About informal work

Informal work takes place within the informal economy but informal jobs also exist within the formal economy such as those without contractual arrangements, or unpaid work by contributing family members. It is generally characterised by a lack of regulation or worker protection by the state [2]. Hence, informal jobs are usually not covered by national labour legislation, income taxation, social protection, or entitlement to certain employment benefits (advance notice of dismissal, severance pay, paid annual or sick leave, etc.). 

In many countries, the informal sector has a significant role in production, employment creation and income generation: Globally, 61 per cent of total employment is in the informal economy, particularly so in developing and emerging economies, where it can exceed 90 per cent of workers. It has been estimated that 2 billion people of the global labour force work informally [3]. 

Due to the lack of regulation and protection, informality puts workers at a higher risk of vulnerability and precariousness. It constrains the quality of jobs in terms of earnings, occupational safety and health and working conditions in general [4].