Criteria | Employees (EOR) | Contractors |
---|---|---|
Compliance | Fully compliant under Indian labor + tax laws | Often gray-zone; contracts can be challenged |
Cost | Employer cost = salary + statutory (~15-20%) | Invoice value only; no benefits or employer tax |
Tax burden on worker | TDS handled by employer; employee pays net tax | Contractor bears full income tax, advance tax filings |
Benefits | Health insurance, PF, gratuity, leave, allowances, tax-saving options | None unless client voluntarily pays extra |
Concurrent employment | Restricted - employees bound by exclusivity | Common - contractors may juggle multiple clients |
Retention | Higher - stability, career path, benefits | Lower - churn risk 20-30%; no long-term stickiness |
Compliance overhead (worker) | Zero - employer files taxes, PF/ESI, payroll | High - contractors must self-file, track taxes, manage risk |
Talent quality attracted | Broader pool - mid/senior talent prefer employee status | Narrower - mostly freelancers/short-term workers |
Takes 12-18 months, costs $50k+, ongoing audits. Wisemonk = instant, lean, compliant.
≤48h kickoff. Payroll + benefits live same cycle.
We can handle 1 → 50+ employees or contractors in parallel.
Yes. HRBP onboarding, 90-day check-ins, appraisals included as add-ons.
Yes. Laptops, insurance, office, internet, attendance reporting.