What are the differences between organised …

Key Differences Between Organised and Unorganised Sector

The difference between organised and unorganised sector can be drawn clearly on the following grounds:

1. Organised Sector is a sector where the employment terms are fixed and regular, and the employees get assured work. Unorganised sector is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.
2. A number of acts apply to an organised sector like Factories Act, Bonus Act, PF Act, Minimum Wages Act, etc. whereas unorganised sector is not governed by any such act.
3. The government rules are strictly followed in the organised sector, which is not in the case of unorganised sector.
4. In organised sector, the employees draw regular monthly salaries. On the other hand, in the unorganised sector, the workers are paid on a daily basis.
5. Job security exists in the organised sector, but not in the unorganised sector.
6. The organised sector, provide additional remuneration to employees for overtime. Conversely, there is no such provision for overtime in case of the unorganised sector.
7. In organised sector, the salaries of employees are as per government norms. In contrast to an unorganised sector where wages are below, what is prescribed by the government.
8. In organised sectors, workers get a hike on salary, once in a while. As opposed to an Unorganised sector where the salaries or workers are rarely hiked.
9. Employees get add-on benefits like medical facilities, pension, leave travel compensation, etc. in the organised sector, which is not provided to the employees working in unorganised sector.