Benefits of the Employees in Formal Sectors
• Better job security
• Social security benefits
• Better salaries
Issues with Informal Sectors
• Workers and enterprises in the informal sector do not get regular income.
• They do not have any protection or regulation from the government.
• Workers are dismissed without any compensation.
• Technology used in the informal sector enterprises is outdated
• They also do not maintain any accounts.
• Workers of this sector often live in slums and are squatters (unlawful tenants).
• Indian government has initiated the modernisation of informal sector enterprises.
• International Labour Organisation (ILO) is playing important role in modernization.
• Government is taking many steps for the provision of social security measures to informal sector workers.