Informal Labour in India

Informal Labour in India

On this International Labour Day let us understand the issues of the labour workforce in India. There are total 42 crore Informal workers in India and the majority of them are employed by the 6.3 crore MSMEs in India.

Informal Labour in the country lack a structured approach towards their growth and development in the Indian growth story, notwithstanding the fact that they form the majority of workforce.

To formalize their well-being is an idea which can't remain ignored any longer.

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MSMEs win and lose contracts based on the speed at which they can scale their workforce, and MSMEs flex their Labour force using either offline recruitment agencies or Labour contractors.

MSMEs win repeat contracts based on the quality of the workers they deploy.

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MSMEs interact with the workforce in stages -

  1. Searching for the worker
  2. Ensuring identity & skill set of the worker
  3. Confirming the schedule & location of the work
  4. Managing attendance and payroll
  5. Settling dues at completion

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At each stage, workers also have problems, like -

  1. Getting access to jobs
  2. Maintaining a work profile
  3. Access to benefits
  4. Managing high commissions
  5. Timely payouts

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There is also a huge credit and insurance gap which exists in this Low-To-Middle Income Segment.

Workers mostly do not have access to health & term insurance, and MSMEs have short term credit challenges in paying their workers on time.

There are digital solutions available at each point of this lifecycle, but tackling the unique requirements of both MSME and Labour demands a Full-Stack approach.

This is what we at AayWorks are creating for Bharat's Workforce and MSMEs.

We think now is the right time to solve this digitally as the AUM trinity (Aadhaar - UPI - Mobile) has created a foundational architecture to facilitate digital interactions.

Post COVID, Bharat is leapfrogging to use digital solutions to solve all their problems.

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We took a technological approach to solve this problem and created a single mobile app for both workers and MSMEs.

This app is easy to use, available in local languages and addresses the problems of Informal Economy in India.

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AayWorks is available on Google Playstore to download and use for Bharat's MSMEs & Labour workforce.

AayWorks ke saath #AbKaamKaregaBharat


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