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How to negotiate salary

Updated · 9 min read · By the Last Minute Resume team

Most employers expect some negotiation once they have decided they want you. The first number in an offer is often not the highest the company can pay, and a polite, well-reasoned request rarely costs anyone an offer. What it needs is preparation: a number you can justify, a clear picture of what the offer actually contains, and words that are firm without being combative.

This guide covers when to negotiate (and when there is little room), how to research your number, how to read the whole package (including India's CTC), how to handle the expected-salary and current-salary questions, what to say on the phone and by email, what else you can negotiate besides base pay, and what to do if the answer is no.

When to negotiate, and when there is little room

The best moment is after you have a written offer and before you accept it. At that point the company has chosen you, and the cost to them of losing you is highest. Negotiating in the first interview, before they know whether they want you, rarely works.

SituationRoom to negotiate
Experienced hire with a written offerUsually some, on salary and other terms
Your skills are scarce or you have another offerMore than usual
Graduate schemes, campus hiring and large new-grad classesLittle or none on salary; packages are set for the whole intake
Government, union and public-sector rolesUsually none; pay follows set scales
Internal promotionSome, especially with evidence of market rates

Even when salary is fixed, you can often ask about the start date, location or other terms. New graduates can check our interview questions for freshers and new grads guide for how to answer the salary question politely when the package is standard.

Find your number before they ask

Your request needs to be grounded in what the role pays in the market, not in what you would like to earn. Gather evidence from several sources:

  • Job posts that list salary ranges for the same title, level and city. Several US states, including California, New York, Colorado and Washington, require employers to post pay ranges, so these are easier to find than they used to be.
  • Salary comparison sites that collect self-reported pay by company and role. Treat them as rough guides; samples can be small.
  • People in similar roles: former colleagues, classmates, people in your network. Ask about ranges, not exact figures, if that is more comfortable.
  • Recruiters, who usually know the going rate for a role and will often tell you if you ask directly.

From this, set three numbers before any conversation: your target (what you will ask for, near the top of the realistic range), your acceptable figure, and your walk-away point below which you would turn the offer down. Write them down. It is much harder to think clearly about money on a live call.

Read the whole offer, not just the salary

Two offers with the same headline number can be worth quite different amounts. Ask for the full breakdown before you negotiate, and compare like with like.

ComponentWhat it isQuestions to ask
Base salaryPaid every paycheck; the core of your payIs it the number future raises are calculated from?
BonusPaid only if targets are metWhat share was actually paid out last year?
Retirement match401(k) match in the US, pension contribution in the UKWhat percentage, and when does it vest?
Health insuranceMedical, dental and vision coverWhat do the premiums and deductible cost me?
Paid time offVacation, sick days and holidaysHow many days, and does it grow with tenure?
Signing bonusOne-time paymentIs there a clawback if I leave early?
Equity / RSUsShares that vest over timeWhat is the vesting schedule and the current valuation?

The base salary is usually what to negotiate first, because raises, bonuses and future offers are calculated from it.

If you're in India: CTC vs in-hand

Indian offers are usually stated as CTC, cost to company, which includes things you won't receive as monthly salary: variable pay, the employer's PF contribution, gratuity (paid only after years of service) and insurance. Ask for the monthly in-hand figure after deductions, check whether PF and gratuity sit inside the CTC, and negotiate the fixed component.

Answering “What is your expected salary?”

This often comes up early, in the first call with a recruiter. You have three reasonable options:

  1. Ask for their range first: “Could you share the budgeted range for the role? I'd like to make sure we're aligned.” Many recruiters will.
  2. Give a researched range, with your target near the bottom of it: “For a senior analyst role in Chicago, I'm looking at $95,000 to $105,000 base, depending on the overall package.”
  3. Defer politely if it is very early: “I'd like to understand the role better first, but I'm sure we can find a number that works if it's the right fit.”

Current salary is a different question. Many US states and cities ban employers from asking about your pay history, so you can say: “I'd rather focus on what this role pays. Based on the scope, I'm looking at $95,000 to $105,000.” Where it is asked, as it usually is in India, share it honestly and then move the focus to the role: “My current fixed pay is ₹14 lakh. For this role, with the larger scope, I'm looking at ₹18–21 lakh.” Never inflate your current salary; it is easy to check through payslips and background verification.

Raises are often discussed as a percentage of current pay, especially in India. If your current pay is below market, argue from the market rate for the new role instead of from a percentage of what you earn now.

What to say: phone and email scripts

Open with enthusiasm, make one clear request with a reason, and then stop talking. Silence after the number is uncomfortable, but it is the other side's turn.

Phone script

Thank you, I'm really pleased to get the offer and I'm excited about the role. I've looked at the package carefully. Based on the scope we discussed, leading the analytics team for two business units, and what similar roles in Chicago are paying, I was hoping for a base salary closer to $105,000. Is there flexibility there?

Negotiation email

Subject: Re: Offer – Senior Data Analyst Dear Ms. Carter, Thank you for the offer for the Senior Data Analyst role. I'm excited about joining the team and the work on customer retention we discussed. I've reviewed the package carefully. Given the scope of the role, including leading two analysts and owning the retention dashboards, and the market rate for similar roles in Chicago, I'd like to ask whether the base salary could be raised from $92,000 to $102,000. If that is difficult, I'd also be glad to discuss a signing bonus to offset the annual bonus I'll give up by leaving my current employer in March. I'm keen to make this work and look forward to hearing from you. Best regards, Aditi Rao

Email works well when you want to choose your words carefully or when the recruiter needs to take your request to someone else. A call works well for a quick back-and-forth. Either way, get the final agreed terms in a revised written offer.

What else you can negotiate

If the base salary can't move much, other terms often can, and some are worth a lot:

  • Signing bonus, especially to cover a bonus or unvested stock you lose by leaving.
  • Notice-period buyout (India and some UK roles): the new employer pays your current employer so you can join early.
  • Start date: more time to serve notice, take a break, or relocate.
  • Work arrangement: remote or hybrid days.
  • Job title, which affects future offers.
  • Extra paid time off, often easier to give than salary.
  • An early salary review, for example after six months instead of at the annual cycle, written into the offer.
  • Relocation support: travel, temporary housing or a relocation allowance.
  • Learning budget for courses and certifications.

When you're ready to resign, our two weeks notice letter is ready to adapt. On a long notice period, the notice period email to your manager guide covers how to ask for an early release.

If they say no, or your employer counter-offers

If the company can't move, ask whether anything else can (see the list above), and ask when the salary would next be reviewed. Then decide against your walk-away number. Accepting a fair offer after a polite attempt to improve it is perfectly normal; you don't need to win every point.

If your current employer makes a counter-offer when you resign, think about why you started looking in the first place. More money rarely fixes the reasons people leave: the work, the manager, the growth. If you do accept a counter-offer, tell the new company promptly and courteously; don't keep both offers open.

Once you have agreed the terms, our guide on how to accept a job offer by email has templates for confirming them, and our resignation letter for a better opportunity helps you leave your current role well.

Mistakes to avoid

  • Accepting on the spot. It is fine to say thank you and ask for a day or two to review the offer.
  • Negotiating against yourself: giving a number, then lowering it before they respond.
  • Making it personal. Your rent or EMIs are not the employer's reason to pay more; the role and the market are.
  • Bluffing about another offer. If you mention one, it should exist.
  • Inflating your current salary. Payslips and background checks will show the truth.
  • Negotiating after accepting. Once you have signed, reopening the salary damages trust before you start.
  • Forgetting to get it in writing. A verbal promise of a review or bonus is easily forgotten.

Not at the offer stage yet? Strengthen your position first: a resume with clear, measurable results gives you evidence to point to. See our resume examples for how others show impact, and send a thank-you email after each interview to stay front of mind.

Questions

Is it okay to negotiate salary after a job offer?
Yes. Most employers expect it for experienced hires, and a polite request with a clear reason rarely puts an offer at risk. The exception is fixed-package hiring, such as graduate schemes, campus hiring and government roles, where salary is usually not negotiable.
How much more should I ask for?
Ask for a figure near the top of the researched market range for the role, level and city, and be ready to explain it. Avoid a number you cannot justify with market evidence or the scope of the role.
What should I say when asked for my expected salary?
Ask for the budgeted range first, or give a researched range with your target near the bottom of it. If it is very early in the process, you can politely say you would like to understand the role first.
What is the difference between CTC and in-hand salary?
These are Indian terms. CTC, cost to company, includes everything the employer spends on you: fixed pay, variable pay, employer PF, gratuity, insurance and sometimes bonuses. In-hand salary is what reaches your bank account each month after deductions, and is usually well below CTC divided by twelve.
Can a company withdraw an offer if I negotiate?
It is uncommon when the request is polite and reasonable, but it can happen. Keep your tone appreciative, make one clear request, and be prepared to accept the original offer if it still meets your acceptable figure.

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