Women workers in the informal sector in India represent a staggering 81.8% of all female employees. Still, their contributions and challenges remain largely invisible. This hidden workforce, largely operating within unregulated and unprotected spaces, forms the backbone of various industries—from construction to domestic work. However, these women are caught in a cycle of economic dependency, low wages, and vulnerability. They have little to no access to social security, legal protection, or opportunities for upward mobility.
Their reality is not just a story of labour; it is a story of survival against systemic barriers that limit their potential, fuel inequality, and hinder India’s economic inclusivity. In understanding the plight of these women, we can begin to explore the structural changes needed to create a more equitable and supportive work environment.
A 2019 UN Women report found that about 80% of women in South Asia, 74% in Africa, and 54% in Latin America and the Caribbean work in this sector. Yet, they often lack basic social protections like pensions and sick leave, face lower wages and are at greater risk of harassment. For most women, it is not a choice but a lack of options. That is because restrictive policies, social norms, and scarce opportunities keep them trapped in this unorganised sector.
Women workers in the informal sector: From construction to domestic roles
The informal sector in India faces significant challenges, particularly due to a lack of precise information about the total number of workers. This is especially true for women, and their distribution is across various occupations. Census reports from 2001 indicated that approximately 60,000 women workers fell under categories such as main workers, marginal workers, and those engaged in household industries. At the same time, some estimates suggest that up to 91% of women in paid jobs are employed within the informal sector.
Research has identified several categories of women workers in the informal sector:
- Construction labourers: Women often work as unskilled labourers, carrying materials to construction sites, while men typically perform skilled or semi-skilled tasks.
- Domestic workers: This category primarily consists of women, especially young girls. In 1997-98, there were approximately 1.68 million female domestic workers compared to just 0.62 million males. The data includes both part-time and full-time workers.
- Garment workers: Women employed in this sector assist male tailors and work in various capacities for drapers, boutiques, and stores. It reflects a bias where women primarily serve as helpers rather than taking on skilled roles.
- Vendors: This category includes women selling a wide range of commodities, from broomsticks and cane baskets to vegetables and roadside tea. Nearly 40% of all vendors are women, with 30% being the primary earners for their families.
The underreporting of harassment in the informal sector
In 2013, India’s Parliament passed the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, known as the POSH Act. The primary objective was to protect working women from sexual harassment. The act requires district administrations to set up local committees to handle reports of workplace harassment, investigate complaints, help reach settlements, and order compensation for affected women.
Unfortunately, many women workers in the informal sector remain unaware of the POSH Act’s protections. 95% of India’s women workers employed in the informal sector say they find it difficult to access legal mechanisms to report sexual harassment at the workplace. Most come from marginalised communities, live in extreme poverty, and are the sole earners for their families. They often lack literacy and knowledge of the law, which makes it hard for them to report harassment. Additionally, they fear losing their jobs and facing social stigma, which further discourages them from speaking out against such issues.
The fear of survival
Domestic work and construction work are informal and predominantly employ women who often have no official proof of their employment. It leaves them without social security protections. This lack of documentation makes them more vulnerable to sexual harassment.
While the POSH Act addresses violence against domestic workers, a study conducted in some areas of Delhi found that none of the domestic workers reported their experiences to the Local Committees despite facing multiple incidents of harassment. Similarly, in Mumbai, by 2020, the Local Committee had only received five complaints, all from the formal sector.
151 million women workers in the informal sector in India
Since 2022, there has been a slight improvement in gender parity in labour market participation, with more women joining than men. But the inequalities persist. A 2023 report by the World Economic Forum notes that four out of five jobs, especially low-earning part-time jobs, in the informal sector go to women. Yes, women represent 52.7% of India’s 287 million registered unorganised workers. That means that approximately 151 million women are employed in the informal sector.
Interestingly, nearly 90% of India’s workforce is informal. This is surprising because India has been one of the fastest-growing major economies in the world over the last ten years. Typically, when an economy grows, more people find formal jobs with benefits and protections. But in India, that shift hasn’t happened. Many workers still have informal jobs instead of formal ones that offer benefits like health insurance and retirement plans. This means that most people do not have the protections that come with regular employment. Among these informal workers, a disproportionate number are women.
While the flexibility of temporary and part-time work in this sector may help women juggle caregiving and paid work, they often land in low-paying jobs with minimal social security or decent working conditions. So, though women’s employment in India has increased, the quality of these jobs remains a big question mark. Are women choosing informal work, or are they pushed there by limited options?
Summing up: Supporting women in the informal sector in India
Women are particularly at risk for job losses due to the unrecognised nature of their work and their prevalence in informal jobs. Social hierarchies and barriers often force women, especially those from marginalised communities, into unpaid or underpaid informal work without proper social protection. The absence of contracts means that over half of these women do not qualify for social benefits like healthcare, childcare, and maternity leave, which limits their ability to gain the skills needed for formal employment and keeps them economically dependent.
Policies can’t just focus on formal jobs to truly empower women in the informal sector. We need a broader approach that tackles the deep-rooted barriers and unfair attitudes that keep women from achieving equality. This means addressing issues like lack of access to education, financial resources, and legal protections.
It also involves changing social norms that see women in informal jobs as less valuable. By creating an environment where women can develop skills, receive fair pay, and access social protections, we can help them move from vulnerability to empowerment. Only then can we create a fair and inclusive economy that benefits everyone.
The final word by Changeincontent.com
At Changeincontent.com, we strive to bring forward critical narratives that shape our understanding of workforce dynamics and social inclusivity. This article on the plight of women workers in the informal sector in India aligns with our mission to advocate for equality and amplify the voices of underrepresented communities. By highlighting the often-overlooked struggles of these women, we aim to foster informed discussions and inspire actionable changes that pave the way for a fairer and more inclusive economic landscape.
Data sources
- Chen, M. A. (2001). Women in the Informal Sector: A Global Picture, the Global Movement. SAIS Review (1989-2003), 21(1), 71–82.
- Goel, Geetika & Singh, Tripti & Gupta, Anvita. (2011). Women Working in Informal Sector in India: A Saga of Lopsided Utilisation of Human Capital.
- Sexual Harassment of Domestic Workplaces Workers at their Workplaces
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content, which we define broadly to include media, policies, law, and history—encompassing all elements that influence the lives of women and gender-queer individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
