An amendment in Income Tax Act can raise the Salaries of Gig Workers

The gig workers under the companies like Zomato, Swiggy, and Ola have been suffering from the lack of decent compensation. But an amendment in an existing provision of the Income Tax Act can help in raising salaries for these workers.

Section 80JJAA provision of the Indian Income Tax Act can provide companies with a deduction for hiring new employees. The more employees the company will hire the more deduction it will receive. The deduction under section 80-JJAA is 30% of additional employees’ cost and it can be claimed for three consecutive years.

Jimit Devani, the partner at Deloitte Haskins and Sells, has claimed that increasing the baseline incentive of employees to Rs. 35,000-40,000 may encourage the companies to hire more full-time employees. 

Fairwork India report 2021 included how the companies like Zomato, Swiggy, Uber, Dunzo, PharmEasy, and Ola do not offer fair-wage to the contractual employees associated with these companies.