What is the Difference Between Organised Sector and Unorganised Sector?

By Shivank Goel|Updated : September 5th, 2022

In the organized sector, the terms of employment and structure are well-organized and recognized by the government. Whereas in the unorganized sector, there is no such well-defined structure. In this sector, people usually work on a low wage and in bad conditions. To know more difference between the organized sector and the unorganized sector, read the information given below:

Organized Sector

Unorganized Sector

Well structured and recognized by the government of India.

Poorly structured and no recognition.

Fixed terms of employment, fixed working hours, and fixed wages for the employees.

No fixed terms of employment, random working hours, and no fixed wage.

Medical and other benefits are provided to the employees.

No benefit of any sort is provided.

Example - Government-sector jobs, registered corporates and industries, etc.

Example - Farming, bonded labour, shopkeeping, etc.

Organised Sector and Unorganised Sector

The difference between the organized sector and the unorganized sector is primarily that in the organized sector, the employees get a healthy work environment, benefits, and wages. On the other hand, the unorganized sector is just the opposite of that.

Organized sectors also comply with Indian laws and regulations, such as the Minimum Wages Act, Factories Act, the Gratuity Payment Act, the Shops and Establishments Act, etc.

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FAQs

  • The difference between the organized sector and the unorganized sector is that in the organized sector, the employees get a good work environment, benefits, wages, and job security. While in the unorganized sector, no such provisions are given to the workers.

  • Examples of unorganized sectors include farming, construction work, bonded labour, domestic workers, etc. Examples of organized sectors include government jobs, recognized corporates, and industries, banks, etc.

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