Compared to our parents who typically stayed in a job all their life, we tend to keep moving.
Here’s a checklist to follow when you switch jobs to ensure that the move is smooth and that you fit into your role comfortably.
#1: Don’t resign till you get a written confirmation
Do not put in your resignation, unless you get a written confirmation along with a soft copy of the actual offer letter. Even then, resign only if you decide to accept it.
A written confirmation will allow you to quit with minimal risk.
#2: Part on good terms
It can be tempting to lash out at your soon to be ex-employer during your notice period for all the bad times you might have gone through. Leaving a company in bad terms can be disastrous for your career.
After all, it’s a small world out there.
Try your best to part with your employer on pleasant terms. Prepare an official handover document for the new employee who’d be replacing you. Stick around till the new person is trained enough, even if it means extending your notice period by a week or two.
#3: Understand your new compensation fully
Here’s a real deal breaker.
A lot of people only consider the CTC or Cost To Company specified by the employer during their offer negotiation time.
On paper, you might see a higher compensation as compared to your current salary. In reality, though, your in-hand salary might be far less.
Different companies have different ways of calculating benefits. While some companies count all the costs associated with retaining you, including benefits like health insurance or EPF contribution of the employer in your CTC, others might not add all perks.
Understand all the deductions and the actual in-hand salary you will be getting before accepting an offer.
#4: Managing multiple bank accounts
Chances are, the bank you have your salary account with, might not be the one your new employer deals with. In most cases, you’ll end up having multiple bank accounts.
In case the banks are the same, talk to your HR and get them to use the account you already have for crediting salary. You’ll have to request a change of employer with your bank.
#5: Manage your Employee Provident Fund (EPF) account
If your current employer provides you EPF benefits, you can either choose to continue using the same EPF account with the new employer or withdraw the money when you quit.
It’s recommended not to withdraw the money but rather keep using the same EPF account even as you change jobs.
#6: Collect the required forms and file it for future reference
You need to collect and file all forms, including form 16, relieving letter, experience certificate, past few months’ payslip, etc.
In some cases, you will receive form 16 only later as most companies give it out to employees in May or June.
You can verify the TDS amount by downloading the Form 26AS from the income tax department website, when filing your taxes.
Your new employer would generally accept your previous payslips as proof of tax deductions even if you do not have your form 16 while joining.
#7: Understand any new tax implications
Does your new salary structure push you in to a higher salary bracket? Make sure that you factor in the higher tax you might need to pay. Plan to save your taxes accordingly.
#8: Stick with your saving habits
Irrespective of the hike you get, your monthly savings should remain as a percentage of the total salary. If you haven’t done so till now, create an emergency fund first.
If you save 30% of your current Rs 50,000 per month salary, and your new monthly salary is Rs 60,000, you should end up saving Rs 18,000 instead of Rs 15,000.
Revive India, Philip K Mathew