The informal service economy for women is marked by pervasive insecurity, low wages, and structural gender discrimination, creating a bleak and challenging landscape for millions—particularly in India, where over 80% of women workers remain concentrated in informal roles (SEWA, 2025; Amitha & Parimalam, 2025; Change in Content, 2024).
Women’s Predominance in Informal Work
A vast majority of women workers are employed in the informal sector—in India, the figure is nearly 90% (SEWA, 2025; Change in Content, 2024; Amitha & Parimalam, 2025). Globally, estimates show that approximately 80% of women in South Asia and 74% in Africa are employed informally, reflecting entrenched gendered labor markets (Change in Content, 2024). In India, women account for 81.8% of all female employees within informal sectors, such as domestic work, construction, vending, and garment making (Change in Content, 2024; Amitha & Parimalam, 2025; Accion, 2025).
Sectoral and Wage Discrimination
Women in informal service roles are commonly found in low-skilled, low-paid occupations like domestic work, construction labor, vending, and home-based manufacturing (Change in Content, 2024; PIB, 2025; Amitha & Parimalam, 2025). Wage disparities are stark—women earn, on average, 30–50% less than men for similar work and generally earn less than one-third of what formal sector workers receive (Amitha & Parimalam, 2025; SEWA, 2025). For example, male informal workers in self-employment can earn up to three times more than women in similar roles (Amitha & Parimalam, 2025).
Structural Challenges and Social Exclusion
Women informal workers typically lack access to social security, legal protections, and benefits such as health insurance or maternity leave (SEWA, 2025; Change in Content, 2024; SEWA, 2025; Accion, 2025). Their work environments are characterized by long hours, unsafe conditions, risk of workplace harassment, and no formal job security (SEWA, 2025; Accion, 2025). Fewer than 10% of India’s informal women workers have any social security coverage, exposing them to vulnerability in times of sickness, old age, or crisis (SEWA, 2025; Accion, 2025).
Barriers to Mobility and Equality
Educational disparities, social norms, patriarchal attitudes, and restrictive policies keep women trapped in low-mobility informal work (Amitha & Parimalam, 2025; Accion, 2025; Ashoka CEDA, 2025). Occupational segregation persists, with “female-oriented” jobs systematically paid less and given lower status (Amitha & Parimalam, 2025; Ashoka CEDA, 2025). While women’s entrepreneurship in the informal sector is rising—proprietary establishments owned by women have increased from 23.9% to 27.2% in recent years—substantial barriers remain, including limited access to finance and markets (Ashoka CEDA, 2025).
The Way Forward: Policy and Collective Action
Efforts to unionize, such as those led by SEWA in India, highlight women’s agency and resilience. These collectives fight for labor rights, better wages, and social recognition; SEWA, for example, now has over 3.2 million women members (SEWA, 2025; SEWA, 2025). Digital platforms for social benefits, such as e-Shram, have improved access, but implementation remains inconsistent, requiring systemic change for equality and sustainability (SEWA, 2025; Accion, 2025).
The persistent gender disparity in informal services is not just an economic issue—it fundamentally undermines progress towards global Sustainable Development Goals for gender equality and decent work (Amitha & Parimalam, 2025; WIEGO, 2025).
References
Accion. (2025, July 31). Building financial resilience for women in the informal economy. https://www.accion.org/building-financial-resilience-for-women-in-the-informal-economy/
Amitha, A., & Parimalam, E. J. (2025). Gender disparity among informal workers in India. UNNAYAN. https://www.ipsacademy.org/unnayan/jan-25-xvii-v1/9%20Paper%2013_%20amitha.pdf
Ashoka CEDA. (2025, May 26). Gender gaps in informal sector entrepreneurship in India. https://ceda.ashoka.edu.in/gender-gaps-in-informal-sector-entrepreneurship-in-india/
Change in Content. (2024, November 5). Women workers in the informal sector in India. https://www.changeincontent.com/women-workers-in-the-informal-sector-india/
PIB. (2025, January 29). Press release: Press Information Bureau. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097693
SEWA. (2025, June 4). Women in India’s informal sector are fighting for better conditions. https://www.dandc.eu/en/article/union-informal-workers-how-does-work-more-50-years-women-india-have-been-supporting-each
SEWA. (2025, July 30). Giving voice, visibility and validation to women in informal economy. https://www.sewa.org/news/giving-voice-visibility-and-validation-to-women-in-informal-economy/
WIEGO. (2025, August 13). Women in informal employment globalizing and organizing. https://www.wiego.org
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