A big salary figure can seem impressive at first glance, but it often conceals the real story. Many fresh graduates accept job offers based solely on high pay, without considering their actual take-home
salary each month. This issue was recently highlighted by Sahil Thakur, founder of BlockseBlock, in a LinkedIn post that drew significant attention.
Sahil Thakur shared the example of one of his students who received a job offer from a Mumbai startup with a salary of Rs 18 lakh per annum (LPA). On paper, it sounded like a dream offer for a fresher. Once the details were examined, everything changed. The fixed salary was only Rs 6 LPA. The remaining amount was bonuses, targets and company equity that may never turn into real cash. Thakur explained that such targets are often set in a way that very few people achieve them.
As a result, the student’s actual monthly take-home pay was just Rs 50,000. The founder emphasised that many companies tend to inflate salary figures, advising freshers to always request a clear salary breakup before accepting any offer.
The ‘Rs 18 LPA Offer’ That Wasn’t Real
Taking to LinkedIn, the founder explained, “A student just showed me his offer letter. Rs 18 LPA. Startup. Mumbai. He was celebrating. Posted on LinkedIn. Called his parents. I read the breakdown. Base salary: Rs 6 LPA. Performance bonus: Rs 4 LPA (if you hit 120% of target). Retention bonus: Rs 3 LPA (paid after 2 years, only if you stay). ESOPs: Rs 5 LPA (at current valuation, vesting over 4 years). The real number he’s getting in his account every month? Rs 50,000. That’s Rs 6 LPA. Not Rs 18 LPA.”
“The Rs 4 LPA performance bonus? His manager sets the targets. And they’re designed so that only 10% of people hit them. The Rs 3 LPA retention bonus? He has to stay 2 years to get it. Most people quit in 18 months. The Rs 5 LPA ESOPs? Valued at today’s funding round. If the company doesn’t exit or IPO, they’re worth Rs 0. So his Rs 18 LPA offer is actually: Rs 6 LPA guaranteed. Rs 12 LPA imaginary,” he added.
Why Freshers Should Ask Questions
According to Sahil Thakur, many companies “inflate the CTC with bonuses you’ll never get and equity that might never vest.” He explained that a figure like Rs 18 LPA looks far more attractive than Rs 6 LPA on LinkedIn, and most freshers do not think to ask for a clear breakup. “They just see the big number and say yes,” he said. Sahil Thakur made it clear to the student that the offer was not “Rs 18 LPA. You’re making Rs 6 LPA with a lottery ticket.”
The student ultimately decided to accept the job. He felt that Rs 6 LPA is a reasonable starting salary, but now understands the reality behind the offer. The founder advises freshers to always request a detailed salary breakup, clarify which components are fixed and which depend on targets, and avoid counting ESOPs unless the company is close to an IPO. He emphasises that the real salary is the amount that actually reaches the bank account, not the total CTC listed on paper.
