Informal Sector

Informal Sector

Subject: Economy

Section: Employment

Context: 270 million informal sector workers join e-Shram portal.

Concept:

Informal Sector:

• ‘Informal economy’ represents enterprises that are not registered, where employers do not provide social security to employees.
• It is characterized as a range of economic units which are mainly owned and operated by individuals and employ one or more employees on a continuous basis.
• It includes farmers, agricultural labourers, owners of small enterprises and people working in those enterprises and also the self-employed who do not have any hired workers.
• National Accounts Statistics (NAS) defines the ‘unorganised sector’ in addition to the unincorporated proprietary or partnership enterprises, including enterprises run by cooperative societies, trust, private and limited companies.
• The informal sector can, therefore, be considered as a subset of the unorganised sector.
• According to the Periodic Labour Force Survey, over 90 per cent of workers in India are informal workers. Out of these, those engaged in rural areas workers are significantly more than urban areas workers.

Social Security Measures for Informal Sector:

• Unorganised Workers’ Social Security Act, 2008 empowers the Central Government to provide Social Security benefits to unorganised sector workers by formulating suitable welfare schemes on matters relating to life and disability cover, health and maternity benefits, old age protection and any other benefit as may be determined by the Central Government.
• The State Governments are also empowered to formulate suitable welfare schemes on the matters regarding housing, provident funds, educational schemes, skill upgradation, old age homes etc.
• g., Life and disability cover is provided through Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) and Pradhan Mantri SurkshaBima Yojana (PMSBY).The health and maternity benefits are addressed through Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). For old age protection to unorganised sector workers including traders, shopkeepers and self- employed persons, the Government has launched two flagship schemes namely Pradhan Mantri Shram Yogi Maan-DhanYojana (PM-SYM) and National Pension Scheme for Traders, Shopkeeper and Self-Employed Persons (NPS- Traders).
• Besides, there are other important schemes which are listed below:
  1. PM Rozgar Protsahan Yojana
  2. Aam Aadmi Bima Yojana
  3. Atal BeemitVyakti Kalyan Yojana
  4. Central Sector Scheme for Rehabilitation of Bonded Labourer
  5. Gatidhara Scheme for Self- employment
  6. Grant-in-aid Scheme to NGOs for welfare of women labour
  7. Atal Pension Yojana
  8. RashtriyaSwasthyaBima Yojana
  9. Revised Integrated Housing Scheme
  10. Garib Kalyan Rozgar Yojana
  11. Mahatma Gandhi BunkarBima Yojana
  12. DeenDayal Upadhyaya Antyodaya Yojana (Day)
  13. NirmanKamgarAwasShayata Yojana

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