Should you accept a counter-offer from your employer?

Updated 20 October 2026 · SalaryRight guides

You've resigned, or said you have an offer, and your employer has come back with more money. A counter-offer is flattering and it removes the risk of a new job. It also tells you your pay was below what the company was willing to pay all along. Here's how to decide.

First, ask why you were leaving

Write down the reasons you started looking, before you consider the numbers. If they were all about pay, a good counter-offer may solve the problem. If they were about your manager, the work, progression or culture, money rarely fixes them, and many people who accept a counter find themselves looking again within a year or two.

Compare the full packages side by side

Compare total compensation, not headline salaries. Put base, bonus, employer pension, equity, holiday and flexible working for both options in one table. A counter that matches the new base salary but not the pension or bonus may be worth less than it looks. See what total compensation includes.

Questions to ask your current employer

Is the increase permanent, and will future raises be calculated from the new figure?
Is this a one-off retention bonus? If so, is there a clawback if you leave within a year?
Will the things that made you look also change: title, scope, manager, progression?
Can the counter-offer be confirmed in writing before you withdraw your resignation?

Using a counter-offer with the new employer

If you'd still prefer the new job, it's reasonable to tell them your current employer has countered and ask whether they can improve their offer. Be honest about the figure. Many hiring managers will move to close the gap rather than lose a candidate at the final stage. Don't run an auction; one round is enough.

Telling the new employer about a counter-offer

Hi [Name],

I wanted to be open with you. When I resigned, my current employer offered to increase my base salary to [£ figure].

I'd still prefer to join [Company], because [genuine reason]. Is there any flexibility to bring your offer closer to that figure? If you can get to [£ figure], I'd be glad to sign this week.

Best,
[Your name]

Declining gracefully

Whichever way you go, you're turning someone down. Thank them, give a brief honest reason, and don't reopen the discussion. UK industries are smaller than they look, and the hiring manager you decline today may be the one interviewing you in five years.

Declining your employer's counter-offer

Hi [Name],

Thank you for the counter-offer and for the conversation yesterday. I really appreciate the effort.

I've thought about it carefully and I've decided to go ahead with the move. It's the right next step for me, rather than a question of pay. I'll make sure the handover is thorough over my notice period.

Thanks again,
[Your name]

Common questions

Is it bad to accept a counter-offer?: Not always. If pay was your only reason for leaving and the increase is permanent and in writing, it can be the right call. It goes wrong when the underlying reasons for leaving don't change, or when the relationship with your employer suffers because they now see you as a flight risk.
Should I tell my employer about an offer to get a raise?: Only if you're genuinely prepared to take the offer. It puts pressure on the relationship and some employers won't counter on principle. If you want to stay, a market-rate case for a raise is a lower-risk way to start; see how to ask for a pay rise.
Can my new employer withdraw the offer if I use a counter-offer to negotiate?: It's rare when you're honest and polite, and it's unusual for a company to withdraw over a single request. It becomes more likely if you go back and forth repeatedly or seem to be using them only as leverage.

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Related guides

This guide is general information, not legal, tax or financial advice. Tax figures apply to England, Wales and Northern Ireland unless stated. For advice on your own situation, ACAS and Citizens Advice offer free help.