Create a professional, ready-to-use offer letter with CTC breakup in seconds. Fill in the details, choose your tone, and download as PDF, DOC, or image.
Offer Letter Generator
FREE TOOL
PNG, JPG or SVG. Appears on the letter header.
₹
Auto CTC Breakup (Annual)
Basic (40%)-
HRA (50% of Basic)-
Special Allowance-
PF Employer (12% of Basic)-
Monthly Gross-
Letter Preview
[Date]
[Ref No]
To, [Candidate Name] [Work Location]
Subject: Offer of Employment
Dear [Candidate Name],
[Fill in the form to generate your offer letter]
Warm regards,
Authorized Signatory
For [Company Name]
* This generator creates a ready-to-use offer letter. Review all details before sending to the candidate.
What is an Offer Letter?
An offer letter is a formal document issued by an employer to a selected candidate, confirming the job offer along with key terms of employment. It typically includes the designation, department, compensation details, joining date, probation period, and reporting structure. In India, offer letters are a standard part of the hiring process for both small businesses and large corporations.
While an offer letter is not the same as an appointment letter (which is issued after the candidate joins), it serves as the first official communication between the employer and the new hire. Payroll and HR tools like Attendo (formerly Petpooja Payroll) help businesses automate the entire onboarding process, from offer letter issuance to attendance setup and first payroll run.
An offer letter formally communicates the job offer to the selected candidate before joining
It outlines compensation (CTC breakup), designation, department, work location, and joining date
Indian companies typically issue offer letters within 1 to 3 days of the final interview round
The candidate is expected to sign and return the acceptance section within the validity period
Automate Offer Letters and Onboarding with Attendo
From offer letter to first payroll, Attendo handles the complete onboarding workflow. Attendance setup, statutory compliance, and salary processing in one platform.
A well-structured offer letter should include every detail the candidate needs to make an informed decision. Missing critical information can lead to confusion during onboarding or, worse, a candidate declining the offer due to lack of clarity.
Designation and Department: The exact job title and the department the candidate will be working in. This sets expectations for the role from day one.
CTC Breakup: A clear table showing Basic Pay, HRA, Special Allowance, PF contribution, and any other components. Transparency in compensation builds trust.
Joining Date: The expected date on which the candidate should report for duty. This is usually agreed upon during the interview process.
Work Location: The office or city where the candidate will be based. For remote or hybrid roles, this should be explicitly stated.
Probation Period: The initial evaluation period, typically 3 or 6 months. Terms during probation (including notice period) should be clearly mentioned.
Notice Period: The notice period applicable after confirmation. Common durations in India are 30, 60, or 90 days.
Reporting Manager: The name or designation of the person the candidate will report to. This helps the new hire understand the team structure.
Offer Validity: The deadline by which the candidate must accept or decline the offer. Typically 7 to 14 days from the date of issuance.
Acceptance Section: A section at the bottom where the candidate signs to confirm acceptance of the terms and conditions.
Offer Letter vs Appointment Letter
These two documents are often confused, but they serve different purposes in the hiring process. Understanding the distinction is important for both HR teams and candidates.
Offer Letter: Issued before the candidate joins. It is a pre-joining document that outlines the proposed terms of employment, including CTC, designation, joining date, and probation terms. It is conditional and can be revoked under certain circumstances before the candidate joins.
Appointment Letter: Issued on or after the candidate's first day of employment. It is a post-joining document printed on the company letterhead. It contains detailed terms and conditions including leave policy, code of conduct, intellectual property clauses, non-compete agreements, and termination procedures. The appointment letter is the binding employment contract.
Key difference: The offer letter is an "intent to hire." The appointment letter is the "formal employment contract." Both are important, but the appointment letter carries more legal weight in disputes related to employment terms.
CTC Breakup Explained
CTC (Cost to Company) is the total amount a company spends on an employee annually. It includes direct salary components, employer contributions (PF, ESIC), and sometimes perks like insurance. Here is how a standard Indian CTC is typically structured.
Basic Pay (40% of CTC): The core salary component. PF, gratuity, and most statutory deductions are calculated on basic pay. A higher basic means higher PF and gratuity contributions.
HRA (50% of Basic): House Rent Allowance. Tax-exempt under Section 10(13A) if the employee lives in a rented accommodation. The exemption depends on the city (metro vs non-metro) and actual rent paid.
Special Allowance: The remaining amount after deducting Basic, HRA, and employer PF from the CTC. This is fully taxable and is used to balance the salary structure.
PF Employer Contribution (12% of Basic): Mandated under the EPF Act for establishments with 20+ employees. Capped at 12% of ₹15,000 basic (i.e. ₹1,800/month), though some companies contribute on the full basic.
ESIC (if applicable): Applicable when gross salary is below ₹21,000/month. Employer contributes 3.25% and employee contributes 0.75%.
Gratuity: Payable after 5 years of service. Some companies include the annual provision (4.81% of Basic) as part of CTC.
Professional Tax: State-level tax deducted monthly. Varies by state, capped at ₹2,500/year in most states.
Step 1: Enter your company name and address in the first row of the form
Step 2: Fill in the candidate's full name, designation, department, and work location
Step 3: Add the reporting manager's name and select the joining date
Step 4: Enter the annual CTC. The CTC breakup (Basic, HRA, Special Allowance, PF) auto-calculates below the field
Step 5: Set the offer validity date, probation period, and notice period from the dropdowns
Step 6: Choose the letter tone (Formal or Friendly) and click "Generate Offer Letter"
Step 7: Review the preview on the right, then download as PDF, DOC, or image
Probation Period Rules in India
A probation period is the initial trial period during which the employer evaluates the new hire's performance, cultural fit, and suitability for the role. Here are the common practices followed across Indian companies.
3 Months: Common in startups, small businesses, and entry-level positions. Short enough for quick evaluation while giving the employee a fair chance to settle in.
6 Months: The most widely used probation period in India. Standard for mid-level roles across IT, consulting, banking, and manufacturing sectors.
1 Year: Used for senior positions, specialized technical roles, and government or public sector undertakings. Allows time for thorough performance assessment.
Notice during probation: Many companies have a shorter notice period during probation, typically 15 or 30 days, compared to the standard 60 or 90 days after confirmation.
Confirmation process: At the end of probation, the employee is either confirmed (with a formal confirmation letter), has the probation extended, or is terminated. The offer letter should mention this process clearly.
Can an Employer Withdraw an Offer Letter?
This is a critical question for both employers and candidates. The legal position in India is nuanced and depends on the specific circumstances.
Before the candidate accepts: An employer can generally withdraw an offer letter before the candidate has formally accepted it. Once the offer is accepted by the candidate, the situation changes significantly.
After the candidate accepts: If the candidate has accepted the offer, resigned from their current job, and made arrangements based on the offer, withdrawing it can have legal consequences. Indian courts have applied the doctrine of promissory estoppel in several cases, holding that a promise made by an employer (through the offer letter) creates a binding obligation if the candidate has acted upon it to their detriment.
Notable court rulings: In cases where candidates left their existing employment, relocated, or incurred expenses based on an accepted offer letter, courts have ordered compensation or directed the employer to honour the offer. The key factor is whether the candidate suffered a "detrimental reliance" on the promise.
Best practice for employers: Always include a clause in the offer letter stating that the offer is subject to successful background verification, medical fitness, and submission of required documents. This protects the employer if legitimate grounds for withdrawal arise.
Dos and Don'ts of an Offer Letter
Do: Include a complete CTC breakup. Candidates should see exactly what they are getting. Vague salary figures lead to disputes during the first payroll cycle.
Do: Mention the probation and notice period clearly. Ambiguity in these terms can cause legal complications if the employee leaves or is terminated early.
Do: Set a clear validity date. Give the candidate a reasonable deadline (7 to 14 days) to accept or decline. This helps HR plan the onboarding timeline.
Do: Use professional language and formatting. The offer letter is the candidate's first official document from the company. It reflects your organization's professionalism.
Don't: Include detailed policies in the offer letter. Leave policy, code of conduct, and non-compete clauses belong in the appointment letter, not the offer letter.
Don't: Promise variable pay or bonuses without conditions. If bonuses are performance-based, state that clearly. Unconditional promises in writing become binding obligations.
Don't: Skip the background verification clause. Always include a condition that the offer is subject to satisfactory background check and document verification.
Don't: Send the offer letter from a personal email. Always use the official company email domain. This establishes authenticity and prevents phishing concerns.
Track Onboarding, Attendance and Payroll with Attendo
Attendo handles everything from day one: attendance tracking, shift scheduling, leave management, payroll processing, and statutory compliance for 30,000+ businesses.
Once the candidate signs and returns the offer letter acceptance, the HR team initiates the pre-onboarding process. Here is the typical workflow followed in Indian companies.
Background verification: Verify the candidate's previous employment, educational qualifications, and identity documents. Many companies use third-party agencies for this
Document collection: Collect copies of Aadhaar, PAN, bank details, educational certificates, previous employer relieving letter, and passport-size photographs
Onboarding setup: Create the employee profile in the HR system, assign employee ID, set up email and system access, and share the onboarding schedule
ID card and access: Generate employee ID card, office access card, and any physical assets (laptop, phone) needed for the role
Attendance setup: Register the employee in the attendance system with biometric enrollment, shift assignment, and leave balance initialization
Payroll setup: Configure the employee's salary structure, PF account (UAN), ESIC number (if applicable), bank account for salary credit, and tax declarations
FAQ
Frequently Asked Questions
Common questions about offer letters in India.
What is an offer letter? +
An offer letter is a formal document issued by an employer to a selected candidate, confirming the job offer and outlining the key terms of employment. It includes the designation, department, CTC breakup, joining date, probation period, notice period, and work location. The candidate reviews and signs the acceptance section to confirm they agree to the terms. It is the first official employment document in the hiring process.
Is an offer letter legally binding in India? +
An offer letter is not a formal employment contract in the strict legal sense. However, once the candidate accepts the offer and acts upon it (such as resigning from their current job or relocating), Indian courts have applied the doctrine of promissory estoppel to hold the employer accountable. This means the employer may be liable for damages if they withdraw the offer after the candidate has relied on it to their detriment. The appointment letter, issued on joining, is the binding employment contract.
What is the difference between an offer letter and an appointment letter? +
The offer letter is a pre-joining document that communicates the intent to hire and outlines the proposed terms. It is issued after the selection process and before the candidate joins. The appointment letter is a post-joining document issued on or after the first day of employment. It is printed on the company letterhead and contains detailed terms including leave policy, code of conduct, non-compete clauses, and termination procedures. The appointment letter serves as the formal employment contract.
What should be included in an offer letter? +
A complete offer letter should include: the candidate's name and designation, department, CTC breakup (Basic, HRA, Special Allowance, PF), joining date, work location, reporting manager, probation period, notice period, offer validity date, and an acceptance section. Some companies also include a background verification clause and a brief overview of employee benefits. Use the salary per day calculator to verify the daily rate matches the monthly and annual figures mentioned.
Can an employer withdraw an offer letter after issuing it? +
Before the candidate accepts, the employer can generally withdraw the offer without legal consequences. After acceptance, however, withdrawing becomes legally risky, especially if the candidate has resigned from their previous job, relocated, or incurred expenses based on the offer. Indian courts have awarded compensation to candidates in such cases. Best practice: include conditions in the offer letter (background verification, medical fitness) to protect against unforeseen issues.
How long is an offer letter valid? +
Most offer letters in India specify a validity period of 7 to 14 days. This gives the candidate reasonable time to evaluate the offer, discuss with family, negotiate terms if needed, and submit their acceptance. If the candidate does not respond within the validity period, the employer is not obligated to keep the offer open. The validity period should be clearly mentioned in the offer letter. Track your earned leave balance at your current employer before making the switch.
Can a candidate negotiate the offer letter terms? +
Yes, candidates can negotiate salary, joining date, designation, and other terms before signing the acceptance. This is a standard part of the hiring process in India. Common negotiation points include CTC (especially the fixed vs variable split), joining date flexibility, designation, and work location. Once the candidate signs the acceptance, the terms are considered agreed upon. All negotiations should happen before signing, and any changes should be reflected in a revised offer letter.
What documents are needed after accepting an offer letter? +
After accepting the offer, candidates typically need to submit: Aadhaar card copy, PAN card copy, passport-size photographs, educational certificates (degree, marksheets), previous employer relieving letter and experience certificate, last 3 months' salary slips, bank account details for salary credit, and the PF UAN (Universal Account Number) for EPF transfer. Some companies also require a medical fitness certificate and address proof. Use the attendance calculator to understand your new employer's attendance tracking setup.
Create offer letters instantly.
Use the free Offer Letter Generator above to create professional offer letters with CTC breakup in seconds.
Disclaimer: This calculator provides estimated results based on the inputs provided. Actual calculations may require additional factors. Attendo does not assume any legal liability for decisions made based on these calculations.
We value your privacy. We use cookies to run Attendo, improve it, and show you relevant content. Cookie Policy
Customise consent preferences
We use cookies across a few categories. Necessary cookies are always on so the site works. Turn the others on to help us improve and personalise your experience.
NecessaryAlways active
Required for the site to function - secure login, form submission, and saving your consent choice.
Analytics
Helps us understand how visitors use the site (pages viewed, traffic sources) so we can improve it.
Advertising
Lets us show you relevant Attendo offers and measure our ad campaigns (Meta, Google, etc.).
Functional
Enables extras like chat widgets and content sharing.
10 minutes · No commitment
Book Your Free Demo
See how Attendo can simplify attendance, payroll & compliance for your business.
Personalized walkthrough for your business
See attendance, payroll & reports in action
Get answers to all your questions
No commitment. Completely free.
Rated 4.8 from 7,000+ reviews. Trusted by 40,000+ businesses across India.
Let's get to know you
Help us customize the demo for your business needs.
