Gig work poses financial challenges that need to be urgently addressed
In an ever-evolving job market, gig workers have become a significant and growing segment of the workforce. While gig work offers flexibility and independence, it also brings financial challenges that traditional employees might not face.
Gig workers can be termed as semi-professionals or workers who engage in temporary or contractual-basis employment. Niti Aayog estimates that India has 7.7 million gig workers, and this number is expected to rise to 23.5 million by 2030.
The rapid ascent of food delivery apps and e-commerce platforms, among others, have led delivery workers and associates to be termed gig workers. Gig work can range from highly paid projects to delivery assignments.
Anyone can engage in gig work. Transferable skills like communication management, and content generation, among others, are all being taken up as gigs outside of full-time jobs to open a channel of supplementary income.
The nature of gig work is unstable due to short-term contracts, as there is no permanent employer or organisation in most cases. The workers are also often termed as independent contractors by companies to reduce costs. Gig work tends to be volatile, and employment is unpredictable. Therefore, individuals operating under a gig economy for their livelihood need to be aware of potential emergencies.
Technology has enabled individuals to take up gig work as their primary income. Financial security is one major concern that gig workers often face, and the temporary nature of their work excludes them from regulatory oversight and payment security that comes with permanent jobs.
To enhance the economic autonomy that gig work provides, it is imperative for gig workers to take steps toward financial security. Here are some ways to become financially secure if you engage in gig work:
Budgeting is king: Analyse the intervals between gig availability and accordingly budget your finances for the gaps. Monitoring expenses goes a long way in making sure you never run dry of essential resources.
Multiple income streams: Gig work gives the opportunity to take up multiple streams of income. Planning your income streams in advance and ensuring that you have more than one stream of income can provide a degree of financial security.
Taxes: Be proactive about taxes, earmark a portion of your earnings for tax payments, and seek professional guidance to optimize your financial situation.
Healthcare: Permanent jobs provide financial security and, in some cases, health coverage. Therefore, as a gig worker, it is imperative that you invest in a premium that suits your health needs.
Strategic time off planning: Gig work does not pay for time off in most cases. The unpredictable nature of gig work coupled with emergencies can burn a hole in your pocket. Hence, set aside emergency savings whenever possible to deal with unexpected changes.
Create a network: Upskilling and creating a network helps to build your personal brand and allows you to venture into jobs that are essentially gigs but have a higher pay range. Always look to building your assets and skills, and establish a strong network with contemporaries to be up to date with industry trends.
Retirement planning: Gig workers need to start planning their retirement early. Look into retirement investment plans that fit your income and invest for retirement to ensure that you have funds to fall back on in later stages of life.
In conclusion, navigating the path forward in gig work necessitates one to strike a careful balance between harnessing the advantages that gig work offers, such as enhanced economic autonomy, as well as ensuring one’s own economic stability. With the rising number of gig workers, governments need to concurrently uphold the imperative to safeguard and confer rights upon the numerous workers who persist within an inherently unequal labor landscape. Gig workers, often the focal point of a rapidly evolving employment landscape, stand at the intersection of choice and necessity as society grapples with the complexities of work arrangements in the modern world.
