Planning on moonlighting? Here are 5 tips that can help you, where to find side gigs The work-from-home phase following the outbreak of covid gave people more time at hand. The demand for freelance work has shot up in recent years. Heres what you must know before you sign up
When he did it for the first time, Rajnish Monga was both anxious and excited. A startup client of the digital marketing outfit he worked for had offered him a side hustle. “Our company’s services were too costly, so they wanted me to work for them independently,” says the 32-year-old Bengaluru-based digital marketing professional. Having worked on the project for almost a year, Monga was familiar with the startup’s requirements as also the key people running the show. “They promised me complete secrecy,” he says. And a fat sum of Rs.30,000 in cash–which was more than 20% Monga’s regular salary.Like Monga, lakhs of salaried workers have bitten into the forbidden fruit called moonlighting. From software professionals and web designers to content writers and data analysts, people are doing side hustles to create an additional stream of income.
Though moonlighting is not new, the trend of side hustles has become widespread in the past two years. The work-from-home phase following the outbreak of covid gave people more time at hand. They also picked up new skills and started using technology more effectively. Companies too woke up to the possibilities of remote working.
More than anything else, the job losses and pay cuts during covid pushed people to explore new avenues to generate income. It helped that there was no supervision during work hours and people could connect with anybody without fear of getting caught. A person may be using equipment provided by his office to work for another company, possibly a rival of his employer.
Though moonlighters want to be seen as freelancers, there is a big difference between the two. A freelancer is not an employee so is free to work for different clients. But a regular employee working for another rival outfit is not acceptable to most companies, especially the big guns of the tech sector. Most service contracts have a clause stating that the employee will not conduct any business or provide services to anybody outside the company. Last month, Wipro sacked 300 employees who were found to be working second jobs or side hustles. A few days earlier, Wipro Chairman Rishad Premji had said that moonlighting amounted to cheating. Other tech bigwigs like TCS and Infosys agree that employees should not work for other companies.
Rajnish Monga, 29 years, Bengaluru
Regular job
Assistant manager in digital marketing firm
Salary
Rs.85,000 per month.
Side hustle
Handles digital marketing for a former client of the company.
Gig income
Rs.30,000-35,000 per month.
When a client approached him to secretly work on an online marketing campaign, Monga could not resist the offer. He now works for several clients after hours and earns almost 40% of his salary from these side gigs.
At the same time, some companies have no problems if their employees want to make more money by working second jobs. Food delivery company Swiggy has put in place a moonlighting policy that allows employees to take up additional jobs to earn more. “If an employee fulfills the requirement of working eight hours a day at a job, then he should be allowed to spend the remaining 16 hours of the day as he pleases,” says Bhavya Mehta, a Pune-based software professional who quit a regular job three years ago and now works as a freelancer for various Indian clients and overseas companies.
However, Swiggy has stressed that this work should be done after office hours or on weekends so that it does not impact the employee’s productivity. Also, it made it clear that the second job should not have a conflict of interest with Swiggy’s business.
Swati Sinha, 42 years, Delhi
Regular job
Journalist in business newspaper
Salary
Rs.1.45 lakh per month.
Side hustle
Ghost writes articles for companies and PR agencies. Also edits reports for foreign clients.
Gig income
Rs.30,000-40,000 per month.
After she started a family 13 years ago, Sinha left her regular job and became a freelancer. She later resumed her job but did not refuse the freelancing assignments coming her way. The side income is almost a third of her regular income from the job.
Things are a bit easier for consultants, who can freelance for other organisations as well. However, companies often slip in a no-compete clause that prevents the worker from freelancing in the same line of business. Sanjeev Mittal is an exception in this regard. The accountant in a small Mumbai-based firm was finding it difficult to make ends meet with his modest income, so he requested permission from his employers to do the accounting work of small clients and shopkeepers. To his relief, his employers did not have any objection if the freelance work was done after hours. “They understood that I needed the money and that my salary was not enough,” he says. With tax compliance requirements going up with the introduction of GST, Mittal now works for 7-8 clients and earns a good 20-25% of his regular income on the side. For others, however, this additional side income imperils their regular jobs.
The law is quite straightforward here. If your employment contract prohibits you from working elsewhere, you can get sacked for moonlighting. It is a fear that constantly haunts Monga, but the lure of extra money is too tempting. “The side income is like cocaine. Once you get used to it, you just can’t let go,” he says. He has got so used to the side income that though moonlighting is risky, he can’t even think of letting go. If you are moonlighting (or planning to), here are some tips that can help you.
Maintain absolute secrecy
The first rule is also the simplest: don’t go around telling the world about what you are up to. Priyanka Gupta maintains absolute secrecy about her side hustles. The Gurgaon-based web designer uses a different computer and email ID for all side-gig related work. “Only my family and some very close friends know that I do freelancing work,” says Gupta. This does keep her out of groups that share leads on freelance work, but Gupta is not complaining. “Referrals from my regular clients and some trusted sources get me enough work. I don’t need more as my hands are full,” she says.
Build personal credibility
As a freelancer, you must work to build your personal brand. As a first step, treat deadlines like religion. Set schedules and follow them strictly so that you finish projects within the time agreed upon. For the same reasons, don’t take up too much work that you won’t be able to complete without compromising on quality. “You need to treat your work as a business. If you meet deadlines and deliver good quality work, your personal brand will be in demand,” says Bhavya Mehta. It will also show how professional you are.
Sanjeev Mittal, 38 years, Mumbai
Regular job
Accountant in company
Salary
Rs.65,000 per month
Side hustle
Does accounting and bookkeeping work for small companies and shopkeepers.
Gig income
Rs.15,000-18,000 per month
Mittal has been working for a small company for several years but his income is not very high. When he requested permission to freelance for small clients, his employers did not have any objection. Their only condition is that the freelance work should be done after hours.
Don’t resort to undercutting
The competition for work is very fierce, but don’t let that make you desperate. To grab work, some people tend to quote lower prices. “Undercutting is rampant in the content writing space,” rues Swati Sinha. “Some people are willing to work for as little as 50-60 paise per word.” However, such content is of questionable quality and is often copied from websites. By agreeing to work at low rates, you give the impression that your work will not be very high quality. This can get you work in the short term but jeopardise future projects.
Use technology to the hilt
Buy productivity tools which can lessen your effort and enhance your earning potential. See them as an investment, rather than an expense. Also, use social media platforms to make business contacts and network. But use these channels very carefully lest they give your side hustle game away.
Priyanka Gupta, 31 years, Gurgaon
Regular job
Web designer
Salary
Rs.68,000 per month
Side hustle
Does web designing for small entrepreneurs and individuals
Gig income
Rs.22,000-25,000 per month
Before she got a regular job, Gupta used to do freelancing work. She didn’t stop freelancing even after she got a full-time job. Though it is not permitted, she often uses the software and designing tools in her office for her freelancing assignments.
Maintain financial discipline
Keep a record of all financial transactions because any income coming to you will get reflected in your Annual Information Statement with the tax department. Make sure you declare that income and pay the tax applicable on that income. In most cases companies deduct 10% TDS from the payment. The tax implications don’t end here. If you are in the 20-30% bracket, you need to pay additional tax.
Where you can find side gigs
These websites can help you get freelance assignments. Most of them take a 10% cut on the freelancer’s earning.
UPWORK
www.upwork.com Works for both novice and seasoned freelancers in almost any job category possible. The client list includes big names and can fetch you well paying gigs.
TOPTAL
www.toptal.com It is very selective in the screening process and only takes qualified freelancers. Can get you high-paying projects from big names across the world.
FREELANCER INDIA
www.freelancer.in Offers work in various categories and also allows freelancers to create a Google listing of their work. Membership is free but the paid one gets you better work options.
TRUELANCER
www.truelancer.com
Offers projects in web designing, computer programming, marketing, designing and copywriting, among others. While they ensure freelancers get paid on time, they also work to ensure clients are satisfied.
99DESIGNS
www.99designs.com Offers designing projects, including web designing and logos. You get paid only if the work submitted by you fulfills the criterion and is chosen by the client.
This story originally appeared on: India Times - Author:Tax Cognition
