Truth Behind Crores Packages In IITs, NITs & IIITs (Domestic & Foreign) – We recently know that Facebook hired three students from IIT Mumbai and two from IIT Kharagpur as a part of their pre-campus placement package. Two of the five hired are women (one each from Mumbai and Kharagpur). The hype over these students getting a plum pay package of Rs 1.42 crore with the networking giant Facebook had barely subsided that we got to hear about four students from another IIT campus turning down offers which would sound like music to most ears.
When crores packages of Indian Institute of Technology students’ are blessed for foreign countries, mainly like Silicon Valley in the United States of America. They are almost not worth it. And, generally for staying in India and working in Multinational Firms, students of IITs get annual salary packages in Lakhs and not in crores. In the last few years, mainly after 2013, statistics of media and other analyst departments say that Crore Plus Packages have shrunk at Indian Institutes of Technology in last three year. Is it like Oracle, Microsoft, Facebook, Google etc. is losing interest in IIT students or what? Read complete details below.
The girl student and one of the boys declined the offer saying it did not match their temperament and that they wanted professional fulfilment from their jobs.
First of all the salary offered in the recent placement seasons at IITs are not 1cr+ in terms of yearly salaries. They range roughly around 110K-125K dollars including variable components. The rest of the package is in form of Restricted Stock Units (RSU) to be given to the candidates over a period of four years. The current valuation of these RSUs is included while reporting the salary to make it look inflated.
I want to mention that this is fairly a standard package which companies in the Bay Area offer to students from Top institutes in the USA. Some of those companies also hire students from IITs in India and offer them similar packages. So this may sound huge when converted in Indian rupees but even a software engineer gets around 80K package in the USA with a decent company.
Also since Indian students have to acquire H1B visa in order to work in the USA and considering the current trend in the H1B visa application, it is purely based on luck whether or not a visa would be allotted to these students. Last year the visa process opened and shut before they could get their degrees forcing them to work at Indian offices of these companies at much lower salaries than advertised.
Reasons to Reject These High salaries :
1.Problems of taxation
However you look at it, employees will always have the highest tax burden in any society. The rate of tax is standardized and the people with jobs will invariably have to pay for the people without jobs. The taxes are taken both from your income and the payroll tax for your employer, effectively taxing you twice. If you were to own a business or be a full-time investor, the tax rate would be lower and the system will allow you to make deductions and postpone paying tax. Taxcaster online tools are simple and effective in calculating the deductions. The tax system is designed like this to stimulate business and entrepreneurship. By demanding less tax, the government is in a sense rewarding the individual willing to take the risk of running their own business. As the employee takes less risk, they have to pay a higher tax. If you are looking to make money from working, being an employee is the worst place you can be from a taxation point of view.
A survey by accountancy firm Price waterhouse Coopers (PWC) has found that the take-home salary (after paying income tax rates and social security contributions) of a high earner in India is less than that of salary earners in the UK, Canada, US, China and Russia.
2. I will never work for money
Instead of working for money, you need to aim to get to a stage where money works for you. Have a look at the well-to-do, they would only take a job to acquire assets of some sort. This could mean acquiring the knowledge of a job/company/industry so they can replicate it. It could mean obtaining the financial intelligence to realize how to beat the system and become the person at the top shaving off profits from the system every day. You should be working to develop assets, be that real estate, stocks and shares or even investing in fine wines. Your aim should be to move up the value chain of life and change from being employed to being a business owner or investor. This way you can earn a passive income without any continuous effort.
3. Will this Job Fit Me?
The good news is you got the job. Which, in this still-reeling economy, is quite an accomplishment. But the bad news is you’re worried you might be settling for a position that isn’t the right fit for you.
4. I will never go against my principles, moral values or lifestyle choices.
Even in tough financial times, it’s not worth selling your soul for a paycheck, says Laurent Duperval, president of Duperval Consulting in Montreal, Canada. Duperval advises job seekers to stay away from positions or employers that conflict with their core values. “If you’re a vegetarian, don’t go work for a meat packer. Period.” 3. When It Costs You Your Family
A great paycheck that takes you out-of-town — or out of family life by nature of the sheer number of hours required — may be a risk to your family connections. Yes, getting behind on your mortgage payment could strain family loyalties as well, but be sure you and your spouse (or significant other) are on the same page regarding expectations.
5. Package includes Stock :
Such a large number of crore-plus offers — including cash and stock — are being offered for the first time. Oracle is leading the charge, offering up to 4,800 stock units worth $200,000 (Rs 1.24 crore), besides a $125,000 (Rs 77.5 lakh) cash component. Sources from IITBHU (Varanasi) confirmed these figures. Having any doubts related to Truth Behind Crores Packages In IITs, NITs & IIITs? Make sure to comment below.