Free tool - India
Offer letter format for India, with a CTC breakup that adds up
Fill in the role, CTC, probation and notice, and the letter writes itself, including Annexure A with basic, HRA, special allowance, employer PF and gratuity totalling your CTC exactly. Download it as Word or PDF. Nothing leaves your browser.
Built for HR teams and founders issuing offers to 5 to 500 people.
Create your offer letter
[Company name]
Date: 5 November 2026
To,
[Candidate name]
Subject: Offer of employment as Software Engineer
Dear [Candidate name],
We are pleased to offer you the position of Software Engineer at [Company name]. This offer is subject to the terms below.
1. Date of joining. You are expected to join on [date of joining].
2. Compensation. Your annual cost to company (CTC) will be Rs 12,00,000, broken down as in Annexure A. Salary is paid monthly and is subject to statutory deductions and tax deducted at source.
3. Probation. You will be on probation for 3 months from the date of joining. Confirmation will be communicated in writing. During probation either party may end the employment with 15 days' written notice.
4. Notice period. After confirmation, either party may end the employment by giving 60 days' written notice or salary in lieu of the notice period.
5. Confidentiality. You will keep all confidential and proprietary information of the company, its clients and its partners confidential during and after your employment.
6. Exclusive service. During your employment you will not take up any other employment, consultancy or business without the company's prior written consent.
7. Conditions. This offer is conditional on satisfactory background verification and on your submitting identity, address, educational and previous employment documents, including a relieving letter from your last employer, on or before your joining date. The company may withdraw this offer or end your employment if any information you provided is found to be false.
8. Policies and appointment letter. You will follow the company's policies as updated from time to time. A detailed appointment letter will be issued on your joining.
This offer is valid until [offer validity date]. Please sign and return a copy of this letter as your acceptance.
Yours sincerely,
For [Company name]
[Signatory name]
Head of HR
I accept the above offer.
Name: [Candidate name] Signature: ____________ Date: ____________
Annexure A - Compensation structure
| Component | Monthly (Rs) | Annual (Rs) |
|---|---|---|
| Basic | 50,000 | 6,00,000 |
| House Rent Allowance (HRA) | 20,000 | 2,40,000 |
| Special Allowance | 24,595 | 2,95,140 |
| Employer PF contribution | 3,000 | 36,000 |
| Gratuity (provision) | 2,405 | 28,860 |
| Total CTC | 1,00,000 | 12,00,000 |
Take-home pay is lower than gross because of employee PF, professional tax and income tax. Employer PF and gratuity are part of CTC but are not paid in the monthly salary.
Nothing you type leaves your browser. A template is not legal advice; have counsel review it once for your company. Check what an employee will actually take home with the in-hand salary calculator.
What most templates get wrong
Six offer letter pitfalls in India
1. A CTC that hides what reaches the bank
On Rs 12,00,000 CTC with 50% basic, the annexure includes Rs 36,000 of employer PF and Rs 28,860 of gratuity provision a year. Neither is in the monthly salary. Put the annexure in the letter and point the candidate to the in-hand salary calculator so the first payslip is not a surprise.
2. A structure that ignores the 50% wage rule
The Labour Codes treat wages as at least half of pay. A 30% basic with a large special allowance can leave PF and gratuity understated. The generator warns you when basic falls below 50% of fixed pay.
3. Employer PF stated without saying on what
The PF wage ceiling is Rs 25,000 from 17 September 2026. Capped, employer PF on this example is Rs 36,000 a year. On full basic it is Rs 72,000. Say which one you follow, because it changes both CTC split and take-home.
4. Variable pay written as if it were guaranteed
If part of CTC is variable, say it is paid at target, not guaranteed, and refer to the plan. Otherwise the full CTC reads as a promise and the first shortfall becomes a dispute.
5. A post-employment non-compete
Restraints on working elsewhere after leaving are generally void under Section 27 of the Indian Contract Act. Rely on confidentiality, non-solicitation and in-service exclusivity instead.
6. No conditions, then a failed background check
If the offer is not stated to be conditional on verification and documents, withdrawing it after the candidate has resigned elsewhere is hard to defend. Write the conditions into the letter and keep the offer validity date short.
Worked example
How Rs 12,00,000 CTC splits in Annexure A
| Basic | Rs 6,00,000 a year |
|---|---|
| House Rent Allowance (HRA) | Rs 2,40,000 a year |
| Special Allowance | Rs 2,95,140 a year |
| Employer PF contribution | Rs 36,000 a year |
| Gratuity (provision) | Rs 28,860 a year |
| Total CTC | Rs 12,00,000 a year |
Basic is 50% of fixed pay, HRA is 40% of basic, PF is capped at the Rs 25,000 wage ceiling and gratuity is 4.81% of basic. Special allowance balances the rest.
Know the difference
Offer letter, appointment letter and joining letter
| Offer letter | Before joining. Proposes role, CTC and key terms. Conditional on checks. |
|---|---|
| Appointment letter | On or after joining. Full terms of employment: duties, leave, notice, policies. |
| Joining letter | Written by the employee to confirm they have reported for duty. |
Next steps
After the offer is accepted
Collect the new hire's joining letter and run the day-one checklist. Set up payroll with the salary sheet format in Excel, issue the first payslip with the salary slip generator, and track attendance from day one with the attendance sheet format in Excel. To automate all three, see payroll automation.
Got questions?
Offer letter format: FAQs
Contents, conditions, CTC and enforceability.
- Company name and address, candidate details, designation, department and location, date of joining, CTC with a component-wise annexure, probation, notice period, any conditions such as background verification, an offer validity date, and a signature block for acceptance. Variable pay, confidentiality and exclusivity clauses are added where they apply.
- An offer letter proposes employment and is usually conditional on checks and on the candidate accepting. An appointment letter is issued on joining and records the full terms. Small companies often combine them; if you do, say so in the letter. Government communication on the Labour Codes says appointment letters are to be given to workers, so check the rules that apply in your state.
- It should. The generator makes special allowance the balancing component, so basic, HRA, special allowance, employer PF and gratuity always total the CTC you state. Candidates and auditors both check this.
- A restriction that stops someone working elsewhere after they leave is generally treated as void under Section 27 of the Indian Contract Act. Restrictions during employment, and confidentiality and non-solicitation terms, are on firmer ground. The generator leaves the clause off and warns you when you switch it on. Get legal advice before relying on it.
- Electronic acceptance is generally valid under the Information Technology Act and the Indian Contract Act as long as you can show the candidate agreed. Keep the signed copy and an audit trail of when and how it was accepted.
- If the offer says it is conditional on background verification and documents, and the check fails or the information is false, the company can withdraw. Without a stated condition, a withdrawal after the candidate resigned elsewhere is a reputational and sometimes legal problem. State the conditions up front.
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Related to hr letters, and the rest of the toolkit.
- Appointment letter formatFull-terms letter with probation, notice and leave.
- Joining letter formatJoining letter, confirmation and day-one checklist.
- Experience letter formatFacts-only letter with exact tenure.
- Relieving letter formatChecks notice and dues before you issue it.
- Salary slip generatorPDF and Excel payslips with PF, ESI, PT and LOP.
- Attendance sheet format in ExcelMonthly register that calculates LOP and paid days.
Issuing offers by hand every hiring cycle? Zeba's hiring module generates offer letters from your own templates, with signatory and signature management, so every offer is consistent.