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 as formal sector establishments, providing regulated benefits to workers.

Answer 1

Amita works in the formal sector because: The firm employs more than 10 workers, qualifying as a formal establishment under labor laws. Formal sector workers are entitled to social security benefits and work under regulated conditions.