Informal Work in Brazil: Advantages and Disadvantages

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Informal work is one that does not require registration. This is because it is the type of work model in which there is no employment relationship. It can be considered “beak” and called by some underemployment or disguised unemployment.

A significant percentage of the Brazilian population lives informally. It is a growing sector, whose activity is developed mainly in large cities, as they provide this dynamic.

Unemployment is one of the main factors responsible for the emergence of this work option. Furthermore, the deductions from a formal worker's salary are so great that people began to realize that they could have much more income by opting for informality.

Examples

Present in the tertiary sector of the economy, the informal labor market has the following activities:

  • street vendor
  • car wash
  • construction
  • electronic appliance repairs
  • cardboard scavengers
  • maids
  • musicians
  • programmers

Features

In informal work, there is no signed work card, just as there is obviously no employment contract or the issuance of invoices.

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Contributions and taxes are also not paid in these situations.

The profile of informal workers is not constant. People can have either less or more education.

Personally they are not valued and may suffer prejudice. However, there are those who qualify them as entrepreneurs, as they find, in some situations, an opportunity to idealize projects in a more or less autonomous way.

Read more at Labor market

Advantages and disadvantages

The main advantage of informal work is that it is a way for people to earn income.

At the same time, the possibility of obtaining a better income and the fact of being able to manage time are other benefits derived from this type of work.

Among the disadvantages, the biggest loss is the lack of fixed income, which is the main factor that results in the lack of access to credit and financing.

In addition, there is no receipt of meal or transportation allowances, there is no paid vacation or thirteenth-day leave and any kind of leave is not covered by informal work.

In the case of civil construction, in case of accidents, people can continue to work, even without conditions or requiring a lot of their physical strength to guarantee their income. Still others return to work without being fully capable of performing their duties.

Unemployment insurance is also not included in the benefits of informality, as well as the payment of overtime.

As no deductions are made, workers cannot count on their retirement in the future.

Considering the State, the big disadvantage is that there are less collections for the public coffers.

Read:

  • Sectors of Economy
  • Social Problems in Brazil
  • Social exclusion
  • ILO - International Labor Organization
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