An offer letter is a formal document a company sends to a selected candidate to confirm the role, compensation, and joining terms. It is not the same as an appointment letter. The offer letter is sent first to lock in the candidate, and the appointment letter follows on the date of joining.

Offer Letter Format (India HR Template + Sample)

An offer letter is a formal document a company sends to a selected candidate to confirm the role, compensation, and joining terms. It is not the same as an appointment letter. The offer letter is sent first to lock in the candidate, and the appointment letter follows on the date of joining.

What a Offer Letter must include

  • Candidate name and address
  • Job title, department, and reporting manager
  • Date of joining
  • Annual CTC and salary breakup (basic, HRA, allowances, PF, gratuity)
  • Probation period and confirmation criteria
  • Notice period during and after probation
  • Working hours and leave entitlement
  • Conditions of offer (background check, document submission)
  • Validity of the offer (deadline to accept)
  • Authorised signatory name and designation

Drafting tips

  • Keep the salary breakup specific to numbers. Vague offers cause negotiation friction at joining.
  • Always include offer validity (5 to 10 working days). Open-ended offers are routinely abused by candidates.
  • If joining is more than 30 days out, add a clause that the offer is subject to confirmation 7 days before the start date.

Offer Letter format

[Date: DD MMM YYYY]

[Candidate Full Name]
[Candidate Address]

Subject: Offer of Employment, [Job Title]

Dear [First Name],

We are pleased to offer you the position of [Job Title] at [Company Name] reporting to [Reporting Manager], based at [Office Location]. Your joining date will be [Joining Date].

Your annual CTC will be ₹[Amount] (Rupees [Amount in words]) structured as:

  Basic + DA          ₹[Amount]
  HRA                 ₹[Amount]
  Special Allowance   ₹[Amount]
  Employer PF (12%)   ₹[Amount]
  Gratuity (4.81%)    ₹[Amount]
  Total CTC           ₹[Amount]

Probation: You will be on probation for [3/6] months from the date of joining. Confirmation is subject to satisfactory performance and review.

Notice Period: [30] days during probation, [60/90] days post confirmation.

Working hours: [9:30 AM – 6:30 PM, Mon–Fri]. You are entitled to [12] earned leaves, [6] casual leaves, and [6] sick leaves per calendar year as per company policy.

This offer is contingent on:
  • Verification of identity, address, and educational documents
  • A satisfactory background and reference check
  • Submission of relieving and experience letters from your previous employer

Please confirm your acceptance by signing and returning a copy of this letter on or before [Validity Date].

We look forward to having you on board.

Sincerely,

____________________________
[Authorised Signatory Name]
[Designation]
[Company Name]

I accept the terms and conditions of this offer.

Signature: ____________________   Date: __________

FAQs

Is an offer letter legally binding in India?

Yes. Once accepted in writing by the candidate, an offer letter creates a contractual obligation. Either party reneging may face damages, though courts typically award only direct losses, not the full salary.

Should an offer letter mention probation?

Yes. Specify duration (commonly 3 or 6 months), the notice period during probation, and confirmation criteria. This avoids confusion later.

Can I revoke an offer letter after sending it?

Legally risky. If the candidate has accepted and acted on it (resigned from current job), revocation can lead to legal claims. Always include a "subject to background verification" clause.

Difference between offer letter and appointment letter?

Offer letter is sent at hiring to lock in the candidate. Appointment letter is given on the joining date and is the formal employment contract with full T&Cs.