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According to NCEUS:
• “ …the unorganized
sector consists of all
unincorporated private
enterprises owned by
individuals or
households engaged in
the sale and production
of goods and services
operated on a
proprietary or
partnership basis and
with less than 10 total
workers. ”
Occupation involved
in informal sector
(Unorganized Sector):
• Farmer(both with and
without land),
Construction labor,
coolies, vendors, beedi
workers, beauticians,
domestic works,
garment works etc.
Cause for social
insecurity:
• Excessive cost and
regulatory barrier of
entry in formal sectors
• limiting education and
training opportunity
Importance of social welfare to
informal sector workers
In India, the informal sector comprises about 90 percent of total employment.
There is no employment and work security.
In 2006, 17,060 Indian farmers committed suicide according to the National Crime Records Bureau
(NCRB).
Informal business lacks potential for growth, trapping employees in menial condition indefinitely.
Vast majority of labor force comprises women.
 Health security
 Maternity needs
 Life & Accident
security
 Unemployment
security
 Old age security
 Formalization of possible informal
sector
 Strengthen the government bodies
 Making self help co-operating
group
 Ensuring health services
 Awareness and Training
 Many private sectors are working illegally as
informal sector providing no social security to worker.
 Identify them and then formalize.
 Regular investigation is required.
Major challenges:
 Not properly implemented at remote areas
 Corruption
 Strengthen the local bodies like Panchayati Raj, MNREGA etc.
 Recognize of various types of informal sector and planning
according to their nature.
 Proper and effective implementation of national old age
pension scheme.
 Free/economical insurance scheme for informal sector workers.
Major Challenges:
 Time taking process
 Corruption
 New source of funding are required
Middle men
 People of same profession should organize themselves
as a unit.
 It provides a platform to raise, decide and fulfill their
different issues.
 They can donate money to co-operating group, which
can provide financial assistance to the needy ones.
Major Challenges:
 Organizing is difficult due to lack of knowledge
 Political interference may deviate main issues
 Increase the number of Primary health centre.
 Indigenous drugs and medical instruments should be
promoted for low cost health service.
 Proper sanitation and water facility should be provided to
slum areas where most of the urban labors live.
 Constitutional amendment should be made to include Right
of Health in our constitutional right.
 Nasha mukti kendra should be opened in proper number
since liquor addiction is common problem among labor.
Major Challenges:
 New source of funding is required
 Lack of technology
 Due to lack of communication and awareness, many
government schemes are still unknown to people. More ever
corruption due to involvement of middle man makes it so
difficult. Therefore, Awareness programs should be
organized.
 Various training centers should be opened to train people
for various skills like apiculture, which will open new
employment opportunities.
Major Challenges:
 Not properly implemented at remote areas
Middleman

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Importance of Social Welfare for Informal Sector Workers in India

  • 1.
  • 2. According to NCEUS: • “ …the unorganized sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis and with less than 10 total workers. ” Occupation involved in informal sector (Unorganized Sector): • Farmer(both with and without land), Construction labor, coolies, vendors, beedi workers, beauticians, domestic works, garment works etc. Cause for social insecurity: • Excessive cost and regulatory barrier of entry in formal sectors • limiting education and training opportunity
  • 3. Importance of social welfare to informal sector workers In India, the informal sector comprises about 90 percent of total employment. There is no employment and work security. In 2006, 17,060 Indian farmers committed suicide according to the National Crime Records Bureau (NCRB). Informal business lacks potential for growth, trapping employees in menial condition indefinitely. Vast majority of labor force comprises women.
  • 4.  Health security  Maternity needs  Life & Accident security  Unemployment security  Old age security
  • 5.  Formalization of possible informal sector  Strengthen the government bodies  Making self help co-operating group  Ensuring health services  Awareness and Training
  • 6.  Many private sectors are working illegally as informal sector providing no social security to worker.  Identify them and then formalize.  Regular investigation is required. Major challenges:  Not properly implemented at remote areas  Corruption
  • 7.  Strengthen the local bodies like Panchayati Raj, MNREGA etc.  Recognize of various types of informal sector and planning according to their nature.  Proper and effective implementation of national old age pension scheme.  Free/economical insurance scheme for informal sector workers. Major Challenges:  Time taking process  Corruption  New source of funding are required Middle men
  • 8.  People of same profession should organize themselves as a unit.  It provides a platform to raise, decide and fulfill their different issues.  They can donate money to co-operating group, which can provide financial assistance to the needy ones. Major Challenges:  Organizing is difficult due to lack of knowledge  Political interference may deviate main issues
  • 9.  Increase the number of Primary health centre.  Indigenous drugs and medical instruments should be promoted for low cost health service.  Proper sanitation and water facility should be provided to slum areas where most of the urban labors live.  Constitutional amendment should be made to include Right of Health in our constitutional right.  Nasha mukti kendra should be opened in proper number since liquor addiction is common problem among labor. Major Challenges:  New source of funding is required  Lack of technology
  • 10.  Due to lack of communication and awareness, many government schemes are still unknown to people. More ever corruption due to involvement of middle man makes it so difficult. Therefore, Awareness programs should be organized.  Various training centers should be opened to train people for various skills like apiculture, which will open new employment opportunities. Major Challenges:  Not properly implemented at remote areas Middleman