{"id":10111,"date":"2022-12-01T17:43:33","date_gmt":"2022-12-01T12:13:33","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10111"},"modified":"2022-12-02T13:14:35","modified_gmt":"2022-12-02T07:44:35","slug":"moonlighting-meaning-and-timeline","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/","title":{"rendered":"Moonlighting Meaning and Timeline of Events in India"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You\u2019ve probably heard the term \u2018moonlighting\u2019 by now. From leaders and news publications to employees, everyone has strong opinions about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many prominent Indian IT companies have framed strict rules around moonlighting and have deemed it \u2018unethical.\u2019 In contrast, the startup ecosystem seems supportive of it as long as employee productivity doesn\u2019t take a hit. This blog post details everything about moonlighting in India, the chain of events that led to the debate, and if it\u2019s legal. It also lists practical ways of tracking employee moonlighting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But first, let\u2019s cover the basics.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2771cafbc4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2771cafbc4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#What_is_moonlighting\" >What is moonlighting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Why_has_moonlighting_become_the_talk_of_the_town\" >Why has moonlighting become the talk of the town?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Is_moonlighting_legal_in_India\" >Is moonlighting legal in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Tax_implications_of_moonlighting\" >Tax implications of moonlighting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#1_If_the_amount_is_received_as_a_salary\" >1. If the amount is received as a salary,\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#2_If_the_amount_is_received_as_professional_fees\" >2. If the amount is received as professional fees,<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#3_If_the_amount_is_received_as_independent_income_on_a_part-time_basis\" >3. If the amount is received as independent income on a part-time basis,<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#How_to_know_if_employees_are_moonlighting\" >How to know if employees are moonlighting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Over_to_you\" >Over to you<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Manage_employees_and_tax_deductions_automatically_with_RazorpayX_Payroll\" >Manage employees and tax deductions automatically with RazorpayX Payroll<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#Is_moonlighting_legal\" >Is moonlighting legal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#What_is_moonlighting_in_business\" >What is moonlighting in business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/payroll\/moonlighting-meaning-and-timeline\/#What_are_some_examples_of_moonlighting\" >What are some examples of moonlighting?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_moonlighting\"><\/span><b>What is moonlighting?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Moonlighting, in simple terms, means having a second job in addition to the main one. It could be a side hustle, a night job, or something someone takes up over weekends.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Historically, most people used to take up a second job at night, hence the name \u2018moonlighting.\u2019 Now, let us look at some events of recent months that led to all the discussions around it.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_has_moonlighting_become_the_talk_of_the_town\"><\/span><b>Why has moonlighting become the talk of the town?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">During the COVID-19 pandemic, several companies had to shift to a work-from-home model. At that time, several people started working on more than one job at a time. This year, a few startups recognised this and saw this as an opportunity to support the employees and build a culture where they can work on side hustles as long as their productivity doesn\u2019t get affected. But this wasn\u2019t the case with giant IT services companies.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10113 size-large\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2022\/12\/Insert-Image-2-629x1024.png\" alt=\"Moonlighting meaning in India\" width=\"629\" height=\"1024\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Insert-Image-2-629x1024.png 629w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Insert-Image-2-184x300.png 184w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Insert-Image-2-768x1251.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Insert-Image-2-943x1536.png 943w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Insert-Image-2-1258x2048.png 1258w\" sizes=\"auto, (max-width: 629px) 100vw, 629px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As you can deduce from above, several traditional IT firms do not see moonlighting as ethical.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_moonlighting_legal_in_India\"><\/span><b>Is moonlighting legal in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Pooja Ramchandani, who heads the labour and employment law practice at Shardul Amarchand Mangaldas &amp; Co, a law firm in India\u2013there is no specific law on moonlighting in India. So, technically, as long as your side hustle or second job or gig doesn\u2019t interfere with your primary job, it is not unethical.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers and employees need to be careful of the terms of their contract of employment. If there are clauses, in which working for another employer has been explicitly called out as unethical or non-tolerant, an employee shouldn\u2019t do it and there can be legal implications. For better clarity, employees should talk with the management or HR of the company if they are planning to take up a side hustle.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax_implications_of_moonlighting\"><\/span><b>Tax implications of moonlighting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_If_the_amount_is_received_as_a_salary\"><\/span><b>1. If the amount is received as a salary,\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Then it will be subject to the standard deduction, section 80C deductions, monthly TDS (Tax deducted at source), quarterly PF and tax contributions, if applicable.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_If_the_amount_is_received_as_professional_fees\"><\/span><b>2. If the amount is received as professional fees,<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In this case, it is considered taxable income under \u2018Profits &amp; gains from business &amp; profession\u2019 after deducting expenses such as\u2013travel, electricity, laptops etc.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider Richa, a software engineer, who draws a salary of Rs. 14 lakh from her primary job. Her taxable income after all the tax deductions will be Rs. 12 lakh, and Rs. 179,400 will be deducted as TDS. <\/span><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/learn\/how-to-calculate-income-tax-on-salary\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">[Suggested Read: How to Calculate Income Tax on Salary With Example]<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Now, Richa also got Rs. 9 lakh from another company that outsourced a coding project, for a software app. She received this as professional fees. Now here, the TDS deducted will be 10% of Rs. 9 lakh, which is equal to Rs. 90,000. Richa opts for presumptive taxation, so only Rs. 4.5 lakh will be taxable (50% of gross income u\/s 44ADA). Her total taxable income is Rs. 1,650,000 ( Rs. 12 lakh salary + Rs. 4.5 lakh professional income), and the total tax liability would be Rs. 319,800, out of which Rs. 2,69,400 is already deducted as TDS (salary TDS Rs. 179,400 + Rs. 90,000 TDS on professional fees). Hence, the tax payable would be Rs. 50,400.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_If_the_amount_is_received_as_independent_income_on_a_part-time_basis\"><\/span><b>3. If the amount is received as independent income on a part-time basis,<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Then also the income is subject to various taxes under \u2018Income from other sources.\u2019 Various professionals, like chartered accountants, assist in bookkeeping and other services part-time or at the end of the financial year. The above would apply to them.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_know_if_employees_are_moonlighting\"><\/span><b>How to know if employees are moonlighting?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A viral tweet by a stock investor,<\/span><a href=\"https:\/\/twitter.com\/rajivmehta19\/status\/1579361422324436993?\" target=\"_blank\" rel=\"noopener nofollow\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\"> Rajiv Mehta<\/span><\/a><span style=\"font-weight: 400;\">,\u00a0 debunked how Wipro employees got caught moonlighting and were subsequently sacked. It was the Provident Fund deductions in the government portal that gave it all away.<\/span><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/learn\/employee-provident-fund-epf-scheme\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">[Suggested Read: Everything a Business Needs to Know about the EPF Scheme]<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Every employer in India has to register under the EPF scheme on the government portal when their organisation\u2019s employee strength exceeds 20. Each employee is assigned a UAN (Universal Account Number) which is linked to their EPF (Employee Provident Fund). Any employer can access the UAN of an employee to check if more than one PF contribution is made. This automatically means a payment from another employer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this form of moonlighting is only detectable if the income is received as salary from the employer\u2013which is one of the methods mentioned above in the article. If the income is received after doing freelancing or part-time-based work, it might be difficult to track. In that case, companies can outsource this to external agencies that do background checks to identify if the employee is working more than one job.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Over_to_you\"><\/span><b>Over to you<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you want to support your employees in moonlighting, is completely up to you, but it is better to have clearly defined policies around it. The HR should talk with the employees in the organisation and then educate them about these policies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you feel that your customer data and privacy will get compromised if the employees work with direct competitors, have stringent policies. If you are the kind of establishment that doesn\u2019t mind your workers taking up side gigs over weekends, frame policies accordingly and let them know.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Manage_employees_and_tax_deductions_automatically_with_RazorpayX_Payroll\"><\/span><b>Manage employees and tax deductions automatically with RazorpayX Payroll<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Since there are innumerable laws and Acts governing companies, tax deductions can become overwhelming. <\/span><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_Moonlighting\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll<\/span><\/a><span style=\"font-weight: 400;\"> automatically calculates compliances such as PF, PT, TDS, and ESIC and files them for you. All you have to do is sign up.<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_Moonlighting\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try RazorpayX Payroll for free!<\/a><\/p>\n<p><span style=\"font-weight: 400;\">It is India&#8217;s only fully automated payroll software, and its features include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic salary calculation and disbursement\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll execution in 3 clicks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leave and attendance management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insightful reports<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic compliance calculation &amp; filings such as PF, PT, TDS<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_Moonlighting\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try it for free!<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_moonlighting_legal\"><\/span>Is moonlighting legal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There is no specific law on moonlighting in India. So, technically, as long as your side hustle or second job or gig doesn\u2019t interfere with your primary job, it is not unethical or illegal. <\/p>\n<p>But suppose there are clauses, in which working for another employer has been explicitly called out as unethical or non-tolerant. In that case, an employee shouldn\u2019t do it and there can be legal implications. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_moonlighting_in_business\"><\/span>What is moonlighting in business?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Moonlighting, in simple terms, means having a second job in addition to the main one. It could be a side hustle, a night job, or something someone takes up over weekends.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_some_examples_of_moonlighting\"><\/span>What are some examples of moonlighting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A school teacher could have a side hustle of giving private tuition to children. Another example is chartered accountants working in a firm and also growing their practising during tax season or with additional clients independently.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Moonlighting, in simple terms, means having a second job in addition to the main one. It could be a side hustle, a night job, or something someone takes up over weekends.<\/p>\n","protected":false},"author":79,"featured_media":10115,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[66],"tags":[],"class_list":{"0":"post-10111","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/79"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10111"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/10115"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}