Over 77% Gig Delivery Workers Earn Less Than Rs 2.5 LPA

Aimed at understanding the financial literacy of the gig delivery workers in the country, a study has revealed that 77.6 per cent of gig delivery workers have reported having an annual income of less than Rs 2.5 lakh. The majority of gig delivery workers, about 61 per cent, have no information regarding the income tax brackets, according to the report by Borzo, a delivery services company.

The report titled, Understanding the financial literacy of gig delivery partners, stated that near about 20 per cent of such workers reported having an income which is in the range of Rs 2.5 lakh to Rs 5 lakh. The percentage of workers having an income of Rs 5 lakh to Rs 7.5 lakh was only 2.6 per cent of the total survey population.

The report is based on the data collected from over 2,000 gig delivery workers across 40 cities in the country.

As far as financial literacy is concerned, only 39 per cent of the gig delivery workers have heard about the income tax brackets. Over 66.5 per cent have never filed an income tax return. Out of 33.5 per cent of gig delivery workers who have filed an ITR, a significant majority of around 66 per cent submitted zero (nil) returns.

The report stated that over 53 per cent of gig delivery workers who filed ITR paid their tax as a one-time payment, while the remaining 47 per cent took to paying taxes in regular instalments.

42 per cent of such workers who have not filed an ITR showed willingness to pay the taxes if the need arises while 58 per cent have no intention of paying taxes even after falling into a tax bracket.

Approximately 75 per cent of the gig delivery workers did not pay any tax, while 20 per cent of such workforce paid taxes which ranged from Rs 12,500 to Rs 25,000. Only 4.6 per cent have paid the taxes ranging from Rs 50,000 to Rs 75,000.