Question

“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.

Hint:

Firms with more than 10 employees are classified under the formal sector, providing workers with regulated benefits.

Answer 1

Amita is working in the formal sector because: The firm employs more than 10 workers, qualifying as a formal establishment. Formal sector workers receive social security benefits and work under legal provisions.