Who is not excited for the first salary,but imagine if you don’t know what are the terms in your payslip?
Starting with, your payslip will include four terms namely:
- Basic pay is generally fixed amount which is around 30 to 40% of your salary.
- Variable pay will be consisting of your allowances, benefits and reimbursement which differs from company to company and will be paid by the company.
- Bonus is specifically performance bonus which will be based on the performance and contribution towards organization which will be different from employee to employee.
- Deductions mainly consist of provident fund for which 12% will be contributed from your salary and 12% from the employers side.
post all the deduction the amount which will be left is your in hand salary (which will be paid by employer to you) ,while negotiating keep in mind the employer will be negotiating on the basis of the variable pay and not the fixed pay.If employer agrees to pay you more it means they will be increasing the cost to company and not your in hand salary however at the end it is you who is benefited.