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I am a software engineer from India. I am a post graduate in engineering with total 3 years of experience in IT industry, with 1 year in previous company and 2 years in my current company.

I have this situation in my office. I work in High Performance Computing domain. We had team of 5 people. Now currently I am the only one left in the team. I joined this company with the package of 4.35 lakh rupees per annum (only!). My current package is 4.9 lakh rupees per annum.

Since I am the only one left in the team the management is trying very hard to keep me here. They don't want me to go. I am the only one who knows the system and the framework right now. Even if the new guy comes it will take him/her at least 4-5 months to understand and learn.

They are currently hiring new guys. One guy even joined the team 2 weeks back.

To keep me here management offered me 8.5 lakh per annum salary, which is almost 70 percent, which is extra ordinary! I was happy to get this much hike. The new guy is not from HPC domain but showing interest in working and has some basic knowledge. And since the management was not able to find any person for this post on urgent basis, so they hired him.

While discussing my raise my manager told me that they are hiring this new guy with 7.5 lakh rupees per annum. So they are giving me 8.5 as I am senior!

2 days back I came to know that my manager lied to me, and they hired this new guy with 12 lakh per annum salary!

I am a post graduate, he is not. I have professional experience of this domain, he doesn't have any, in fact he is learning everything from scratch, and I will be the one who will teach him everything. We have same year of experience in IT domain. Still he is getting higher package.

Now, I want to confront my senior officials about this issue. Its no too late to talk because the management is still processing new hikes and salaries. How should I deal with this issue? How should I talk to them? I can easily blackmail them and give them the threat of leaving this job, and this will definitely work! But I don't want to do that. I don't want to play dirty at all. I have a very good relation with my manager, but still he lied to me about package of this new guy. How should I talk to him about this? Most important thing is now I don't want to give up over this issue. Because already I was underpaid as per the industry standard of HPC. How should deal with issue?

Any help will be appreciated.

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    Do you know what the market rate is for your skills? You seem to not even have a ballpark idea. – Nathan Cooper Apr 11 '16 at 6:44
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    how do you know what the new guy is making? – Kilisi Apr 11 '16 at 7:08
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    Just a detail but: Are you certain your manager lied to you? Maybe your manager believed the new guy's salary would be 7.5 lakh, and then it was raised in some last-minute negotiation? Maybe it was even decided against his opinion? – sleske Apr 11 '16 at 7:56
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    One more thing: You seem to think you are much more qualified than the "new guy". However, maybe management saw something special in him - other skills, extraordinary achievements. Hard as it may be to accept, just maybe they really believe he is more skilled than you in some way. – sleske Apr 11 '16 at 7:57
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    Maybe the new guy simply asked for a higher salary? You yourself say that you are (were) happy with your salary. Objectively has anything changed since you (suspect) that the new guy has a higher salary? – Brandin Apr 11 '16 at 8:06
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I believe your last paragraph kind of answers the question. Let me address them one by one,

I have a very good relation with my manager ....

No, You don't and even if you actually have very friendly relationship with your manager. He doesn't care it and why should he ? This is a professional atmosphere his job is to reduce the project cost as much as he can and he is doing that perfectly well. If you thought your relationship can help you get good compensation it is your fault not his.

Most important thing is now I don't want to give up over this issue...

You should not. But the next step depends upon your decision whether you want to stay in this company or not.

How should deal with issue?

Rather than crying on new colleagues package. You should better go get your own. @Nathan is right in his comment that you really have no idea how much your skills can earn. Best will be to update your CV and start looking for other job opportunities. Even if now this company agrees to your demands in future they will again play their dirty tricks. Remember company knows you are worth more than 4.9L p.a. still they keep giving you this salary. Now they are giving you 8.5L p.a. I am sure they know you are worth about 14L p.a....

Now, I suggest you have a discussion with your manager saying that even after your hiked salary you don't think the 8.5 is as per market standards and you think it should be increased further. Remember not to quote the salary of your new colleague, that will be very unprofessional. Now,

  1. Don't give a figure from your side, let them come with a revised package or denial.

  2. Don't argue much, accept whatever revised offer is.

Now, whether you get the revised offer or a denial on your face. In any case you should be applying to other companies with your matching skills. Without your current company even knowing it. Once you clear the technical rounds in other company use the revised or (hiked i.e. 8.5L p.a) salary offer letter (salary slips) to negotiate the new salary. Chances are you will get much better salary than what you can expect in your current company.

Now once you have offer from new company, you can come back to your current manager and show them your worth and resign from your job. If your current friendly manager comes back with a further revised offer with is better than your new offer. You can decide whether you want to go or not.

Whether you want to stay or go is totally your choice, but remember below points..

  1. If a company can give you X salary which is about 150-200% more than your current salary. Just think how badly you have been cheated in past and what can happen in future.

  2. If there are two evils, choose the one you never tried before.

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    I agree to your advice to not to quote the salary of my new colleague as it will be very unprofessional. First thing is, I never asked this new guy's salary by myself. It was him who told me that this is guy will be getting that much and so being the senior guy I would get that much. Now quoting his salary is the only strong point I have to confront him. Because if I don't do it then he will simply say that we took you from 4.9 and put you to 8.5, how could you ask for more. – Rohan kumar Apr 11 '16 at 9:30
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    The key point is: Someone else's salary is no reason for you to demand a raise - management may have their reasons (good or bad) for paying him more, and at any rate there is no general right for everyone to be paid according to some general, "fair" scale. If you want a raise, the only reason for them to consider it, and thus the only valid argument is that otherwise you'll start looking for other jobs. Obviously you do not threaten to leave immediately, but you do point out that the pay is not competitive. – sleske Apr 11 '16 at 9:34
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    @Rohankumar Even if you want to bring the collegue's salary in picture. Instead of directly quoting his package. Use indicative terms like market standards, company policy etc. The moment your bring collegue's salary in picture you have lost a point and that innocent new fellow looses two points. Also consider how badly it will impact the newer employee's future in this company because disclosing salary is a breach of trust and against any company culture. – Amit Apr 11 '16 at 10:06
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    I think this answer covers the most important points. There are two things I would take issue with. First, don't take whatever you can get after asking for a raise: Negotiate hard. You know they are paying the other guy more, so use this to your advantage and get as much as you can. Second, do not show your salary from your new place of employment, that is just vindictive and giving the company information they do not deserve. In the end everybody is negotiating with everyone and concrete sallary information is hard to come by even for employers. – Underdetermined Apr 11 '16 at 12:21
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    And don't forget that just because he told you a figure for his salary, it may not be his actual salary. People tend to exaggerate. – HLGEM Apr 11 '16 at 13:19

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