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International Labour Day: The Reality of India's Informal Workforce

NGOLists Editorial Team·19 July 2026·5 min read
Key takeaways
  • Around 90% of India's workforce is informal or unorganised — without written contracts or job security.
  • Informal workers include street vendors, domestic workers, construction and farm labourers, and gig workers.
  • Most lack social security: no provident fund, paid leave, insurance or pension.
  • The e-Shram portal has registered over 30 crore unorganised workers to link them to welfare.
  • Extending decent work and social protection to informal workers is a central challenge for India.

International Labour Day, or May Day, observed on 1 May, honours the workers whose labour builds and sustains every society — and the long struggle for their rights. In India, the day is an occasion to look honestly at who its workers really are, because the vast majority do not fit the image of the salaried employee with a contract and benefits. Around nine in ten Indian workers are informal, and their reality — of insecurity, invisibility and resilience — is the true story of India's workforce. This guide explores it.

What May Day marks

International Labour Day commemorates the historic labour movement and its struggles for workers' rights — famously the fight for the eight-hour working day. It is a day to recognise the dignity and contribution of workers, and to renew the demand for fair wages, safe conditions and decent treatment. In a country where so much work is informal and unprotected, that demand is far from fulfilled.

The scale of the informal workforce

The defining fact of Indian labour is its informality: around 90% of workers are in the informal or unorganised sector. They are everywhere — street vendors, domestic workers, construction and farm labourers, small-workshop hands, waste-pickers, and the fast-growing ranks of gig and platform workers driving cabs and delivering food. Only a small minority of Indians hold formal jobs with written contracts and full benefits. This is not a fringe; it is the mainstream of Indian work.

The reality of informal work

Informality means a hard and precarious working life:

  • No security — no written contract, easily hired and fired.
  • No social protection — no provident fund, paid leave, health insurance or pension for most.
  • Irregular, vulnerable incomes — a lost day is a lost wage, and shocks (illness, lockdowns, downturns) hit hard, as the 2020 migrant crisis showed.
  • Little bargaining power — few unions or protections in the informal sector.
  • Unsafe conditions — many work with real physical risk and no recourse.

Women and migrants in informal work face compounded disadvantages.

The rise of gig work

A newer chapter is the gig and platform economy — the drivers, delivery riders and online workers who power app-based services. It offers flexibility and income to millions, but often without the protections of formal employment, raising urgent new questions about how to guarantee fair pay, safety and social security in a changing world of work.

What is being done

Efforts to protect informal workers include:

  • e-Shram — a national database that has registered over 30 crore unorganised workers to link them to welfare, the first step toward making them visible to the system.
  • Social-security and insurance schemes for unorganised workers.
  • New labour codes aiming to extend protections, including provisions for gig and platform workers.
  • Rural employment guarantees like MGNREGA that provide a floor of paid work.

The gap, as ever, is between registration and law on one hand, and delivered protection on the other — closing it is the real work.

What you can do

  • Treat the workers around you fairly — pay fair wages, on time, to domestic workers, drivers and others.
  • Support labour-rights and worker-welfare NGOs.
  • Back social protection for informal and gig workers.
  • Companies can ensure fair conditions across their supply chains and use CSR for worker welfare and skilling.

The people who build our homes, deliver our food, and clean our workplaces deserve not just a day of recognition but real security and dignity. This International Labour Day, remember the informal workers who keep India running — and support the effort to protect them. To find worker-welfare organisations, browse verified NGOs on NGOLists.

Further reading on NGOLists

Frequently asked questions

What is International Labour Day?

International Labour Day, or May Day, is observed on 1 May to honour workers and the labour movement, and to mark the historic struggle for workers' rights, including the eight-hour working day. In India it is a public holiday in many states and a moment to reflect on the conditions of the country's workers — especially the vast informal workforce.

How large is India's informal workforce?

Very large — around 90% of India's workers are in the informal or unorganised sector. This includes street vendors, domestic workers, construction and agricultural labourers, small-scale manufacturing workers, and the growing ranks of gig and platform workers. Only a small minority of Indian workers have formal jobs with written contracts and full benefits.

What challenges do informal workers face?

Informal workers typically lack job security, written contracts, and social protection — no guaranteed minimum wage in practice, no provident fund, paid leave, health insurance or pension. Their incomes are irregular and vulnerable to shocks, they have little bargaining power, and they often work in unsafe conditions. Women and migrants in the informal sector face additional disadvantages.

What is being done to protect informal workers?

Efforts include the e-Shram portal, which has registered over 30 crore unorganised workers to connect them with welfare schemes; social-security and insurance schemes; the new labour codes that aim to extend protections (including to gig and platform workers); and rural employment guarantees like MGNREGA. Turning registration and law into real, delivered protection remains the key challenge.

International Labour Dayinformal workers Indiaunorganised sectorgig workerslabour rightse-Shramlabour codes
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