All You Need To Know About The Hefty Packages Offered At IIT’s

It Literally makes one “Non IIT graduate” to jump off the seat and say “ heck! A package of 1 crore plus annually?” soon the calculation starts 1 crore 40 lakhs divided by 12= Approx 12 lakhs “ My God! The monthly salary is three times my annual salary!” further  there are relatives and parents in India to rub salt over the wound and if the beneficiary happens to be a relative or neighbour then the situation becomes much more painful,

“ Itna package kaise mil jaata hai inko?”

“tera package kab badhega?”

you don’t have any answer except getting perplexed and wonder what the hell they possess which fetches them such huge packages? What kind of work they do which justifies their worth? Do i miserably lack basic skills to be working at significantly low package ?

It makes you recall the sins that you committed in +1 and +2 which prevented you from entering the IIT’s or other equivalent institutes and makes you feel low  but wait! the grass on the other side is not as greener as it looks.

First of all, you need to understand that the recruited candidate would be working and spending in the United States and not India so the package offered is in dollars and it is deliberately converted into Indian currency to fetch all the hype also the cost of living in the US is much higher as compared to India .The package offered includes the following constituents:-

  1. Basic Pay
  2. Stock options (company shares)
  3. Joining Bonus
  4. Performance Bonus

The stocks are granted for a period of 4 years but are included in the package all together instead of 1/4th  so if the package is 1.40 crore  the basic pay remains around 130000$ and if the 1/4th stock value is added then the annual recurring salary becomes:-

Annual Recurring Salary= 130000$+22000$(assuming ¼ stock value, so if 4000 stock options are granted, annually will be ¼*4000=1000 the current value per share of say google is 22$ per share so 1000$*22$=22000$)

So the actual salary received will be 152000$

 it still looks  big!

now lets talk about the taxes and expenses(Assuming California)

Deduct 30% US federal tax= ~45000$

Deduct 10% CA Tax=15200$

Deduct the expense to rent a 1 BHK Apartment=~30000$

So now after all deductions the salary is= Approx 62000$ which is around 41 lakhs

41 Lakh rupees…. Now it looks digestible?

IT’S NOT OVER YET! lifestyle expense such as a car, entertainment, India trips,school fees(in case if there are kids) etc so at the end of the year the amount one can save is around 30,000$ which is around 20 lakhs INR.

If we look  1 crore and 40 lakhs have reduced to 20 Lakhs!

Things to ponder and think

who leaks the package info into the media?

Is it in a way company’s  and institute’s branding?

Why such overhype?

Media and the concerned Institutes really needs to stop this!

Such type of media hype is definitely a threat to the budding talent of the country. We are the one’s who actually do the branding and yes our parents and relatives, the potential marketer , No doubt the candidates are really talented who gets recruited but the “Package” thing is so much hyped that  it tends to outshine  the other aspects which are much important in a Job like Job Profile,Interest,Passion etc  so keep loving your job, read this article, again and again, make your parents and relatives read this don’t get carried away by “Sharmaji’s Son” , follow your dreams, work hard, work passionately and you would definitely strike gold!

-By Aditya Sanadhya

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