Moving from Consultancy to Corporate. How to negotiate salary?
Hi all. I’m currently in working as a consultant in a startup that provides legal services to large corporates. The business model is such that every single employee is a consultant to the organisation. They’ve framed it this way so that they don’t have to pay statutory benefits like PF and insurance. However, I also get tax exemption due to presumptive taxation. I don’t need to pay income tax up to 24L. There’s also a fixed and variable component to my pay structure based on billables.
My current structure:
• Fixed in-hand: ₹1,05,000/month (₹12.6L/year)
• Variable: performance-linked, tied to hitting revenue/billing multiples of my salary
• Hit one tier → eligible for ₹52,500 extra that month
• Hit a higher tier → eligible for ₹1,26,000 extra that month
• Payouts are meant to be quarterly, but as a startup, they’re usually delayed by 1-2 months
• Even calculating conservatively, I hit the top tier in 2 out of 3 months per quarter, which works out to a guaranteed minimum of ~₹2.52L extra per quarter, sometimes going up to ~₹3.78L in stronger quarters.
So my realized total comp ends up meaningfully higher than my fixed salary.
I’m sick of chasing numbers without any real stability and am looking to move into a corporate role. I’m currently interviewing at a large NBFC and I’m waiting for the offer. My hiring consultant told me that the org will not offer more than max 40% on my fixed. This will lead to me earning a lot lesser because of tax component and other deductions.
Even though my fixed is 12.6 LPA, I end up making 21 to 22 LPA net and in hand without any tax. If my fixed pay is only going to be max 18 LPA gross, I’m at a loss.
How do I negotiate or frame my salary component details during interviews and clarify why they should pay me more? I’m not ok with taking a CTC of lesser than what I currently earn.