Question

“Employment in the formal sector guarantees better income and social benefits compared to informal sector job.”

Defend or refute the above statement with valid reason and example.

Hint:

Defend the statement. Formal workers get fair wages, pension and provident fund. Informal workers get no regular income or security, for example a daily wage worker.

Answer 1

Step 1: State the stand:
The statement says that formal sector employment gives better income and social benefits than informal sector jobs.
We defend this statement, because it is correct.

Step 2: Reason 1: income:
Formal sector workers are entitled to fair and regular wages, fixed by contract or by law.
Informal sector workers do not get a regular income. Their earnings depend on whether they find work that day.

Step 3: Reason 2: social benefits:
Formal sector workers get social security such as pension, provident fund and medical benefits.
Informal sector workers get none of these. They can also be dismissed without any compensation.

Step 4: Give an example:
A government employee gets a regular monthly salary along with pension and social security.
A daily wage worker, such as a construction labourer, works without any social security and without job security.

Final Answer:
The statement is defended. Formal sector jobs give better income and social benefits than informal sector jobs, as the government employee and daily wage worker example shows.