Gig workers missing out on $400m per year in super

A new report has revealed a cohort of Aussie workers is missing out on millions in superannuation, renewing calls for the super guarantee to be extended.

There are new calls for the superannuation guarantee to be extended to gig economy workers, with a report showing they’re missing out on $400m per year in retirement savings.

The Industry Super Australia (ISA) analysis, released on Tuesday, shows “the average gig worker could have up to $29,000 more in their retirement nest egg if super was paid to the on-demand workforce”.

A typical transport and food delivery driver gig worker – making up 18.6 per cent of the market – misses out on $1900 in super contributions per year when working an average of 14.5 hours per week, earning $24 per hour.

ISA data shows most gig workers are aged 18 to 34 and are mostly employed in delivery or food transport roles. Picture: NCA NewsWire / David Crosling

ISA chief executive Bernie Dean said his fund supports moves which upholds the flexibility and convenience of gig work, but also ensures minimum employment standards.

“Being a gig worker should not mean you miss out on the opportunity to save for a decent nest egg at retirement,” said Mr Dean.

The data also shows most gig workers are in delivery or food transport roles.

“Paying gig workers super isn’t just the right thing to do, it makes economic sense because they’ll be more self-sufficient in retirement and less reliant on the aged pension, which we all pay for through taxes.

“These workers are critical to caring for our elderly, delivering food and driving us home. They have every right to share in the benefits of what is meant to be a universal saving system.”

Data from Paula McDonald’s ‘Digital Platform Work in Australia: Prevalence, Nature and Impact’ showing most gig workers are under 34-years-old.

ISA has called on the Federal Government to extend mandatory super to gig workers in its pre-budget submission.

The Albanese government has flagged the idea of legislating a purpose for super, but hasn’t elaborated on any further changes to the scheme.

Super has been compulsory in Australia since reforms were introduced under Paul Keating in 1992.

Originally published as Gig workers missing out on $400m per year in super