What to Check in an Offer Letter Before You Accept (India)

Last updated: 8 October 2026 · By the Asuraa Team

Quick answer: Before accepting an offer letter in India, check the employer's legal name, role and location; the CTC breakup and fixed versus variable pay; joining conditions; probation and notice periods; any bond or service agreement; and signs of a fake offer. Under EPFO rules, employer PF is 12% of basic plus DA, so it sits inside CTC but not in your take-home. Get any unclear point clarified by email before you sign.

Key takeaways

• Check the employer's legal name, designation, location and whether the role is permanent or fixed-term before anything else.
• Convert CTC to monthly in-hand pay, because employer PF of 12% of basic plus DA and the gratuity provision are inside CTC but not in your monthly salary.
• Under the labour codes effective 21 November 2025, the government says fixed-term employees qualify for gratuity after one year instead of five.
• Search the letter and annexures for bond, service agreement and recovery clauses, and note their length, amount and what they are linked to.
• A genuine offer never asks for a registration, training or security deposit fee, and verbal promises should be confirmed by email before you accept.

Before you accept an offer letter in India, check eight things: the CTC breakup, the fixed versus variable split, the joining date and conditions, probation, notice period, any bond or service agreement, the employer's identity, and whether the letter is genuine. Most problems freshers face later, such as low take-home pay, long notice periods or bond recovery demands, were visible in the offer letter on the day they signed it.

This is general information, not legal advice.

What should you check first in an offer letter?

Check that the company, role, location and CTC are exactly what you were told during the interview process. Simple mismatches are more common than people expect, especially in bulk campus hiring.

Confirm:

• the legal name of the employer (the entity paying you, not just the brand)
• your designation, grade or band
• work location and whether relocation can be required
• annual CTC and currency
• whether the offer is for a permanent role, fixed-term contract or internship

Fixed-term roles have different rules. For example, under the labour codes that took effect on 21 November 2025, the government says fixed-term employees qualify for gratuity after one year of continuous service, instead of five (PIB).

How do you check the CTC breakup?

Ask for the full annual breakup and convert it to monthly in-hand pay before you accept. CTC includes money you never receive monthly, such as the employer's PF contribution and gratuity provision.

Our guide to CTC vs in-hand salary shows the full calculation with examples. If the fixed part feels low for the role, read our guide on how to negotiate salary as a fresher before you sign.

What joining conditions should you look for?

Look for every condition the offer depends on, because failing any one can let the employer withdraw it. Common conditions in Indian offer letters include:

• completing your degree with a minimum percentage or CGPA, with no backlogs
• clearing background verification of education, employment and identity
• submitting original documents or copies by a deadline
• passing a pre-joining test or training assessment
• joining on or before a specific date

Note the acceptance deadline as well. If the joining date is vague, such as "to be communicated", ask for an expected month in writing. If the date later slips, ask HR to confirm in writing that the offer still stands on the same terms.

What should you know about probation and notice period?

Check how long probation lasts and how much notice either side must give, both during and after probation. These are among the clauses freshers regret not reading.

Questions to answer from the letter or HR policy:

1. How long is probation, and can it be extended?
2. What notice period applies during probation?
3. What notice period applies after confirmation?
4. Can notice be bought out by paying salary in lieu, and is that at the company's discretion?
5. Is leave allowed to be adjusted against notice?

Longer notice periods can slow down your next job switch, because many recruiters prefer candidates who can join quickly. Our explainer on notice period rules goes deeper.

How do you spot a bond or service agreement clause?

Search the offer and any annexures for words such as "service agreement", "bond", "minimum service period", "training cost recovery" and "liquidated damages". These clauses ask you to stay for a fixed period or pay an amount if you leave early.

If you find one, check:

• the length of the commitment
• the amount and whether it reduces over time
• what it is linked to, such as specific training or a relocation cost
• whether original certificates are to be retained (a practice you should question)

Whether such a bond can actually be enforced depends on its wording and on Indian contract law. Our detailed guide on service agreement bonds in Indian IT jobs explains the legal position and how to respond.

What other clauses deserve a careful read?

Read the confidentiality, intellectual property, outside work and termination clauses, because they apply every day you work there.

• Confidentiality and IP: what you create at work usually belongs to the employer; check whether the clause also covers personal projects made outside work hours.
• Outside work and moonlighting: some employers prohibit any other paid work.
• Non-solicitation and non-compete: note any restriction that applies after you leave.
• Termination: grounds for termination and what notice or pay applies.
• Tax regime: you will usually be asked to declare a regime. The new regime is the default, and your employer deducts TDS under it unless you choose otherwise (Income Tax Department).

What do most guides on checking offer letters get wrong?

Most guides focus only on the CTC figure, but the most expensive surprises usually come from the fixed versus variable split and from exit clauses. Two offers with identical CTC can differ by thousands of rupees a month in take-home pay, and a long notice period or a bond can cost you a better opportunity later.

Another common mistake is treating the offer letter as the final word. The detailed terms usually arrive in the appointment letter after joining, and the government's November 2025 labour code release lists appointment letters as mandatory for all workers (PIB). Compare the two documents line by line; our explainer on offer letter vs appointment letter shows how.

How can you tell if an offer letter is fake?

A genuine offer comes after a real interview process, from an official company email domain, and never asks you to pay money. Warning signs include:

• requests for a "registration", "training", "laptop" or "security deposit" fee
• offers made after a chat-only interview on WhatsApp or Telegram
• free email addresses (such as Gmail) for the HR contact
• spelling errors, wrong logos or mismatched company addresses
• pressure to accept within hours

Verify by calling the company's official number from its website, or by checking with your college placement cell. Our guide on how to check if an offer letter is fake gives a full checklist.

What is the safest way to accept an offer?

Accept in writing only after your questions are answered, and keep a record of everything. A practical sequence:

1. Read the full letter and every annexure.
2. Convert CTC to monthly in-hand pay.
3. List unclear clauses and email HR for clarification.
4. Get any verbal promises, such as location or joining month, confirmed by email.
5. Sign the acceptance and keep a copy of the signed letter.
6. Save all emails in one folder until you receive your appointment letter.

FAQ

What are the most important things to check in an offer letter?

Check the employer's legal name, your designation and location, the CTC breakup with fixed and variable pay, the joining date and conditions, probation and notice periods, and any bond or service agreement clause. Also confirm the offer is genuine. Ask HR by email about anything unclear and keep their replies before you sign the acceptance.

How do I know how much in-hand salary I will get from my offer?

Ask for the full annual breakup. Subtract employer-side items such as employer PF, gratuity provision and insurance, and any variable pay, to get gross fixed salary. Then subtract your own PF, professional tax if your state levies it, and income tax. Divide the result by 12 to estimate monthly take-home pay.

Should I sign an offer letter that has a bond?

Read the bond terms carefully first: the duration, the amount, whether it reduces over time, and what training or cost it is tied to. Ask HR to explain the clause in writing. Whether a bond can be enforced depends on its wording and Indian contract law, so seek advice if the amount is large or certificates are to be held.

Can I negotiate after receiving an offer letter?

Often yes, especially for lateral hires and off-campus fresher offers. Campus mass-recruitment packages are usually fixed, but you can still ask about joining date, location or the fixed versus variable split. Keep the request polite, specific and supported by market data, and raise it before you sign the acceptance.

How do I check if an offer letter is genuine?

A genuine offer follows a real interview process, comes from an official company email domain and never asks you to pay a fee. Verify the company and the HR contact using phone numbers from the official website or through your college placement cell. Requests for registration, training or deposit fees are a strong sign of a scam.

Final thoughts

An offer letter is worth ten careful minutes: convert the CTC to take-home pay, read every exit clause and confirm promises in writing. If you are still searching or want a stronger offer to compare against, browse current openings on Asuraa Jobs.