure after joining the organization. In that case, you should make your salary construction in such a way so that you pay less duty.

Before you accept an offer do make sure to calculate your take home income. Negotiate with the employer to change typically the salary structure which will reduce your tax payout.

If the take home salary will increase to your expectation level, then acknowledge the offer.