80% in informal employment have no written contract

  • National Sample Survey Office (NSSO) reports that more than 80% people who are working in the non-agricultural welfare sector do not have formal jobs and the employees do not have written contract and social security benefits
  • A national sample survey was conducted nationally representing households by the NSSO’s 68th ‘Informal Sector and Conditions of Employment in India’, the survey focused both rural and urban areas covering 50% of India’s workforce
  • Eminent economists found out that more than 90% all of employment and half of total GDP but NSSO estimated informal employment to 84% which was higher than expected, comparable extent of informalisation was only at Sub Saharan Africa
  • Informal sector is distinguished by the NSSO between labour and capital, and labour relations based on family, social relations or casual employment since it operates at a low level of organisation
  • NSSO found that the 72% of work force is in informal section and the proportion in rural is higher than the urban India and around 40% of those in regular or salary jobs are also in informal arrangements
  • Rs.225 per day was paid to informal to that of salaried people were paid around Rs.401 per day and nearly 80% informal sector workers had no written contracts, 70 per cent got no paid leave and 72 per cent got no social security benefits and 80% were not in any union association
  • As per the NSSO the proportion of informal workers has fallen drastically since 2004-05 while the 2009-10 data shows a raise slightly and the sectors in which informal practice was followed are Manufacturing, construction, wholesale and retail, trade, transportation and storage
  • Informal workers are mainly found in small enterprises of less than six persons and among states, Uttar Pradesh and West Bengal had the highest proportion of informal workers, and the north-eastern States, Himachal Pradesh and Goa the lowest
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