The basic characteristics of informal sector are –

1. The enterprises in informal sector work with 10 or less than 10 workers.

2. It does not include hired workers but includes farmers, agricultural labourers, owner of small enterprises, and self employed persons.

3. The workers of informal sector do not enjoy any social security benefits.

4. The provisions of Labour Laws other than Minimum Wages Act are not applicable in the informal sector.

5. The workers of informal sector are not allowed to form trade unions.