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Free form template · Word

Candidate Salary Approval Form

A candidate salary approval form asks management to approve the exact compensation for a selected candidate. It shows the proposed CTC breakup including statutory contributions, where it sits in the salary band, how it compares to internal peers and any exceptions, so approvers can sign off with full information.

  • Editable Word (.docx)
  • Made for India
  • 15 fill-in fields highlighted
  • Free, no sign-up

Preview of the form

[Highlighted] = fill in
[Company Logo][Company Name]

CANDIDATE SALARY APPROVAL FORM

Approval Ref.:
[Reference Number]
Candidate Name:
[Candidate Name]
Position / Grade:
[Designation] / [Grade]
Date:
[Date]

1. Proposed CTC Breakup

ComponentMonthly (₹)Annual (₹)
Basic Salary[Basic Salary][Amount]
HRA[HRA][Amount]
Special / Other Allowances[Amount][Amount]
Gross Salary[Amount][Amount]
Employer PF contribution[Amount][Amount]
Employer ESI (if applicable)[Amount][Amount]
Gratuity provision[Amount][Amount]
Annual variable / bonus-[Amount]
Total CTC[Amount][CTC]

2. Band Position

Band Minimum (₹)Mid-point (₹)Band Maximum (₹)Proposed (₹)Compa-ratio
[Amount][Amount][Amount][CTC][Ratio]

3. Internal Parity

Peer (Employee ID)DesignationExperienceCurrent CTC (₹)
[Employee ID][Designation][Years][Amount]
[Employee ID][Designation][Years][Amount]
[Employee ID][Designation][Years][Amount]

4. Exceptions

  • Above band maximum
  • Joining bonus: ₹[Amount]
  • Notice buy-out: ₹[Amount]
  • Relocation: ₹[Amount]
  • No exceptions

Justification for exceptions:
[Justification]

5. Approvals

ApproverNameDecisionSignature & Date
HR Head[HR Name]
Department Head[Name]
Finance / CEO (if above band)[Name]
Prepared by
[HR Name]
Date: [Date]

What this template includes

  • Proposed monthly and annual CTC breakup
  • Employer PF, ESI (if applicable) and gratuity components
  • Band minimum, mid-point and maximum with compa-ratio
  • Internal peer comparison
  • Exceptions and justification
  • Approval matrix by CTC level

When to use it

  • Before the offer letter is drafted for any new hire
  • When the proposed CTC is above the band mid-point or maximum
  • Approving joining bonus, retention bonus or special allowances
  • Audit evidence for compensation decisions

How to customise this template

  1. 1Replace the breakup with your standard salary structure
  2. 2Insert your grade bands and compa-ratio formula
  3. 3Add a row for variable pay plan reference
  4. 4Set approval levels by CTC threshold

HR tips

  • Check that Basic Salary meets minimum wage and your structure rules
  • Remember EPF is 12% of basic (plus DA) each for employer and employee, subject to wage ceiling rules; reflect the employer share correctly
  • ESI applies only for employees earning up to ₹21,000 a month
  • Flag any offer above band maximum for the HR Head and CEO

This template is a starting point. Review salary structure, statutory contributions and wage definitions against applicable labour laws, including the Labour Codes and state rules, and with a legal or payroll adviser where needed.

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Frequently asked questions

What is a compa-ratio?+

It is the proposed salary divided by the mid-point of the salary band. 1.0 means the offer is at mid-point; above 1.0 means it is above the mid-point.

Who approves a candidate's salary?+

Usually the HR Head and the department head, with Finance or the CEO for offers above band or above a set CTC.

Should gratuity be shown in the CTC?+

Many Indian companies include the gratuity provision in CTC. Be consistent and explain it clearly in the offer letter.