Economists and others often make a distinction between the organised or formal and the unorganised or informal sector. There is a debate over how to define these sectors. According to one definition, the organised sector consists of all units employing ten or more people throughout the year. These have to be registered with the government to ensure that their employees get proper salaries or wages, pension and other benefits.

Ramu's father is working as an agricultural labourer in the village and receives his wages daily from the land owner. Ramu is working in a milk cooperative society in the village with his ten colleagues. Ramu has a better salary than his father, the cooperative society deducts money from his salary for providing future benefits such as a pension. In this situation who is working in the organized sector.

Ramu Ramu's father Both of them None of them

Ramu

Milk cooperatives are registered with the government, Ramu has ten colleagues and the society is taking money for pension and other future benefits which shows the existence of laws and regulations regarding labour and wages.