Offer letter format and generator

The role, team, manager and work location; the cost to company, with a component wise breakup; the joining date; probation and notice period; any conditions, such as background verification; and a date by which the candidate must accept. A signature block and an acceptance section close it.

An offer letter proposes the job and its main terms, and the candidate accepts it before joining. An appointment letter, or employment agreement, is usually issued on joining and sets out the full terms, such as leave, conduct, confidentiality and termination. Many companies issue both.

An offer that has been accepted can be evidence of an agreement on the terms in it, which is why the figures and conditions need to be right. Withdrawing an accepted offer can expose the employer to claims, particularly if the candidate has already resigned elsewhere, so take advice before doing it.

It splits the cost to company into its parts: basic pay, house rent allowance and special allowance, which make up gross salary, plus the employer's PF contribution and gratuity, which are part of CTC but not paid monthly. Variable pay at target is shown separately. The generator works it out from the fixed CTC, so the columns always add up.

Many employers include it, at 4.81% of basic pay, because it is a cost of employing the person. It is only paid when the employee leaves after the qualifying service, so make that clear in the annexure, as this letter does.

Three or six months of probation is common, and notice periods of 30 to 90 days, often shorter during probation. They should match your HR policy and any certified standing orders, and be the same in the offer letter and the employment agreement.

Click Print or save as PDF and choose Save as PDF as the printer. Only the letter is printed, on A4, with Annexure A starting on a new page.