Freelance, Contract, or Salary: A Breakdown of Different Job Types

An improvement of the job market is critical to the global economy and is directly linked with the demand and availability of labor. Nowadays, jobs are distinguished under three major categories: freelance, contract, or salary. This article gives a detailed breakdown of different job types.



A freelancer is an independent contractor who does short-term work and earns money per task or per-job basis. People who take on freelance jobs aren’t necessarily company employees, especially when they’re not under any contractual obligation to work exclusively. Freelancers are generally at liberty to take on other projects concurrently offered by various private and corporate entities. They can also do contract jobs full-time or part-time to supplement full-time employment. Some independent freelancers enter oral or signed agreements with clients describing the task and predetermined service fee. The fee may be a flat rate or a daily or hourly rate.

A significant benefit of freelance jobs is the freedom and flexibility they bring. Freelancers operate on a flexible work schedule, making it possible to have a better work-life balance. Freelance jobs are rampant in the skilled, creative, and service sectors. As mentioned earlier, hiring a freelancer doesn’t necessarily make them a part of your company.

A typical example of a freelancer or independent contractor is a plumber. Of course, plumbing jobs are better left to professionals to handle, especially if you want high-quality work. If you need plumbing work done (like a hot water system repair or blocked drains), consider hiring an experienced plumber to handle the task. A good rule is to hire a local plumber within your locality. Let’s say you reside in the Northside of Brisbane. You might want to Google “plumbers in Brisbane Northside” to find a local Brisbane plumber or a Brisbane Northside plumbing company that can provide quality plumbing service.


Contract jobs have become more prevalent in the wake of the gig economy. A contractor can be a private individual or a corporate entity contracted to provide services or execute a short-term task. They’re not entitled to receive employment benefits from companies that require their services and can work solo or through a specialized agency. For instance, many companies contract their core processes to specialized agencies to handle them.

Marketing is one of the most contracted services. Many business owners prefer to outsource marketing instead of hiring an in-house marketing manager to manage their inbound marketing strategies and implementation. The challenge is deciding between an advertising agency vs freelancer for the most part. Most choose to hire a marketing specialist from a professional agency to spearhead their marketing strategy.

The upside to contracting a large creative agency is that they cover all the essential skill sets needed to implement a marketing plan. There won’t be any need to hire a strategist, copywriter, media buyer, or graphic designer. This is a more effective solution than hiring multiple marketing staff members or hiring one person to do the job.



People who earn salaries work exclusively for an employer. The employer is responsible for paying the salary, benefits, taxes, and health insurance and regulates employee work hours, sick leave, annual leave, and holidays. Before assuming a salaried role at a firm, you may be required to sign a contractual agreement, much like contractors and freelancers. However, the employee contract clearly outlines the terms of employment: responsibilities, dress code, work hours, salary, employee benefits, and other remunerations.

Some companies offer life insurance, health insurance, and retirement plans. The employer and prospective employee must agree upon the terms of employment during the hiring process. Of course, an employee may agree to the terms of employment verbally. The downside is that the employer may change the conditions of employment at any time.

Use these descriptions to help you understand which job is best for you.

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