This page explains the structural distinction between employee status and self‑employment. The distinction affects how work is classified, how income is treated, and how taxes and contributions are applied.
Under employee status, work is performed within an employment relationship. Income is treated as salary and is typically subject to payroll‑based mechanisms. Employers play a central role in administering deductions and contributions.
Self‑employment refers to work performed independently rather than under an employment relationship. Income derived from self‑employment is not treated as salary in the same institutional sense. As a result, taxation and contribution mechanisms are usually administered directly by the individual rather than through payroll.
Differences in status affect:
The distinction is foundational in employment systems.
This page does not address: