Employment in the Unorganised/Informal Sector in Kerala

The unorganised/informal sector consists of small, unregistered private businesses and independent workers operating outside the direct regulations and labour laws of government. Examples of the informal sector include street vendors, small-scale manufacturing labors, artisans, casual labors, domestic workers, traditional workers, farmers, headload workers, barbers/beauticians, autorickshaw drivers, construction workers and other self-employed workers like plumbers, electricians, coir/cashew workers, carpenters, toddy tappers, and tailors running small, unregistered operations. About 73.2 percent of the total workforce is engaged in informal/unorganised sector. In India as well as in Kerala, a high proportion of the socially and economically weaker sections of society are dominated in the unorganised economic activities. 

The unorganised sector plays a crucial role in the kerala economy in terms of employment and its contribution to the GSDP, savings, and capital formation. Employees of unorganised sector enterprises have low job security, no social protection, lesser upward mobility, and also has no paid holidays. In Kerala, the Directorate of Employment under the labor department is the nodal line department entrusted with the responsibility of decreasing the unfair practices in the unorganised sector. In recent years, the Kerala Government has initiated various measures to provide social security to workers in the unorganised sector. This includes providing social security to unorganised workers through Kerala State Unorganised Workers Social Security Scheme (KSSWSS) by legislation. This consolidates various welfare funds for artisans, traditional workers, domestic workers, barbers, casual labors and others, through pensions, marriage, and maternity benefits. Kerala Social Security Mission (KSSM) is responsible for this welfare activity. Also specific schemes for agricultural and plantation workers are provided. Kerala has more than 25 sector-specific welfare fund boards for unorganised workers managed through the Labour Commissionerate of Kerala Government.

Welfare Fund Boards under Labour Commissionerate

01. Kerala Abkari Workers' Welfare Fund Board, Thiruvananthapuram

02. Kerala Agricultural Workers' Welfare Fund Board, Thrissur

03. Kerala Beedi & Cigar Workers Welfare Fund Board, Kannur

04. Kerala Building & Other Construction Workers' Welfare Board, Thiruvananthapuram

05. Kerala Cashew Worker's Relief & Welfare Fund Board, Kollam

06. Kerala Handloom Workers' Welfare Fund Board, Kannur

07. Kerala Headload Workers' Welfare Fund Board, Ernakulam

08. Kerala Labour Welfare Fund Board, Thiruvananthapuram

09. Kerala Motor Transport Workers' Welfare Fund Board, Kollam

10. Kerala Shops & Commercial Establishments Workers Welfare Fund Board, Thiruvananthapuram

11. Kerala Tailoring Workers' Welfare Fund Board, Thiruvananthapuram

12. Kerala Toddy Workers' Welfare Fund Board, Thiruvananthapuram

13. Kerala Eetta, Kattuvally And Pandanus Leaf Workers' Welfare Fund Ernakulam

14. Kerala Small Plantation Workers' Welfare Fund Board, Kottayam

15. Kerala Jewellery Workers' Welfare Fund Board, Thiruvananthapuram

16. Kerala State Unorganised Workers' Social Security Board (KSUWSSB)

Other Welfare Fund Boards

17. Kerala Artisans and Skilled Workers Welfare Board, Thiruvananthapuram

18. Kerala Autorickshaw Workers Welfare Fund, Kollam

19. Kerala Coir Workers Welfare Fund Board, Alappuzha

20. Kerala Fishermen's Welfare Fund Board, Thrissur

21. Kerala Ration Dealers Welfare Fund, Thiruvananthapuram

22. Kerala Rural Employment and Welfare Society, Thiruvananthapuram

23. Kerala Minimum Wages Advisory Board, Thiruvananthapuram

24. Kerala Traders Welfare Board, Thiruvananthapuram

25. Kerala State Pottery Manufacturing, Marketing and Welfare Development Corporation Ltd (KSPMMWDC), Thiruvananthapuram

Various Scheme for Unorganised Workers

As per the Unorganised Workers’ Social Security Act 2008 and State Unorganised Workers’ Social Security Rules 2010 of Kerala, the State Government has framed the Kerala State Unorganised Workers’ Social Security Scheme. This scheme was introduced by amalgamating the six existing welfare schemes.

1. Kerala Artisans and Skilled Workers Welfare Scheme

2. Kerala Barber And Beauticians Workers Welfare Scheme

3. Kerala Domestic Workers Welfare Scheme

4. Kerala Laundry Workers Welfare Scheme

5. Kerala Pachaka Thozhilali Workers Welfare Scheme

6. Kerala Temple Workers Welfare Scheme