What to include in an offer letter in India

An offer letter is often the first formal document a new hire receives from you. A clear one answers their questions before they ask, and gets accepted faster.

The role

The job title, the team and the person they report to, the work location (or that the role is remote), and the date you expect them to join.

Pay: the CTC and its breakup

State the annual cost to company (CTC) and how it is made up: basic salary, allowances such as house rent allowance, the employer's provident fund contribution, and any gratuity provision. Candidates compare offers on take-home pay, so a clear breakup saves a round of questions.

If part of the pay is variable, or there is a joining bonus, say how and when it is paid and any conditions attached to it.

Probation and notice period

Say whether there is a probation period and how long it lasts, and the notice period each side must give, both during probation and after confirmation.

Conditions of the offer

List what the offer depends on, such as background verification, proof of qualifications, or a relieving letter from the previous employer. Give a date by which the candidate should accept.

Policies and confidentiality

Refer to the company policies the new hire must follow, such as leave, conduct and working from home. Many companies also ask new joiners to sign a policy acknowledgement on their first day.

Get it accepted the same day

Send the offer for e-signature. The candidate opens the link on their phone, confirms a one-time code sent to their email, and signs. Use "Sign in order" so the candidate accepts first and a director countersigns after; you both get the signed PDF.

Closign's offer letter template asks for each of these details and can add the salary breakup for you. On paid plans it prints on your letterhead. This article is general information, not legal or tax advice.