Promoting rights and social inclusion through organization and formalization (PRS) – Phase 2: India Component

Background

India’s labour market is highly informal, with around 83 per cent of workers employed in the informal sector, particularly in rural areas and among self-employed and casual labourers. Many informal workers lack access to paid leave, written contracts, social security, and legal protections. Workers in domestic, sanitation, construction, and home-based sectors are among the most marginalized.

The Government of India has advanced formalization through initiatives such as the e-Shram portal, National Social Assistance Programme (NSAP), Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) pension scheme, skill development programs, and sector-specific strategies and policies to support informal workers. India’s Decent Work Country Programme and its commitments under the UN Sustainable Development Cooperation Framework further promote inclusive growth, social protection, and decent employment, providing a key pathway toward formalization.

In this context, the PRS Project works closely with social partners and government to address decent work deficits and gender inequalities in the informal economy, promote formalization, and strengthen partnerships and coordination among policymakers, employers’ organizations, and workers’ organizations to tackle informality and gender inequality.

Project Objective

The project supports the transition of informal economy workers and economic units to formality while reducing decent work deficits. Key objectives include:

• Strengthening the capacity of employers’ and workers’ organizations to promote formalization and gender equality.
• Enhancing partnerships and coordination among stakeholders to implement policy actions.
• Raising awareness among the public and stakeholders about the challenges faced by informal workers.

The project also contributes to stronger institutional capacities, social dialogue, and the application of national laws and international labour standards.

Areas covered

Sectors: Construction, domestic work, sanitation
States: Bihar, Maharashtra, and Kerala

Partners

Government: Ministry of Labour and Employment (MOLE), Ministry of Social Justice and Empowerment (MoSJE), National Safai Karamcharis Finance & Development Corporation (NSKFDC), Labour Departments of Bihar, Kerala, and Maharashtra.

Trade Unions: Central trade unions at the national level and their state counterparts.

Employers Organizations: Confederation of Indian Industry (CII), All India Organization of Employers (AIOE), Employers Federation of India (EFI).

Target beneficiaries

Informal workers and economic units in Bihar, Maharashtra, and Kerala are the primary beneficiaries. The project also strengthens the capacities of government agencies, employers’ organizations, and workers’ organizations to better represent and support informal workers.