Two crucial questions you will be asked at an interview: How much did you earn in your last job? What level of salary are you looking for now? Getting this part of the interview right can add literally thousands to your next salary package - so you need to make sure you get it right!

"What did you earn in your last job?"

You have to be very careful when answering this question because once an interviewer knows your current salary they will try and fix your next remuneration package based on this figure. This may be satisfactory if you only wanted a modest rise in salary and your current salary is in line with their salary range, but, what if your current salary is substantially lower than the rate for the job, or if you want a substantial salary rise?

In these cases you would be best advised to say that you do not really want to prejudice yourself by being too high or too low. Ask if you can discuss this later after the responsibilities for the job have been discussed; you may also want to ask them what the range for the job is (if you do not already know). If the new job you are discussing is substantially different from your current job you might want to point this out. This is especially true if the new job carries far more responsibilities than your existing job.

If you feel that you must state your actual salary then add up all your benefits, including salary, bonuses, car allowance, pension, healthcare, etc. Giving just one figure will make your total remuneration package seem larger than just giving them your actual basic salary.

"What level of salary are you looking for now?"

Be very careful when you answer this question - you do not want to appear to be too greedy or just be seen as a money grabber. You need to make sure that you convey that you are looking for a new career opportunity and you should emphasise your potential with their organisation.

If you are applying for a specific vacancy you could ask them what the salary range is. Once they have answered you could say "I think my experience would place me at the top end of your range, don't you?" This one question could add thousands to your next salary - so don't be afraid to ask it. You should only ask this question if you feel confident that they would say, "Yes".  If they ask you this question fairly early on in the interview you could delay answering by saying "It is hard to discuss salary without first knowing a little bit more about the job and the responsibilities."

If this is a new position or there is no defined salary then the salary negotiation is wide open. It would probably be best if this was the initial meeting with the employer to say that you would need to see the full job description before you could answer this question. If there isn't a job description then you could offer to help write it - this would give you scope to find out more before you negotiate your salary.

Afterthoughts
You should approach the actual salary negotiation just as you would any other negotiation. Don't be shy about stating why you are worth X, when they think you are only worth Y. If you cannot get the initial basic salary you want you may be able to persuade them to increase your salary level after a period of time. You might be able to supplement your basic salary with extra benefits in kind or a good bonus payment if you perform satisfactorily.