Why in the news?
NITI AAYOG recently published a report stating India’s thriving GIG and Platform Economy- Fiscal incentives to companies in which women and disabled make up a third of employees.
What is the GIG Economy?
- The GIG economy consists of GIG workers who are temporarily engaged in livelihood outside the traditional employer-employee arrangement.
- FOR EXAMPLE Delivery boys, app-based taxi drivers, service providers and technicians, freelancers etc.
- are classified into
- Platform workers: Works based on online apps and digital platforms.
- Non-Platform workers: Casual wage workers doing part-time and full-time.
Observations in NITI Aayog Report:
- Female labour force participation to be 16%-23%.
- Disabled labour force participation upto 36%.
- Structural hurdles like access to education, and lack of skill sets have objected to the involvement of two demographic groups in the country.
- Fiscal incentives like tax breaks and startup grants will be provided for business setup for the livelihoods of women.
- Large share of women and supervisors will ensure that the up-to-bottom conversation may not lead to an impression of gender stereotypes.
Volume of GIG Economy:
- Up to 7.5 million workers were involved in the GIG economy in 2020-21 and can be increased to 23.5 million in the upcoming 8 years.
- The increased numbers will constitute 4.1% of all livelihoods in India.
- Quality in the GIG: 22% of GIG workers are in high-skilled jobs, 47% are in medium-skilled jobs and 31% are in low-skilled jobs
Significance of the NITI Aayog report:
- Report says, women are more likely to take jobs after education and marriage.
- Certain companies have created chances of employment but yet very low wages.
- Probability of upward movement within the organisation is minimal.
- Gender inequality prevails often.
- Report addressed various other concerns wherein the companies hire GIG workers on a contract basis due to which they are exempted from the benefits of FTE (full-time employee):
- Sick leaves, casual leaves.
- Housing, renting, travel allowances or reimbursements.
- Provident fund savings.
The way forward:
- The report has subjected companies to the welfare of the GIG workers in a more authentic way.
- NITI Aayog recommended to firms initiate a policy where pf and retirement funds are given to workers.
- To ensure insurance cover for all workers who are affected by rising work injuries which lead to loss of life, employment or income.
- Incentives or retirement funds plans can be initiated with the partnership of private insurance companies or the government under the code of social security.