• Gig workers earning more to cover rising costs may land in a higher tax bracket and keep less money overall.

• Gig workers in South Africa pay provisional tax twice a year and face penalties for getting their income estimates wrong.

Gig workers across South Africa are taking on more jobs to survive rising food, transport and rent costs. But many say they end the month with less money than they started.

Freelancers and side hustlers do not have tax automatically deducted from their earnings. They must track their income, calculate what they owe and put money aside for tax payments themselves.

Andile Jonas, head of marketing at Momentum Savings, said many gig workers do not realise how much tax affects their earnings.

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One of the biggest problems is fiscal drag. This happens when tax brackets do not rise fast enough with inflation. "As you increase your rates or take on more projects to keep up with the rising cost of living, you may find yourself pushed into a higher tax bracket," Jonas said.

Workers can earn more but still struggle to afford their basic needs.

Gig workers must also pay provisional tax twice a year, usually in August and February. They must estimate their yearly income in advance. "For an irregular earner, an incorrect estimate is not just a paperwork error but can lead to penalties," Jonas said.

Many gig workers also have no benefits like retirement savings or insurance. This leaves them exposed if they get sick or cannot work.

Jonas said workers should build a safety net and save during better months. "Financial security is not about having a predictable salary but about having a predictable strategy," he said.

Jonas said structured savings tools can help reduce tax and build long-term stability as living costs continue to rise.