banner_ad

What are differences between permanent vs contract employee in indian software companies

588 views 1 replies

I am not contributing PF and Gratuity for my employment salary. How I am considering to that company as permanent or consultant (contract) employee? 

Replies (1)

Please note the following points:-

1. PF is applicable upto 25k per month salary, if you are drawing more than that you are not eligible for epf contribution.

2. Gratuity is applicable if an employee completes his five year of continuous service in a company then he is entitled to gratuity and only when he resigns from the company after completion of five years of continuous service.

3. In case of a contract/consultant employee, tds @ 10% iis deducted under section 194J from his monthly payout and in case of a permanent employee, he is taxed under section 192 of the Income tax act. 

4.In case of permanent employee some notice period is given, but in case of contract employee, his services are terminated after completion of contract period.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details