Unorganized Sector And Different Measures Of Government To Improve It
Post on 04,August 2019   8:00 AM
By - Miss. Vibha Yadav
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The informal sector consists of all un-incorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis and with less than 10 total workers. Informal sector accounts for 90% of total workforce and 50% of total national production of the country.

Such a huge workforce engaged in diversify activities with each group having their own problems and also workers are not organised into trade unions or associations, the sector did not get the similar benefits given to formal sector. Though due to many schemes and government programs, the situation has improved in past years. Some such initiatives are the followings
  • Minimum wages act, 1948 : provision for minimum wages for unskilled and skilled workers in some unorganized sector.
  • Welfare funds have been established for some unorganized sectors like Beedi makers, miners (except coal mines) and for cine workers.
  • Other welfare measures like
    • Granting scholarship for the children of these workers
    • Providing subsidy for the construction of houses etc.
  • National scheme for welfare of fishermen & training and extension was launched for improving their standard of living.
  • Handicraft artisans comprehensive welfare scheme having provision for health insurance and on similar lines handlooms weavers comprehensive welfare scheme was launched.
  • The building and other construction workers(regulation of employment and conditions of service) act, 1996 has been enacted to regulate the working conditions, safety and health measures, payments of wages and compensation etc.
  • National commission for enterprises 2004 in the unorganised sector was setup to look into the problems faced by the sector.
  • The unorganised sector social security act 2008 defined the unorganised sector & provision for the formation of of national and state level boards.
  • Rashtriya Swasthya Bima Yojana(RSBY) 2008 - provision of health insurance upto â‚Âą30,000 for BPL families.
  • Aam Aadmi Bima Yojana(AABY) - for providing insurance coverage for the head of the family of rural landless household.
  • NREGA - minimum 100 days employment to any rural household willing to do public work.
  • National policy on street Vendors in 2009.
Despite of many efforts done by the government, the conditions of the workers is far from satisfactory. Many professions of this sector is out of legal framework and regulations and workers are also not aware of their rights.
Poor implementation of laws is another problem and provisions of minimum wages are violated completely. Though social security schemes are working well in the field.

Presently, providing adequate means of livelihood as well as social security to all workers in the unorganised sector is a challenge before the policy makers.


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