Gig Workers Earn 2.5x More Than Formal Jobs
A new report reveals that gig workers in India's delivery, ride-hailing, and home services sectors earn an average of ₹138 per hour, outpacing comparable formal and informal jobs, with benefits including control over working hours and access to welfare protection
Gig workers in India's delivery, ride-hailing, and home services sectors are earning significantly more than their counterparts in formal and informal jobs, according to a report by Redseer Strategy Consultants. The average hourly earnings of gig workers in these sectors is ₹138, which is 2.5 times the average earnings of comparable formal and informal jobs, which stands at ₹54 per hour.
The report highlights the benefits of gig work, including control over working hours and access to welfare protection. More than 90% of gig workers choose part-time participation, indicating that the flexibility offered by gig work is a major draw. This flexibility is crucial in a country where people enter the workforce from diverse circumstances and with different ambitions.
The report, 'Gig Internet Workforce in India: Bridge to ~20 million Livelihoods', suggests that gig internet work can bridge close to 70% of the gap in non-farm job creation by 2030. This is significant, given that India needs to create millions of non-farm jobs every year, and conventional employment alone is not keeping pace.
Kushal Bhatnagar, Partner at Redseer Strategy Consultants, noted that gig work can play an important part in improving household resilience and widening participation in India's economic growth. The report also highlights the welfare coverage available to gig workers, which is comparable to formal salaried employment and stronger than that available across several traditional informal occupations.
## Why it matters The findings of the report are significant, as they highlight the potential of gig work to address the challenges of job creation in India. With the country facing a significant gap in non-farm job creation, gig internet work can provide a vital bridge. Moreover, the benefits of gig work, including control over working hours and access to welfare protection, make it an attractive option for many workers.
The report's findings also underscore the importance of gig work in improving household resilience and widening participation in India's economic growth. As the country continues to navigate the challenges of economic development, the role of gig work is likely to become increasingly important.
