Challenges Faced By Informal Sector Workers In India

Challenges Faced By Informal Sector Workers In India: Examining The Legal Framework For Protecting Their Rights

Deepsikha Choudhury, KIIT School of Law, Bhubaneswar

The informal sector employs also known as unorganized workers which is a significant proportion of workers in India. According to the International Labour Organization (ILO), the informal economy in India accounted for 82% of total employment in 2018. The informal sector includes workers in agriculture, domestic work, construction, and street vending, among others. These workers often lack job security, social protection, and access to basic rights and benefits. In this blog, we will discuss the challenges faced by workers in the informal sector and the legal framework for protecting their rights.1

Challenges:

Workers in the informal sector face numerous challenges, including low wages, long working hours, lack of job security, and limited access to social protection. These workers are often excluded from labour laws and regulations, which leads to exploitation and abuse. The following are some of the main challenges faced by workers in the informal sector in India.

Low Wages: Workers in the informal sector often earn low wages, which makes it difficult for them to meet their basic needs. According to the ILO, 60% of informal workers in India earn less than the minimum wage.

Long Working Hours: Informal sector workers in India often work long hours, sometimes up to 16 hours a day, without any overtime pay or compensation for working on holidays.