(Protecting the Vulnerable: Providing
social welfare to informal sector
The First Indian National Commission on Labour (1966-69) defined
„unorganized 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
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
More than 90% of India’s workforce belongs to
the informal sector and accounts for 50% of the
1 Has a high percentage of migrant and the sector is a prominent employer for child labour.
Click to add Title3 Long working hours and lack of employment security.
Click to add Title4 Small capital with business expenditures indistinguishable from household expenses.
Click to add Title2 Generally a low wage and a low earning sector.
5 Organizations of people involved and level of management are of lower level.
Click to add Title6 Some of the works are seasonal which implies no work for some part of year.
Click to add Title7 Workers are unorganized into trade unions which adversely affect there bargaining power.
Click to add Title8 Health hazards are exists in number of occupations.
Estimates of Employment in India
Industrial Category No. of persons (in millions)
Formal Sector Informal Sector
Agriculture 1.39 238.87
Non-Agriculture 26.68 131.5
Mining & Quarrying 1.01 1.25
Manufacturing 6.71 37.07
Electricity, Gas And Water 1 0.04
Construction 1.17 16.36
Trade, Hotels And Restaurants 0.49 40.37
Transport, Storage & Comm. 3.15 11.48
Financial Services 1.65 3.29
Community Services 11.49 21.64
All Sectors 28.07 (93%) 370.37
Year: 1999/00 (Total labour force: 406 million) (GDP share: 63%)
1.Solution for hawkers
market which would
provide cleaner and
organized space for
commerce and also
provide security for
build proper shops
(on roadside) which
would provide them
with secured shops,
which in turn would
keep the city clean and
help in land
should be elected
to have direct
contact with higher
• by school students
in form of rally,
nukkad natak and
•by government in
form of various types
KARYODAYA JAN ABHIYAN..
*Central government should
launch a scheme in the
interest of the informal
sector under which
government can give
contract to private company
which would be in-charge
of creating departments in
every district for each state
which would keep a record
of all the informal workers
in that area
All the informal sector workers would have to fill up a form
giving details about their family members and
background, business and annual income along with their
personal details .Each worker would be provided an
*enrollment number which would:-
help their family to receive compensations( in case of
help them receive funds provided by the government.(as
mentioned in the **Acts for informal sector).
help them get business loans at low interest rate.
* and the registrations would be computerized
**Indira Gandhi National Old Age Pension Scheme.
IMPACT OF THE SOLUTION
From the number of
enrollment forms the
government can know
the actual number of
population to be
During the initial
government can conduct
survey on monthly basis
and later on yearly basis
to take the feedback
from the population
whether they are being
benefited from the plan.
Along with the
can ask private
bodies to submit an
report on yearly
MERIT OF THE SOLUTION…
Many efforts and legislations have been laid down by the
government but unfortunately are very far from the reach
of the informal sector:
The Unorganized Sector Social Security Act (2008)
National Policy on Street Vendors (2009)
The reason mainly being corruption.
Corruption would be minimized if government gives
contract to private companies and people can get benefits
CHALLENGES and SOLUTIONS..
Legal:-People can show
false data to take
benefit of the scheme
Submission of 1% of
the annual income
would be mandatory
to get the benefits of
could act as source of
scheme on a large
Social :- Mass