Contractor Payments FAQs

FAQs on the changes in contractor payments.

Aditya Morarka avatar
Written by Aditya Morarka
Updated over a week ago

Q. 1.

What is the payment structure for contractors? Will the customers be charged per transaction?

A. Effective July 1, 2023, RazorpayX Payroll customers will be charged for each contractor payment made.

For transactions up to INR 25K, customers will be charged INR 5 + GST per payment. For transactions more than INR 25K, customers will be charged INR 10 + GST per payment.

For example, if you are paying Rs 10,000 to a contractor, please ensure that you have a minimum balance of Rs 10,005.90 in your RazorpayX Payroll account. If your balance is Rs 10,000, then the payment will not be processed.


Q. 2.

Will the new pricing model affect existing customers?

A. Yes, the new pricing model for the Contractor Payment feature will apply to all RazorpayX Payroll customers, including existing ones. Starting July 1, 2023, customers will be charged Rs 5 + GST per payment for contractor transactions up to INR 25K and INR 10 + GST for transactions more than INR 25K.


Q. 3.

How can I view and track the charges for contractor payments?

A. You will be able to view and track the charges for contractor payments on your RazorpayX Payroll account. After each payment, the charges for that payment will be blocked from your balance, and you will receive a consolidated invoice for all payments for that month at the end of the month.


Q. 4.

How will the new pricing model affect my payroll costs?

A. The cost of executing payroll for your employees remains exactly the same as before. This change only affects payments made to contractors.

The impact of the new pricing model on your overall costs will depend on the number and frequency of contractor payments made. By charging a flat rate per payment, we aim to provide transparency and ensure that you are billed fairly for the services you utilise.


Q. 5.

Why is this change being introduced?

A. The change in the pricing model for the Contractor Payment feature is necessary to ensure that we can continue providing the highest level of service to all our customers. By implementing a nominal charge per payment, we can maintain and improve the quality of the payroll service while offering competitive pricing.

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