On Roll Job in India: People frequently use the terms “On Roll Job” and “Off Roll Job” to describe various employment arrangements in the context of employment in India. Although the law does not define these phrases, the Indian employment sector widely uses them. They also go by the names of on-roll payroll jobs and off-role payroll jobs. This article discusses the meaning and difference between them.
It’s a fact, that all the jobs in the world work on a ‘quid pro quo’ basis. That means all the services are rendered in exchange for remuneration. The service provider’s payment follows different processes and paths to reach their bank account. The On Roll and Off Roll Payroll are the two major payroll models. These models are distinct from each other. Full-time employees follow the On Roll Job, while individual consultants or contractual employees follow the Off Roll Job.
What Do On-Roll Jobs Mean?
A full-time employee of a company has to be on the payroll of their company to get all the additional employee benefits. On the other hand, individual service providers just get their service charges. Their records are maintained by the company separately. That’s where the need for two different payroll models comes into play.
Paragraphs below, discuss each model in detail.
On Roll Payroll
When a company hires a full-time employee, they enter all the employee details in the company’s payroll. After that, the employee starts receiving a salary plus employee benefits on a monthly basis. Apart from the basic pay, an additional set of allowances like dearness allowance and bonuses form a part of the employee’s salary. The basic pay is subject to the company’s terms and regulations as you work under that organization directly. According to the Company’s Act 2013, the allowances are given over and above the salary. That’s exactly what an on-roll job means.
Off Roll Payroll
Coming to how the payment cycle for individual consultants or contractual employees works. Full-time employees follow the On Roll Job, while individual consultants or contractual employees follow the Off Roll Job. As they do not fall under the company’s payroll, they are not eligible to receive any bonuses or allowances. This kind of work gives them flexibility but has its fair share of challenges.
Thus, we can say that On-roll and Off-roll payroll are simply two branches of the same tree. They are just two different payroll types used to compensate employees for their diligent services. Now every person who works in a company is not necessarily an employee of that company. They can be a freelancer, employees of a third party, or agencies. All of them cannot be compensated in the same way, right? Both of them receive payments that are very distinct from each other.
On Roll Job Vs Off Roll Job
| S.No | On Roll Job | Off Roll Job |
| 1. | The service provider under an on-roll job is a company’s full-time employee. | The service provider under an off-roll job is a consultant, freelancer, or employee of a third party. |
| 2. | The salary is credited directly to the employee’s salary account. | The payment for the services extended is made in cash or via cheque by the company that has availed it or the consultancy that the service provider is directly related to. |
| 3. | Employee Provident Fund is applicable under on-roll payroll as full-time employees are eligible to receive it. | Employee Provident Fund is not applicable under off-roll payroll as individual service providers are not eligible to receive it. |
| 4. | Health insurance is given to full-time employees recorded in the on-roll payroll of the company. | Health insurance is not given to contractual employees under off-roll payroll as they are not a part of the company directly. |
| 5. | Employees holding a salary account are qualified to receive accidental insurance in case of any injuries due to accidents. | As individual service providers do not own a salary account, they are not qualified to receive accidental insurance in case of any injuries due to accidents. |
| 6. | Employees under on-roll payroll are paid in full even when on leave. The leaves are limited and are mentioned in their offer letter. | Employees under off-roll payroll are not paid for the days they are not working. |
| 7. | The job security for those covered under on-roll payroll is high. | There is hardly any job security for those who work independently. |
| 8. | There is a concept of a notice period. All employees must fulfill it before they can finally leave the organization. | There’s no such concept in an off-roll job. |
What Jobs Will Be in Demand in 2025 in India?
The near future and the decades to come will require skilled jobs that will be highly paid. On-roll jobs and off-role jobs will be available in the market due to different working conditions and job structures. One can upskill and choose the type of work according to the circumstances and availability. Given below are some of the in-demand jobs that will be in India in 2025.
- Artificial Intelligence (AI)
- Project Manager
- Engineer
- Data Scientist Engineer
- Machine Learning
- Full Stack Blockchain Developer
- Internet of Things (IoT)
- Software Developer
- Product Manager
- Management
- Consultant
- Marketing Manager
- Business Analyst
- Engineering Manager
- IT Systems Manager
- Software Architect
- Cloud Architect
- DevOps engineers
- Investment Banker
- Chartered Accountant, and
- Medical Professionals (Doctors and Surgeons)
Why Do Companies Hire on Off Roll Job or Third-Party Payroll?
Employing third-party payroll allows businesses to focus more quickly on the expansion of their firm because it saves time on tasks like paying salaries, calculating taxes, handling payroll procedures, producing reports, and managing end-to-end recruitment processes.
FAQs on an On Roll Job and an Off Roll Job
Some of the frequently asked questions on On-roll Jobs and Off-roll Jobs are given below:
What is the difference between an on-roll and an off-roll job?
Employees under an on-roll payroll work full-time with the company and hence come under their employee policy. Whereas, off-role jobs involve individuals working for a specific company without direct employment by that company. Instead, third-party agencies frequently employ them, or they operate as independent contractors. Off-role employees may not enjoy the same benefits and job security as full-time or on-roll employees. Typically, organizations use these arrangements for temporary or project-based positions.
Why do companies hire on third-party payroll?
Employing a third-party payroll service relieves the company of the responsibilities of managing employee compensation, ensuring compliance, paying payroll taxes, maintaining payroll software, and generating reports.
What is the payroll company?
A payroll company performs all necessary tasks to credit the employee’s salary account on time.
Here’s what falls under a payroll company’s scope of work:
- Curating a list of employees to be paid.
- Calculating their working hours.
- Computing the employee’s pay.
- Crediting the salary on time.
- Monitoring the payroll expense.
What does an off-roll job mean?
Off-roll jobs or off-rollOff-role jobs also referred to as off-roll jobs, involve individuals working for a specific company without direct employment by that company. Instead, third-party agencies frequently employ them. They receive their compensation directly from the company they work for or the organization that initially hired them.
I hope this article answered all the questions about the On-roll and Off-roll jobs. So, the next time you encounter a working professional, you will understand the category they belong to and how to receive the payment.
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