Free Offer Letter Generator (India Format)
Generate a professional offer letter with a full salary annexure worked out from the CTC you enter. Download it as a PDF — free, no sign-up, no watermark.
The salary annexure is generated from this — basic 40%, HRA 50% of basic, PF, and special allowance as the balance.
Salary annexure
Estimated take-home after PF, professional tax and income tax: ₹96,200 a month.
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What the annexure is really for
The single most common source of friction in the first month of employment is a candidate discovering that their take-home is nothing like the CTC they accepted. A component-wise annexure prevents that conversation by showing exactly where the money goes — what is salary, what is an employer contribution, and what will be deducted.
This tool generates the annexure from the CTC figure using a standard Indian structure, and also shows the estimated monthly take-home. Sharing that estimate with the candidate is worth doing even though it is not part of the letter itself.
Conditions matter
An accepted offer creates obligations. If you need the offer to be conditional — on background verification, on document submission, on the candidate serving out their notice elsewhere — say so explicitly in the letter. An offer that is silent on conditions is harder to withdraw if something later comes to light.
Probation and notice
Both belong in the letter, and both should be realistic. A long notice period looks protective but makes you less attractive to strong candidates and is difficult to enforce in practice. Whatever you choose, it needs to be the same in the offer letter and in the appointment letter that follows.
The structure decision
Where you set basic salary as a proportion of CTC has consequences beyond the payslip. A higher basic increases provident fund contributions and the eventual gratuity entitlement, but reduces monthly cash in hand. A lower basic does the reverse. Forty per cent is a common middle ground and is what this tool uses.
Frequently asked questions
- What should an offer letter include?
- The role and reporting location, the date of joining, the total cost to company with a component-wise salary annexure, the probation period, the notice period, and any conditions the offer depends on such as background verification. A signature block for both parties turns it into an accepted offer.
- Is an offer letter the same as an appointment letter?
- No. An offer letter is issued before joining and invites the candidate to accept. An appointment letter is issued on or after joining and sets out the full terms of employment. Many small companies use a single document for both, which works provided it covers the terms properly.
- Is an offer letter legally binding in India?
- Once accepted it forms a contract, and courts have treated withdrawal of an accepted offer as a breach in some cases. That said, offers made expressly conditional on background verification or document submission can be withdrawn if those conditions genuinely fail. Stating the conditions clearly protects both sides.
- Why does the annexure show employer PF separately?
- Because it is part of cost to company but never reaches the employee as salary. Showing it as a distinct line is what stops the common complaint that the take-home is lower than the CTC implied. Candidates read the annexure more carefully than the headline number.
- How should the salary be structured?
- A common structure is basic at 40% of CTC, HRA at 50% of basic, provident fund at 12% of basic, and special allowance absorbing the balance. This tool generates that structure from the CTC you enter. A higher basic means more PF and gratuity but lower monthly cash.
- Can I change the wording?
- The generated letter covers the standard terms. For anything unusual — equity, variable pay, a non-compete, or a retention bonus — have the wording reviewed by someone qualified rather than adapting a template.
Related free tools
- CTC to In-Hand Salary Calculator
Enter your CTC and see the exact monthly take-home after PF, professional tax and income tax. Free, no sign-up.
- CTC Breakup Calculator
Build a compliant salary structure from a CTC figure, with basic, HRA, PF and special allowance.
- Experience Letter Generator
Generate an experience certificate or relieving letter for a departing employee as a PDF.
One offer is easy. Twenty is a system.
Once you are hiring regularly, the letter is the last step of a longer process — job posts, applications, interviews, offers, then onboarding into payroll. Smart Dhandha carries a candidate through all of it, so the person you hired is already an employee record when they join.
- Job posts and candidate pipeline in one place
- Accepted candidates become employee records
- Salary structure flows into the first payroll run
This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.