Offer Letter Dilemma: Should We Show Monthly Salary or CTC to Candidates?

Dear Seniors, I would like to know, while giving an "offer letter" to a candidate, what would be preferable to show in the letter - Monthly salary or CTC?

With regards to your query, I would like to inform you that in an offer letter, we generally mention:

- Designation
- Salary structure
- Date and place of joining
- Duration within which the candidate can revert
- Documents which need to be submitted by the candidate

As we follow the same, you can make your own policy for the offer letter in regard to salary and salary structure.

Regards,
Supriya

Hi Supriya, thank you a lot for the reply. However, this candidate hasn't resigned yet. If I show him the salary structure, he might manipulate it and use it to negotiate with other companies where he has interviewed. So, how should I proceed?

Supriya has given you all the details required for the offer letter. One cannot control the candidates if they want to use your offer letter for better prospects. Without you committing to the salary structure, why should he even resign from his existing organization? There are a good number of cases wherein candidates take advantage of the offer letter and bargain for a better package somewhere else. Frankly speaking, there is practically nothing you can do in this. Just go ahead in good faith.

Regards,
Alex

In the offer letter, you can show the CTC. There is no specific rule in this regard; it depends on the company's policy.

Avoiding Misuse of the Offer Letter

One way to avoid the problem of the candidate misusing the offer letter is to not mention the salary in the offer letter itself. Instead, you can mention the salary separately in Annexure A. When it comes to handing over the offer letter, you only provide the offer letter and not the annexure that mentions the salary.

Supriya has given the right points regarding issuing the offer letter or appointment order. Without mentioning the salary structure, the offer letter does not have any meaning, and enclosing an annexure is not the proper way. You should set the last date for reporting duty, and if the individual does not report, the offer letter stands cancelled. The exit door will be on both sides, for both incoming and outgoing. Everyone will have their own choice, and nobody can be forced to work only in one company.

Regards,
Adoni Suguresh
Labour Laws Consultant

I agree with the suggestions given by the esteemed members of this forum. What Supriya suggested is also true. However, as an HR professional, one should prioritize the company's interests. A candidate to whom an offer letter is issued should necessarily join the company. This is to be ensured by HR. Therefore, it is suggested not to disclose salary details in the offer letter. This information can be communicated over the phone, and the candidate can be informed that a detailed appointment letter, indicating the salary structure, will be provided at the time of joining.

A candidate, if smart enough, can even leverage your offer letter at their current company if you mention the salary details.

Thanks,

Regards,
R K Nair

Hi Supriya, if an employee joins during the probation period, is PF and ESI eligibility required, or must we pay?