What do you mean by formal and informal sector?

(i) Formal sector : All public sector and private sector establishments which employ 10 or more hired workers are called formal sector establishments. Those who work in such es-tablishments are called formal sector workers.
(ii) Informal sector: In this sector there is no hired worker. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises are self-employed.