What are On-Roll and Off-Roll Payroll Job?

Employees’ payrolls begin the moment they join a company as full-time workers. A payroll model under which employees are paid is either on-roll or off-roll.

Regular payroll is a method of paying employees regularly and receiving a fixed amount for their services. Benefits, including EPF, Medicare, allowances, performance bonuses, etc., are available to an employee under on roll payroll. Employees come under their employer’s policies as they serve the company directly. 

Off-roll payroll refers to an individual not employed full-time in an organization but working on a contract basis or as an independent consultant. The employee is not under the company’s regular payroll in this payroll model, so the salary can either be credited directly or through third parties. An employee cannot receive retirement benefits such as EPF, insurance, or allowances in an off-roll payroll situation. However, they were paid for their work.

On-roll job meaning

Having on role job means that the employee is working for the organization and is on the payroll. The company provides bonuses and allowances with On Roll jobs, such as dearness allowances. Employees’ salaries are determined according to the company’s regulations. Employees are hired directly by the employer in this position.

Career growth and salary increases are expected in this type of work. Employers are responsible for filing taxes and contributions towards savings, such as contributions to a provident fund and ESI on behalf of the employees. These jobs offer security and career advancement because of their steady and direct pay.

Off-role job meaning 

Off-rolling job is when you are employed by a contractor and work for an outside company. The employee is not on the company’s payroll in an off-role position since the contracting company credits their salary directly or indirectly.

The salary is usually paid in cash or a check for Off Role jobs in some companies. Unless the consulting company provides it, they do not receive benefits such as DA or bonuses.

Difference between on-roll and off-roll job  

Employees are part of your company.The employee is a consultant, freelancer, or employee of a consultancy or company.
We will credit your account directly with your salary.Cash or check will be given as salaries, or your consultants will pay, who act as a mediator between you and your company.
EPF benefits are available to the employee.Employee is ineligible for EPF.
Employees and their families are eligible for health insurance provided by the company.Health insurance is not available to the employee.
Employees holding salary accounts at their bank will be covered by accident insurance.Accidental insurance and salary account are not available to the employee.
As specified in the offer letter, the employee is entitled to take a certain number of leaves without any deductions in salary.Employees are not eligible to take leaves of absence.
It is a highly secure job.There is no job security.
A notice period should be served before an employee leaves. In addition, the company will specify a period before any layoffs or firings, which will be as stated in the attachment attached to the offer letter.No concept of the notice period. Employees can resign at any time without prior notice. Employers can also dismiss employees without prior notice.

Final thoughts 

The company directly employs employees who are on a roll. They are covered by the company’s employee policy and are legally employed by the company. An off-roll employee works for the company through a workforce provider agency and is not directly employed by the company.

Since industrialization has taken place, many companies have hired employees through third parties. Candidates on third-party payroll work for company A and receive their salaries from company B. In contrast, employees on their internal payroll can work for organization A and receive salaries from the same company. Today, all people need jobs in well-reputed companies, so on-role and off-role jobs don’t matter a lot; people want to earn money and learn new things.

You can keep a constant check on the payrolls with the help of payroll management services from Beehive. It becomes easier to settle on a pay scale when you can track employees’ job and how it has benefited the organization. Contact  +91 8691055013 or +91 86910 55001 to reach Beehive HRMS solutions for effective payroll services.


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