An offer letter formally extends a job offer to a candidate, listing what they'll get if they accept the role. A well-written offer letter is important for not just securing top talent, but also for building a positive employee-employer relationship from the start.
In this article, you'll find guidelines to help you create your own letters along with offer letter templates you can use to hire people more quickly.
A job offer letter is a formal document employers send to candidates upon selecting them for a job. It details the job responsibilities, salary structure, benefits, and the employment start date.
While sending an offer letter isn't legally mandated in India, many companies choose to do so. This practice helps confirm the terms of employment in written format with the candidate, ensuring clarity for both parties involved and serving as a reference in case of any future questions.
Your offer letter should include any details that define the role and help the candidate understand how they will be compensated for the work they will be doing. Here are some of the few elements you must include when creating your ideal job offer letter.
The job title is the gateway to understanding one's role within the organization. Clearly define the position and set the right expectations for the employee. For example, rather than a generic "Developer," specify if it's a "Website Developer" or an "App Developer" role.
State the offered salary, including any performance-related bonuses, incentives, or allowances in the offer letter. Break down the components of the salary structure to ensure the candidate fully comprehends their CTC package.
Do you pay your employees at the beginning or during the last working day of a month? How do you pay them? Bank transfer, cheque, or cash?
It is good practice to specify the pay schedule and mode of salary payments in the offer letter. This will contribute to a smoother onboarding process and help employees plan their finances better.
List out the employee benefits you are offering for the role. These can be stock options, flexible benefit plans, health insurance, and retirement plans that your employees can take advantage of. This will increase the chances of the candidate accepting the role you're offering.
Specify the physical work location, whether it's at the company's main office, or a remote work arrangement, and the expected working hours. Clarity on these aspects ensures the employee understands the logistical aspects of their role and can plan accordingly.
Mention the date of joining on the offer letter, so the employee can align their schedule and prepare for seamless onboarding.
Consider adding a date of expiry to the offer to maintain the momentum of hiring. This date is a deadline by which the candidate has to accept or reject the offer. A reasonable timeframe, typically one to two weeks, allows prospective candidates to make a well-informed decision.
Subject: Employment offer from [company name]
Dear [candidate's first name],
We are pleased to offer you the position of [designation] at [company name].
Your annual cost to company is ₹ xxx,xxx [in words]. The break down of your gross salary and information specific to employee benefits can be found in Annexure A.
We would like you to start work on [joining date] from the base location, [work location]. You will work with the [team's name - Development/Marketing/HR] team and report directly to [manager's name and designation].
If you choose to accept this job offer, please sign and return this letter by [offer expiry date]. Once we receive your acceptance, we will provide information about onboarding and other asset details.
We are confident that you will find this offer exciting and I, on behalf of [company name], assure you of a very rewarding career in our organization.
[Sender name]
[Designation], [Company name]
Annexure A
I) Salary details
| Salary component | Amount (in ₹) |
| Basic pay | 25,000 |
| House Rent Allowance (HRA) | 13,000 |
| Other allowance | 16,000 |
| Pension benefits | 4,200 |
| Gross monthly salary | 58,200 |
Salary will be paid on the [last working day/first working day] of each month through [direct deposit/cheque].
II) Probation
You will be on probation for a period of [six months] from your joining date and will be confirmed as a full-time employee after successful completion of probation.
III) Salary revision
Revision to your compensation will be after [one year] from the date of joining, subject to your satisfactory completion of the probation period.
IV) Employee benefits
The company will cover the full premium for your inclusion under the Group Health Insurance for a sum insured of ₹ xxx,xxx [amount in words].
Gratuity will be payable as per the Gratuity Act upon separation from the company, subject to completing a minimum of five years of employment.
V) Confidentiality
Information you have access to during your employment is confidential and proprietary information of the company. You agree not to disclose such information without prior consent from the management.
VI) Termination
Your employment will be on an at-will basis, providing both you and the company with the flexibility to end the employment relationship at any time, with or without cause or notice.
This employment offer is subject to your successful completion of a pre-employment background check and your agreement to sign standard confidentiality agreements.
Accepted by: [Candidate name]
Here's a preview of how the offer letter should look:
Subject: Job offer from [company name]
Dear [candidate's first name],
Congratulations! We are pleased to offer you the position of [designation] at [company name].
Your annual cost to company is ₹ xxx,xxx [in words]. The break down of your monthly salary can be found below:
| Salary component | Amount (in ₹) |
| Basic pay | xx,xxx |
| House Rent Allowance (HRA) | x,xxx |
| Other allowance | x,xxx |
| Pension benefits | x,xxx |
| Gross monthly salary | xx,xxx |
Your salary will be paid on the [last working day/first working day] of each month through [direct deposit/cheque]. Your starting date is [joining date], and your base location will be [work location]. You will work with the [team's name] and report directly to [manager's name and title].
As a benefit, the company will pay the full premium for your inclusion under the Group Health Insurance, providing a sum insured of ₹ xxx,xxx [amount in words]. Gratuity, as per the Gratuity Act, will be given upon leaving the company after completing a minimum of five years of employment.
If you decide to accept this job offer, kindly sign and send back this letter by [offer expiry date]. Once we get your confirmation, we'll share your onboarding details.
We look forward to working with you. Please let us know if you have any questions or concerns.
Sincerely,
[Sender name]
[Designation], [Company name]
Accepted by: [Candidate name]
Subject: Congratulations on your new role at [company name]
Dear [employee's first name],
We are excited to promote you to [designation, department name] at [company name] as of [date].
Your revised annual cost to company is ₹ xxx,xxx [in words]. The break down of your monthly salary can be found below.
| Salary component | Amount (in ₹) |
| Basic pay | xx,xxx |
| House Rent Allowance (HRA) | x,xxx |
| Travel allowance | x,xxx |
| Other allowance | x,xxx |
| Pension benefits | x,xxx |
| Gross monthly salary | xx,xxx |
Your salary will be disbursed through [direct deposit/cheque] on the [last working day/first working day] of each month. Your primary work location is [work location], where you will report to [manager's name and title].
As part of the benefits, you will be eligible for up to [24] days of privilege leave in a calendar year, employee stock ownership plans, and a [one-time bonus] of up to [100%] of your monthly salary each year, contingent upon your performance and the company's growth.
If you choose to accept this offer, please sign and return this letter by [offer expiry date].
We sincerely appreciate your hard work and commitment to the company. We are confident that you will achieve greater things in your new role.
[Sender name]
[Designation], [Company name]
Accepted by: [Employee name]
Subject: Offer for full-time employment at [company name]
Dear [employee's first name],
We are pleased to extend your current employment status from part-time to full-time employee at [company name].
If you wish to accept this offer, your salary will be revised and your working hours will be from [Monday to Friday] [9 AM to 5 PM].
Your revised annual cost to company is ₹ xxx,xxx [in words] and the break down of your monthly salary is as follows:
| Salary component | Amount (in ₹) |
| Basic pay | xx,xxx |
| House Rent Allowance (HRA) | x,xxx |
| Other allowance | x,xxx |
| Pension benefits | x,xxx |
| Gross monthly salary | xx,xxx |
Each month, on the [last working day/first working day], your salary will be transferred through [direct deposit/cheque]. Your work location will be [base location], and you will be working with the [team's name] team and report to [manager's name and title].
This full-time job makes you eligible for certain employee benefits, including coverage under the company's Group Health Insurance Policy, paid vacation leaves, and a travel allowance.
Please sign and return this offer letter by [offer expiry date]. If you have any questions, kindly contact us.
Sincerely,
[Sender name]
[Designation], [Company name]
Accepted by: [Employee name]
Subject: Internship offer at [company name]
Dear [candidate's first name],
We are happy to offer you an internship position at [company name] with the [team name] department as the [designation].
The two-month internship will commence on the [start date] and end on the [end date]. This is a paid internship opportunity and your compensation will be ₹ xx,xxx per month.
You will be working at our head office, [work location], and your work schedule is [Monday to Friday] from [9 AM to 5 PM].
During your internship, you may get access to some of the company's confidential information. By accepting this offer, you agree not to disclose such information without prior approval.
Please note that an internship position does not entitle you to the company's employee benefit plan.
Please sign and send this offer letter by [offer expiry date] to accept the position. We look forward to working with you.
[Sender name]
[Designation], [Company name]
Accepted by: [Candidate name]
Tip: Create job offer letters within a few clicks using Zoho Recruit's Free Offer Letter Generator tool.
An offer letter is the first formal document sent to a candidate after successfully clearing all interview rounds. It provides an overview of the offered role, compensation details, and other benefits. Sending an offer letter is not mandatory by law.
On the other hand, an appointment letter is sent once the candidate accepts the job offer. This letter outlines the terms and conditions of employment in detail, such as working hours, annual leave entitlement, termination procedures, and notice period rules. It is mandatory by law to send appointment letters to prospective candidates on or before their joining date.
A joining letter is sent by the candidate to the employer after receiving the job offer letter from the company. In this letter, the candidate expresses their willingness to accept the offer and proceed with the onboarding process.
A conditional job offer letter is a document that extends a job offer to a candidate, but includes specific conditions that must be met before the offer becomes official. These conditions can include successful completion of background checks, drug tests, and verification of educational certifications.
Once the candidate meets the requirements within the mentioned deadline, the job offer becomes final and binding.
An unconditional job offer letter is a document that offers a job to a candidate without any additional conditions. Unlike a conditional offer, which includes specific requirements for the candidate to fulfill, an unconditional offer letter reflects a firm commitment from the employer to hire the candidate.
Your email address will not be published. Required fields are marked
