The First Indian National Commission on Labour
(1966-69) defined ‘unorganised sector workforce’ as –
“those workers who have not been able to organize
themselves in pursuit of their common interest dues to
certain constraints like casual nature of employment,
ignorance and illiteracy, small and scattered size of
UNORGANISED/INFORMAL SECTOR WORKERS
Non-declaration of job or of employees.
Casual jobs or jobs of a limited short duration.
Jobs with hours of work or wages below a specified threshold (e.g., threshold for
social security contributions)
Employment by unincorporated enterprises of by persons in households
Jobs where employee’s work of place is outside the premises of the employer’s
REASONS FOR INFORMALITY
Informal employment includes1:
1.Own-account workers working in their own informal enterprise.
2.Own-account worker producing goods exclusively for own final use by their household.
3.Contributing family workers, irrespective of whether they work in formal or informal sector
4.Members of informal producers’ cooperatives.
5.Employees holding informal jobs, whether employed by formal sector enterprises, informal
sector enterprises or as domestic worker employed by households .
CONCEPT OF INFORMAL SECTOR
1. International Conference of Labour Statistics (2003)
Wage work for informal enterprises.
Domestic work without a regular contract.
Casual day labour without a fixed employer.
Unregistered or undeclared work for formal or informal firms.
Temporary and part-time work for formal firms
EXAMPLES (total = 106 activities):
• Agriculture: landless labourers, small farmers, traditional artisans, animal husbandry
• Industry: workers in brick-kilns, construction, beedi-making, incense stick
• Services: workers in local transport, shops, domestic servants, community services
like street cleaning, street vendors, garbage collectors
• Small Workshops: shoe makers, garment makers and embroiderers
• At Home: garment workers artisans or craft producers
On Rivers, Ponds, Lakes, and Oceans: fishermen, shippers
CONCEPT OF INFORMAL ECONOMY
Employees are considered in informal employment when
their employment relationship, in law or practice, is not subject to:
National labour legislation
Social protection or
Entitlement to certain employment benefits, e.g. paid annual
leave, sick leave, etc.
FORMAL SECTOR INFORMAL SECTOR
AGRICULTURE 1.39 238.87
NON-AGRICULTURE 26.68 131.5
MINING &QUARRYING 1.01 1.25
CONSTRUCTION 1.17 16.36
FINANCIAL SERVICES 1.65 3.29
MANUFACTURING 6.71 37.07
ALL SECTORS 28.07 93%(370.37)
ESTIMATES OF EMPLOYMENT
URBAN SHARE (IN PERCENTAGE)
MALE FEMALE TOTAL
1.EMPLOYED 51.8 13.9 33.7
2.UNEMPLOYED 2.4 0.8 1.6
54.2 14.7 35.3
4.NOT COUNTED IN
32.8 71.7 51.4
87 86.4 86.7
13 13.6 13.3
100 100 100
RURAL SHARE (IN PERCENTAGE)
MALE FEMALE TOTAL
1.EMPLOYED 53.1 29.9 41.9
2.UNEMPLOYED 0.9 0.3 0.6
54 30.2 42.5
4.NOT COUNTED IN
30.3 53.9 41.7
84.3 84.1 84.2
15.7 15.9 15.8
7.POPULATION (5+6) 100 100 100
No formal wage policy set by the government
Wages set by state governments as per some cost of living calculation and central
government directives on minimum wages.
The Constitution of India (Article 41) laid down that the State shall make effective
provision for securing these rights.
o Article 41 Right to work, to education and to public assistance in cases of
unemployment, old age, sickness and disablement
o Article 42 Provision for just and humane conditions of work and maternity relief.
The Indian Government took several steps in compliance of the constitutional
Indian Ministry of Labour set up from time to time Welfare Funds for five specific
category of unorganised workers. These workers include Building and Other
Construction Workers, Beedi workers, Cine workers and certain categories of non-coal
Monthly aggregation of data becomes difficult when frequent
movement of family member or job.
Direct and indirect wages and their sources .
Data as mostly aggregates and guesses: no culture of systematic data
compilation or calculation either in mind or paper: its an urbanized
However, people open to questioning, receptive to methodologies and
ISSUES RELATED TO INFORMAL SECTOR
THEMAIN AIM BEHIND ESTABLISING THIS ORGANISATION IS TO FORM A BRIDGE BETWEEN THE
VULNERABLES AND GOVERNMENT , TO ENSURE THAT THERE IS A PROPER FLOW OF FUNDS AND OTHER
FACILITIES .THE BACKBONE OF THIS ORGANISATION IS PROVIDING A UNIQUE IDENTIFICATION TO THE
VULNERABLES ,SO THAT THEY ARE TARGETED ACCURATELY.
N.O.V.I is a bridge between the vulnerables and the government .
The main aim of N.O.V.I is to protect the most vulnerable part of society i.e. informal sector
workers. It works for the family rather than focusing on individual members.
N.O.V.I will target the informal sector workers accurately.
N.O.V.I will provide facilities(SLIDE NO. 17) to the informal sector workers .
N.O.V.I will work in coordination with government hospitals , government schools and
government organisations which were established earlier for the social welfare of informal
N.O.V.I will work under the MINISTRY OF LABOUR.
N.O.V.I will be funded by both central and state reserves.
N.O.V.I will come under RTI act for transparent working.
N.O.V.I will be headed by a prominent personality, selected by Honourable PRESIDENT OF
METHODOLOGY OF N.O.V.I
PROMOTING THE N.O.V.I THROUGH PRINT AND ELECTRONIC MEDIA.
CAMPAINING WILL BE DONE AT THE ROOT LEVEL IN COORDINATION WITH THE PANCHAYAT .
THE REGISTRATION WILL BE DONE UNDER TWO CATEGORIES:
AT THE TIME OF REGISTRATION , THE REGISTERED CANDIDATE WILL BE PROVIDED A BANK ACCOUNT WITH
1. BELOW POVERTY LINE
2. ABOVE POVERTY LINE
THE REGISTRATION WILL BE DONE BY USING LATEST TECHNOLOGY WHICH WILL REDUCE
THE TIME OF REGISTRATION .
A 70% MEDICAL SUBSIDIARY IN GOVERNMENT HOSPITALS.
WOMEN WORKERS HAVING INFANTS WILL BE PROVIDED WITH
FREE EDUCATION TO THE CHILDRENS OF INFORMAL SECTOR
WORKERS UPTO SECONDARY LEVEL.
A QUICK RESPONSE TO THEIR COMPLAINTS AGAINST
A DIFFERENT SECTION IN ALL GRAMIN BANK.
WORKERS CAN ACCESS THEIR ACCOUNT FROM ANY PART OF
ALL COMPLAINTS WILL BE SOLVED BY N.O.V.I BY 24X7
TELEPHONIC FACILITY AS WELL AS PHYSICALLY WITHIN THREE
BANK WILL PROVIDE LOW INTEREST RATE IF THEY APPLY FOR
GOVERNMENT ROLE FOR N.O.V.I
a) Government has to make a rule that those who don’t have this unique identification , will
not be eligible for any kind of fund or policies made by the government.
b) A rule which abide the contractors to hire only those workers which have this unique
identification , not following this rule will face legal punishment.
c) Government has to reserve 35% seats for B.P.L families,35% for those people who belong
to the area where N.O.V.I is present at root level.
d) Most important government has to work accordance with N.O.V.I data ,so that policies and
funds are made accordingly.
a) Integration of efforts between different levels of the government (de-centralised,
1. Registering will help to count the accurate number of unorganised workers which till now is
not available to the government of India.
1. All the workers are categorized in different sections(BPL & APL),so it will be easy for the
goverment to implement any laws or bills for these unorganised sector workers.
3. The exact data provided to the government will help in deciding the accurate amount of
fund to be spend on this sector hence balancing the Gross Domestic Product(G.D.P).
4. Over or under expenditure of funds will be avoided, and will be availed by those who
really deserve it.
5. Exploitation of workers will be reduced to a great extent.
6. Quality of human resource will increase.
7. Break the inter-generational poverty status.
8. Direct transfer of income to the families .
9. Human capital is to be seen as a development tool.
10. Cash allows families to invest in themselves.
11. Education and health as long-term means
AND MANY MORE……...
HURDLES FOR N.O.V.I
Lack of coordination between government and organization.
Other parts of society may try to avail the facilities by illegal
Since it is a multi-level process the misuse of funds and facilities