Working conditions worsen in non-formal sector: NSSO

The report said 68.8% of workers across India in 2011-12 neither had a written job contract or were eligible for paid leave, compared to 63% in 2004-05

The conditions of employment for workers in India’s non-formal sector had deteriorated over the years, said a National Sample Survey Office (NSSO) report.

It says more people came out of social security benefits and fewer labourers had a written job contract or provision for paid leave.

It says 68.8 per cent of workers across India in 2011-12 neither had a written job contract or were eligible for paid leave, compared to 63 per cent in 2004-05.

These are the findings of the 68th round of the NSSO survey, informal sector and conditions of employment in India, during July 2011 to June 2012. The report covered workers in the non-agriculture and agriculture sectors (excluding growing of crops, plant propagation and combined production of crops and animals (termed AGEGC).

In 2011-12, 79 per cent of the workers in these sectors had no written job contract, up from 74 per cent in 2004-05. The proportion of casual labourers without a written job contract remained almost at the same level (95 per cent) but hadincreased for salaried employees. In 2011-12, 65 per cent of employees getting a regular salary had no job contract in hand, compared to 59 per cent in 2004-05.

The data showed 72 per cent of workers in the non-agriculture and AGEGC sector in 2011-12 had no social security benefits, such as provident fund, pension, gratuity or health care, against 71 per cent in 2004-05.

Analysts cited a shift from agricultural to non-farm jobs as one reason for this trend. “As people are moving towards non-agricultural jobs, they are getting employed by contractors. Also, industries find it convenient to hire people in the informal sector without offering them a written job contract and, hence, more labourers are deprived of the benefits,” said Madan Sabnavis, chief economist at CARE Ratings.

The gap between the average salary of a worker in the informal sector and the all-sector average shrunk between 2004-05 and 2011-12. The average daily earning by a worker in the informal sector stood at Rs 195 a day in 2011-12, about 40 per cent less than the Rs 322 all-sector average. In 2004-05, the differential was 46 per cent.

The share of temporary workers in the AGEGC and non-agriculture sectors declined from 45 per cent in 2004-05 to 42 per cent in 2011-12. Between 2004-05 and 2011-12, the proportion of temporary employees reduced among casual labourers and among regular wage employees. Temporary workers are defined as those who are not likely to continue in the same employment.