Lok Sabha Question No. 117 (STARRED), answered on 2019-11-25
Subject: Workforce in Unorganised Sector
Ministry: LABOUR AND EMPLOYMENT
Asked by: Aparajita Sarangi

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

STARRED QUESTION NO. *117 TO BE ANSWERED ON 25.11.2019

## WORKFORCE IN UNORGANISED SECTOR

*117. SHRIMATI APARAJITA SARANGI:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether the Government has defined the unorganised sector and if so, the details thereof;
- (b)the total percentage of Indian workforce in the unorganised sector, State/ UT-wise, particularly in Odisha;
- (c)the  reasons  that  are  identified  by  the  Government  for  a  large presence of the unorganised sector; and
- (d)whether it is viable at present to transform the unorganised sector into an organised sector, if so, the manner in which it can be done and the steps taken/being taken by the Government in this regard?

## ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) to (d): A statement is laid on the Table of the House.

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- STATEMENT IS REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA  STARRED  QUESTION  NO.  117  FOR  25.11.2019  BY  SHRIMATI APARAJITA  SARANGI  REGARDING  WORKFORCE  IN  UNORGANISED SECTOR. (a) As per Section 1(l) of the Unorganised Workers' Social Security Act, 2008, the unorganised sector has been defined as 'an enterprise owned  by  individual  or  self  employed  workers  and  engaged  in  the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten'. (b) The  latest  estimates  of  Worker  in  unorganised  sector  are  not available  from  the  Periodic  Labour  Force  Survey  (PLFS).    However, from the Annual Report (July 2017-June 2018), on PLFS, estimates are given in Tables 1, 2 and 3 of Annexure-I.  The explanatory Note and broad structure are given at Annexure-II. (c) & (d) Employment generation coupled with improving employability is  the  priority  concern  of  the  Government.    Government  has  taken like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure in
- various steps for generating employment in the country various schemes.

Pradhan  Mantri  Rojgar  Protsahan  Yojana  (PMRPY)  has  been launched by the Ministry of Labour and Employment for incentivizing employers for promoting employment generation.  Under this Scheme, Government  is  paying  entire  employer's  contribution  (12%  or  as admissible) towards Employees' Provident Fund and Employees' Pension  Scheme  for  all  eligible  new  employees  for  all  sectors  for  3 years.  This Scheme has a dual benefit, where, on the one hand, the employer  is  incentivized  for  increasing  the  employment  base  of workers in the establishment, and on the other hand, these workers will have access to social security benefits of the organised sector.

Contd..2/-

The Scheme aims to cover a large number of informal workers to the formal workforce for availing the Social Security Benefits.

In order to provide social security benefits to the workers in the unorganised sector, including agricultural labourers, Government enacted the Unorganised Workers' Social Security Act, 2008. This Act stipulates  formulation  of  suitable  welfare  schemes  for  unorganised workers on matters relating to: (i) life and disability cover, (ii) health and  maternity  benefits,  (iii)  old  age  protection  and  (iv)  any  other benefit  as  may  be  determined  by  the  Central  Government.  Life  and disability cover is provided through Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) to the unorganised workers depending upon their eligibility. The health and  maternity  benefits  are  addressed  through  Ayushman  Bharat scheme.  For  old  age  protection  in  the  form  of  monthly  pension, Ministry of Labour & Employment has launched Pradhan Mantri Shram Yogi Maan-Dhan Yojana which is a voluntary and contributory pension scheme for providing monthly minimum assured pension of  Rs.3000/on attaining the age of 60 years. The unorganised workers in the age group of 18-40 years whose monthly income is Rs.15000/- or less and not  a  member  of  EPFO/ESIC/NPS  can  join  the  scheme.  Under  the scheme, 50% monthly contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government.

Table 1: Worker Population Ratio (WPR) (in per cent) according to usual status (primary sector + secondary sector) (ps + ss) for each State/UT during 2017-18.

| State/UT            |   WPR (in per cent) |
|---------------------|---------------------|
| Andhra Pradesh      |                45   |
| Arunachal Pradesh   |                30.7 |
| Assam               |                32.9 |
| Bihar               |                23.6 |
| Chhattisgarh        |                45.7 |
| Delhi               |                32.8 |
| Goa                 |                34.7 |
| Gujarat             |                36.2 |
| Haryana             |                30.5 |
| Himachal Pradesh    |                46.4 |
| Jammu &Kashmir      |                38.6 |
| Jharkhand           |                28.8 |
| Karnataka           |                38.1 |
| Kerala              |                32.4 |
| Madhya Pradesh      |                40   |
| Maharashtra         |                39.2 |
| Manipur             |                32.1 |
| Meghalaya           |                41.5 |
| Mizoram             |                36   |
| Nagaland            |                25.9 |
| Odisha              |                33.8 |
| Punjab              |                33.8 |
| Rajasthan           |                34.2 |
| Sikkim              |                47   |
| Tamil Nadu          |                40.5 |
| Telangana           |                39.3 |
| Tripura             |                33.8 |
| Uttarakhand         |                30.7 |
| Uttar Pradesh       |                28.7 |
| West Bengal         |                37.3 |
| A &NIslands         |                37.4 |
| Chandigarh          |                35.6 |
| Dadra &Nagar Haveli |                45.8 |
| Daman &Diu          |                50.9 |
| Lakshadweep         |                26   |
| Puducherry          |                30.1 |
| all-India           |                34.7 |

Table (2):  Percentage  distribution of usually working persons  (ps+ss) by industry of work for each State/ UT during 2017-18

| industry sections of NIC-2008   |
|---------------------------------|

| Nagaland            |   36.79 |   0.06 |   5.68 |   0.29 |   2.01 |   0.27 |   10.72 |   5.43 |   0.62 |   0.42 |   0.12 |   0.00 |   1.27 |   12.76 |   4.80 |   9.74 | 1.66      | 0.15      | 7.12      | 0.07   |   0.00 |   100.00 |
|---------------------|---------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|-----------|-----------|--------|--------|----------|
| Odisha              |   48.76 |   1.17 |   7.42 |   0.33 |   0.23 |  17.29 |    8.54 |   4.42 |   1.18 |   0.39 |   0.53 |   0.12 |   0.54 |    0.88 |   1.18 |   3.67 | 0.75      | 0.12 1.99 |           | 0.49   |      0 |      100 |
| Punjab              |   26.04 |   0.12 |  18.88 |   0.51 |   0.27 |  13.32 |   15.19 |   4.63 |   1.57 |   0.77 |   1.62 |   0.18 |   0.76 |    1.08 |   2.79 |   5.87 | 1.28      | 0.73      | 2.89 1.51 |        |      0 |      100 |
| Rajasthan           |   49.57 |   1.72 |   9.06 |   0.51 |   0.42 |  14.35 |    8.28 |   3.47 |   1.17 |   0.29 |   0.71 |   0.33 |   0.62 |    1.05 |   1.75 |   3.41 | 0.73 0.30 | 1.86      |           | 0.41   |      0 |      100 |
| Sikkim              |   41.48 |   0.22 |   6.91 |   1.07 |   0.54 |   6.75 |   10.68 |   4.75 |   5.12 |   0.24 |   0.8  |   0.33 |   0.85 |    0.92 |   6.84 |   6.39 | 3.80      | 0.77 1.55 |           | 0.00   |      0 |      100 |
| Tamil Nadu          |   27.74 |   0.37 |  19.45 |   0.52 |   0.35 |  14.23 |   10.92 |   6.12 |   2.96 |   2.59 |   1.53 |   0.33 |   1.03 |    1.87 |   1.29 |   3.68 | 1.39      | 0.33      | 1.88      | 1.42   |      0 |      100 |
| Telangana           |   43.43 |   0.58 |  12.29 |   0.58 |   0.13 |   9    |    8.8  |   5.58 |   1.27 |   3.13 |   1.56 |   0.31 |   1.24 |    1.16 |   1.59 |   3.22 | 1.37      | 0.18      | 2.06      | 2.51   |      0 |      100 |
| Tripura             |   29.05 |   0.16 |   6.96 |   0.07 |   0.05 |  13.99 |   17.11 |   7.45 |   0.86 |   0.16 |   0.36 |   0    |   1.02 |    2.38 |   6.11 |   6.28 | 1.07      | 0.07      | 2.33      | 4.51   |      0 |      100 |
| Uttarakhand         |   42.53 |   0.11 |   9.4  |   0.48 |   0.14 |   9.86 |   11.33 |   5.48 |   2.54 |   0.35 |   1.04 |   0.36 |   0.73 |    2.27 |   2.2  |   7.5  | 1.59      | 0.33      | 1.45      | 0.30   |      0 |      100 |
| Uttar Pradesh       |   48.75 |   0.08 |  11.38 |   0.19 |   0.25 |  13.49 |   10.85 |   3.7  |   1.83 |   0.42 |   0.48 |   0.16 |   0.66 |    0.71 |   1.09 |   3.15 | 0.82      | 0.27 1.47 |           | 0.24   |      0 |      100 |
| West Bengal         |   36.56 |   0.36 |  17.8  |   0.15 |   0.15 |  11.55 |   11.11 |   5.7  |   2.28 |   0.66 |   0.68 |   0.14 |   0.73 |    1.46 |   1.17 |   4.06 | 1.10      | 0.44      | 1.75      | 2.15   |      0 |      100 |
| A & N Islands       |   15.47 |   0.25 |   6.13 |   1.55 |   0.23 |  15.98 |    9.37 |   8.68 |   3.79 |   1    |   0.66 |   0    |   1.19 |    1.97 |  21.23 |   3.52 | 6.35      | 0.08 0.41 |           | 2.13   |      0 |      100 |
| Chandigarh          |    0.46 |   0    |  15.15 |   2.74 |   0.14 |   5.19 |   16.84 |   5.48 |   6.05 |   1.82 |   2.94 |   0.49 |   3.95 |    3.32 |  14.86 |   5.66 | 4.76      | 0.56      | 3.14      | 6.47   |      0 |      100 |
| Dadra& Nagar Haveli |   19.82 |   0    |  57.36 |   1.5  |   0    |   1.83 |    3.91 |   4.57 |   1.83 |   0.75 |   0.11 |   0    |   0.45 |    0.96 |   1.24 |   4.01 | 1.26      | 0.12      | 0.08      | 0.21   |      0 |      100 |
| Daman& Diu          |    2.51 |   0    |  61.3  |   0.57 |   0    |   2.84 |   11.54 |   1.58 |   2.78 |   0.01 |   1.87 |   0    |   0.38 |    1.85 |   4.66 |   3.79 | 0.76      | 0.00      | 0.86      | 2.70   |      0 |      100 |
| Lakshadweep         |   25.67 |   0    |   1.33 |   1.45 |   0    |  13.33 |    4.69 |   8.82 |   6.4  |   3.22 |   0.9  |   0    |   3.41 |    2.01 |   9.06 |  11.66 | 4.52      | 1.15      | 2.40      | 0.00   |      0 |      100 |
| Puducherry          |   11.57 |   0    |  17.42 |   1.25 |   0.39 |  13.95 |   14.07 |   8.11 |   2.12 |   3.94 |   0.92 |   0.06 |   2.02 |    3.29 |   3.12 |   7.39 | 3.99      | 0.62 5.26 |           | 0.53   |      0 |      100 |
| all-India           |   44.14 |   0.41 |  12.13 |   0.34 |   0.25 |  11.67 |   10.09 |   4.93 |   1.87 |   0.99 |   1.05 |   0.21 |   0.83 |    1.19 |   1.62 |   3.78 | 1.20      | 0.28 1.92 |           | 1.08   |      0 |      100 |

Table 3: Percentage of workers in usually status (ps+ss)  in informal sector among the workers in usual status (ps+ ss) in (A)griculture sector (E)xcluding (G)rowing of (C)rops, market gardening horticulture and growing of crops combined with farming of animals (AGEGC) and Non-agriculture sector for each State/ UT during 2017-18

| State/ UT                            | Percentage of workers in usually status (ps+ss) in informal sector   |
|--------------------------------------|----------------------------------------------------------------------|
| Andhra Pradesh                       | 78.3                                                                 |
| Arunachal Pradesh                    | 48.2                                                                 |
| Assam                                | 61.9                                                                 |
| Bihar                                | 63.4                                                                 |
| Chhattisgarh                         | 74.6                                                                 |
| Delhi                                | 60.2                                                                 |
| Goa                                  | 43.2                                                                 |
| Gujarat                              | 67.1                                                                 |
| Haryana                              | 67.0                                                                 |
| Himachal Pradesh                     | 48.3                                                                 |
| Jammu &Kashmir                       | 66.8                                                                 |
| Jharkhand                            | 66.5                                                                 |
| Karnataka                            | 65.5                                                                 |
| Kerala                               | 67.3                                                                 |
| Madhya Pradesh                       | 64.8                                                                 |
| Maharashtra                          | 56.8                                                                 |
| Manipur                              | 50.8                                                                 |
| Meghalaya                            | 46.9                                                                 |
| Mizoram                              | 44.2                                                                 |
| Nagaland                             | 20.1                                                                 |
| Odisha                               | 66.9                                                                 |
| Punjab                               | 74.0                                                                 |
| Rajasthan                            | 73.7                                                                 |
| Sikkim                               | 53.1                                                                 |
| Tamil Nadu                           | 60.0                                                                 |
| Telangana                            | 59.9                                                                 |
| Tripura                              | 67.9                                                                 |
| Uttarakhand                          | 54.3                                                                 |
| Uttar Pradesh                        | 85.4                                                                 |
| West Bengal                          | 76.8                                                                 |
| A &NIslands                          | 53.3                                                                 |
| Chandigarh                           | 56.7                                                                 |
| Dadra &Nagar Haveli                  | 31.7                                                                 |
| Daman &Diu                           | 25.9                                                                 |
| Lakshadweep                          | 39.5                                                                 |
| Puducherry                           | 47.8                                                                 |
| all-India                            | 68.4                                                                 |
| Source: Annual Report, PLFS, 2017-18 | Source: Annual Report, PLFS, 2017-18                                 |

## Explanatory Note:

1. Definition of worker (employed persons): Persons who, during the reference period, were engaged in any economic activity or who, despite their attachment to economic activity, temporarily abstained from work for reasons of illness, injury or other physical disability, bad weather, festivals, social or religious functions or other contingencies constituted workers .
2. Definition  of  usual  status  worker  (ps+ss):  The  workers  in  the  usual  status  (ps+ss)  are  obtained  by  considering  the  usual principal status (ps) and the subsidiary status (ss) together. The workers in the usual status (ps+ss) include (a) the persons who worked for a relatively long part of the 365 days preceding the date of survey  and (b) the persons from among the remaining population who had worked at least for 30 days during  the reference period of 365 days preceding the date of survey.

<!-- formula-not-decoded -->

3. Proprietary  Enterprise:  When  an  individual  is  the  sole  owner  of  an  enterprise  it  is  a  proprietary  enterprise.  Own  account production of fixed assets for own use, when produced by a single member, is classified as proprietary enterprise.
4. Partnership  Enterprise:  Partnership  is  defined  as  the  'relation  between  persons  who  have  agreed  to  share  the  profits  of  a business carried on by all or any one of them acting for all'. There may be two or more owners, belonging to the same or different households, on a partnership basis, with or without formal registration (where there is a tacit understanding about the distribution of profit among the so-called partners).  Own account production of fixed assets, when produced by two or more members belonging to the same or different households will be classified as partnership enterprises. Thus, own account production of fixed assets by a group of households for community use is classified as partnership enterprise.
5. Informal Sector: Proprietary and partnership enterprises are termed as informal sector.

## 6. BROAD STRUCTURE of NIC -2008

## Primary Sector (Section A)

Group 014: Animal production

Group 016: Support activities to agriculture and post-harvest crop activities

Group 017: Hunting, trapping and related service activities

Division 02: Forestry and logging

Division 03: Fishing and aquaculture

Section A: Agriculture, forestry and fishing

## Secondary Sector (Section B to Section F)

Section B: Mining and quarrying

Section C: Manufacturing

Section D: Electricity, gas, steam and air conditioning supply

Section E: Water supply; sewerage, waste management and remediation activities

Section F: Construction

## Tertiary Sector (Section G to Section U)

Section G: Wholesale and retail trade; repair of motor vehicles and motorcycles

Section H: Transportation and storage

Section I: Accommodation and Food service activities

Section J: Information and communication

Section K: Financial and insurance activities

Section L: Real estate activities

Section M: Professional, scientific and technical activities

Section N: Administrative and support service activities

Section O: Public administration and defence; compulsory social security

Section P: Education

Section Q: Human health and social work activities

Section R: Arts, entertainment and recreation

Section S: Other service activities

Section T: Activities of households as employers; undifferentiated goods and services producing activities of households for own use

Section U: Activities of extraterritorial organizations and bodies

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