Offer Letter Format with Salary Structure (India, 2026): Sample Letter and Breakup
A sample offer letter, a salary breakup that matches the CTC exactly, what every offer should include, offer letter vs appointment letter, and how to track acceptance online.
An offer letter is the first formal document a new employee receives — and the first place misunderstandings about salary begin. "I was offered ₹5 lakh, why is my in-hand ₹36,000?" is almost always an offer letter that showed a CTC figure without a salary breakup.
This guide gives you an offer letter format for India with a salary structure, explains what every offer letter should include, the difference between an offer letter and an appointment letter, a sample salary breakup, common mistakes, and how to send offer letters that candidates can accept online.
General guidance as of 30 September 2026, not legal advice.
The short answer
- An offer letter confirms the job, designation, joining date, salary and key terms, and asks the candidate to accept.
- Always include a salary breakup — basic, HRA, allowances, employer PF and other components — not just a CTC figure.
- An appointment letter is issued after joining and contains the full terms of employment.
- Keep the basic at least 50% of total wages under the labour codes' wage definition, or understand the effect on PF and gratuity.
- Send offers digitally and track acceptance, so nothing gets lost in email.
What an offer letter should include
- Company name, logo and address
- Date and reference number
- Candidate's name and address
- Designation and department
- Joining date and work location
- Reporting manager
- CTC and salary breakup (usually as an annexure)
- Probation period
- Working hours and weekly offs
- Notice period during and after probation
- Documents to bring on joining
- Conditions — background verification, reference checks, medical fitness if applicable
- Validity — the date by which the offer must be accepted
- Acceptance section for the candidate's signature or online acceptance
Offer letter format (sample)
[Company name] [Address] · [Date] · Ref: [Offer number]
Dear [Candidate name],
We are pleased to offer you the position of [Designation] in our [Department] team at [Location], reporting to [Manager].
Your expected date of joining is [Date]. Your annual cost to company (CTC) will be ₹[amount], as detailed in Annexure A.
You will be on probation for [3/6] months from your date of joining. The notice period is [15/30] days during probation and [30/60] days after confirmation.
This offer is subject to satisfactory verification of your documents and references. A detailed appointment letter will be issued on joining.
Please confirm your acceptance by [date]. If we do not hear from you by then, this offer will lapse.
We look forward to welcoming you to [Company].
[Name], [Designation], [Company]
Sample salary breakup (Annexure A)
For a CTC of ₹4,80,000 a year (₹40,000 a month):
| Component | Monthly | Annual |
|---|---|---|
| Basic | ₹20,000 | ₹2,40,000 |
| HRA | ₹8,000 | ₹96,000 |
| Special allowance | ₹8,638 | ₹1,03,656 |
| Gross salary | ₹36,638 | ₹4,39,656 |
| Employer PF (12% of basic) | ₹2,400 | ₹28,800 |
| Gratuity provision (4.81% of basic) | ₹962 | ₹11,544 |
| CTC | ₹40,000 | ₹4,80,000 |
The special allowance is the balancing figure: CTC minus basic, HRA, employer PF and gratuity.
Estimated deductions from gross (to show expected in-hand):
| Deduction | Monthly |
|---|---|
| Employee PF (12% of basic) | ₹2,400 |
| Professional Tax (state-dependent) | ₹200 |
| TDS (as applicable) | As computed |
| Estimated in-hand (before TDS) | ~₹34,038 |
Showing the in-hand estimate up front prevents most "why is my salary lower?" conversations after joining.
Offer letter vs appointment letter
| Offer letter | Appointment letter | |
|---|---|---|
| When | Before joining | On or after joining |
| Purpose | Offer the job and key terms | Confirm employment with full terms |
| Length | Short | Detailed |
| Contents | Designation, joining date, CTC, probation, notice | All of that plus duties, policies, confidentiality, termination terms |
| Legal weight | Conditional offer | Contract of employment |
Many small companies combine them, but a separate appointment letter with full terms is good practice.
Common offer letter mistakes
- CTC with no breakup — the biggest cause of salary disputes.
- Including employer PF in "gross" and confusing the candidate.
- Very low basic that ignores the 50% wages rule, changing PF and gratuity later.
- No validity date — candidates accept months later.
- Inconsistent notice periods between offer and appointment letters.
- Offers lost in email — no record of who accepted what.
- Retyping details into payroll after joining, with errors.
Sending offer letters digitally
A digital offer process helps you:
- Create letters from a standard template with the salary breakup.
- Release them to the candidate by email with a secure link.
- Let the candidate accept or decline online, with a reason if they decline.
- Track status: draft, released, accepted, declined, withdrawn.
- Convert an accepted offer into an employee record without retyping.
How PeopleVio handles offer letters
- Create an offer with the candidate's details, designation, department, joining date and salary (basic, HRA and other allowances).
- Preview and download the offer letter as a PDF.
- Release it — the candidate gets a secure link by email.
- Online acceptance — the candidate accepts or declines, verified with a one-time code sent to their email.
- Track status — draft, released, accepted, declined or withdrawn.
- Convert to employee — an accepted offer becomes an employee record, ready for payroll.
Limitations: the letter follows PeopleVio's standard layout, and the salary breakup covers basic, HRA and other allowances — CTC items like employer PF and gratuity aren't itemised on the letter.
| Active employees | Monthly billing | Yearly billing (per month) |
|---|---|---|
| 20 | ₹1,180 | ₹980 |
| 50 | ₹2,450 | ₹2,050 |
| 100 | ₹4,900 | ₹4,100 |
Offer letters are included with payroll, attendance, leave, PF, ESI and TDS. Prices exclude GST. See the pricing page.
Frequently asked questions
What should an offer letter include in India? Designation, department, joining date, location, CTC with a salary breakup, probation, notice period, conditions and an acceptance deadline.
What is the difference between an offer letter and an appointment letter? An offer letter is a conditional offer before joining; an appointment letter confirms employment with full terms after joining.
Should the offer letter show salary breakup? Yes. A breakup of basic, HRA, allowances and employer contributions prevents confusion about in-hand pay.
Is an offer letter legally binding? Once accepted, it creates obligations for both sides, but the appointment letter or employment contract usually governs the relationship in detail.
Can candidates accept an offer letter online? Yes. PeopleVio sends a secure link, and candidates accept or decline online with a one-time code.
The bottom line
A good offer letter is clear about the job, the terms and — above all — the salary. Show the breakup, set a deadline, track acceptance, and move the accepted offer straight into payroll.
See PeopleVio's pricing or book a demo.
Related reading: Offer letter software for small business · CTC vs in-hand salary · PF calculation on salary · Leave policy for private companies
Keep reading
Expense Reimbursement Policy in India (2026): Rules, Tax Treatment and a Sample Policy
What to reimburse, limits by grade, bills and GST invoices, when reimbursements become taxable salary, advances and a sample expense reimbursement policy.
Performance Appraisal Process (2026): Steps, Rating Scale and a Sample Form
Goals with key results, self-review, a defined 1–5 rating scale, the appraisal conversation, an increment matrix and a sample appraisal form for Indian companies.
Employee Onboarding Checklist (India, 2026): From Offer to the First 90 Days
A complete onboarding checklist for Indian companies — pre-joining, day 1, PF and ESI setup in week 1, documents to collect, and check-ins to day 90.