How To Answer "What Are Your Salary Expectations?": 2025 Trends

During a job interview process, while you are calmly responding to every query being shot at you, the question “What are your salary expectations?” might make you a little anxious. While you do have a figure in mind, you don't what to quote something that is too high or too low. The situation is indeed confusing. But why do the hiring managers ask, "what are your salary expectations". This article will try to get out of this conundrum.

Basically, the salary expectations interview question, "what are your salary expectations," is intended to evaluate whether your expectations are in sync with what they are willing to offer. So, getting into the nitty-gritty of this common interview question is important for you. It will help to negotiate the salary expectations well with the hiring manager for getting your desired salary at your dream job. In this way, you will answer how to answer salary expectations. This is because you yourself will be clear about how much salary do you expect. 

The reason behind asking, “What are your salary expectations?”

When hiring managers ask you "what are your salary expectations," they don't seek to make you nervous. Rather, they ensure that your salary expectation is in line with the budget that the company has set for the specific position being offered.

Secondly, this may be a way of understanding the expectations of the job candidates. So, if a good number of qualified candidates are asking for a certain salary for a particular position, the company might re-adjust its budget as per their expectations.

Apart from these, the following are the key reasons for asking about your salary expectation in a job interview.

1. To rule out the ‘too experienced’ or ‘over-qualified’ factor: If a candidate is asking for a sum that is way beyond the budget of the company, chances are that the candidate is either over-qualified for the position or is too experienced. In such a situation, the company might not be able to accommodate the salary request of the candidate. However, there is a flip side to it too! In case the candidate requests a salary that is too low then what the company has decided to pay, it could be an indication that the candidate is either less qualified for the position or doesn’t have adequate experience as per the demand of the job being offered.
2. To assess if you are aware of your worth: An experienced candidate is usually conscious about their worth in the market. Hence, when they are asked, "what are your salary expectations," they usually have the right answer. They know their value and what they can bring to the company. Hence, the hiring managers seek to assess if the candidates understand the actual worth of his/her experience and skills. So if you fall in this category, go ahead and ask for what you deserve! Understanding what you deserve will help you to find the most suitable job and save you from settling for a not-so-fair salary that is not on par with your talent. However, the key here is to be realistic and not overestimate your worth.

How to answer salary expectations question?

1. Research well: It is important to do some fact-checks before you go for the interview. This will give gravity to the answer to, "what are your salary expectations". In order to give an appropriate response to this question, you must study the market trend with regard to the expected salary for the job title you are going in for. There are several websites that provide expected salary estimates. Thus, you can have an idea of the range of competitive salaries offered by companies to their employees which can be of great help to you during salary conversation with hiring manager. You can also take an idea about the salary trend from other working people with the same professional level, skills, and educational qualifications as you. This would provide you with first-hand knowledge of the salaries that others are getting and help you tackle this question effectively during the interview.
2. Keeping expenses into consideration: Some jobs might demand you to relocate to a new geographic location. Hence, while you do your research and survey for getting an idea of the average salary trend, don’t forget to factor in the expenses that will happen because of your shift to a new city. Analyzing the cost of living in the city where you ought to shift through the house rent, cab rates, etc. will help you form a better understanding of the ideal salary range that you deserve.

How to handle the question on salary expectations during the interview?

1. Try to dodge the salary-related questions: At times, you may be asked questions about salary expectations way before you have fully understood the job profile, job duties, company culture, etc. The question pops up so early on during the interview or even during the initial phone screening that you haven’t even figured out if you’d be really interested to work under the said job profile or with the prospective employers. Also, you need to do your analysis and thus want more time to quote a figure as per your expectations. In this scenario, the best you can do is dodge the answers to salary-related questions. You could say that you’d like to first get a better understanding of the position being offered in order to provide an accurate salary expectation. This response would also show the interview panel that you giving an informed response which might be a quality that hiring manager desire in the candidate.
2. Refrain from quoting a fixed figure: It would be wise to avoid suggesting a number when the question of expected salary comes up. A good way to go about it is by choosing a reasonable salary range. However, it is recommended that you keep the expected salary range tight and not provide a range that is too wide. A rough average salary range must be worked out before going to the interview.

Apart from the above points, you must be open to discussing your compensation expectations from the company when the hiring manager asks a question about what are your salary expectations. Sometimes, the company provides benefits such as health insurance for employees, travel allowance, over-work bonus opportunity, equity, etc. Even though these compensations don’t provide any financial benefit directly, they do contribute to your well-being and make working at any company comfortable.

Suitable responses for “What are your salary expectations?”

Following are some sample answers that could help you frame your responses to the above question.

Response 1: Providing a range
I have been working in this domain for the last 10 years and have gathered sufficient skills that meet the requirements of this job. The annual salary in this area for a professional with my level of experience for this position is between... and... for this job role. Hence, I believe that the appropriate range for my work would be... 

Response 2: Giving a baseline
Based on my previous salary, I am expecting a baseline salary of... because I believe my skills and expertise can bring a lot to the company.

Response 3: Highlighting your strengths
I have a good experience in client management, particularly in this industry. I understand the in-depth working of this domain due to my educational background which I believe would be very useful for your company. Hence, based on my previous salary and work experience level, I am expecting my desired salary to range between... 

Response 4: Taking relocation into consideration
I will be thankful to you in case I get an opportunity to work with this company for the XYZ position. But taking into consideration that I will have to shift my base away from my current position, my salary requirements would also change. I would expect my ideal salary to be somewhere around... for this job role. I am also open to learning about the compensation if any, that the company offers for this position.

Tips to communicate salary expectations confidently

1. Set your aim high: Once you have an idea of the fair salary range for a position, keep an appropriate range that you deserve mentally ready. Often, the hiring managers start by offering the lower limit of the amount you stated. However, if you have sufficient knowledge about the salary trends, you can quote a range whose lower limit meets your expectations. Rest the more the better! For example, if you intend to get somewhere around INR 50,000, your range should be between 50,000 and 55,000.
2. Hold on to your confidence: If you are experienced and skilled enough, be self-assured of your worth. Try to convey effectively to the hiring manager that although you’d be open to negotiation, you would not be accepting anything less than what you deserve.  Therefore, first, you should be clear with the question of what are your salary expectations. Practicing a mock salary negotiation session with a friend, family member, or interview coach if possible, is a good way to pump up your confidence.
3. Exhibit your skills: Highlighting your experience level, skills, and educational level helps to justify the salary expectation you have quoted. Keep some additional pointers regarding your successful projects ready with you. However, the key is to not state something unrealistic or keep aggressive salary expectations as it can dump your chances of getting a good job offer.
4. Focus on the intricacies: It is important to read between the lines before jumping to any decision. Don’t ignore the hidden benefits in the form of a compensation package that the potential employer might be offering you. Hence, when you are asked what are your salary expectations, you should not restrict yourself to the financial component. Many times companies offer various forms of compensation by way of perks like allowances, special leaves, health benefits, insurance, etc. Hence, one must take these benefits into consideration while negotiating the salary which is a wise way to go ahead.
5. Be confident enough to say NO: Before going for the interview, keep a ‘non-negotiable’ figure or the least acceptable salary range ready in your mind. It will prevent you from falling for a lesser amount when you are asked what are your salary expectations. It would also tell you when to say ‘no’ during the salary negotiation process. This step might not be easy and you may get tempted towards a new opportunity but taking a tough call and not settling for anything less than you deserve will certainly help you get the best salary package in the future.