Employee vs Independent Contractor Calculator
Compare the true cost of hiring an employee vs a 1099 contractor. Factor in taxes, benefits, and flexibility.
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Employee ₹50K in-hand: company cost ₹70-80K। Freelancer equivalent: ₹800-1,200/hour। Freelancer appears expensive per hour but: no PF, no ESI, no leave, no office space। For project work: freelancer 20-30% cheaper overall।
Legal
Disguised employment (employee treated as contractor): PF/ESI liability risk। EPFO actively auditing। Proper contractor agreement essential।
The gig economy has blurred the line between employees and contractors. California AB5 (and similar laws in other states) created a strict "ABC test" that makes it harder to classify workers as contractors. If the work is integral to your business, done on your premises, and the worker does not have an independent business, they are likely an employee under these newer laws.
