Employee

Indian Economy glossary

Topic: Employment, Unemployment and Informalisation · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"; Class 11, Ch 8 "Use of Statistical Tools"

Meaning

An employee is a person who works for someone else and is paid a wage or a salary for that work. The person or firm paying them is the employer. Being an employee is one way of being a worker, but not the only way. Self-employed people and unpaid helpers in family enterprises are also counted as workers, even though nobody employs them.

Example

A cashier in the State Bank of India is an employee. So is a nurse in a private hospital who gets a monthly salary. Both work for an organisation and are paid by it.

Don't confuse with

  • Worker: a wider term. It covers anyone doing economic activity, including the self-employed shop owner and the unpaid family helper, not only people on someone else's payroll.
  • Self-employed: a person who owns and runs their own enterprise to earn a living. They have no employer above them.

Related concepts

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