Is It Mandatory to Include Salary Breakdown in Offer Letters? Seeking Advice and Examples

Hello, everyone,

I need to know if one must disclose the breakdown of the salary in the offer letter... Is it mandatory? Can anybody please share the format of an offer letter with me?

Looking forward to your timely help.

There is no specific rule that I am aware of, but candidates always seek a salary breakdown so that they can assess each component individually.

Hi Sunita,

There is no strict mandate that only these aspects have to be there, but these are some of the key aspects:

- Basic - 40% of CTC
- HRA - 50% of basic
- Special Allowance
- Medical Allowance - (max $1250)
- Transport Allowance - (max $800)
- PF - 12% each
- ESI - 4.75% employer, and 1.75% employee (applicable only if employee salary is less than $15,000)
- Gratuity - 4.8%
- Incentive (not mandatory)

Please let me know if you need any further information.

Thank you.

Hi Sunita,

Generally, organizations issue two letters: one as an offer before joining, which only states the CTC, and the second appointment letter is given after the candidate has joined. The second letter provides the full break-up of the individual's CTC. This breakdown will help in calculating the take-home salary. The gratuity component may or may not be included in this calculation.

Thanks,
Tabs

Can anybody please share a sample copy of one such Offer Letter.

Regards,
Sunita

Hi Sunita,

Please find attached the format of an offer letter.

Regards,
Atanu

Of course, it's very important to let candidates know about their allowances and what else is being offered. I agree with Tabaussum that as a candidate, being offered an offer letter before joining and another at the time of joining is crucial. Therefore, it is very important for a candidate to know about their salary breakdown, including all the allowances and perks.