Employer
Topic: Employment, Unemployment and Informalisation · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"; Class 11, Ch 8 "Use of Statistical Tools"
Meaning
An employer is a person or organisation that hires someone to do work and pays them a wage or salary for it. The person hired is the employee. Employers can be private (a shop, a factory, a company) or public (a government department). In India, the government is the largest employer in the formal sector.
Example
A construction company hires a civil engineer and pays them every month. The company is the employer and the engineer is the employee.
Don't confuse with
- Self-employed: a self-employed person runs their own enterprise. They become an employer only when they hire and pay other people. A handloom weaver working alone is self-employed but is not an employer.
Related concepts
- Economic activities
- Worker
- Workforce
- Wage
- Salary
- Payment in kind
- Fee
- Employee
- Work from home
- Moonlighting