Comprehensive policy interventions and tailored formalisation efforts in cities can ensure decent work and improve the livelihoods of domestic workers
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The informal economy (IE), described by the International Monetary Fund, comprises unregulated economic activities such as street vending, informal manufacturing, casual labour, and services. Unlike the formal economy, IE operates outside legal frameworks, lacking formal licenses and compliance with labour laws and taxation. Globally, 61.2 percent of workers are employed in IE, highlighting its significant contribution to the workforce. In India, this figure is 92.4 percent, far exceeding the 70 percent average in other developing nations. As urbanisation continues, IE’s share of the Global South is expected to expand. Addressing concerns related to IE will be essential for economic development and improved livelihoods. Immediate action can significantly enhance the prospects for the IE in the Global South, ensuring sustainable growth and development.
Unlike the formal economy, IE operates outside legal frameworks, lacking formal licenses and compliance with labour laws and taxation.
Furthermore, the IE is highly feminised globally. For instance, 92.1 percent of working women in low-income countries were employed informally in 2018. India’s 2017-2018 Periodic Labour Force Survey showed that 91.6 percent of working women belonged to the informal sector despite a low female employment rate of 22.7 percent. Additionally, domestic work is integral to the IE, with women comprising 76.2 percent of the global domestic workforce. In urban India, domestic work is the second-largest sector for female employment, emphasising the need for cities to understand and protect domestic workers (DWs). What are the challenges faced by DWs in urban India? How have India’s policy interventions attempted to enhance their social security? How can Indian cities provide better work environments for DWs towards achieving the United Nations Sustainable Development Goals (SDGs)?
The International Labour Organisation’s (ILO) 2011 Domestic Workers Convention defines domestic work as paid tasks performed in or for households, including tasks done without written contracts or social security. With rapid urbanisation, the rising demand for DWs is driven by a growing middle class with financial means to hire help, who hire DWs as a status symbol and to fill the homecare gap created by dual-income families. Moreover, a study in Bengaluru and Chennai indicated how employers reported favouring traits such as trustworthiness and punctuality over skill sets and social groups. However, DWs often come from marginalised categories.
In urban India, domestic work is the second-largest sector for female employment, emphasising the need for cities to understand and protect domestic workers (DWs).
Further, poor rural families migrate to cities in the process of urbanisation, where women often seek jobs as DWs to support their families. Additionally, the percentage of urban women in India employed as DWs grew from 5.9 percent to 12.3 percent between 2019 and 2023. In Mumbai, an estimated 54.9 percent of female migrants are DWs. Moreover, 26.9 percent of Delhi’s female workforce is in domestic work, and studies in Mumbai and Vadodara highlight the sector’s predominantly female composition. This feminisation is due to the long-standing relegation of unpaid household work to women, which, when translated to paid domestic work, remains undervalued.
Despite their crucial contribution to the economy, DWs are low-paid and lack job security. Surveys conducted in Ahmedabad and Kolkata reveal troubling working conditions for domestic workers, including the absence of formal contracts and minimal government oversight. Despite estimates suggesting there are between 4.2 million to over 50 million domestic workers in India, these workers receive inadequate legislative protection and often lack awareness of their rights and entitlements. Female domestic workers are particularly vulnerable, frequently facing harassment and violence that largely goes unreported due to social stigma and fear of losing their jobs. While a small-scale study in Mumbai indicated low rates of sexual harassment and abuse, activists argue that these figures are likely inaccurate, citing underreporting as a significant issue. This concern is further supported by a survey in Kolkata, where 66 percent of workers expressed the belief that women should not speak out against workplace harassment. Additionally, significant data gaps regarding the exact number and working conditions of DWs impede effective policymaking and enforcement.
Female domestic workers are particularly vulnerable, frequently facing harassment and violence that largely goes unreported due to social stigma and fear of losing their jobs.
Over the years, the Government of India has implemented several legislative measures to protect DWs:
In line with UWSA, a few states set up the Unorganised Worker’s Welfare Boards, allowing DWs to register to avail benefits. For instance, Tamil Nadu, Maharashtra, and Kerala have implemented dedicated welfare boards for DWs, which have seen some success. In Tamil Nadu, 11,000 workers received benefits averaging INR 2,000 in 2013-14. Despite this, registration with boards is voluntary, and rates remain low. Further, these boards lack mechanisms to address grievances or regulate workplace conditions.
In 2019, the Ministry of Labour drafted a policy to regulate placement agencies and ensure further social protections for domestic workers, but it has yet to be formalised. Moreover, the Indian Parliament introduced four Labour Codes in 2020 to unify India’s 29 labour laws. However, the Codes are moot and only define those working for a specific industry or establishment, leading to an implicit exclusion of DWs working in private households. As a result, currently, DWs have zero formal protection, making them vulnerable to exploitation with limited legal recourse.
In 2019, the Ministry of Labour drafted a policy to regulate placement agencies and ensure further social protections for domestic workers, but it has yet to be formalised.
Legislative reforms: Several legislative measures are needed to improve conditions for urban DWs. The 2020 Labour Codes should be amended to include private homes as "workplaces," extending legal coverage to DWs. Further, the 2019 Domestic Workers Policy should be enacted immediately. Additionally, employer-funded welfare boards could be established in States to promote social security, address harassment, improve working conditions, set local wage rates, and support collective bargaining. Such boards must mandate worker and employer registration through collaborations with NGOs for large-scale registration campaigns, similar to the model in Uruguay.
Empowering urban local bodies: Empowering Urban Local Bodies (ULBs) is crucial for effective governance. Establishing district-level entities akin to the welfare boards could enable ULBs to engage directly with DWs, ensuring more efficient management and timely support. ULBs' targeted approach facilitates localised governance and law enforcement. By conducting research on sector-specific issues such as demographics, housing conditions, workers' rights awareness, recruitment practices, and sectoral challenges—ULBs can address these areas through internal committees or partnerships with NGOs and civil society organisations. Data-driven efforts can help close significant gaps and enhance governance in the domestic work sector.
Engaging diverse stakeholders ensures a more inclusive and effective policy framework, particularly for vulnerable groups like women and senior DWs.
Awareness and training programmes: Local boards should actively promote sensitisation campaigns targeting employers and local institutions, emphasising the significance of domestic work and advocating best practices to safeguard workers from mistreatment and exploitation. These campaigns are vital in addressing the undervaluation of feminised labour and fostering an attitudinal shift among administrators to prioritise workers' issues. Additionally, developing and promoting skill-training programmes for domestic workers are essential. These programmes should equip workers with sector-specific skills, enhancing their employment opportunities. Collaborations with trusted organisations like SEWA and the National Movement for Domestic Workers, alongside the Domestic Workers Sector Skill Council, can help broaden the reach and impact of these programmes. Training initiatives should also focus on raising awareness of labour protections and grievance redressal mechanisms while reducing the stigma associated with reporting harassment.
Dialogue and participation: A bottom-up, multistakeholder consultative process involving DWs and their supporting NGOs is crucial for urban policymaking that addresses their needs. Collaborative efforts between government bodies, NGOs, unions, and private-sector and civil society organisations can lead to tailored formalisation and enhanced representation. Brazil’s collaboration with domestic worker unions, for example, secured comprehensive labour rights, while India’s partnerships with activist groups helped draft widely supported anti-rape legislation. Engaging diverse stakeholders ensures a more inclusive and effective policy framework, particularly for vulnerable groups like women and senior DWs.
By addressing these challenges through comprehensive policy interventions and tailored formalisation efforts, cities can ensure decent work and improve the livelihoods of DWs.
Meghana Lakkireddy is a Research Intern at the Observer Research Foundation.
Anusha Kesarkar-Gavankar is a Senior Fellow at the Observer Research Foundation.
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Meghana Lakkireddy is a Research Intern at the Observer Research Foundation. ...
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