Niti Aayog proposes tax rebates for startups hiring more women, persons with disabilities

Looking at the boom in gig economy, Niti Aayog – the Centre’s policy think-tank — has suggested extending social security measures to people who work for platform companies like Zomato, Swiggy, Ola and Uber.

So, food delivery boys and cab drivers could soon have paid sick leaves, insurance and pension among other benefits, the Niti Aayog report titled ‘India’s Booming Gig and Platform Economy’ stated.

The policy body has also suggested financial benefits in the form of tax rebates or grants to firms that have one-third of their workforce as women and persons with disabilities.

Women (16% to 23%) and people with disabilities (36%) form a substantial chunk of the gig economy and hence the recommendations to improve their lot, the report stated. The Niti Aayog also aims to upskill these two categories of workforce and provide them adequate education to improve their job profiles.

Gig workers can be broadly classified into platform and non-platform workers. Platform workers are those whose work is based on online software apps or digital platforms while non-platform gig workers are generally casual wage workers, working part-time or full- time.

Gig workers prefer a flexible work schedule, typically with low to middle level of education. Income through gig work is not their primary source of income and they are often holding another regular job.

Also read: NITI Aayog: India’s gig workforce could grow to 2.35 crore

According to the NITI report, it is estimated that in 2020-21, 77 lakh workers were engaged in the gig economy and they constituted 2.6 per cent of the non-agricultural workforce or 1.5 per cent of the total workforce in India.

The report quoted an all-India survey that says women are more likely to take up platform jobs after education and marriage. Therefore, the need to encourage their participation.

The NITI Aayog has suggested that startups giving about 30% jobs to women will get major tax incentives. Besides, it suggested businesses offer more number of higher positions to women managers and supervisors to see to it that communication to workers does not perpetuate gender stereotypes.

Also, the Niti Aayog report suggested firms have policies that offer old age or retirement plans besides insurance cover to meet situations arising out of injuries during work that may result in loss of employment and income.