Understanding Salary vs. Honorarium: Can You Get PF and ESI with an Honorarium?

Difference Between Salary and Honorarium

What is the difference between salary and honorarium? Is it not possible to have PF and ESI on honorarium like on salary?

Regards,
Rajan

Salary vs. Honorarium

A salary in industrial, administrative, and service parlance is the remuneration paid to an employee after negotiation for fulfilling the terms of employment. It may be, though not necessarily, composed of various components like Basic pay, D.A., or HRA, etc. On the other hand, an honorarium is an amount voluntarily paid in a lump sum to a person not engaged as an employee for utilizing their expert services. Whether P.F. and ESI are payable on honorarium depends on the facts of each case.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Understanding Honorariums vs. Salaries

Honorariums mean that performance really cannot be recompensed. However, wages are intended for payment for specific work that has been done.

Salary, on the other hand, is a reward or recompense for services performed.

Regards,

Difference Between Salary and Honorarium

Salary is a fixed wage for an employee for their services rendered in an organization. There are specific terms and conditions for the payment of salary and allowances thereof. It is subject to legal scrutiny.

On the other hand, an honorarium is a quantum of money conferred for the sake of honor only. Actually, it is an amount of money paid to somebody, especially a professional or famous person, for providing a service such as addressing a conference, etc. This is a voluntary process.

Regards,
Suri Babu Komakula