The workforce is classified into two categories: workers in formal and informal sectors which are also referred to as organised and unorganised sectors.
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called as “formal sector establishments" and those who work in these establishments are formal sector workers.
All other enterprises and workers working in those enterprises form the "informal sector". Thus, informal sector include farmers, agricultural labourers, owners of small enterprises, people working in those enterprises and also includes self-employed workers.