A job offer letter states the position, reporting manager, work location, annual CTC (with a salary annexure), joining date, probation period, conditions of the offer (documents, background check, relieving letter from the last employer), the date by which the candidate must accept, and how to accept. It should say that a formal appointment letter will be issued on joining.
Offer letter format
[COMPANY LETTERHEAD] Date: [DATE] Ref.: [OFFER REF. NO.] To, [CANDIDATE NAME] [ADDRESS] [EMAIL] | [MOBILE] Subject: Offer of employment for the position of [DESIGNATION] Dear [CANDIDATE FIRST NAME], Further to our discussions, we are pleased to offer you the position of [DESIGNATION] in our [DEPARTMENT] team at [COMPANY NAME], on the following terms: 1. Reporting to: [MANAGER NAME, DESIGNATION] 2. Work location: [OFFICE ADDRESS / CITY]. Working days and hours: [MONDAY TO SATURDAY / FRIDAY], [9:30 AM TO 6:30 PM]. 3. Date of joining: on or before [DATE]. 4. Compensation: an annual cost to company (CTC) of Rs. [AMOUNT] (Rupees [AMOUNT IN WORDS] only), as detailed in Annexure A. Salary is paid monthly by bank transfer, before the 7th of the following month. 5. Probation: [3 / 6] months from the date of joining. Confirmation will be communicated in writing. 6. Notice period: [15 / 30] days during probation and [30 / 60] days after confirmation, or salary in lieu. 7. Statutory benefits: provident fund, ESI (where applicable) and gratuity as per law. This offer is subject to: (a) satisfactory verification of your educational certificates, identity documents and previous employment; (b) your submitting a relieving letter or proof of resignation from your current employer; (c) your being medically fit for the role [IF APPLICABLE]. A formal appointment letter with complete terms and conditions will be issued on the date of joining. Please confirm your acceptance by signing and returning a copy of this letter, or by replying to this email, by [ACCEPTANCE DEADLINE]. If we do not hear from you by then, this offer will lapse. We look forward to welcoming you. For [COMPANY NAME] [NAME] [DESIGNATION, HR] ANNEXURE A: COMPENSATION (annual, Rs.) Basic salary [ ] House rent allowance [ ] Special allowance [ ] Gross salary [ ] Employer PF contribution [ ] [Gratuity provision] [ ] Cost to company (CTC) [ ] Estimated monthly in-hand (before income tax): Rs. [ ] ACCEPTANCE I accept the offer on the terms above and will join on [DATE]. Signature: ______________ Name: [CANDIDATE NAME] Date: [ ]
How to fill it
- Use the exact designation and grade that will appear in payroll and the appointment letter.
- Build Annexure A from the CTC. Deduct employer PF (12% of basic, up to ₹3,000 a month at the ₹25,000 ceiling) to get gross; the salary calculator gives a defensible in-hand estimate.
- Keep basic at around 50% of total pay. Under the Labour Codes, allowances above half of remuneration count as wages for PF and gratuity anyway.
- Give a realistic acceptance deadline (usually 3 to 7 days) and a joining date that allows for the candidate's notice period.
Common mistakes
- Quoting in-hand as if there were no tax. State it as "before income tax" or show estimated TDS separately.
- Mixing up probation and notice. Write both, for both stages.
- No conditions. If the offer depends on a background check or relieving letter, say so. Otherwise withdrawing an accepted offer is harder to justify.
- Promising variable pay as fixed. Show performance bonus separately with the basis on which it is paid; annual performance incentives are not "wages" under the Labour Codes, per the Labour Ministry's FAQs.
- Clauses you cannot enforce. A blanket ban on working for any competitor after leaving is generally void under section 27 of the Indian Contract Act; confidentiality and non-solicitation clauses are safer.
Legal points
Once the candidate accepts, the offer is a binding contract. Revoking it without cause can lead to a claim for losses, typically the notice pay the candidate gave up. The Occupational Safety, Health and Working Conditions Code, 2020 makes an appointment letter compulsory for every employee on joining, so the offer letter does not replace it. Equal pay for the same work regardless of gender is required by the Code on Wages, 2019.
FundRaksha HR generates offer letters from salary templates, so the CTC, PF and in-hand figures in the offer match the first salary slip.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.