Templates
Offer letter format for India: what goes in, what to leave out, and a template
An offer letter does two jobs at once: it convinces a good candidate to say yes, and it protects the company if things change before joining day. Most small-company offer letters do neither, because they were copied from a letter that was copied from a letter. Here is what each clause is for, a clean template you can adapt, and the mistakes that cause real trouble.
The short version
- The offer letter is the short "we intend to employ you" document with conditions and an expiry. The appointment letter is the fuller contract at joining.
- Eight things belong in every offer: parties, role, location, start date, pay (CTC and indicative take-home), probation and notice, conditions, and a validity date.
- Always make the offer subject to verification of documents, qualifications and any licences, so a failed check lapses the offer cleanly.
- Always give the offer an expiry date. An open-ended offer is a liability that wanders.
- Show the salary breakup in an annexure and the likely in-hand figure. Surprises on the first payslip are how you lose people in month one.
Offer letter vs appointment letter
They are often confused because small companies frequently send only one document. Strictly:
| Offer letter | Appointment letter | |
|---|---|---|
| When | After selection, before joining | At or shortly after joining |
| What it does | States intent to employ on headline terms, subject to conditions; asks for acceptance by a date | Sets the full terms: duties, probation, notice, leave, conduct, confidentiality |
| Length | One to two pages plus a salary annexure | Several pages; it is the employment contract |
Combining them into one pre-joining letter is workable for small teams, as long as the combined letter keeps the offer-stage conditions (verification, validity) and the appointment-stage terms (probation, notice). The template below is a clean offer letter; your appointment letter builds on the same facts.
The eight things every offer must state
- Who and what: the legal company name, the candidate's name, the exact designation, and whom the person reports to.
- Where and when: work location (and whether the role can be transferred between branches), the joining date, and working days or shift if unusual.
- Pay: the CTC with its breakup in an annexure, and an indicative monthly take-home after deductions. State when salary is paid.
- Probation: how long, what confirmation looks like, and the notice each side owes during and after probation.
- Conditions: subject to satisfactory verification of identity, qualifications, experience, references, and any registration or licence the role needs (a nursing registration, a driving licence, a pharmacist licence).
- Documents to bring: list them now, so joining day is not a scavenger hunt. Our onboarding checklist has the standard list.
- Validity: the date the offer lapses if not accepted, and how to accept (signature or reply).
- Signatures: someone authorised for the company, and a space for the candidate's acceptance with date.
The template
Replace the square brackets. Keep the sentences short; a candidate's family often reads this letter too.
[Company letterhead: legal name, address, CIN if applicable]
[Date]
Dear [Candidate name],
Offer of employment — [Designation]
We are pleased to offer you the position of [Designation] at [Legal company name], based at our [city / branch] office, reporting to [role of manager]. Your expected date of joining is [date].
1. Compensation
Your annual cost to company (CTC) will be ₹[amount], made up as set out in Annexure A. Based on this structure, your indicative monthly take-home pay after deductions will be approximately ₹[amount]; the exact figure depends on statutory deductions as applicable to you. Salary is paid monthly, on or before the [day] of the following month.
2. Probation and notice
You will be on probation for [3/6] months from your date of joining, after which your employment will be confirmed in writing unless probation is extended for reasons given to you. During probation, either side may end the employment with [15/30] days' notice; after confirmation, with [30/60/90] days' notice or salary in place of notice.
3. Conditions of this offer
This offer is subject to: (a) satisfactory verification of your identity, address, qualifications and experience; (b) references we may take; (c) your holding and maintaining [any registration/licence the role requires, e.g. a valid State nursing council registration]; and (d) your being free of any obligation that prevents you joining us. If any of these is not met, this offer lapses without liability on either side.
4. Documents to bring on joining
PAN, Aadhaar, educational certificates, relieving letter from your last employer (if applicable), bank details, passport-size photographs, and [role-specific documents].
5. Validity and acceptance
This offer is valid until [date]. To accept, sign and return a copy of this letter (or reply confirming acceptance) by that date. Your appointment letter, with full terms of employment, will be issued when you join.
We look forward to working with you.
For [Legal company name],
[Name], [Designation]
Accepted: ______________ (signature) Date: __________
Annexure A — salary structure (monthly)
Basic: ₹[__] · House rent allowance: ₹[__] · [Other allowances]: ₹[__] · Employer contributions as applicable: ₹[__] · Monthly CTC: ₹[__]. Statutory contributions and deductions (such as provident fund, state insurance and professional tax) apply as per law and depend on your details; the payroll team will confirm exact figures.
Six mistakes that cause real trouble
- No expiry date. A candidate "accepts" six weeks later, after you have hired someone else. Every offer needs a lapse date.
- No conditions clause. The verification fails, but the offer was unconditional. Withdrawing is now a dispute instead of a lapse.
- A take-home surprise. The interview discussed one number, the first payslip shows another, and the person quits in week three feeling cheated. State CTC and indicative in-hand in the letter.
- Verbal joining dates. "Come from the 1st" by phone, and the letter says nothing. If the date moves, nobody can say what was agreed. Put the date, and who bears a postponement, in writing.
- Copying clauses that don't fit. A non-compete copied from a software contract into a retail job offer is noise at best. Keep only clauses you understand and would act on.
- Promising what isn't yours to promise. Guaranteed bonuses, assured increments and "permanent" employment read well and bind badly. Say what is actually decided, and leave policy matters to the policies the person will acknowledge at joining.
After acceptance: the handover into day one
An accepted offer starts a clock. The candidate is serving notice somewhere, and the companies that lose joiners between offer and joining are usually the ones that go silent in those weeks. Three cheap habits: confirm receipt of their acceptance the same day; message once a week ("documents ready? any questions?"); and have their first day actually prepared, which is a checklist problem, not a software problem — ours is in the onboarding guide.
If you run hiring in HR-VEND, the offer is raised from the candidate's record and tracked to acceptance, and the accepted candidate's details flow into the employee record and onboarding without retyping — which is also how the salary figures in the offer and the first payslip stay the same figures.
Frequently asked questions
What is the difference between an offer letter and an appointment letter?
Is an offer letter legally binding in India?
Should the offer letter show CTC or in-hand salary?
What probation period is normal in India?
Can we withdraw an offer if the candidate's documents fail verification?
This template is general information for Indian employers, not legal advice. Employment terms are affected by your State's shops-and-establishments rules, standing orders where they apply, and the nature of the role. Have your labour consultant review your standard letters once, then reuse them.