Currently, India does not have a fixed definition of formal workers, underlined the Panagariya panel. A commonly used definition accepts only regular workers in enterprises registered under the Factories Act, 1948 as formal workers. The workers are called “organized” workers by NSSO instead of formal workers. An alternative definition classifies all workers in enterprises with 10 or more workers and all government workers as formal workers. After considering various alternatives, the task force concluded that it was desirable to adopt a new, more pragmatic definition of formal workers.

Source: Mint July 17, 2017 05:26 UTC