A formal employment provides job security, fixed compensation and labor law protection (paid leave). It is well defined on paper, an official document principally called the contract which typically includes a place of work, working hours and related compensation, for a tenor of 30 days to 1 year (temporary contracts) and for life (lifelong contract). Informal employment lacks any written contract and exposes workers to undefined working hours, varying pay, sudden termination and other illegal acts.
In India, approximately 35 million of its 480+ million workers are formal workers and the rest are either entrepreneurs or dehadi (informal workers). Nearly 23milliion out of the 35 million formal workers, are employed in the government (central, state and PSU).
(1) Basics of formal & informal work- http://bit.ly/2Pd99EN
(2) Informal jobs scenario in India- http://bit.ly/2V3zwCm