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The seven blocks at a glance
Most Indian offer letters fit on two pages. Three when the compensation table runs long. The structure stays the same across sectors, headcount and city tier. What changes inside is the wording, not the order of the blocks or how many there are.
Top to bottom: letterhead with reference and date, addressee with subject and salutation, opening paragraph, role and reporting, compensation breakup, terms and signing, signature with annexures named below. Anything beyond these seven belongs in the appointment letter or the joining kit.
Block by block, what each section says
The header is where most letters look amateur. Logo dropped in the wrong corner, missing reference number, date written three different ways across the same hire. Get the top of the page right and the rest follows.
Block 1, the header
Logo top left or top centre. Registered company name in smaller type underneath. A horizontal rule beneath that, then three short lines.
The reference number is where most templates drift. A consistent series across offer, appointment, payslip and exit documents lets you retrieve any letter two years on. Something on the shape of OFFR/OL/2026/0184 works. Keep the prefix fixed. Pad the sequence to four digits so the file list orders cleanly.
Date in long form, 25 May 2026. Not 25/05/26 or 5/25/2026. Indian readers expect the long form on a formal letter.
Block 2, addressee, subject, salutation
The addressee runs three lines. Full name with the right title, postal address, PIN code. Beneath that, a subject line that names the role, on the shape of "Subject: Offer of employment for the position of Senior Engineer". When a candidate has applied to two roles in the same firm, the subject line is what saves your inbox.
Salutation reads as "Dear" plus surname for formal hires. When the preferred title is unclear, default to "Dear" plus full name. Whatever you pick, hold it for the rest of the letter. A salutation that says Mr in the header and slides into a first name by paragraph three reads sloppy.
Block 3, the opening paragraph
One sentence. Two at most. "We are pleased to offer you the position of Senior Engineer at the company, on the terms set out below." A second line can acknowledge the interview process, nothing more.
The salary stays out of the opening. It belongs in the compensation block, next to the breakup, where the candidate can reconcile both views. Paste the CTC into the opening sentence and you will spend the next week answering questions about what is inside that number.
Block 4, role and reporting
This block reads as a list. Six lines, sometimes seven:
- Designation, identical to what will appear on the appointment letter and the payslip.
- Department or function.
- Reporting manager and the manager's role title.
- Place of work, with the hybrid or remote arrangement spelled out where applicable.
- Date of joining, in long form.
- Probation period, if any, and the conditions for confirmation.
Mismatch between this block and the appointment letter triggers more disputes than any other gap between the two documents. Set the role title once and reuse the exact wording on day one. Same for the reporting manager.
Block 5, the compensation breakup
Use a table. Monthly column. Annual column. Indian readers move between the two views as they read, so showing both side by side saves them the arithmetic. Basic at 50 percent of CTC under the Code on Wages 2019. HRA at 40 percent of Basic. Conveyance, medical, special allowance, employer EPF and gratuity fill out the rest.
| Head | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic | 50,000 | 6,00,000 |
| House Rent Allowance | 20,000 | 2,40,000 |
| Special Allowance | 12,000 | 1,44,000 |
| Conveyance Allowance | 1,600 | 19,200 |
| Medical Allowance | 1,250 | 15,000 |
| Provident Fund, employer | 1,800 | 21,600 |
| Gratuity, employer | 2,404 | 28,848 |
| Total CTC | 89,054 | 10,68,648 |
One line beneath the table should flag that EPF, ESI and Professional Tax follow statutory rates and reflect as deductions on the monthly payslip. EPF runs at 12 percent employer plus 12 percent employee, capped at the wage ceiling set by EPFO. Variable pay belongs in its own row with the target value and the payout cycle named.
Block 6, terms, conditions, signing
Eight to twelve short lines, usually:
- Notice period during probation.
- Notice period after confirmation.
- Confidentiality reference, pointing to Annexure II.
- Background verification clause.
- Validity of the offer, often seven days from the date of the letter.
- Conditions precedent, such as a clean background check or relieving from the previous employer.
The block closes with two lines telling the candidate what to do. Sign both copies. Return one. Report on the joining date with the documents named in the joining kit.
Block 7, signature
Two columns at the bottom of page two. Company on the left, candidate on the right. Company side carries signatory name, designation, place and date. The candidate side has space for a signature and a single short line for the date of acceptance. Annexures follow as a numbered list, with each annexure starting on a fresh page.
Three format variants worth keeping ready
A single template breaks the moment role variety enters. The blocks above stay the same. What changes is the wording inside the terms block and the rows in the compensation table.
Permanent, private sector
Probation of three to six months. Notice 30 days during probation, 60 to 90 days after confirmation. Variable pay tied to an annual review. Confidentiality and IP assignment annexures attached.
Fixed term contract
Stated start and end date, often six or twelve months. Gratuity vests after one year of continuous service. A notice clause is rarely required since the contract closes on a known date, though many companies still keep a 30 day exit clause for early termination. Compensation runs simpler, with most heads folded into Basic and HRA.
Internship
Stipend, not CTC. Three to six months. EPF coverage usually does not apply to stipendiary interns. A short conversion clause is optional, naming the conditions under which the internship may convert to a full time role. Confidentiality annexure attached.
For roles that sit between two of these, pick the closer variant and add a rider near the end of the terms block. Do not blend two variants in one letter.
Page choices that affect how it reads
Why does one offer letter feel professional and another read as something pulled from a Downloads folder? The blocks set the content. The choices below set the feel.
Paper A4, portrait. Margins 25 mm. Permanent offers run two pages, internships one, fixed term contracts three when a renewal schedule is attached. Body type 10.5 to 11 point, line height around 1.4. The compensation table reads cleaner at a slightly tighter 1.25. Whatever sans serif your company already uses on its other documents, keep using it.
Page break placement is where most templates collapse. The compensation table cannot break across pages. If it does, the candidate flips back and forth to read a single ledger. Push the table onto page two and let the role block share page one with the opening paragraph.
The signature page should never open with only the signature block on it. That reads as if a page is missing. Pull the last two lines of the terms block onto the same page. For email delivery, send a PDF. PDFs preserve layout and render the same on the candidate's phone as on a laptop. Digital signing carries legal weight under the Information Technology Act 2000, provided the signature can be authenticated.
Where this format fits with the 2025 Labour Codes
The four Labour Codes came into force on 21 November 2025, replacing 29 legacy laws. The Code on Wages 2019 sets the 50 percent basic wage rule that drives the compensation table above. The Industrial Relations Code 2020 makes a written letter of appointment mandatory for every employee. Most Indian companies handle this by issuing the offer letter before joining and a formal appointment letter on day one.
An offer letter built on the seven block format carries the role, compensation, joining date and a signing block. Once accepted, the same document can read as an appointment letter for the code's purposes, provided the wording covers full terms. Keeping the two separate is the cleaner path when a candidate negotiates a clause after accepting. Primary sources: Ministry of Labour and Employment (2025) and indiacode.nic.in, Industrial Relations Code 2020. Final central rules are still being notified. See the offer letter compliance guide for the seven year retention rule.
Producing this format inside Offrd
If the work above adds up to more time than your week can spare, Offrd does it for you. The platform fills the seven blocks from your saved company profile. CTC goes in once, the breakup populates. Annexure II and Annexure III attach automatically. A clean PDF comes out the other end.
Setup runs under two minutes. Company name, registered address, signatory and logo go in once. Each new offer then asks for role, candidate, CTC and joining date. PIN code lookup fills city and state. EPF, ESI and Professional Tax pull from the work state. New accounts get 50 free credits. Per document pricing is ₹99. See Offrd pricing plans, or open the Offrd offer letter generator for the live editor.