20 Examples of Formal and Informal Work

It is called job to jobs, occupations or trades. All activities in which a person is hired to perform a series of specific tasks in exchange for financial remuneration fall into this category: in the capitalist economic system, employment is the most important and generalized employment relationship, which is the fundamental cell of any company.

Two types of jobs are established: formal, which is subject to regulations and registered in the State and informal which is not. For instance: lawyer, teacher, cadet, taxi driver.

Formal employment is the legal one, and therefore the one that is subject to the corresponding taxes. The all money agreed upon does not come from the employer to the employee, but rather a part arrives (the so-called net salary) and another (the so-called deductions) that may be a tax that the employee does not receive, or some indirect perception: the most common are the health coverage, and social security, which is a portion dedicated to when the employee no longer works.

This type of work must comply with the conditions that the State establishes, like the minimum wage. It is largely to the advantage of employees, and states routinely create incentives to expand the number of formal employees – loosening regulations shouldn’t be one of them.

Examples of formal work

MinisterBank agent
Soccer playerIndustrial Engineer
AccountantFinancial organizer

Examples of informal work

CadetFood deliveryman
Field pawnPhotographer for a newspaper

The informal jobs On the other hand, they are those who are outside the law. Although they are prohibited, many times the State does not make too many efforts to combat it and even hires people under this modality.

It is usually associated with lower grade jobs, but sometimes even the most qualified jobs have this type of hiring: it is possible that employees prefer this type of hiring, despite the fact that, as mentioned, having no type of coverage or insurance is much more unstable.

When it comes to illegal activitiesOf course, the work is informal because it cannot be registered in any type of public agency, but there is also informal employment in legal activities.