Economy, asked by chiragverma8175, 1 year ago

Which one is govt sector formal and informal sector?

Answers

Answered by ranjana30chouoyu7r8
0
Informal vs Formal sector: Activities of the people associated with informal sector are not tracked by any form of govt. Further, earnings are also neither taxed nor counted in GDP. However, in case of formal sector, earnings are taxed as well as counted in GDP.

Un-organised vs Organised sector: In organised sector, employment terms are fixed. Employees are protected under various schemes like minimum wages act, factories act etc. However, in case of Un-organised sector, there are no such employment terms.

Now, Organised sector can have people from both Informal as well as formal sector. Similarly, Un-organised sector can also have people from both the sectors.

E.g. A person who is doing free-lancing is part of both Un-organised sector as well as formal sector. However, a cycle rickshaw driver is part of un-organised and informal sector.
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