Quick answer: an offer letter confirms that you want to hire someone and on what basic terms: role, reporting manager, location, joining date, annual CTC, probation, notice period and the conditions attached to the offer. The candidate signs and returns it. The detailed appointment letter follows on joining.
The offer letter is the first document a new employee keeps. If the joining bonus or the variable pay is unclear here, you will be discussing it again in month three.
Offer letter vs appointment letter
| Offer letter | Appointment letter | |
|---|---|---|
| When | After selection, before joining | On or after the joining day |
| Purpose | Propose terms, get acceptance | Record full terms of employment |
| Length | One or two pages plus salary annexure | Several pages with policies |
| Signed by candidate | Yes, to accept | Yes, to acknowledge |
HR, GPS attendance, shifts, leave, payroll, tax declarations, onboarding, engagement, projects and timesheets — one employee record behind all of it.
Start free See the demoWhat to include
- Company letterhead, date and a reference number
- Candidate's name and address
- Designation, department and reporting manager
- Work location and whether the role is on-site, hybrid or remote
- Joining date and time, with the address to report to
- Annual CTC, with the break-up as an annexure
- Variable pay or incentives, and how they are decided
- Probation period and what changes after confirmation
- Notice period during and after probation
- Conditions: documents, reference and background checks, medical if any
- Validity: the date by which the offer must be accepted
- Documents to bring on day one
- Signature of HR or the hiring manager, and a space for the candidate's acceptance
A ready sample
[Company letterhead]
Ref: HR/OFR/2026/0098 · 15 September 2026
Dear Rahul Verma,
We are pleased to offer you the position of Account Manager in our Customer Success team, reporting to Priya Sharma, based at our Pune office.
Joining date: 1 October 2026, 9:30 AM
Annual CTC: ₹7,20,000, as detailed in Annexure A
Probation: 6 months. Notice period during probation is 15 days and 60 days after confirmation.
This offer depends on satisfactory verification of your documents and references. Please bring the documents listed in Annexure B on your first day.
Kindly sign and return a copy of this letter by 20 September 2026 to confirm your acceptance.
We look forward to working with you.
For [Company Name]
[Name], HR Manager
Accepted: ____________________ Date: __________
Salary annexure: keep it simple
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic | 30,000 | 3,60,000 |
| HRA | 12,000 | 1,44,000 |
| Special allowance | 14,200 | 1,70,400 |
| Employer PF | 1,800 | 21,600 |
| Performance incentive (variable) | up to 2,000 | up to 24,000 |
| CTC | 7,20,000 |
Add one line under the table: "Take-home pay depends on your tax regime and statutory deductions." It saves a lot of first-payslip questions.
Mistakes to avoid
- Only "CTC" with no break-up. The candidate compares it with in-hand pay from their last job.
- Different notice periods in the offer and the appointment letter.
- Joining date without time and address.
- Promising confirmation "after 3 months" when policy says 6.
- No acceptance deadline.
- Sending an editable Word file. Send a PDF.
Sending offers faster
When offers are made from copies of old letters, names and CTCs leak from one candidate to the next. In MizUp BMS, HR letters are generated from templates using the employee or candidate record, numbered automatically and stored with the profile, so the offer, appointment letter and first payroll use the same figures.
Frequently asked questions
Is an offer letter the same as an appointment letter?
No. An offer letter is the proposal made before joining, which the candidate accepts. The appointment letter is issued on or after joining and carries the full terms of employment.
Should the salary break-up be in the offer letter?
Give the annual CTC in the letter and attach a one-page break-up as an annexure. It avoids surprises about PF, variable pay and take-home when the first payslip arrives.
Can an offer letter be withdrawn?
Yes, usually before the candidate joins, as long as the letter allows it, for example if background checks fail. Put the conditions for withdrawal in the letter.
How long should a candidate get to accept?
Three to seven days is common. State the last date clearly so offers do not stay open for weeks.
