Differentiate between organised znd unorganized sector

 

<div style="margin:0px; padding:0px">Following are the differences between the organised and unorganised sector:</div> <div style="margin:0px; padding:0px"> </div>

Organised sector	Unorganised sector
Comprises enterprises where the term of employment is regular and the job is assured.	Comprises small units where jobs are not regular and hence the job is not assured.
Companies are registered by the government and have to follow rules and regulations.	Companies are outside the control of the government. They have rules and regulations, but these are not followed.
Employees in the organised sector have fixed working hours and they are paid if they work overtime.	Workers in the unorganised sector are paid low wages which are not regular. There is no provision of payment if they work overtime.
Employees in the organised sector get social security benefits such pension, provident fund, paid leave, sick leave etc.	Workers in the unorganised sector do not get benefits such as pension and provident fund. There are no paid leaves and no leaves due to sickness.
Workers in the organised sector are paid a   fixed salary.	Workers in the unorganised sector are not paid a fixed salary.

The sector, which is registered with the government is called an organised sector. In this sector, people get assured work, and the employment terms are fixed and regular. A number of acts apply to the enterprises, schools and hospitals covered under the organised sector. Entry into the organised sector is very difficult as proper registration of the entity is required. The sector is regulated and taxed by the government. There are some benefits provided to the employees working under organised sector like they get the advantage of job security, add on benefits are provided like various allowances and perquisites. They get a fixed monthly payment, working hours and hike on salary at regular intervals. Definition of Unorganised Sector The sector which is not registered with the government and whose terms of employment are not fixed and regular is considered as unorganised sector. In this sector, no government rules and regulations are followed. Entry to such sector is quite easy as it does not require any affiliation or registration. The government does not regulate the unorganised sector, and hence taxes are not levied. This sector includes those small size enterprises, workshops where there are low skill and unproductive employment. The working hours of workers are not fixed. Moreover, sometimes they have to work on Sundays and holidays. They get daily wages for their work, which is comparatively less than the pay prescribed by the government. Key Differences Between Organised and Unorganised Sector The difference between organised and unorganised sector can be drawn clearly on the following grounds: 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. 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. The government rules are strictly followed in the organised sector, which is not in the case of unorganised sector. 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. Job security exists in the organised sector, but not in the unorganised sector. The organised sector, provide additional remuneration to employees for overtime. Conversely, there is no such provision for overtime in case of the unorganised sector. 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. 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. 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