1. Strategical Innovations To Up build
The Vulnerable
Providing social welfare to the informal sector workers
Team Details
Keswin, Harikrishna, Kalpajit, Anoop, Sreemol
Vinayaka Missions Kirupananda Variyar Engineering College, Salem

2. Causes of the
problem:
Identification of the informal sector is a
herculean task as they exist outside the
tax ambits.
Lack of awareness among the informal
sector workers in rural and urban
areas.
Lack of proper social security net and
unrecognizable employees.
Lack of well defined classification and
granting's in the category of
unorganized sector workforce.
Indicates the classification of unorganized
sectors by NCE (2009).
As per the Census 2008-2009.
94% of Indians work growth comprises of informal sector
group who helps in boosting the countries economy

3. Low wages.
Low living standards.
Inadequate nutrition.
Long working hours.
Hazardous working condition.
Lack of basic amenities.
Shortage of clean drinking water and proper sanitation
facilities.
Child labour.
Gender differentiations.
Lack of institutional support, benchmarking and
exploitation of workers.
Problems faced by informal sector

4. Proposed innovative solution concept
 Fixed wages decided by the government based
on their working hours, environment ,type of
labour ,age and sex bar.
 Providing access of BPL and APL ration cards
to all in fast track method.
 Fixing up working hours and shift based duties
along with overtime work adding to extra
income.
 Improving the standards of working area by
introducing safety measures and safe
environment.
 Providing basic first aid services dispensaries,
water and sewage treatment plants.
 Sharp monitoring panel to monitor child
labour.
 Identifying the workforces recognizing of
employers organizing them in various
categories, implementation of a social security
net, inclusion of workers in institutional
banking system.

5. Merits of proposed solution
 Provides a safe social security net
along with registration of employees
and workers by arranging them in
various categories and centralization,
solves the problem of “ lack of basic
amenities”.
 Providing the drinking water facility
and a proper sanitation facilities
solves the problem of “shortage of
drinking water and proper sanitation
facilities”.
 Strict and sharp monitoring solves
the problem of “child labour”.

6. Implementation of solution
Fixed working hours for
the unorganized sectors
Non
Hazardous
Hazardous
Environmental conditions must
be classified as follows, in order
to ensure security of workers in
unorganized sectors

7. Classification of employees on the basis of age and sex bar
45- mortality
4-8 hours
Overtime with extra wages
but exempted from
hazardous work conditions
16-45 years
4-12 hours
Overtime with extra wages
and included in hazardous
work conditions
14-16 years
4-6 hours
Exempted from overtime
duties and hazardous work
conditions

8. Financial supports and providing
institutional benchmarking
Informal
sector
workers
Non migrants
migrants
Macro
Entrepreneurs
Micro
Entrepreneurs
 Non migrant and migrants to be
provided loan by the cooperative
Banks and macro and micro
entrepreneurs must provided loans
by nationalized banks.
Interest rates:
 9.25% to migrants.
 8.25% to non migrants.
 9.5% macro entrepreneurs.
 10% micro entrepreneurs.

9. Stakeholders Involved In Each Step
• Fixing wages: Employees are the
stakeholders executed by the
government.
• Ration cards and ration products:
The government is the
stakeholders.
• Providing basic amenities, safety
measure and training to workers:
Employees are the stakeholders
and executed by the government.
• Social security net: Government of
India is the stakeholders.
• Drinking water and sanitation:
PWD and health care departments
are the stakeholders.
• Child Labour : NGO’S ,Government
of India ,Child welfare and Human
right commission.
Sources Of Income
20% can be
collected from
people in
organized
sector
(Banks..etc)
5% can be
collected by
the Public
(Raising
Funds)
10% can be
contributed
by the
government

10. Appropriate Monitoring Mechanism
Setting up a organized
ministry of informal sector
Union ministry of informal sector
(including cabinets)
State ministry of
informal sector
District union of
informal sector
Municipals,
cooperation's,
Villages
Co-operative
societies, small scale
informal sectors.
Migrant and non-migrant
workers & Micro and Macro
entrepreneur
Union
ministry
of
informal
sector
State
ministry
of
informal
sector
NGO’s,
entrepre
neurs,
financier
s and
bankers
ChildLabour:monitoredbyHumanRightsCommission

11. Challenges and mitigation factors
• Clash between informal and
formal sectors.
• Economic budget will be
increased.
• Muscle and money powers
of political parties leads to
compressing of informal
sector.
Social and
economic
challenges:
• Due to illiteracy and
technological
backwardness of
unorganized sector, loses
their opportunity provided
by the government.
Technological
challenges:
• Agricultural production may
decrease due to the extensive
opportunity provided by the
government.
Environmental
challenges:
Mitigation factors:
 NSS and scouts & guides must spread the
awareness both in urban and rural areas.
 Vocational education and skills trainings
must be provided to the informal sector.
 Economic investment through high in put
stages by the government in long term
bases can be resulted into higher economy.
Sustainability:
 Long term investment and framework
on this sector provides security to the
unorganized workforce.
 Boosts economy.
 Improves living standards of informal
sectors.
 Large scale employment opportunities.

12. Appendix
 Images
www.google.com
 • Youth Employment
and Unemployment: an
Indian Perspective (ILO)
 • State of Urban
Youth, India 2012
 • Right to Drinking
Water in India (Centre
for Economic and Social
Studies 2004)
• www.statiticsfindia.com
• Report on
unemployment and
employment survey
(2009) ministry of
labour and
employment.

13. The End