Switching Jobs
See what your new offer is really worth
Current vs new offer
Set 0 if you have none, or if the new company is matching your unvested grants.
The real numbers
Effective hike on take-home:
37.4%
Strong jump — worth the move on cash grounds alone.
Old vs New tax regime at your new salary
Typical salaried: 80C ₹1.5L + 80D ₹25k + HRA ~₹75k = ₹2.5L.
New regime
₹ 1,50,800
₹75k standard deduction · 87A rebate up to ₹12L taxable
Old regime
₹ 2,73,000
₹50k standard + your deductions · 87A rebate up to ₹5L taxable
You'll forfeit gratuity by leaving before 5 years
At 3 years of service, gratuity is not yet vested. If you stayed until year 5, you'd be eligible for roughly ₹1,29,808 (tax-free up to ₹20L). Worth factoring in if you're near the threshold.
Your Action Plan
Get the new offer in writing — letter of intent + signed offer letter
Don't resign on a verbal commitment. Verify role, CTC components, joining date, and any sign-on / retention bonus in writing.
Roll your PF over — don't withdraw
Submit Form 13 to transfer EPF balance to the new employer's account. Withdrawal triggers taxation if before 5 years and loses 8%+ compounding.
Keep a ₹₹1.2 L transition buffer
Cover 2 months of essentials in case your new job's salary cycle starts later than expected or you need a longer notice period.
Use sign-on bonus to clear high-interest debt first
Credit-card debt at 36-48% APR or personal loans at 14-18% should be paid off before you invest the bonus.
You're leaving significant non-cash value on the table
Forfeited gratuity + unvested ESOPs total roughly ₹1,29,808. Try to negotiate a counter from the new employer.
Recompute your tax regime choice
Higher income often flips Old vs New regime preference, especially if you stop claiming 80C and HRA at your new job. Re-run the comparison.
Don't break your investments to cover notice period
If you can't fund 1-2 months of buffer without selling equity/MF, you don't have enough emergency fund to switch jobs safely yet.
Don't immediately upgrade lifestyle to match the new salary
A 25-50% hike shouldn't translate to a 50% rent / car upgrade in month 1. Hold the lifestyle for 6 months and invest the delta — compounds materially.
Calculators that help with this