Gig workers are missing out on AUD 400 million (USD 269.8 million) in contributions to retirement, according to a report released last week by Industry Super Australia (ISA), a research and advocacy body which aims to make the most of the retirement savings of fund members and is the peak body for the superannuation sector. .

Its definition of gig workers includes delivery drivers, disability carers, IT professionals and education workers. In all, ISA estimates there are 275,000 such workers. The average gig worker could have up to AUD 29,000 (USD19,561) more in their retirement if they were paid superannuation.

“Being a gig worker should not mean you miss out on the opportunity to save for a decent nest egg at retirement,” said Bernie Dean, chief executive at Industry Super Australia. “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 age pension, which we all pay for through taxes.”

An analysis by the ISA showed the typical transport and food delivery gig worker misses out on AUD 1,900 (USD 1,281) super contributions a year when working an average of 14.5 hours per week, earning AUD 24 per hour. Spending three years in the industry would mean these super contributions would reach AUD 17,200 (USD 11,602) at retirement and AUD 28,700 (USD 19,359) if in gig work for five years.

Many gig workers in Australia are also under age 35 and would benefit from compound earnings over the decades.

“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,” Dean said.