Free offer letter template compliant with Indian labor laws. Covers CTC structure, PF/ESI deductions, notice period, gratuity, probation, and Shops & Establishment Act compliance.
Dear [Candidate Name], With reference to your application and subsequent discussions, we are pleased to offer you the position of [Designation] in the [Department] at [Company Name], [registered address]. Your appointment is governed by the terms set forth in this letter and the Company's HR policies. Date of Joining: [Date] Reporting Manager: [Name, Designation] Work Location: [Office Address] Probation Period: [6] months (extendable by [3] months at management discretion) Employment Type: Full-time, permanent (post-probation)
Your annual Cost to Company (CTC) shall be INR [Amount] (Rupees [Amount in words] only), structured as follows: Basic Salary: INR [Amount] per month House Rent Allowance (HRA): INR [Amount] per month Special Allowance: INR [Amount] per month Conveyance Allowance: INR [Amount] per month Medical Allowance: INR [Amount] per month Employer PF Contribution (12% of Basic): INR [Amount] per month Employer ESI Contribution (3.25%, if applicable): INR [Amount] per month Gratuity (4.81% of Basic): INR [Amount] per month Annual Performance Bonus: Up to INR [Amount] (at company discretion) Gross Monthly Salary (in-hand estimate after deductions): INR [Amount] Note: Salary is subject to applicable tax deductions (TDS) as per Income Tax Act, 1961.
You shall be covered under the following statutory benefits as applicable: (a) Provident Fund (PF): As per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Employee contribution: 12% of Basic. Employer contribution: 12% of Basic (3.67% to EPF + 8.33% to EPS). (b) Employee State Insurance (ESI): As per the ESI Act, 1948, if your gross salary is below the threshold (currently INR 21,000/month). Employee: 0.75%, Employer: 3.25%. (c) Gratuity: As per the Payment of Gratuity Act, 1972, payable upon completion of 5 years of continuous service. (d) Professional Tax: As applicable in your state of employment, deducted monthly.
You shall be entitled to the following leaves per calendar year (pro-rated for partial years): Earned/Privilege Leave: [18-24] days Casual Leave: [8-12] days Sick Leave: [8-12] days Public/National Holidays: As per the company holiday calendar Maternity Leave: 26 weeks (as per Maternity Benefit Act, 1961) Paternity Leave: [5-15] days (company policy) Leave policies are subject to the applicable Shops and Establishment Act of [State] and company HR policy.
During the probation period, either party may terminate this employment by providing [30] days' written notice or salary in lieu of notice. Post-confirmation, the notice period shall be [60/90] days from either side. The Company reserves the right to place you on garden leave during the notice period. Upon separation, you shall return all company property, settle outstanding advances, and complete the exit formalities. Gratuity shall be payable as per the Payment of Gratuity Act if you have completed 5 years of service.
You shall be required to sign the Company's Confidentiality and Non-Disclosure Agreement, Code of Conduct, and POSH (Prevention of Sexual Harassment) policy acknowledgment on your date of joining. You shall not engage in any employment or business activity that conflicts with the Company's interests during your tenure. Please confirm your acceptance by signing and returning this letter by [Date]. Bring the following documents on your date of joining: PAN card, Aadhaar card, educational certificates, previous employment relieving letter, bank account details, and 2 passport-size photographs.
Signature — Party A
Signature — Party B
Free offer letter template for hiring new employees. Covers position details, compensation, benefits, start date, at-will employment, and conditions of employment.
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View templateDisclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.
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