Due to coronavirus and its impact on the global and domestic markets, freelancers are severely impacted.
Not only their payments are getting delayed, but new projects too have drastically reduced.
Payments To Freelancers Delayed
As per a survey by Bengaluru based invoice and payment system for freelancers, the delay for payments is increasing.
Payments coming in from US and Europe are now delayed by upto 28 days, while domestic payments are getting delayed by 24 days.
Earlier, while domestic payments took 19 days, international payments took 13 days.
Besides, new projects have taken a hit as well.
60% of new projects have been canceled or postponed, thereby giving freelancers lesser opportunities and scope for income.
Reasons For Delayed Payments?
Mainly, the businesses in US and Europe have impacted due to the coronavirus outbreak, and this seems the main reason.
But banks are also responsible.
Due to less staff and skeleton employees in most of the bank branches, the entire process of payment transfer has taken a hit, and it’s attributing to the delay in payments. This also include frequent technical glitches.
However, businesses in Gulf countries haven’t taken any drastic steps, and business is as usual for them.
The other impact due to the coronavirus outbreak has been a massive increase in part-payments: Upto 250% increase in part payments have been witnessed. Earlier, as per the Bengaluru based firm, only 12% of payments were partial, which has now increased to 41%.
What’s The Future?
As per the survey, it may take upto 18% for things to get normal again, for freelancers.
However, as businesses start their operations gradually, there will be a surge in hiring freelancers and contractual workers, across segments such as coding and development, graphic designing, content writing and digital marketing.
Interestingly, as per the survey, freelancers are confident that work from home protocol will not only continue, but increase in the post-corona period.
We will keep you updated, as more details come in.
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