Offer Letter Guide India: Format, CTC Breakdown & Templates (2026)

Indian companies use both documents but they serve different purposes.

1. Company letterhead and date — official stationery with company name, address, CIN/GSTIN.
2. Candidate name and address — as per ID proof, exactly.
3. Role title and reporting manager — specific designation and who they report to.
4. Date of joining — exact date, not "at the earliest."
5. Location — city of posting, plus any transfer clause.
6. Compensation (CTC) — full breakdown with components.
7. Probation period — typical 3-6 months.
8. Notice period — during probation and after confirmation.
9. Working hours and leave policy — reference to company policy.
10. Offer validity — typical 7-15 days for candidate to accept.
11. Acceptance block — signature of HR/authorized signatory + place for candidate signature.

CTC (Cost to Company) is the total annual cost the company incurs for an employee. A transparent breakdown builds trust and avoids "why is my take-home so low?" friction.

Standard Indian CTC Structure (for 12 LPA example)

Probation Period

• Typical duration — 3 months (junior), 6 months (mid-level), sometimes extended to 12 months
• Extension clause — company can extend probation once (usually by 3 months)
• Termination during probation — usually 7-15 days notice either side, no notice pay during probation
• Benefits during probation — often limited (no PF matching, no leave encashment)

Notice Period

State both during-probation and post-confirmation notice periods clearly.

Must-Have Clauses

• Confidentiality/NDA — covers company information, client data, trade secrets
• Non-compete — typical 6-12 months post-exit. Note: Indian courts rarely enforce post-employment non-competes.
• Non-solicit — 6-12 months ban on poaching employees/clients. More enforceable than non-compete.
• IP assignment — all work created during employment belongs to the company
• Background verification — offer is subject to BGV clearance
• Joining bonus clawback — if leaving within 12-24 months, joining bonus must be returned
• Training bond — if company invested in specific training (certifications, abroad training), employee must serve minimum period or repay pro-rata
• Code of conduct — reference to employee handbook

• CTC written without breakdown — "12 LPA CTC" without components means you don't know what's fixed vs variable
• Variable component above 30% — means large part of promised CTC is not guaranteed
• Notice period longer than 90 days — locks you into the company; hard to change jobs
• Non-compete across all of India — unreasonably broad (though usually unenforceable)
• Clawback beyond 12 months — some companies extend joining bonus clawback to 24-36 months
• Vague "other duties as assigned" — without a role scope, you can be moved to any role
• No mention of increment policy — companies promising "10-15% appraisal" verbally but skipping it in writing
• Pre-signed resignation letters — ILLEGAL and void. Refuse and leave.

For the Candidate

1. Read every clause — especially CTC breakdown, notice, clawback, bond
2. Negotiate BEFORE signing — not after
3. Sign and return within the validity period (usually 7-15 days)
4. Keep a signed copy for yourself
5. Do not resign from current job until the new offer is signed and BGV clearance is received

If You Want to Withdraw After Accepting

You can withdraw before joining by sending a polite email — companies cannot force you to join. However:

• Return any joining bonus/relocation advance already paid
• Expect the company to note this in future reference checks
• Never ghost — always formally communicate

If the Company Withdraws After You Accepted

An offer letter signed by both parties creates a binding contract. If the company revokes after you've resigned from your current job, you can claim damages (typically 3-6 months of promised salary) — many Indian courts have ruled in favor of candidates in such cases.