Chapter 2 of 8 · 5 checks · 3 min
Work out total compensation
Turn each offer into numbers you can compare: what is fixed, what is variable, what is paper value, and what it costs you to take the job.
Calculate your take-home pay, not only the gross salaryMust
Why it matters and how to check
The salary in an offer is usually gross: before income tax, social security, pension contributions and other deductions. Two offers with the same gross figure can land very differently in your account, especially across countries or between an employee contract and a contractor arrangement where you handle tax yourself.
Use your tax authority's own calculator or published rates where they exist, or ask the employer for a sample payslip breakdown. For contractor or foreign-currency pay, also subtract transfer and conversion costs.
Check it: for each offer you have an estimated monthly amount that reaches your bank account, and you know where the estimate came from.
Do
- Use the official tax calculator or rates for your country
- Include pension or provident fund deductions
Avoid
- Comparing a gross salary with a contractor rate as if they were the same
Find out how the bonus is decided and whether it is contractualMust
Why it matters and how to check
A bonus line can mean very different things. Some are contractual and paid if conditions are met; many are discretionary, decided each year by the company and often tied to company and personal performance. Ask what the target is, what it depended on last year, and whether you must still be employed on the payout date to receive it.
A sign-on bonus may come with a clawback: you repay it if you leave within a set period. Read that clause before you count the money.
Check it: you know whether each bonus is contractual or discretionary, when it is paid, and any repayment conditions.
Do
- Ask what share of the target bonus people actually received last year
- Read the clawback terms on any sign-on bonus
Avoid
- Treating a discretionary bonus as fixed salary
Put a value on benefits you would otherwise pay for yourselfShould
Why it matters and how to check
Health insurance for you and your family, employer pension or provident fund contributions, life insurance, meal or transport allowances, internet and equipment budgets, and learning budgets all have real value. One offer with a slightly lower salary and good family health cover can be worth more than a higher number with none.
Estimate what each benefit would cost you to buy yourself, and add only the ones you would actually use.
Check it: your comparison sheet has a line for each benefit with an estimated yearly value, and you have confirmed who in your family is covered.
Do
- Ask whether health cover includes spouse, children or parents
Avoid
- Counting perks you will never use
Subtract the cost of taking the jobShould
Why it matters and how to check
Commute time and fares, relocation, a higher cost of living in a new city, coworking or power backup for remote work, and lost benefits from your current job (an unvested bonus, a pension match) all reduce what an offer is worth to you.
You do not need perfect numbers. A rough yearly estimate for each offer is enough to stop a headline figure from fooling you.
Check it: each offer in your comparison has a line for costs you would carry, including anything you give up by leaving your current job.
Do
- Count commute hours as well as commute costs
Avoid
- Ignoring what you forfeit by resigning, such as a bonus due next month
Ask when and how pay is reviewed after you joinNice to have
Why it matters and how to check
Starting pay matters, but so does how it moves. Ask when the first pay review is, how reviews work (yearly cycle, promotion only, or market adjustments), and whether there is a published level or band structure.
If the company promised a review after probation or after six months, get that in the written offer.
Check it: you know the date of your first pay review and the process behind it, and any promised review is in writing.
Do
- Ask what level or band the offer sits in
Avoid
- Relying on "we review everyone regularly" with no date