Chapter 2

NCERT
Class 10
Economics
Solutions
3. How would you distinguish between organised and unorganised sectors? Explain in your own words.

Question:

How would you distinguish between organised and unorganised sectors? Explain in your own words.

Answer:

Basis of Difference Organised Sector Unorganised Sector
Meaning The unorganized sector refers to those small and scattered units, which are often outside the state control. Organized sector refers to
that enterprise or place of
work, where the duration of
employment is regular and
fixed.
Rules and Regulations There are rules and regulations in this sector but they are not followed. Government rules and
regulations are followed in
this sector.
Conditions of Employment In this, the terms of employment are irregular. In this, the terms of employment are regular.
Nature of Work In this, the work is irregular
and uncertain and the worker can be asked to leave the work at any time without any reason.
In this the work is continuous and the worker cannot be fired without any reason.
Wages In this the labourers get daily wages. In this, employees and
laborers get monthly salaries regularly.
Work Duration Here the working hours are
not fixed. As well as there is
no provision of payment for
additional hours of work.
People here work only for
fixed hours. If he works for more hours then extra payment is given by the employer for this.
Other Benefits There is no system of benefits other than daily wages. Apart from salary, employees also get other benefits, such as provident fund, medical allowances, paid leave, pension etc.
Working Conditions The facilities of clean drinking water and safe environment are not available in this area. The facilities of clean drinking water and safe environment are available in this area.

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