In simple terminology, what is an organised and unorganised sector?

Organized and unorganized sectors are mainly differentiated based on employment conditions.

Organized Sector − It is incorporated with the appropriate authority and follows the rules and regulations. It is mostly related to Government or some large-scale operations. As these organizations strictly follow government rules they adhere to acts like Factories Act, Bonus Act, PF Act, Minimum Wages Act etc. Workers are paid remuneration as monthly salary regularly and there will be job security.

Unorganized Sector − The unorganized sector is the one which is not incorporated into the government. Small-scale operations, petty trade, private business, domestic workers and construction workers etc. come under the unorganized sector. The salary in the unorganized sector can be daily wages and there will be no job security.