2. An unorganized worker is a home based worker, self employed
worker or a wage worker in the unorganized sector or a worker who
is not covered by any of the labor laws. It provides employment to
more than 90% of the labor as well as makes sizeable contribution
to the GDP. A large number of them are below poverty line. By
2020, India will account for nearly a quarter of the global
workforce. A large proportion of the workers engaged in the urban
unorganized sector is migrants from rural areas with poor. Easy
entry & exit from the business & free mobility is there within the
sector.

3. • 60% of female workers in developing countries are employed by the informal sector
due to easy availability
• PROBLEMS
• Gender GAP IN WOMEN IS EVEN HIGHER
• SEXUAL, PHYSICAL, MENTAL & ECONOMICAL ABUSES
• No Maternity leave benefits, compensation against
• Budget received by National Women's Commission is not sufficient enough to initiate
any movement to alleviate challenges faced by women in these sectors.
• Reasons For Their Vulnerability (a) irregular work, (b) low economic status,
• (c) No bargaining power, (d) lack of control over earnings,
• (e) need to balance paid work with care for children, (g) lack of assets,
• (f) NO access to institutional credit, training & information
• Solutions:
• Sufficient deployment of Police with Female Staff to increase Public to Police ratio
• Cells for Quickest Redressal of grievances concerning domestic violence,
unequal pay, assault case to be setup in every nook and corner.
Give exemplary punishment to the culprit

4. • The governments cannot collect taxes from informal businesses
which leads to a great loss to Indian Economy.
• Solution: Establish a mechanism to collect Tax from Informal Sector
• Implementation: Most popular AADAHAR Card may be used to take
the information(in the next phase) like Account No, PAN Card etc to
keep a track. This would also help them in transferring the subsidies
and return directly in their accounts. This would in turn
transparency and accountability of the government hence curbing
corruption
• Impact: If all the population in informal sector pay their taxes well
in time then our economy will be in a very healthy state than ever

5. • Social Security includes Health Security, Maternity
Needs, Life & Accident Security, Unemployment
Security, Old Age Security, No housing, No Pension
• Solutions: limit of BPL to be raised so as to increase the
coverage
• Health insurance by way of reimbursement for major
ailments.
• House building assistance with easy loan or EMI’s
• Scholarship for wards of the workers.
• Easy and quick process for opening bank account &
getting Insurance cover
• methods of generating income through microloans or
land rights when access to the formal sector is limited

6. • Implementation: National Rural Employment Guarantee Scheme. Number of working days
to be increased with compensation for unemployment. Similar Scheme must also be
launched in Sub urban areas.
• Skill training must be given through the establishment of ITI’s at grassroots level
• Employment solutions using technology, such as the Internet (e.g. interactive websites in
multiple languages), mobile technology (e.g. SMS alerts) & call centers. Such technology
builds potentially scalable, sustainable & profitable business models.
• Job seekers to use portals like Timesjob, Naukarisearch, Monster.com as they are free and
gives perfect match at the earliest.
• To facilitate the transition of informal businesses to the formal sector & reduce barriers for
all business (formal & informal). Hence poor can realize their potential & raise national
competitiveness. Acquiring formal status allows entrepreneurs to access formal markets,
invest with security, obtain new sources of credit, & defend their rights. For ex- In La Paz,
Bolivia during year 2004 the municipal government reduced the number of procedures
required to register a business, the number of registered business
increased by 20 %.
•

7. • Implementation: scheme to provides smart card based
health insurance. Premium of the insurance is paid jointly
by the Central Govt (75%) & State Govt (25%).
• Legislation to enable private sector companies to sell
insurance & pension products in the form of deferred
annuity, immediate annuity, annuity with return of
purchase price
• Old Age Pension scheme to be enforced nationally to
provide old age pension to all citizens which are 50 years
of age & living below poverty line.
•

8. • Implementation : Lack of Awareness is the major factor involved behind all
the social Security Issues. So government & we all can take a step towards
creating awareness, by letting the informal unorganized sector aware of the
policies being run by the government, what are their rights, how they can
demand for justice, how they can organize themselves, how they can be
formalized etc.
• For this various competitions like drawing, slogan writing, marathon, essay
writing, paper presentation, dramas, skit can be conducted on a large scale
to sensitize the informal workers to unleash the potential within them in
the most efficient manner. This can also be improved by media and press
coverage at wider scale, so that every possible helper can know about
their(Informal workers) wretched conditions

9. • Minimum Wages Act must be executed with strictness and no compromise for
mismanagement & if possible balance can be transferred to the accounts or
can be given to the leader of group of workers who enjoys the majority and
can take stern actions against the offender. This would prevent them from
irregular, less & unstable income
• Government must fix working hours for the workers so that they are not
subjected to long working hours. Paid Leave, Bonus Support or Incentives
awarded, if working hours are exceeded.
• Employer – employee relationship must be built through mutual cooperation
• Frequent & Regular raids must be conducted everyday to counter attack
people employing Child Labor, making them work in hazardous conditions with
sanitation and basic hygienic amenities

10. • Government must take a pledge to convert all the slums
into a better place to live by the end of this 5 year plan.
• Informal workers who are also slum dwellers must organize
themselves like RWA’s(Resident welfare Associations) to be
in direct link with the local governing bodies hence they
can get issues like education, health, water Supply,
electricity etc addressed at the earliest
• Government hospitals must be accessible even in slum
areas. All the medical students of India can be made to
intern in rural areas near by, this would render great
support to the basic health especially maternity needs of
rural people who are mostly informal

11. • Impact: Lack of basic social security can
• Debilitates the worker’s ability to contribute meaningfully to his efficiency & thus to
increase production & improve productivity.
• It leads to social displeasure & estrangement, especially in the wake of prosperity evident in
another section of the social order.
• NSSO reports clear evidences to prove labour market of India has been undergoing
tremendous transformations, including growth of informal sector activities, deterioration in
the quality of employment, Weakening of worker organizations, marked decline in social
security etc. To a greater extent, these transformation could be related to the ongoing
globalization
• But by successfully implementing the solutions recommended, India would have had
formalized most of its informal population in the best possible manner and hence it would
boost India’s confident of being a superpower in the very near future to come

12. • http://urbanpoverty.intellecap.com/?p=590
• http://www.ijhssnet.com/journals/Vol_2_No_
21_November_2012/23.pdf
• http://www.worecnepal.org/news/problems-
challenges-&-solution-women-working-
informal-&-entertainment-sector
• http://www.google.com/imghp
• www.wikipedia.org