A recent survey has shed light on the financial challenges faced by Indian gig delivery workers. Conducted by Borzo (formerly WeFast), a global same-day delivery company, the report titled ‘Understanding the Financial Literacy of Gig Delivery Partners’ highlights the precarious financial situation of those working for companies like Zomato, Swiggy, Uber, and Amazon.
Low Earnings Among Gig Workers
The survey, which encompassed over 2,000 gig delivery workers across 40 Indian cities, reveals that a staggering 77.6% of these workers earn less than ₹2.5 lakh annually. This low income underscores the financial strain experienced by many in this sector.
Income Tax Filing and Awareness
When it comes to tax matters, the survey uncovered that 61% of participants were unfamiliar with income tax brackets. Only 33.5% of the gig workers surveyed had filed income tax returns (ITRs), leaving 66.5% who had not. Among those who did file, 66% submitted zero returns. Notably, only 42% of those not filing ITRs expressed a willingness to pay taxes if required, while 58% were unwilling to do so under any circumstances.
Savings and Investments
In terms of savings, only 24% of gig workers contributed to the Public Provident Fund (PPF), with monthly contributions ranging between ₹1,000 and ₹3,000. Investment habits showed that 23% of workers invested in mutual funds, with 71% of them investing between ₹500 and ₹1,000 monthly. Additionally, 26% invested directly in the stock market, with a preference for blue-chip stocks, IPOs, or penny stocks.
Lack of Life Insurance
A significant 62% of gig workers reported not having life insurance, reflecting a gap in financial security and planning.
Comparison with Broader Population
The survey findings also highlight that out of the 74 million individuals who filed income tax returns for the financial year 2022-23, 70% claimed no tax incidence. This indicates that only about 1.6% of India’s population actually pays income tax. With the gig workforce expected to grow from 7 million to 25 million by 2030, according to Niti Aayog estimates, addressing these financial issues is crucial.
The survey underscores the need for improved financial literacy and support for gig workers as their numbers continue to rise in India’s evolving job market.
