I recently got a new grad offer at Microsoft India. However, in the offer letter, they seem to break up the base into "Basic salary" and "Allowances". Could someone please give me an insight into how the "Allowances" work.. T. C. : 0 (i am a new grad :( ) Microsoft offer (INR) : 13 lpa Base + 5 Joining Bonus + $30K Stock (vested over 4 years) Thanks! #microsoft #newgrad #salary #tc
Don’t worry about it. It is for tax saving purposes
oh, so would i basically be getting the whole thing (13 lpa) as salary then?
Yup, whatever you claim under allowances will come tax free, remaining amount will be taxed and paid to you.
I feel like this is a massive low ball right? For Microsoft?
Yeah :( However this seems to be the standard offer from Microsoft for the new grad roles, (atleast for the on-campus placements)....
Fret not. Salaries after 1-2 years are always much, much higher than new grads.
Thanks for any responses.. I really appreciate it!