A good friend of mine recently changed his

A good friend of mine recently changed his career. After receiving his first calendar month salary from the new company, he / she called me and told "I have changed my job with a 25 percent hike but my acquire salary increased by 10 percent". The reason for this kind of disparity in the price to company and the take home earnings is because of lack of understanding of salary construction negotiations.

Before getting into the salary negotiation front, each one of us should certainly understand about the salary structure. Why don't understand how to increase the take home salary. You are able to increase your in hand salary by decreasing tax payment.

- Basic pay for is a component of fixed portion. A rise in your basic pay is always appealing. Increase in basic pay will result in a bigger contribution to employee provident create funding for and gratuity by the employer. It will not reduce your tax but increase your potential savings.

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

If you look at the aforementioned items, you have to submit proofs for getting the reimbursements and hence it is not taxable.

Some reputed companies also supply the options to the employees to change calculating mortgage payments his or her salary structure after joining the corporation. In that case, you should make your salary design in such a way so that you pay less tax.

Before you accept an offer do guarantee to calculate your take home wage. Negotiate with the employer to change the particular salary structure which will reduce your taxes payout.

If the take home salary increases to your expectation level, then take the offer.