Is My Full-Time Job Valid Experience if Paid as a Professional Fee Instead of Salary?

The company is paying a professional fee instead of providing a salary slip. I am working full-time, and they have also given me an offer letter.

Will the recruiter/HR consider this work experience while recruiting, or will there be any problem?

Hi,

To evade statutory compliances, the employer is showing payments as professional fees. At the time of separation, you can request a proper experience certificate with roles and responsibilities, which should be sufficient. This won't be an issue. However, you need to explain that you worked on a full-time basis and not on an assignment basis.

Most employers and HR personnel know this is a standard practice, so it is unlikely to be a problem. However, it is impossible to predict how individual companies and HR managers will react to it, so it's a question of your luck on the matter. If you are not comfortable, you should probably look for a different job.

Experience Certificate vs. Engagement Certificate

Your employer may not provide an experience certificate due to potential issues. Instead, you can request an engagement certificate stating that Mr. X was engaged as a consultant from [start date] to [end date].

Service Tax Liability

Do you have to pay service tax? All your payments fall under the liability, provided that each payment exceeds 100k.

Prabhat,

Service tax is not applicable; it will be GST if the payment exceeds ₹20 Lakhs a year. I agree that the company is unlikely to provide a certificate as they are doing this to avoid liability.

Recruiters rarely give due weight to a letter of experience on an LH when it is not supported by bank statements to substantiate remuneration and Form 16/16A, especially when remuneration or fixation of emoluments is negotiated with the employer. However, when many rounds of interviews take place, the evaluation of a candidate's suitability is mostly decided. You will likely succeed in your endeavors, but at the same time, credentials as per recruiters' policy are essential.