Differentiate between formal workers and informal workers.

Formal Workers

Informal Workers

1. They work in organised sector of the economy.

1. They work in unorganised sector of the economy.

2. They can form trade unions.

2. They cannot form trade unions.

3. They are protected by various labour laws.

3. The are not protected by laws and are therefore highly volnerable to uncertainities of the market.

4. They are entitled to social security benefits.

4. They are not entitled to social security benefits.

5. They are like regular workers.

5. They are like daily wage workers.