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' ₹18 LPA is actually ₹6 LPA': Founder explains how companies inflate CTC to make job offers look bigger
According to Thakur, the guaranteed base salary was only ₹6LPA. The remaining ₹12 lakh was tied to conditions that may never materialise.
A startup founder has sparked discussion online after explaining how many companies inflate cost-to-company (CTC) figures, making job offers appear far more lucrative than they actually are.
Sahil Thakur, founder of BlockseBlock, shared a story on LinkedIn about one of his students who recently received an offer from a Mumbai-based startup, quoting an annual package of ₹18 lakh. At first glance, the offer seemed impressive. The student celebrated, posted about it online, and informed his parents. However, Thakur explained that a closer look at the salary structure told a different story.
“A student just showed me his offer letter. ₹18 LPA. Startup. Mumbai. He was celebrating. Posted on LinkedIn. Called his parents,” Thakur wrote, before breaking down the numbers.
(Also Read: Startup founder recalls getting reply from Nithin Kamath within an hour)
The ‘real’ in-hand salary
According to Thakur, the guaranteed base salary was only ₹6LPA - translating to roughly ₹50,000 per month. The remaining ₹12 lakh was tied to conditions that may never materialise.
The offer included a ₹4 lakh “performance bonus,” but Thakur claimed the targets were structured so that only about 10% of employees achieve them. Another ₹3 lakh was listed as a “retention bonus,” which is payable only after 2 years.
The remaining ₹5 lakh consisted of employee stock ownership plans (ESOPs), valued at the company’s current funding round and set to vest over four years. Thakur cautioned that such equity could ultimately be worth nothing if the company fails to go public or secure an exit.
“So his ‘ ₹18 LPA’ offer is actually ₹6 LPA guaranteed and ₹12 LPA imaginary,” he wrote. “They inflate the CTC with bonuses you'll never get and equity that might never vest. Because ₹18 LPA sounds way better than ₹6 LPA on LinkedIn. And most freshers don't know to ask for the breakup,” he added.
Thakur said many freshers accept offers without fully understanding the breakup. “You’re not making ₹18 LPA. You’re making ₹6 LPA with a lottery ticket,” he recalled telling the student, who decided to take the job anyway after understanding the actual payout.
In his post, Thakur advised job seekers to carefully evaluate compensation structures by distinguishing between guaranteed and conditional pay and to avoid comparing headline CTC figures with peers. “If you're evaluating offers: Ask for the CTC breakup. Check what's guaranteed vs what's conditional. Ignore ESOPs unless the company is close to IPO. And stop comparing total CTC numbers with your friends,” Thakur wrote.
“Compare what actually hits your bank account. That’s the real salary,” he added.
(Also Read: Bengaluru founder advises youngsters to upskill: ‘Forget gold and silver nonsense’)
Social media reactions
The post sparked a discussion from professionals, many of whom shared similar experiences.
“The ESOPs remind me of my old company where founder promised ESOP to every cofounding team member including me , but we never got it,” one user wrote.
“Forget about freshers, there is a decent % of laterals who don't know their CTC breakup,” commented another.
