Offer letter template
An offer letter for a new hire in India, with the salary breakup and estimated in-hand pay worked out for you. Fill in the blanks, then download it as a Word file or save it as a PDF.
[Company legal name]
[Registered address]
[Date]
[Candidate's full name]
[Candidate's city]
Subject: Offer of employment
Dear [First name],
We are pleased to offer you the position of [Designation] at [Company legal name]. We were impressed by your background and look forward to having you join the team.
| Designation | [Designation] |
|---|---|
| Department | [Department] |
| Location | [Location] |
| Joining date | [Joining date] |
| Probation period | 3 months |
Your pay
- Annual CTC: ₹[ ] (₹[ ] fixed, ₹[ ] variable)
- Monthly gross salary: ₹[ ]
- Estimated monthly in-hand: ₹[ ], under the new tax regime. The actual amount depends on your tax regime and declarations.
Salary breakup
| Component | Monthly | Annual |
|---|---|---|
| Basic | ₹[ ] | ₹[ ] |
| HRA | ₹[ ] | ₹[ ] |
| Special allowance | ₹[ ] | ₹[ ] |
| Gross salary | ₹[ ] | ₹[ ] |
| Employer PF | ₹[ ] | ₹[ ] |
| Gratuity provision (paid on leaving, once eligible) | ₹[ ] | ₹[ ] |
| Total CTC | ₹[ ] | ₹[ ] |
Deductions (indicative)
The figures below are for reference only. Income tax depends on your tax regime and investment declarations.
| Component | Monthly | Annual |
|---|---|---|
| Employee PF | ₹[ ] | ₹[ ] |
| Professional tax ([State]) | ₹[ ] | ₹[ ] |
| Income tax (TDS), estimated under the new regime | ₹[ ] | ₹[ ] |
| Estimated in-hand | ₹[ ] | ₹[ ] |
This offer is contingent upon satisfactory completion of background verification and submission of all required pre-joining documents, including but not limited to identity proof, educational certificates, relieving letters, and salary slips from your previous employer. The detailed terms of your employment with [Company legal name], including those set out in our employee handbook, will be shared with you on the date of joining.
Key terms and conditions of employment
In addition to the compensation details mentioned above, your employment at [Company short name] will be governed by the following key terms:
- Work schedule: You will be required to work five days a week for a minimum of 45 hours.
- Probation and confirmation: You will be under a probation period of three months from the commencement date to enable the Company to assess your suitability for the role.
- Notice period: During your probationary period, your employment may be terminated by either party by giving 15 days' notice. After your probationary period is over, one month's written notice is required, or the Company may allow you to pay one month's gross salary in lieu of the notice.
- Leave: You will be entitled to leave under the Company's leave policy, which will be shared with you on joining.
- Mobility and transfer: Based on business requirements, you may be transferred across different functions, departments, locations, or cities that [Company short name] currently operates or may operate in the future.
This offer is valid until [date]. Please sign and return a copy by then to accept it.
We are excited about the prospect of you joining us and contributing to our journey.
Warm regards,
[Name]
[Title], for [Company legal name]
Acceptance
I confirm that I have read, understood and accept the terms and conditions in this letter.
| Name: [Candidate's full name] | Signature: | Date: |
How it works
- The salary breakup and in-hand pay come from our CTC to in-hand salary calculator, with the same rates for 2026-27. CTC includes the company's PF and a gratuity provision of 4.81% of basic, and ESI when gross pay is ₹21,000 a month or less.
- In-hand is estimated under the new tax regime, with income tax worked out on fixed pay. Variable pay is shown on its own and never counted in monthly in-hand.
- Stock options are never added to CTC. They aren't cash, and they cost money to exercise.
How to explain the numbers to a candidate is in our guides, CTC vs In-Hand Salary: How to Explain an Offer in India and ESOPs in India Explained: A Guide for Founders and Teams.
This template is general information, not legal advice. Have a lawyer review it for your company and state.