Reality of 40 lakh Salary at IIM MBA/ISB/IIT🤯 (In hand salary vs CTC) -By Ex- BCG, ISB MBA

Have you seen the 1 Crore package for IIT in newspapers' headlines? Or do you want to know the reality of the in-hand salary of 40 lakh CTC offered in IIM/ISB?

I have shared a step-by-step breakup of CTC offered in India and what is % in the hand of offered CTCs!
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About Shatakshi-

Shatakshi is Co-CEO of 🚩Global Governance Initiative (MBA program recently featured by Poets & Quants), an Ex- 🚩Boston Consulting Group, BCG, management consultant, a 🚩writer, and former public policy advisor in 🚩Tony Blair Institute for the Middle East region.

She has been also felicitated with The Most Promising Women Leader 2021 award by ET and 🚩Linkedin Top Voice 2021. Her interviews have been published in leading policy and career organizations- Modern Diplomacy, BCG, Poets & Quants, Your Story.

She will be uploading daily content on 🚩career advancement (MBA, consulting) 🚩personal finance, and 🚩productivity hacks. Be sure to subscribe to the channel to get notified whenever she uploads the video.

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Have you ever heard that students from top institutions in this country are getting packages worth 1 crore? Or have you ever wondered why you are just earning 6-8 lakhs, but IIM/ISB/IIT students are earning 45-50 lakhs?

As a former BCG consultant and an advisor for the Tony Blair Institute, I can share the reality behind these packages. Taking into account my experiences, we will uncover the truth about the inflated CTC packages, their break up and the actual in-hand salary.

Culture of Inflated CTC

Let us begin by laying the foundation that these are not false CTC reports by organisations and MBA schools.

The companies do incur some costs beyond the in-hand salary that you get. This could be in the form of insurance, travel or other assets they provide to you. Thus, it is beneficial for the employer to inflate the CTC to attract higher quality talent towards them.

Similarly, it is beneficial for the B-schools to stay in tune with these high CTC packages to attract a better pool of students. For the same reason, individuals prefer to not share their actual in-hand salaries.

Components of CTC

2.1 Joining and Annual Bonus

At BCG, we were given an annual bonus based on our and the firm's performance. Similarly, you will get a joining bonus as well.

Back in 2019, after completing my MBA from ISB, I was given a CTC of 33 Lakhs. Out of this, 2 Lakhs was just by joining bonus.

2.2 ESOPs and Allowances

ESOPs are particularly prevalent in start-ups. Though, it will diminish the in-hand salary that you will get from the firm. ESOPs get encashed when you stay with the company for a long period of time.

It is basically a retention strategy followed by the employer so that you stay with the firm for a longer period of time.

2.3 Taxation

If you are employed at leading firms such as Amazon, BCG or McKinsey, you will fall into the 30% bracket in India. This too will diminish your in-hand salary.

However, due to the lack of taxes in Dubai, I saved a lot of my in-hand salary.

In-hand Salary of CTC

I shall begin by quoting some statistics here. If you join any organisation, 20-40% of your CTC will get eaten up by the 3 components we discussed above.

Now for the anecdote, when I joined BCG in 2019, I was given 1.5 Lakhs per month or 18 Lakhs per annum. This, of course, does not include my joining and annual bonus.

[KundanKumar-vwdm]

Hi Shatakshi,

CTCs are generally inflated in IT companies. In engineering colleges, Microsoft, Adobe show 42-44 lakhs CTC on paper but give around 20-22 lakhs in a year (without the tax deduction). After tax deduction, it gets even lesser. ESOPs constitute major part of the CTC which they get in 4-5 years of the span but quoted in first year CTC. That's why I find them quite shady and delusional.

SAME IS THE CASE WITH "PRODMAN COMPANIES" also in B-schools.

[PramodKumar-xyvu]

Actually why Indian people quote CTC is mainly because in govt job has great charm and designation speaks louder than Cat where as in India private job is not seen very positive manner hence people speak out CTC to prove their worth.

[joyboy]

I thought MBA karleta hun but isse zyada CTC toh Btech mein mil rahi hai

[kuldeepkhatri]

The dichotomy with regards to the disclosure (read: flaunting) of salaries is more to do with how societies are structured. The USA or most western countries are developed countries with a robust social security system in place providing them a safety net to rely on in catastrophic times. This doesn't exist here in India. Your friends/relatives usually become your safety net in times of distress. It's a very inter-dependent relationship that we share with people around us in India which is also why relationships can often be of superficial nature because you're forming connections for some kind of convenience rather than truly connecting with them.

[SANDEEPKUMAR-gdzr]

I heard for those doing MBA in HR, they don't have much of bonuses. For them in hand is quite close to CTC. Is this true?

[parthabanerjee]

Indian salary varies from sky high to very low . So the whispers when you strike it rich . Abroad, salary difference is much much less .so little whispers .

[shyampagne]

Why would u bring tax component into computation?? Tax has to be paid by all even if earning 10 lakh salary.

[ankitlakshya]

Whatever the package is the way you behave with your money will be more important in future

[himanshurai]

Here in my field (merchant navy) it's tax free

[ickpirate]

Always kept my ctc private specially with relatives..i dont want anyone asking me for money.

[narolavarshil]

Is Masters in Computer Science in demand or MBA in USA?

[milindsd]

I was rather curious about the quantity of tea in such a big cup! 😂
Actually CTC vs in-hand salary hold the very same ratio.

[preyanshisingh]

Hi Shatakshi,

Could you please make a video on what are the options of wfh for mba graduates. Is there any scope? because i think many people are willing to continue wfh after the pandemic and it would be interesting to find you thoughts over it.
❤️

[mohitsingharia]

Is it green tea, black tea or our very owned desi chai?

[PJadhav-uj]

her hands r moving like a frass here n there, still she didnt spill a single drop of chai... such a patient and calm chai

[srisaisanthosh]

Whether a CA can go for management consultancy....what's your opinion..

[lucidlessons]

I am a specialist who is churning out 32 LPA fixed and got an offer from SPJIMR for their PGPM. Do you think I should take it ?

[soumendas]

Shatakshi I need some suggestions from your end..where can I connect with you regarding some career suggestions?

[sakshibhatia]

Mam is HRA, DA too given at the end of the year?

[a_ori]

Didi aap ke bahut sara video dekha... par maximum me lagta hy Chai/ Coffee cup empty hota hy 😂 ..