The organized and unorganized sectors are two categories of employment based on working conditions and legal framework. Difference Between Organized and Unorganized Sectors:
Aspect
Organized Sector
Unorganized Sector
Definition
Enterprises that are registered and follow government rules and regulations.
Enterprises that are not registered and operate on a small scale without government rules.
Working Hours
Fixed working hours with proper breaks.
Irregular working hours with long durations.
Wages
Salaries are fixed and regular, with additional benefits like PF, insurance, etc.
Wages are low and often irregular with no benefits.
Job Security
Employees have job security and protection under labor laws.
No job security; workers can be dismissed at any time.
Examples
Government offices, factories, schools, and registered companies.
Small shops, daily wage labor, agriculture, and household services.