Unfortunately without the benefit of hindsight, there is no absolute right thing to do. Assuming a usual median salary (so the 20% works out to about $800 a month), that you are young and that this is one of your first few jobs in the chosen career, I would ignore the pay and benefits for now, and focus more on how the 2 companies can impact on your potential career path. This will mean, among others, consideration of the skills you are likely to learn, what you would think you would like to do, the industry you will be gaining exposure to and what your potential next promotion / move to another company will be. If the decision is to take the better offer, please deal with the MNC nicely and professionally. There is unlikely to be any legal repercussion on you breaking the employment contract since you have not started work, but they might be less receptive if you ever need to work with/for them again in future.