Things to check before you sign
4 to review
Gratuity Provision Included in CTC
Retirals, sample dataWhat the data shows. Gratuity is marked as included in the CTC. The annual provision of ₹30,769 is derived as 15 × Basic ÷ 26 ÷ 12; it is not paid as monthly cash.
In general. Under the Payment of Gratuity Act, 1972, gratuity generally becomes payable after five years of continuous service (with statutory exceptions). How a provision shown in CTC is treated on an earlier exit depends on the employer's policy.
Ask HR: How is the gratuity provision shown in the CTC treated if I leave before completing five years?
Possible question: "Would the company consider showing gratuity outside the CTC figure, or reallocating it to fixed pay?"
Review Joining-Bonus Clawback Terms
Needs review, sample dataWhat the data shows. A joining bonus of ₹1,20,000 with a 12-month clawback window has been entered. Whether repayment is prorated, and whether it is gross or net of TDS, is not confirmed.
Ask HR: Is the joining bonus clawback prorated by months served, and is repayment calculated on the gross or the post-TDS amount?
Possible question: "Would the company consider a prorated clawback, reducing each month served?"
Equity Grant: Paper Value Subject to Plan Terms
Equity, sample dataWhat the data shows. Equity grant of ₹4,00,000 is paper value, not cash. Vesting schedule: Equal 4 Years (25%/yr) (sample data).
In general. Cliffs, exercise windows, exercise price and liquidity vary by plan. None of these are confirmed unless stated in your grant documents.
Ask HR: What is the vesting schedule, is there a cliff, and what is the post-termination exercise window for vested options?
Possible question: "Would the company consider a longer post-exit exercise window?"
Employer PF Contribution Inside CTC
Retirals, sample dataWhat the data shows. Employer PF of ₹76,800/year is inside the CTC (derived: 12% × Basic Salary). It is retirement savings, not monthly cash.
Ask HR: Is PF computed on full Basic or on the statutory wage ceiling (₹15,000/month), and can employees choose?