What is Third Party Payroll System? What are the Pros and Cons of working in Third Party Payroll

Hi Friends, I have many friends who are currently working on third party payroll system and they shared their experiences with me. Most of my friends who are currently working for third party payroll companies shared the consequences they are dealing with now.


Third Party Payroll System Issue
Why not to work in Third Party Payroll


But, firstly let me take you to the pros of working in third party payroll companies and what is third party payroll system:

What is Third Party Payroll System?

Third party payroll system is basically working for a company and getting the salary from some other company. For example, working for an MNC like TCS while getting paid by a consultancy for the same (P.S. it is different from freelancers work). Also, you are not considered an employee of TCS for this. Most of the time, you will be working at client site. Now let’s see some pros of working in Third party payroll system and the companies up for it.

Pros of Working in Third Party Payroll System

  1. Benefits of Client Company

Since you will be working at client site, so there must be some occasions like festivals when the client company is providing some facilities and goods to its employees. That time, you are also benefited with those goods and services.

2. Learning Opportunities and Challenges

Working on-site, provides ample learning opportunities and challenges. It gives happy experiences to meet new people and work on different kind of tools.

3. Recognition for Good Work

If you do something very good while being on third party payroll system, this can give you a two sided rewards and recognition for it. One from the client side and the other one from the company that is paying you.




Cons of Working in Third Party Payroll System

Phew…I could only found the two pros of working on third party payroll system reviews from my friends but the list of cons is too big..

  1.  Salary is low compared to Market Standards
  2. Not Getting Salary on Time
  3. Rewards are delayed
  4. Small mistakes are considered Big
  5. Confusion about Point of Contact
  6. HR is the only God
  7. Growth is very slow
  8. Difficulty in Job Switch
  9. Get used to words like Vendors
  10. Job Security
  11. False Promises
  12. Working on Internal Tools

Let’s discuss all these cons in my next post.

26 thoughts on “What is Third Party Payroll System? What are the Pros and Cons of working in Third Party Payroll”

  1. It’ѕ in point of fact a nice and usеful piece
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  2. Hello…
    Can u plz make it clear to me, if someone working, on third party payroll and planning to switch the job. So which company name should he mention in employer”s detail in his resume while updating it for further?????

    1. Hi Aanchal, firstly thank you for stopping by. To your question, if someone is working on third party payroll and planning to switch the job he/she will have to mention both the companies in a smarter way. Something like… I work on client site with X company on the payroll of Y company. Later, focus more on your job role. Sometimes word matters and certainly saying working on client site is more attractive than saying working on third party payroll system.
      Hope it helps 🙂

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  4. Hi recently I’m going for this job. I’m confused about this job whether this is low profile job or not. Pls can u tell me about this job. So, that it becomes easier for me to move further.

    1. Hi Saraswat… firstly congratulations on getting your job. Third party payroll system is not related to job levels in any case. For example, some companies outsource technical work to other companies because they see it economically cheaper. It all depends on the kind of work you’ll get. Some companies also roll out job offers to outstanding contractors/third party candidates if they perform well. So, go ahead and take on the opportunity. You never know what happens next until you try. If this is technical kind of work, you should go for it. You’ll enjoy multiple benefits from both the companies 🙂

  5. Hi, currently I am working in a fortune 500 company under third party payroll from last 3 yrs. I am getting a chance to switch to a renowned company with 10% increment of in hand salary. It’s office is much closer to where I currently stay but the only problem is that it’s a third party payroll job. Will it be a good idea to change. Please help I am really confused..

    1. Hi Bikas, firstly congratulations on getting a new job. Job switch decision requires analysis of multiple things including your preference list like near location, product based vs project based etc. There is still a good scope of negotiation on the salary they have offered. As per Indian industry, you can ask for a normal 30% hike. This is my very first suggestion try your negotiation skills. There is always more money at HR desk you just need to try little bit :p

      Also, if the HR doesn’t agree, consider your preference. Give more interviews, there are higher chances of getting a job during notice period since there are many companies that do immediate hiring. At the end, take decision by considering growth factor, learning and your preference. Hope it helps 🙂

    1. Hi Karan, this depends on the type of work or nature of your profile that you will be doing in your third party company. It also depends on the third party company. If the third party payroll company is bad in terms of valuing the employee, it’s gonna be bad for your career in future. If the company is good, the work you will do there is lower level, then again you’ll be stuck there.

  6. Please advice me about the payroll system of ques corp, probably i am selected at pernod richard as 3rd party party payroll of quess corp, can it is beneficial for me tp join thre or not if they give 30% hike from my present ctc? Please advice me, currently i am working on direct payroll.

    1. Quess Corp is a very renowned company with employee friendly environment. One thing I noticed while working in third party companies is low pay. Other factors include the nature of your job. If your job is technical, then go ahead and join. If non technical or semi-technical do more research. Contact people with same job domain or title on LinkedIn or refer glassdoor. Then only take decision. I hope it helps 🙂

  7. Hi currently i m working in DIAGEO but it’s third party pay role… salary is too low..what should i do.please advice me what to do

    1. Hi Rajesh, there are two conditions:
      1. If you are a fresher and don’t have much experience, then keep working in the said company but try to enhance your skill set. Keep learning and once you have around 1 year of experience at least, switch your job 🙂
      2. If already experienced, look for job switch
      Hope it helps :p

      Post a comment once you switch your job 🙂

  8. Sir i have 3.5 years experience in autocad design field im not happy with current company because here i have to handle all things alone no team with me . So i decided to switch the job & i got opportunity in Johnson controls company. Im getting 40% hike & its one of the top companies in the world .But problem is that it not on role job its 3rd party payrole job should i go for it or not ? Please help me i am so confused

    1. Hi Rajesh, it’s anyway a good time to switch your job. Johnson Controls is a good company. Take feedback from the employees of the said company using LinkedIn for a better viewpoint about the nature of job and responsibilities. But I’ll advise keep looking for job side by side accepting this third party payroll hike. Hope it helps.


  9. Hello, i am currently working for TRIGO Group with a Payroll of Integrated personnel Services Pvt Ltd. I want to know that is working on a Third party job considered good in the resume? P.S. i am a Fresher and recently got the job.

    1. Hi Gaurav, at the end the thing that matters is the skill set you’ll doing a third party job. Even if you are not working on such good skill set tools that have good demand in job market, work on your learning procedure. Learn new languages and tools and switch job into a direct payroll company 🙂

    1. Hi Sameer, most of the ITs are currently looking for Third party payroll because of following things:

      – The project requirement is of small time and bearing a permanent team for that job is much more expensive
      – Currently IT companies want less overhead in terms of resource management and hiring procedure. Hence, they employ third party people to do this staffing thing for them. However, seeing on candidates perspective this becomes very bad for employees. They get pennies while their actual salary is too high.

  10. I got a new Job in Bhubaneswar, Odisha location for Tech Mahindra but its 3rd party payroll. Current company is stable but salary is less as compared what offer by 3rd Party, almost 70% hike they provide.
    But thing s that I confused should I go for or not, only job security will be on mind that if the project will be only 6-9 months then after it will difficult because in this location less company are there with less opportunities. I have 6.5 years experience, Please suggest.

    1. There are two things you should keep in mind before taking any decision on this:

      1. Do you skill set have that demand in job market?
      2. Can you quickly switch jobs?

      If not, considering this 6-9 month contract is very risky for job switch. Just keep this offer in hand and increase your frequency of job search rather than opting this third party payroll job.
      Best of Lcuk 🙂

  11. Hi, I am in a govt. organization on contract with core Content and CMS work. It has been 2.5 yrs there. Now i just got an offer from a third party Experis IT for a renowned MNC as client. I am very excited for the the MNC but also very confused about the security and salary. Please suggest.

    1. Hi Ritika, Since you were already working in a Government job role. Considering that, I’ll suggest you to look for the following things:
      1. Job security condition in the current job role. Will that government contract ever going to be converted into a permanent job role.

      – If 1st is a very small job role and no security, you can opt for the third party payroll job system.

  12. Hii The Mystery Solver. I recently got a call for third roll paysystem and i am a complete fresher. They are paying me too low salary. Please give me a suggestion what should i do . Should i wait for other job offers or should i accept their offer and should work with them ? They are asking for immediate joining from next week and tomorrow is the interview.!

    1. Hi Vinayak, if you are a fresher just go for this offer. Once get some industry exposure. However, keep looking for further job opportunities into a permanent job role. Best of Luck!

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