Manthan Topic: Protecting the Vulnerable
A new Organizational model to bridge the gap
Social welfare program to the
informal sector workers
Team Members :-
1. Shashidhar Joshi
2. Akhilesh Moogi
3. Vishwa K
4. Ratan Bagali
5. Sddharood Dharwad
According to a 2012 Ministry of Statistical and Programme Implementation
report, more than 90% of India’s workforce belongs to the informal sector
and accounts for 50% of the national product.
Magnitude of workforce engaged in the unorganized/informal sector.
•Over 94% of India's working population is part of the unorganized sector.
• India's unorganized sector created 57% of the Indian Net Domestic Product
in 2006, about 9 fold less per worker than the organized sector.
• Although there is variation, the percentage of unorganized labor in Indian
states can go as high as 90%.
•According to the NCEUS, only about 7% of the total workforce in India has
any form of social security.
•The National Sample Survey Organisation (NSSO) carried out a sample
survey in 1999-2000 and its results showed that out of total workforce of
397 million, only 28 million workers are employed in the organized sector
and remaining in the unorganized sector.
Myths and challenges of the informal sector
1) That all people engaged in informal activities are poor.
2) That the sector is unorganized and unstructured.
3) That informal activities are illegal.
•The data says that pink color clearly
indicates the informal workers.
The NSS data from 1999-2000, 2004-2005
& 2009-2010 employment surveys show
(a) the percentage of informal workers
among paid workers in the non-
agricultural sector has steadily increased,
(b) The percentage of such workers with
access to social security has declined, and
(c) Informal labor has grown in the
organized sector, the public sector and in
public limited companies. These facts
highlight the lack of improvement in the
protection of unorganized workers.
Risks occurring for the workers
Health risks (e.g. infant mortality, disease);
Life cycle risks24 (e.g. childbearing, divorce, widowhood);
Household economic risks (e.g. increased expenditure for
social obligations such as marriage and funerals);
Social risks (e.g. exclusion, domestic violence,
There will be three main bodies working here..
1) The organization (Municipal corporations)
2) Informal sector workers.
3) The clients.
The committee from municipal corporation under the head
of municipal governing chief identifies the skilled
informal labourers, enrol them and train them (if
Need for skilled labourers are high from busy advancing
society. The committee under local governing head
(Municipal Corporation) contacts the busy society (clients)
and provide them with the very skilled labourers and ensure
the labourers payment.
Municipal governing committee deducts the tax of this
informal labour from the payment done by client and credits
the remaining payment to the informal sector labour.
The committee, labour & society all them are benefitted.
The tax earned by governing committee is further used for
development of these new types of projects.
Enhancing the productive potential of informal
Identifying and involving the target group.
Assessing to what extent the target group has been reached
by the programs.
Assessing the effectiveness of the programs in terms of their
impact on the target group.
Ensuring that the institutional framework is sustainable.
Ensuring that a national targeted program is combined with
measures aimed at influencing national policies for the creation
of a stimulating environment for the growth and expansion of
1. www.indg.in/social-sector/.../informal_sector_in_india_-_approaches_fo... Informal
sector in India is broadly characterized as consisting of units engaged in
the.... Social assistance through welfare funds of Central.
2. ILO action on the informal sector, ILO, Governing Body, 251st Session, November
3. INTERNATIONAL LABOUR OFFICE GB.277/ESP/1/1 277th Session
..Governing Body Geneva, March 2000… Committee on Employment and Social
Policy ESP .. Employment and social protection in the informal sector.
4. Engendering Social Protection for Informal Economy Workers.. FORUM V | 6
Hussmanns, R.: Developments in the design and implementation of informal sector
surveys – A review of national practices and experiences, ILO, Geneva, 1998, 26