# Gig Economy

*Everyday Money — Finicade finance glossary*

The gig economy is labour sold as discrete jobs rather than employment — rideshare, delivery, freelance contracts, platform work. The financial consequence is that costs employers normally absorb move to you: payroll tax doubles into self-employment tax, there's no employer pension match, no paid leave, and no unemployment cover. A rough rule for pricing gig work is that a contractor rate needs to be roughly 25–40% above the equivalent employee rate just to break even on benefits and tax.

**Also known as:** freelance economy, gig work, independent contractor work

**Related terms:** [Self-Employment Tax](https://finicade.com/glossary/self-employment-tax), [Passive Income](https://finicade.com/glossary/passive-income), [Form 1099](https://finicade.com/glossary/form-1099), [Income](https://finicade.com/glossary/income)

Source: https://finicade.com/glossary/gig-economy