Last updated: 5 November 2026
Short answer: an offer letter is the company's written job offer. It should state your job title, CTC with a salary breakup, joining date, location, probation, notice period, benefits and conditions, plus a deadline to accept. Before signing, check fixed vs variable pay, in-hand salary, bonds, notice period and any non-compete clause.
In this guide
- What an offer letter must include
- 3 sample offer letters: fresher, experienced, intern
- A real ₹9 LPA salary breakup with in-hand pay
- Every clause explained, including bonds and non-competes
- Offer letter vs appointment letter vs LOI
- Fake offer letter red flags
- Accept, negotiate and decline email templates
Quick facts
- Employer PF is usually 12% of basic, often capped at 12% of ₹15,000 (₹1,800/month).
- Gratuity provision in CTC is commonly 4.81% of basic.
- Under the new labour codes, "wages" (mainly basic + DA) should be at least 50% of total pay.
- Post-employment non-compete clauses are generally not enforceable in India (Section 27, Indian Contract Act), though confidentiality and non-solicit clauses can be.
- Wages due on exit must now be paid within 2 working days (Code on Wages).
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| Section | What to look for | Red flag |
|---|---|---|
| Job title and level | Matches what was discussed | Lower title than agreed |
| CTC and salary annexure | Fixed vs variable, PF, gratuity, bonus clearly split | Only one CTC number, no breakup |
| Joining date and location | Correct city; remote/hybrid stated | "Any location as per business needs" with no detail |
| Probation | Usually 3–6 months | 12 months with no reason |
| Notice period | During and after probation | 90 days for a junior role |
| Benefits | Health insurance, leave, ESOPs | "As per policy" with no policy shared |
| Conditions | Background check, documents | Fees or deposits required |
| Acceptance deadline | Clear date | Pressure to accept within hours |
Sample 1: offer letter for an experienced hire
Experienced hire
[Company letterhead] Date: 5 November 2026 To, Priya Sharma Jaipur, Rajasthan Subject: Offer of Employment – Data Analyst Dear Priya, We are pleased to offer you the position of Data Analyst at XYZ Technologies Pvt. Ltd., based in our Bengaluru office. • Joining date: 1 December 2026 • Annual CTC: ₹9,00,000 (breakup in Annexure A) • Reporting to: Analytics Manager • Probation: 6 months • Notice period: 30 days during probation, 60 days after confirmation • Working hours: Monday to Friday, hybrid (3 days in office) • Leave: 18 days paid leave + public holidays as per policy • Health insurance: ₹5 lakh family floater This offer is subject to verification of your documents and a background check. Please sign and return a copy by 12 November 2026 to confirm acceptance. We look forward to having you on the team. Regards, Anita Rao HR Manager, XYZ Technologies Pvt. Ltd.
Fresher (campus) – key lines
Dear Rahul, Congratulations! Following your campus selection, we are pleased to offer you the role of Graduate Engineer Trainee at ABC Systems Ltd. • Joining date: 15 July 2027 (subject to passing your final semester) • Annual CTC: ₹4,50,000 • Training: 3 months at our Mysuru campus • Probation: 6 months after training • Service agreement: none Please accept this offer on the campus portal by 30 November 2026.
Internship – key lines
Dear Sneha, We're happy to offer you a 6-month internship as a Marketing Intern at DEF Brands, starting 5 January 2027. • Stipend: ₹20,000 per month • Location: Mumbai (on-site) • Certificate on completion; possible pre-placement offer based on performance Please reply to confirm by 20 December 2026.
Sample salary breakup: ₹9 LPA
| Component | Annual | Monthly | Notes |
|---|---|---|---|
| Basic | ₹4,50,000 | ₹37,500 | 50% of CTC (meets the 50% wage rule) |
| HRA | ₹1,80,000 | ₹15,000 | 40% of basic (non-metro); tax-exempt partly if you pay rent under the old regime |
| Special allowance | ₹1,36,755 | ₹11,396 | Balancing figure |
| Gross fixed salary | ₹7,66,755 | ₹63,896 | Paid every month |
| Employer PF | ₹21,600 | ₹1,800 | 12% of ₹15,000 cap; goes to your PF account |
| Gratuity provision | ₹21,645 | — | 4.81% of basic; paid only if you become eligible |
| Variable pay / bonus | ₹90,000 | — | 10% of CTC; paid on performance |
| Total CTC | ₹9,00,000 |
What actually hits your account each month
Gross monthly fixed: ₹63,896 – Employee PF (12% of ₹15,000): ₹1,800 – Professional tax (Karnataka): ₹200 – Income tax (new regime): ₹0 (taxable income below ₹12 lakh rebate limit) Estimated monthly in-hand: ≈ ₹61,896 (Variable pay of ₹90,000 comes separately, if earned)
Check your own number with the in-hand salary calculator, or see ready breakdowns like 9 LPA in-hand and 12 LPA in-hand.
Every clause, explained
| Clause | What it means | What to check or ask |
|---|---|---|
| Variable pay | Part of CTC paid only on performance | What % is usually paid out? Ask someone in the team |
| Joining bonus | One-time payment, often to cover a notice buyout | Is there a clawback if you leave within 12 months? |
| Service bond | You pay a fixed amount if you leave before X months | Amount, duration and what it's for (e.g. paid training) |
| Notice period | Days you must serve before leaving | 60–90 days can slow your next switch |
| Non-compete | You can't join competitors after leaving | Generally unenforceable after employment in India; still read it |
| Non-solicit | You can't poach clients or colleagues | Usually enforceable for a reasonable period |
| Confidentiality / IP | Company owns work you create on the job | Check if side projects are excluded |
| Transfer clause | Company can move you to another city | Ask how often it's used |
| Background verification | Offer depends on checks passing | Keep relieving and experience letters ready |
| ESOPs | Stock options vesting over time | Vesting schedule, cliff, exercise price |
8 things to check before you sign
- In-hand vs CTC: calculate your monthly take-home.
- Fixed vs variable: anything above 15–20% variable is worth questioning.
- Joining bonus clawback: and its time period.
- Service bond: amount and duration.
- Notice period: now and after confirmation.
- Location and transfer clause: especially for hybrid roles.
- Title and level: it affects your next offer.
- Deadline: get it in writing if you need more time.
Offer letter vs appointment letter vs LOI
| Letter of intent (LOI) | Offer letter | Appointment letter | |
|---|---|---|---|
| When | Early, before the final offer | Before joining | On or after joining |
| Purpose | Shows intent to hire | Formally offers the job | Confirms the appointment with full terms |
| Detail | Role and rough CTC | Key terms and salary breakup | Full terms, policies, conduct rules |
| Binding? | Usually not | Once both sign, generally yes on its terms | Yes |
Fake offer letter red flags
| Red flag | Why |
|---|---|
| Asks for a "security deposit", training fee or laptop charge | Real employers don't charge you to join |
| Sent from a Gmail/Yahoo address, not the company domain | Easy to fake |
| No interview, or only a WhatsApp/Telegram chat | Real hiring involves real interviews |
| Salary far above market for the role | Too good to be true |
| Asks for bank login, OTP or card details | Fraud attempt |
| Company has no website, LinkedIn page or Glassdoor/AmbitionBox reviews | Can't be verified |
Email templates
Accept
Subject: Acceptance of Offer – Data Analyst – Priya Sharma Dear Anita, Thank you for the offer. I'm happy to accept the Data Analyst role at a CTC of ₹9,00,000, joining on 1 December 2026. I've attached the signed copy. Please let me know if you need any documents before then. Regards, Priya Sharma
Negotiate
Dear Anita, Thank you for the offer. I'm excited about the role. Based on my experience with automated reporting and the market range for this position, I was hoping for a fixed CTC closer to ₹10 lakh. Is there any flexibility on the fixed component? Regards, Priya
Decline politely
Dear Anita, Thank you for the offer and for your time during the process. After careful thought, I've decided to accept another role that's closer to my long-term goals. I hope our paths cross again. Regards, Priya
Before you resign from your current job, check your notice period and what you will get in your full and final settlement.
Offer letter vs appointment letter vs relieving letter
| Document | When you get it | What it proves | Keep it? |
|---|---|---|---|
| Offer letter | After final interview, before joining | The company intends to hire you on these terms | Yes, it's needed for background checks and loans |
| Appointment letter | On or after joining day | You are formally employed; full terms and policies | Yes, the key document in any dispute |
| Salary revision letter | After appraisal/promotion | Your new CTC and effective date | Yes, proof for your next job's negotiation |
| Experience / relieving letter | On your last day or in the F&F | You left properly and served notice | Yes, every future employer asks for it |
How companies usually send offers in India
- Startups: an emailed PDF or a DocuSign link, often within 24–72 hours of the final round. Usually asks for acceptance in 2–5 days.
- IT services (TCS, Infosys, Wipro, etc.): through their candidate portal, often weeks after campus selection, with a separate joining letter later.
- MNCs and GCCs: a verbal offer from the recruiter first, then a written offer after approval, usually with background verification by a third party.
- Government/PSU: an appointment order after document verification and medical, not a CTC-style offer.
Quick facts
- There's no single legally prescribed offer letter format in India. The terms you sign become your contract.
- Post-employment non-compete clauses are generally void under Section 27 of the Indian Contract Act, 1872.
- Under the Code on Wages, basic + DA should be at least 50% of total remuneration for calculating PF, gratuity and other benefits.
- Full and final settlement is due within 2 working days of your last day under Section 17(2) of the Code on Wages.
Sources: Indian Contract Act 1872; Code on Wages 2019 (in force from 21 Nov 2025)
FAQs
What should an offer letter contain?
Job title, CTC with salary breakup, joining date, location, probation, notice period, benefits, conditions and an acceptance deadline.
Is an offer letter legally binding in India?
Once both sides sign, it's generally treated as a contract on its terms. The appointment letter usually sets out the full terms.
What is the difference between CTC and in-hand salary?
CTC includes employer PF, gratuity provision and variable pay. In-hand is what's paid monthly after employee PF, professional tax and income tax.
Are service bonds legal in India?
Courts have generally upheld reasonable bonds tied to real costs like training, but not penalties that are excessive.
Is a non-compete clause enforceable in India?
Post-employment non-competes are generally void under Section 27 of the Indian Contract Act. Confidentiality and reasonable non-solicit clauses can be enforced.
Can a company withdraw an offer letter?
It happens, especially before joining. Don't resign until you have a signed offer, and keep all communication in writing.
How do I accept an offer letter?
Sign and return it by the deadline and send a short email confirming role, CTC and joining date.
How do I spot a fake offer letter?
Watch for requests for money, non-company email addresses, no real interview and salaries far above market.
What is a letter of intent?
An early, usually non-binding letter showing a company intends to hire you, before the formal offer.
What is a good variable pay percentage?
Many roles have 10–20% variable. Ask what percentage of variable has actually been paid out in recent years.
