| Employer |
Employee is directly employed by the company |
Employee is employed by a third-party staffing/payroll company or contractor |
| Salary |
Paid directly by the company |
Paid by the third-party payroll provider |
| Employment Type |
Permanent or regular employee |
Contractual, temporary, or outsourced employee |
| Statutory Benefits |
Eligible for PF, ESI (where applicable), Gratuity, Bonus, Leave, etc. |
Statutory benefits depend on the employment arrangement. If employed by a staffing company, that employer is generally responsible for applicable PF, ESI, and other legal compliances. |
| Company Benefits |
Eligible for company insurance, bonuses, incentives, ESOPs, etc. |
Usually limited or as per contract |
| Job Security |
Higher |
Generally lower, depending on the contract |
| Performance Management |
Managed directly by the company |
Day-to-day work may be managed by the client, while employment remains with the staffing/payroll company |
