How is package of 9L for Bengaluru?


krishnandu

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Hi Guys, To tell you the truth, I'm facing a situation where I can't reach to any conclusion. It's being like taking a hard decision for me.

Currently, I'm based in Kolkata and working in an IT MNC Company where my package is around 6.3L which after increment of this year would become atleast 7L. And Kolkata, being my hometown, there's no such room rent expense, which I have to bother about.

Now, I always have dream of moving to Bangalore, ofcourse due to huge career opportunities there. And here's my chance now. I have got a offer from a reputed IT MNC, and they are offering me a package of 9L per annum.

I'll list down some points, where I'm struggling to take proper decision...
  1. First and foremost, Room Rent. Any help or tips regarding the same would be very helpful.
  2. Transport. Transport cost in Kolkata is very low. My daily Home to Office and Office to Home expense is Rs. 100/- by AC Bus and Rs. 30/- by Non AC Bus.
  3. Food. To tell you the truth, I'm not much aware of this. As I'm the sole bread earner of my family, you can say I contribute 20k monthly to my mom, who takes care of all such issues.
Though, I'm not much of a party and drinking guy, but still there's some more misc. expenses, like going for a outing and having a dinner at some restaurant some times (Very rare) and Internet Bill. Right now I pay 2k for 2 unlimited connections (2Mbps and 512Kbps) as I mostly stream everything over internet instead of downloading and keeping them for future (I don't have that much space too :p)

And I save a lot for my only hobby, travelling. I travel a lot. And all my savings goes into there.

Well, I'm married and I'm the sole bread earner of my family of 4 (Me, My Wife, Mom and Dad). So if I move to Bangalore, I have to keep sending atleast 20k for them, every month.

So what do you guys think about a package of 9L per annum for this change?

Any tips or help in financial advise portion would be really helpful.
 

rakesh_ic

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Ok.. If you can tell me whats your current years of experience, I will be in a better position to answer all your queries
 

RS4

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Just 9L in Bangalore along with the responsibility for a family of four? It is a much better option to stay in Kolkata at 7L with own house and family. Heck, my friends have got themselves transferred to Kolkata to save expensive rent money, food, transportation costs and other expenses of Bangalore. They all were from states near to Kolkata, so staying near to family was also a big reason for them leaving Bangalore.
 

rock_ya_baby

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Depends on what your goals are in life and your professional career. Some of my friends and colleagues moved from BLR to KOL for a better (family) life and some moved from KOL to BLR for other reasons.

9L p.a. so approx ~55-60K/m? For a family of four, it will be sort of on the lower side. Try hunting for better opportunities or higher offers. Again, you know your position better. You maybe a guy who manages his finances really well. So, it could work out alright for you.

Rent can vary depending on location. Any thing half decent near to where most companies are will cost upwards of 16K for a 2BHK. YMMV. Nice apartments with all the facilities in a decent area will be 20K and above for 2BHK (~900-1100sqft). Check out websites and such for-rent portals for some insight.

Also factor in the travel costs and the number of trips you're going to be making to your parents' place. BLR-KOL by air is costly. Train travel lasts >2 days I think, one way.

Rest of the things you asked are subjective and will differ from person to person.
 

Chaos

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Bangalore costs roughly double of kolkata. That is really poor salary by bangalore standards to be honest. Look for other opportunities.

Edit: I am a bong who regularly travels to kolkata so I know.
 
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krishnandu

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@rakesh_ic It's 5.10 currently.

@RS4 @rock_ya_baby Thanks a lot for your detailed comments.

@Chaos Thanks. Looks really helpful :)

Thank you guys for all the help :)

Looks like I should reject this offer and continue with where I'm currently at.

My main issue is my dependents. Even if I choose not to bring them here, I need to send them atleast 20k because I'm the only bread earner of my family.

And that's why this decision is getting tougher for me. If my parents were not dependent on me, I wouldn't have thought for a second and would have accepted this offer.

In that case, I know, hardly I have to struggle for 1 year and then I can switch and can get a better life. But they being dependent on me, I can't make them struggle that to for 1 year.

Whatever position I'm in, I have to send this amount back to them anyhow and by any means every month.
 
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Vince

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Just apartment rent will come to Rs.2L per year. So the extra amount you're getting just disappears there.
Plus incrementals of food expense, occasional travel to kolkata, etc.

Doesn't make sense to move unless you're sure of
a) gaining new skills in the new company
b) can switch in a year for a much better pay
 

wmnitin

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I would suggest you to go if your package is around 10 lpa, request for more hike & explain them exact reason for this negotiation. You can easily come to kolkata after working 2-3 years & here your salary will be more ;)
 
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Lord Nemesis

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As others pointed out, Bangalore is very costly. To even match your current salary level, you will need a considerable raise in Bangalore. For instance around 12~13 Lac in Bangalore will be close to getting on par with 7 Lac in a city like Calcutta. You need to get 15 Lac+ to be able to say that you really got a raise in salary level. Getting 9 Lac in Bangalore over 7 Lac in Calcutta is like a downgrade. Cost of living is often a factor that gets ignored and people suffer later because of it.

Rent of accommodation is a major killer in Bangalore. A colleague of mine moved from Hyderabad to Bangalore last year. He was paying 17k as rent towards a 3 BHK flat in a good area that is about 6 Km from our office in Hi Tech city in Hyderabad. A slightly smaller flat is costing him 40k in rent in Bangalore. Of course he moved because he got a decent increase from 36 Lac in Hyderabad to 60 Lac in Bangalore.
 

iPwnz

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You made a wise decision tbh. I know that many people likes to move to Bangalore because of the seemingly higher package than their current position but almost always they make the mistake of not factoring in living cost. From what I heard rents are expensive. You also need to save for medical emergencies. Personally know some people who are still living there and struggling. Just praying their struggles will pay off soon though I also have friends and relatives who are doing well there and have no desire to come home anytime soon. Unless you already have someone there with whom you can live with and bigger opportunities Bangalore is not the place. I was also offered similar opportunity like you but didn't accept it. I might be able to do 10-11L per annum but only because of my low-cost maintenance.
 
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bond_bhai

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Bangalorean here: Right decision purely based on economics. Rent is higher near all IT parks, if you move farther away you might get it for cheap (we let out a 2BHK for 10k) but the travel time is killer. I travel 1.5 - 2 hrs each way, everyday. When your travel time is 3hrs, you miss out on life esp with you married and probably plan for a family (pretty) soon.
 
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ssslayer

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Though the OP has already decided but reiterating an important point here:
but the travel time is killer. I travel 1.5 - 2 hrs each way, everyday. When your travel time is 3hrs, you miss out on life esp with you married and probably plan for a family (pretty) soon.
This is a very valid point OFTEN overlooked by most job seekers.

krishnandu
Time wasted in travel = time lost for 100s of activities that you could. Imagine if you spend 2 hours extra everyday traveling = 5*2*50= 500 HOURS every year

What you could use those hours for:
- spending time with your spouse/parents/friends
- pursuing a hobby
- lazying around
- shopping
- education (formal/informal)
- TV/entertainment/movies
- scouting for investment opportunities: yes, stocks and real estate can fetch better returns if you learn and understand the market
- part time "job"! (perhaps something like offering classes/tuition for various activities)
- social service!!!

Only you can decide and weigh for yourself your life's priorities ... There is no right or wrong answer.
 
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onlyravi

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@krishnandu 9L in B'lore v/s 6.3L in your Hometown and own house is a no brainer. Hometown option is unbeatable.
Like you said that your appraisal cycle is near. May I suggest you use the offer of 9L to get a better raise from your existing company.
Many times employees make hollow threats that they will leave the org if they dont get so and so.... But their managers have a good idea whether that candidate will be able to get a counter offer in the market. Since you already have a counter offer keep it on the table and ask your company to either match it or consider it before giving you a hike.
They might not necessarily match it but they will give you more than &L for sure. Also from personal exp I can tell you that in Pune I spend only 30min a day in commuting whereas many of my colleagues spend anywhere between 2.5 to 4hours a day which is hard for me to even imagine.
So as of now:
  1. Stick to your current company and bargain for a better deal.
  2. Enjoy the quality of life and comfort in a known city
  3. try in some other company in Kolkatta with the b'lore offer to counter you will definitely get some good offers there too. (unless you work on some very specialized technology which is not widely used)
Good Luck!!!!
 

Criminal

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Many times employees make hollow threats that they will leave the org if they dont get so and so.... But their managers have a good idea whether that candidate will be able to get a counter offer in the market. Since you already have a counter offer keep it on the table and ask your company to either match it or consider it before giving you a hike.
you think companies hire HR guys just for the sake of it? they are going to tell him exactly the same horror stories that people have shared here... that Bengaluru is ultimately costly - time and money wise. :p so, his counter-offer for another place won't hold water

They might not necessarily match it but they will give you more than &L for sure.
people who threaten to leave don't get a handsome raise. only really important people are entertained... for sometime. because nobody is ever irreplaceable.

Stick to your current company and bargain for a better deal.
when the company feels to get lighten, these kind of people are first to get the boot.

try in some other company in Kolkatta with the b'lore offer to counter you will definitely get some good offers there too. (unless you work on some very specialized technology which is not widely used)
this is the sanest advice!
 

onlyravi

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you think companies hire HR guys just for the sake of it? they are going to tell him exactly the same horror stories that people have shared here... that Bengaluru is ultimately costly - time and money wise. :p so, his counter-offer for another place won't hold water
people who threaten to leave don't get a handsome raise. only really important people are entertained... for sometime. because nobody is ever irreplaceable.
when the company feels to get lighten, these kind of people are first to get the boot.
this is the sanest advice!
I fail to see any point in your reply apart from the fact that you just wanted to counter reply. Anyways. No company cares about all that stuff...
I know what I think about HR guys and why companies hire them. Have more than 10yrs of exp dealing with this stuff. And more than telling horror stories a sensible HR guy cares more about their own company and if the out going resource is of any value to his org. If no then they will never ask you to wait or anything. For starters it seems you have zero idea about the cost associated with acquiring a lateral and ramping him/her to a productive stage. Thats biggest reason companies renegotiate.
The other nonsense that you talk about is no where concerned to this thread. Ofcourse no one is ever irreplaceable and no one is denying that. The point was whether to take the 9L offer or stick to the current one. I just added on how he can make the most out of the 9L offer in hand by not shifting to B'lore and staying in his hometown.
 
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chiron

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If OP were to decide to move to B'lore then don't take parents along and get the cheapest possible 1BHK.
 

Criminal

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I fail to see any point in your reply apart from the fact that you just wanted to counter reply. Anyways. No company cares about all that stuff...
I just wanted to point out one of the bad salary negotiation skills (point# 1)... using an offer letter to arm-twist your current employer.

I know what I think about HR guys and why companies hire them. Have more than 10yrs of exp dealing with this stuff.
you think companies hire HR guys just for the sake of it?
I agree that using the words "you think..." was inappropriate here but that was just a way to start the conversation. I didn't specifically mean that "ONLYRAVI" doesn't know about HR guys. My reply would have been unchanged had any other person mentioned the same stuff. So, don't get personal stating your 10 yr experience etc... my lines weren't that serious. I just stated what I have seen.

Anyways. No company cares about all that stuff...
It was my mistake to reply to you as you clearly haven't worked in a process-oriented company. So, you can't comprehend what I said. But you don't have to pay any heed to my words... just pick up any book on hiring and retaining good people or talk to a director level person in a process-oriented company. I specifically mentioned process-oriented companies because they are better poised to go thru industry slow-downs and can survive much longer than lala-type companies. To retain talent and have a successful future, such companies need to look at other nonsense aspects that I mentioned.

Had krishnandu been working in a process-oriented company, he wouldn't have to get an offer letter in hand to tell his employer that they are paying him less. Heck, they would've found out much earlier that this guy is not happy. I remember that I mentioned about one of my previous companies coming up with skills/shift allowance kind of thing just to retain/keep the deserving people happy. Lala-type companies can't do this.

...sensible HR guy cares more about their own company and if the out going resource is of any value to his org.
I can safely say that: not for krishnandu... a guy who can easily badmouth about his employer on internet. only krishnandu can understand this ;)

"resource" ... this is another indication that you haven't worked in a company who treat their employees as people. It's useless to mention it but since I am praising process-oriented companies... I had to mention it :D

For starters it seems you have zero idea about the cost associated with acquiring a lateral and ramping him/her to a productive stage
If you are in a fix (e.g., employee vanished from the face of the earth), a lateral hire can be ramped-up in 3 days, in a process-oriented company. Just remember that these companies aren't 100% depended on people - but on processes - so, you always have a backup! Of course, some cost is involved but then you can't stop a person from leaving because of family issue or more money elsewhere.

BTW, why weren't you happy when I pointed out that your point #3 was the sanest? :p It's much more logical to use his B'lore offer letter at some other Kolkata company. This practice has become so common that these days recruiters ask you beforehand if you have any other confirmed offer.

Anyways. No company cares about all that stuff...
And you are right here because one needs to use such tactics in a lala-type company to get the right salary. These companies are dependent on people and they have to give in to employee's demands if an important one is leaving at a bad time.

@onlyravi You can put down your guns now. We have different work experience.

My response would remain the same if someone says that negotiating with current employer on the basis of another job offer is a good practice. If you can apply this tactic at all the positions in a company, then I'd agree with you.
 

Lord Nemesis

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I know what I think about HR guys and why companies hire them. Have more than 10yrs of exp dealing with this stuff. And more than telling horror stories a sensible HR guy cares more about their own company and if the out going resource is of any value to his org. If no then they will never ask you to wait or anything.
HR does't care how much of a value a guy to the organization because they simply have no means of knowing that (unless the employee is part of the HR hierarchy). Retaining an employee is rarely ever in the hands of HR. It is the Manager who decides that. The HR can only act as a facilitator or hurdle to that decision. They do act in the best interests of the company, but in most cases, those best interests are limited to cost of an employee.

For starters it seems you have zero idea about the cost associated with acquiring a lateral and ramping him/her to a productive stage. Thats biggest reason companies renegotiate.
That too changes from company to company. A company like TCS hires for headcount, they don't usually give a damn if an employee walks out because they can replace him. Hiring process is definitely costly, but a company that hires in bulk doesn't usually waste its time negotiating with individual employees. Some times a company want to retain somebody solely because they have domain knowledge of a system. A few companies do negotiate to retain purely because of somebody's talent, but that is a rarity.
 

rakesh_ic

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I was part of Infosys and now with TCS. Neither of these companies deal with salary/incentive negotiations with a person threatening to leave. But yeah, sometimes the managers do offer opportunities like onsite or higher role if they feel the need for the resource. If things are already with HR, it only means that even your project doesnt care if you leave or not and do not be in a false impression of being negotiated off the situation.