Pay-as-you-go (PAYG) contractor refers to a self-employed individual or business entity that provides services to clients on a project-by-project basis, with payment being made for each completed project or task. This type of contractor is not employed by the client on a full-time or long-term basis, but rather works on a temporary or freelance basis. The term “pay-as-you-go” refers to the payment structure, where the contractor is paid for the work completed, rather than receiving a fixed salary or retainer. This allows for flexibility and cost-effectiveness for both the contractor and the client, as the client only pays for the specific services rendered, and the contractor is not tied down to a long-term commitment. PAYG contractors are commonly found in industries such as consulting, IT, marketing, and creative services, where specialized skills are required for short-term projects. They may also be referred to as independent contractors, freelancers, or consultants.
