 "Over 77% of gig workers earn less than Rs 2.5 lakh annually in India | Economy & Policy News")
Around 77% of gig delivery workers do not invest in mutual funds
Around 77.6 per cent of gig delivery workers reported earning less than Rs 2.5 lakh annually, Moneycontrol reported, citing delivery services company Borzo.
The “Understanding the Financial Literacy of Gig Delivery Partners” report, which surveyed over 2,000 gig delivery workers from 40 cities in India, found that nearly 20 per cent of these workers had an annual income between Rs 2.5 lakh and Rs 5 lakh.
Only 2.6 per cent of the workers reported earnings in the range of Rs 5 lakh to Rs 7.5 lakh, the report said.
This data was gathered from delivery personnel working for multiple platforms including Porter, Zomato, Swiggy, Uber, Delhivery, Ola, Shadowfax, Rapido, Zepto, Shiprocket, Amazon, Flipkart, Dunzo, Ecom Express, Ekart, Domino’s, Jio Mart, Urban Company, DTDC, Country Delight, inDrive, Licious, and XpressBees.
Income tax returns
The majority of workers (61 per cent) reported being unaware of income tax brackets. Only 33.5 per cent said that they had filed income tax returns (ITRs), while the rest had never filed one. Among the gig workers who did file ITRs, 66 per cent submitted zero (nil) returns, and nearly 34 per cent filed self-assessed returns. Furthermore, 47 per cent of gig delivery workers who filed returns paid their taxes in regular instalments, while 53 per cent made a one-time tax payment, the report stated.
A significant portion (42 per cent) of those who did not file ITRs expressed a willingness to pay taxes if required, whereas 58 per cent were unwilling to pay despite being in the taxable income bracket.
Approximately 75 per cent of the respondents indicated they had not paid any taxes. Nearly 20 per cent paid between Rs 12,500 and Rs 25,000, and about 4.6 per cent paid between Rs 50,000 and Rs 75,000 in income tax, the report further stated.
Mutual fund investments
A significant (77 per cent) of gig delivery workers do not invest in mutual funds. Among the 23 per cent who do invest, 71 per cent make a monthly SIP of Rs 500 to Rs 1,000. Additionally, 10 per cent contribute between Rs 1,000 and Rs 2,000, while nearly 12 per cent invest Rs 2,000 to Rs 3,000 monthly, the report said.
Furthermore, only 4 per cent allocate Rs 3,000 to Rs 5,000 for their SIPs, and a mere 3 per cent invest Rs 5,000.
The report quoted Eugene Panfilov, managing director of Borzo India and regional director at Borzo Brazil, as saying, “As we navigate the nuances of this dynamic gig economy, it’s imperative to equip gig delivery workers with the knowledge and tools for effective financial planning.”
First Published: Aug 07 2024 | 4:25 PM IST
