If asked about my expected CTC in an interview, what should I say?

There are NO definite industry standards for any work. The ONLY standard defined is the base minimum pay as per law! So it's left upto the company to decide, in turn adding to the work burden.

When someone asks you your expected CTC, it means that they are interested in you as a candidate to hire…

They in most cases shall need to simply check the box on their evaluation sheet, and define you as affordable or not.

Please do NOT give answers like:

  1. As per industry standards
  2. Whatever you think I am worth
  3. Whatever level you think I fit in with the company
  4. I really haven't thought about it
  5. I'd rather not say

These answers are like landmines waiting to explode!

Let me explain:

  1. If you say : “As per industry standards”. There are NO definite industry standards for any work. The ONLY standard defined is the base minimum pay as per law! So it's left upto the company to decide, in turn adding to the work burden. So unless you are selected as a top preference candidate, you shall be simply tagged below the rest of the pile!
  2. If you say: “Whatever you think I am worth.”. This is a bordering on “OMG, you have a very bad attitude and are very self opinionated and think way too much of yourself”! NO this isn't being humble! It simply means that you think you are worth the moon and the interview process would have proved your moon worthiness and you are just waiting to get recognized! Please never ever say this…!!! Unless the company is desperate, they won't hire you!
  3. If you say: “Whatever level you think I fit in with the company.” Ok now this is like 2 above with the EXTRA task of fitting you within the company levels of hiring! A big No-No please! Don't say this!
  4. If you say: “ I really haven't thought about it”… it simply says you came in for a mock interview and are not a serious candidate!
  5. If you say : “I'd rather not say”…. This simply tells the interviewer that you are playing it safe and want a higher than expected salary. Ie you want say. Min 15% hike and you aren't sure what the company has to offer and may just give you a 20% hike… and vice versa…so you want the bigger of the two

Please ALWAYS be clear on how much you wish to be earning in the new job.

If it's a job switch what is the percentage hike you want.

If it's your first job, then what is the base salary you need before you shall agree to join.

A lot of people are very confused on how to calculate their expected CTC, a few quick tips:

  1. Self awareness - how much would you minimum need to take the job and survive? Vs how much would make you happy? Once you have this number down - you have your salary range
  2. Company salary band awareness : study what the company normally has to offer in your domain. This information can be searched for online and also if you ask people around you if they know someone working in the company
  3. Your old company and it's salary policy : it shall simply give you a upper and lower limit of salary bands. Remember most big and medium scaled companies make salary bands according to parameters which they call “ industry norms “. So in case you don't get a heads up from the new company you are interviewing for, your old company data shall be pretty useful
  4. If you are a fresher being hired from campus, ask your Placements coordinator. They would want to get the best/optimal possible salary for you as it shall show up as a win for their campus hiring process - both as person hired vis a vis salary band
  5. If you are a fresher going directly to the company - you have to focus on point 1 and 2 above plus speak to your parents and guardians.