On payroll means that an individual is being paid directly by the company they are working for. Off payroll, on the other hand, refers to a situation where an individual is being paid by a third-party company, such as XYZ company, while actually working for another company, like ABC company. In this way, we can say that the person is on the off payroll of ABC company.
For off-payroll personnel deputed by X Company at Y Company, X Company is responsible for the salary and benefits.
Example Scenario
Suppose Nerolac Paints has deputed its technical person to oversee the paint shop operation at Maruti Udhyog. In this case, Nerolac Paints is responsible for all the benefits.
Considerations for Joining On Payroll vs. Off Payroll
If openings are suitable, it is good to join on payroll, especially if it is a first posting, since the chances to learn are more in the parent company. However, if an off payroll opening is convenient—near the place of residence and with favorable terms of employment—this may also be useful.
Off Payroll means temporary staff in a company whose salaries are paid through consultancies, whereas On Payroll refers to permanent staffing.
Regards,
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute