Definition of ‘formal’ worker

In India, there exist various definitions of ‘formal worker’, such as:

♤ Those employed with enterprises registered under the Factories Act, 1948 (thus excludes those in services sector)

♤ Those in enterprises with 10 or more workers and all government workers

♤ Those who have a contract regardless of the size of the enterprise in which they work (Arjun Sengupta Committee Report)

A formal job is generally understood as regular salaried job in government establishments or private enterprises and one that comes with entitlement to one or more of the following social security benefits: provident fund, pension, gratuity, healthcare and maternity.