Calculation methodology and assumptions

Recurring cash

Current recurring cash equals current fixed pay plus current variable pay. New recurring cash uses the same basis. The recurring cash hike compares those two annual totals.

Guaranteed fixed hike

This compares only new fixed pay with current fixed pay. It prevents joining bonuses, equity, and variable pay from making guaranteed salary growth look larger.

First-year cash

First-year cash gain equals the annual recurring cash increase plus the joining bonus. A joining bonus is kept separate because it does not repeat in later years.

Deferred and employer value

Employer PF, gratuity, RSUs, and ESOPs contribute to offer value but are not treated as monthly bank-account income. Equity should be entered as one year's expected vesting value.

Variable-pay risk

SwitchMath labels variable pay as low up to 10% of recurring cash, moderate above 10% through 20%, and high above 20%. Actual payout conditions still depend on the offer and company policy.

Decision signal

The signal uses recurring cash growth, fixed-pay growth, and variable-pay exposure. One-time bonuses do not turn a weak recurring offer into an accept signal.

Income-tax estimate

The in-hand calculator uses the FY 2026-27 default new regime, Rs 75,000 standard deduction, applicable rebate, marginal relief where implemented, and 4% cess. It does not model every exemption, surcharge, payroll deduction, or personal circumstance.

Income Tax Department guidance for salaried individuals.

PF and gratuity sources

PF is user-entered because eligible wages and employer policy vary. The usual EPFO employee rate is 12% of eligible wages. Gratuity guidance uses 15 days' wages for each completed qualifying year.

EPFO contribution FAQs and Ministry of Labour gratuity FAQs.

Deterministic versus AI

Calculator totals and verdict rules run in browser JavaScript. The optional AI Advisor interprets structured results; it does not replace the formulas and should be reviewed critically.