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SAI International School
2025-26
Class X
Chapter-2 Sectors of Indian Economy
Subtopic- 4 Division Of Sectors As Organised And Unorganised
Lesson Notes
The economy can be classified based on employment conditions into organized and
unorganized sectors. In the organized sector, enterprises follow government regulations,
providing job security, regular hours, and various benefits like overtime pay, leave, and
pensions. Conversely, the unorganized sector consists of small, scattered units with minimal
government control. Jobs here are low-paid, irregular, and lack benefits, making employment
insecure.
Organized Sector:
Enterprises registered and regulated by the government.
Workers enjoy job security, regular hours, and various benefits (overtime pay, leave,
pensions).
Follows laws such as the Factories Act, Minimum Wages Act, and Payment of Gratuity
Act.
Unorganized Sector:
Characterized by small, scattered units with limited government control.
Jobs are low-paid, irregular, and lack benefits like overtime, leave, and pensions.
Often includes self-employed individuals doing small jobs like street vending or repair
work.
Challenges and Solutions:
Many workers move from organized to unorganized sectors due to slow expansion of organized sector
jobs.