Advanced International Journal for Research

E-ISSN: 3048-7641   •   Impact Factor: 9.11

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Gig Economy Compensation and Worker Commitment: A Conceptual Framework Based on Psychological Contract and Expectancy Perspectives

Author(s) Ms. Nidhi Singh
Country India
Abstract The accelerated expansion of the gig economy has fundamentally transformed traditional employment relationships, replacing long-term organizational attachments with flexible, platform-mediated work arrangements. While such arrangements provide autonomy and income opportunities, they also introduce challenges related to compensation fairness, income stability, and worker commitment. Despite the central role of compensation in shaping gig work experiences, its influence on worker commitment remains theoretically underexplored. This paper develops a conceptual framework to examine how compensation systems influence worker commitment through the dual mediating mechanisms of psychological contract fulfilment and expectancy-based motivation. Drawing on psychological contract fulfilment theory and expectancy theory, the study integrates relational and motivational perspectives to explain gig worker behaviour. Compensation is conceptualized in terms of fairness, incentives, and transparency, and is proposed to influence worker commitment by shaping perceptions of obligation fulfilment and effort–performance–reward linkages. The study contributes to the literature by extending psychological contract theory to gig work contexts, incorporating expectancy theory to explain motivational dynamics, and offering an integrated framework linking compensation to commitment. Practically, the paper highlights the importance of transparent and equitable compensation systems in enhancing worker engagement and retention in digital platform ecosystems. Overall, the study provides a robust theoretical foundation for understanding the compensation-commitment nexus in the gig workforce and offers directions for future empirical research.
Keywords Gig Economy; Compensation Fairness; Worker Commitment; Psychological Contract Fulfilment Theory; Expectancy Theory; Platform-Based Work
Field Business Administration
Published In Volume 7, Issue 2, March-April 2026
Published On 2026-04-24
DOI https://doi.org/10.63363/aijfr.2026.v07i02.5202
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E-ISSN 3048-7641
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