Which of the following belong to the formal sector ?

Civil Engineer working in construction company which has 10 workers

The correct answer is option (3) : Civil Engineer working in construction company which has 10 workers

We classify workforce into two categories: workers in formal and informal sectors, which are also referred to as organised and unorganised sectors. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers. It also includes all non-farm casual wage labourers who work for more than one employer such as construction workers and headload workers.

(1) Worker in a hotel with 7 hired workers and 3 family members: This fall under the informal sector as number of hired workers are less than 10.

(2) Owner of a textile shop employing 9 workers: This fall under the informal sector as number of hired workers are less than 10.

(3) Civil Engineer working in a construction company which has 10 workers: This falls under the formal sector as number of hired workers are 10..

(4) Cycle-rickshaw puller : This falls under the informal sector as it typically involves self-employment or work in unorganized settings.