The expression “gig economy” alludes to a general workforce condition in which here and now commitment, impermanent contracts, and independent contracting is ordinary. It’s additionally alluded to as the “specialist economy,” “agile workforce,” “sharing economy,” or “independent workforce.” You may believe it’s a trendy expression, and you’d be correct, yet the boundless development of new businesses supporting the gig economy (and the number of laborers utilizing them) is a certain sign that the idea of work as we know it is changing. The gig economy contrasts from customary work in that employment are not lasting, but rather more particularly, the term identifies with numerous coincidental undertakings or gigs or individual shift assignments. Be that as it may, the term may likewise be utilized to reference longer-term independent courses of action and free contracting assignments.
The various problems that the ‘Gig Economy’ faces are:
Lack of working capital causing them to fall in a credit trap
The major concern for the ‘Independent Workforce’ is the scarcity of readily available capital. Banks consider that such work is simply an employment cul-de-sac and hence deny them loans (home, car) and other financial services which they would readily provide to a salaried employee.
This forces the workforce to take loans from informal sources (moneylenders) at comparatively higher interest rates to repay which they take a loan from yet another informal source and so on and so forth, getting exploited in the process.
No Credit Cards
Gig workers will have a difficult time in the current credit evaluation methodologies as their earnings are volatile. In India, it is very difficult for a blue-collar employee to get a credit card. It is rather ironic that banks don’t even consider this large portion of the workforce for credit cards as their credit score is negligible because of the uncertainty in their earnings.
No expense management tools
Lack of a potent way to manage expense is another problem that the ‘Independent Workforce’ face on a daily basis. Unpaid bills, loads of receipts and overall chaotic finances, this further adds to the superfluous burden on this already laden workforce.
No or less Tax literacy
Tax ignorance is harmful to individuals as well as for the nation. It can cause taxpayers to pay too much tax by preventing them from taking advantage of tax benefits to which they are entitled. In a recent study conducted in India concluded that overall tax literacy level of 57.08% among all respondents is not encouraging. This shows that in our country people are still not much aware of their personal taxation related issues.
Lack of financial investment knowledge
Tax illiteracy, informal loans, no expense management all these problems combined lead to poor financial decisions.
With so many problems and no solution in sight, the question arises:
“How can we empower the ‘Independent Workforce’?”
We at Bon since its inception have been working tirelessly to be the one-stop solution to every problem that the gig economy faces. Bon Card can help the workers of the gig economy perform their jobs more conveniently, grow their businesses and in turn help them flourish. Our card benefits include transactions being restricted to business expenses, 0% surcharge on all transactions, route based restrictions, consolidated billing, flexible payment options, and an integrated software to improve accounting & business management.
The features and benefits of BON Card are:
- It is an entirely online program which gives a corporate the convenience of Cashless Transactions
- Both the employer and the employee will get to see all their transactions through their unique login ID and password. Thus, the element of secured transactions is suitably bolstered.
- Ease of accounting is the key feature of this program as both the employer and employee are uniquely identified.
- Employee: This program addresses the need of employees to keep a track of their voucher/memos as a proof of expenses. Since all transactions are made through the Bon Card it removes any such hassles of manual accounting and reimbursement.
- Employer: Since all the transactions (Recharge, Fund Allocation, Download by employees) are online so all the data is available in form of statement and timely reports.
- Tax Filing benefits: Both employer and employee get the proof of all expenses on the account which gives a benefit while filing yearly Tax as you have a proof of expenses
- Savings are generated due to cashless transaction for the Corporate by virtue of the reduction in manpower, material (voucher printing) and time.