The following are the features of formal sector of employment :
(A) Seasonal work
(B) 10 or more hired workers
(C) Social security benefits
(D) No trade union
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B) and (C) Only
The formal sector is made up of all public sector establishments. It also includes private establishments that employ 10 hired workers or more. Its workers get regular income and are protected by labour laws.
(A) Seasonal work — False. Formal sector workers have regular jobs through the year. Seasonal work, as in agriculture, is common in the informal sector.
(B) 10 or more hired workers — True. A private establishment with 10 hired workers or more is a formal sector establishment.
(C) Social security benefits — True. Workers in the formal sector enjoy social security benefits, and they earn more than informal sector workers.
(D) No trade union — False. Formal sector workers form trade unions and bargain with employers for better wages and social security.
NCERT (2026-27): “6.7 Informalisation of Indian Workforce … You may find that a small section of Indian workforce is getting regular income. The government, through its labour laws, enable them to protect their rights in various ways. This section of the workforce forms trade unions, bargains with employers for better wages and other social security measures.… …To know this 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.…” |