How do I work as a freelance recruiter in India from home?
A freelance recruiter in India sources candidates for companies or consultancies and is paid per closure, meaning when the candidate joins. You can work from home independently with your own clients, or as a partner to a consultancy that pays you a share of its fee. India rules as of 30 October 2026.
At a glance
- Payment is normally on the candidate's joining date, not on the offer.
- Fees are often quoted as a percentage of annual CTC (cost to company, the total yearly cost including fixed pay, variable and employer contributions).
- Two main models: own clients, or a closure share from a consultancy.
- You are usually self-employed; tax and GST questions are yours. Ask a chartered accountant.
What are the ways to work?
| Model | How you earn | Pros | Cons |
|---|---|---|---|
| Independent consultant | Whole fee from client | Highest upside | You must win clients |
| Freelance partner to a consultancy | Share of consultancy's fee per closure | Roles supplied | Share and payment timing set by them |
| Employee of an agency (work from home) | Salary plus incentive | Stable | Not freelance |
How much does a closure pay?
Fees are commonly quoted as a percentage of annual CTC, and 8.33% (one month's pay) is often mentioned. That is a market convention, not a law. Example: for an annual CTC of Rs 12,00,000 (Rs 12 lakh), 8.33% is Rs 99,960 (about Rs 1 lakh). See the full commission guide.
What should I set up first?
- A written agreement with each client or consultancy: fee, joining-date trigger, replacement period, payment days. Adapt the fee agreement template to Indian law with a lawyer.
- A bank account for business receipts and a PAN.
- Advice on whether you need GST registration (the general threshold for services is Rs 20 lakh turnover, Rs 10 lakh in special category states; CBIC FAQ, checked 2026-10-30).
- A system to track candidates and notice periods.
How do I find candidates?
Use professional networks, referrals and Boolean searches (guide). Note that Indian candidates often serve a notice period (commonly 30 to 90 days, set by their contract), so there is a gap between offer and joining; your fee usually depends on the joining.
What are the risks?
- Drop-outs: the candidate accepts, then does not join. Your agreement should say what happens.
- Late payment: agree payment days (for example 30 days from joining) in writing.
- Fake job offers and fees from candidates: never charge candidates; many jurisdictions restrict this.
- Unclear status: do not use the word "employee" for yourself without a contract.
Taxes
Receipts are generally business or professional income, and payers may deduct TDS (tax deducted at source). Section and rate depend on the nature of the payment; confirm on the Income Tax Department site and with a CA. As of 2026-10-30 the TDS chart shows 2% on commission or brokerage and 10% on professional fees (2% for technical services).
How can LiveRec help?
The Live Recruiter portal supports candidate sourcing, client management and agreement storage; see how to join. Plan details are shown at sign-up. LiveRec does not take a share of your fee.
FAQ
Can I do this part-time? Yes, but check your employer's contract on outside work.
Do I get paid if the candidate does not join? Usually not; some agreements pay a reduced amount. Write it down.
Is a licence needed? Rules differ by state and by the kind of work, so check with your state labour department before you start.
Do I pay PF on my earnings? Freelancers are not usually covered as employees; check EPFO guidance.
Sources
- Income Tax Department of India: https://www.incometax.gov.in
- Income-tax Act sections on TDS (commission/brokerage and professional fees): https://www.incometax.gov.in Section 194H commission or brokerage: 2% from 1 October 2024 (5% before); section 194J professional fees: 10% (2% for technical services); for payments on or after 1 April 2026 the Income Tax Department says the old sections 192-194T are consolidated into sections 392 and 393 of the Income-tax Act, 2025, so use the new references on forms (Income Tax Department TDS rates chart: https://www.incometaxindia.gov.in/documents/20117/42998/TDS-Rates_2026-01-20_02-48-40_a44c15_en.pdf/5ced020c-5670-ccab-840c-ab3eb62e8b84, checked 2026-10-30)
- GST registration threshold and rate for services: https://cbic-gst.gov.in/aces/Documents/faq-on-gst.pdf (GST registration is required for service suppliers above Rs 20 lakh aggregate turnover (Rs 10 lakh in special category states), with exceptions such as reverse charge; checked 2026-10-30)
- Employees' Provident Fund Organisation: https://www.epfindia.gov.in
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.