New Delhi: Government’s think tank, Niti Aayog, in its latest report has issued some recommendations and fiscal incentives, like tax breaks for gig and platform economy in India. In a report titled ‘India’s Booming Gig and Platform Economy’, the organisation also recommended extending social security measures such as income support and paid sick leaves for people working in platform companies.
Who is a gig worker and platform worker?
The report defines a gig worker as “those engaged in livelihoods outside the traditional employer-employee arrangement.” Gig workers can be classified into platform workers and non-platform workers. Those whose work is based on online software apps or digital platforms are called platform workers. Usually, casual wage workers and own-account workers in the conventional sectors are categorised as non-platform gig workers.
Niti Ayog’s observations and estimations
- The report estimated that in 2020-21, 77 lakh workers were engaged in the gig economy.
- Currently, about 47% of the gig work is in medium-skilled jobs, about 22% in high skilled, and about 31% in low-skilled jobs.
- Female labour force participation has remained low, oscillating between 16% and 23% in the last few years.
Niti Ayog’s key recommendations
- The report recommended a special emphasis to be placed on access to formal credit for women and Persons with Disabilities (PwDs).
- The report said platform firms can also create potential “Skill Certificates” or “Skill Passports” for workers. This can be considered as a “Skill Badge” in the platform worker’s online profile, thus, enabling better career progression.
- Niti Aayog recommended platform businesses implement gender-and accessibility-inclusive communication plans. For example, ensuring communication with workers does not extend gender and disability stereotypes.
- The report mentioned providing incentives to women led-platforms or platforms that encourage the recruitment of women employees and PwDs.
- On the lines of Indonesia’s initiatives, the report recommended offering accident and other insurance to delivery and driver personnel. Also, looking at measures taken in the UK the report highly recommends adopting policies that offer old age/retirement plans and benefits to gig and platform workers.
The recommendations made by the Niti Aayog are important, keeping in mind that employees at platform companies like Swiggy, Ola, etc. have raised their concerns regarding low wages and unequal gender participation. Also gig workers are often hired on contracts and do not get the employee benefits. This report is a positive step toward developing gig and platform in India.