Subsidiary Status Worker

A Subsidiary Status Worker refers to a person who is not engaged in economic activity for the majority of the reference period, but works for a shorter duration during that period to earn income or contribute to household economic activity. This concept is primarily used in employment and labour statistics in India, as defined by the National Sample Survey Office (NSSO) under the framework of usual status classification of workers. It helps measure employment more accurately by accounting for individuals who, while not employed throughout the year, participate in some form of economic work intermittently.

Concept and Definition

The classification of workers in India is based on the Usual Status (US) approach, which distinguishes workers according to the duration and regularity of their work participation during a specified reference period, generally one year preceding the survey date.
Under this system, a person’s Usual Status is defined in two forms:

1. Principal Status – the activity on which a person spent the major part of the reference year (more than six months).
2. Subsidiary Status – the activity on which a person spent a minor part of the reference year (less than six months), provided he or she was engaged in some form of economic work during that period.

Thus, a Subsidiary Status Worker is one who was not a worker by Principal Status but was engaged in economic activity for at least 30 days or more during the reference year.

Categories of Subsidiary Workers

The concept further classifies subsidiary workers into two categories based on their principal activity:

1. Subsidiary Gainful Worker:A person whose principal status is “not working” (for example, a student, housewife, or retired person) but who pursued some economic activity occasionally to supplement household income.
   Example: A housewife who undertakes tailoring work at home for a few months in a year.
2. Subsidiary Worker among Principal Workers:A person who already has a principal work status but also undertakes an additional economic activity occasionally.
   Example: A farmer who also works part-time as a shop assistant during the off-season.

Measurement and Identification

In national labour surveys, the NSSO identifies subsidiary status workers through the following criteria:

• The reference period is 365 days (one year) preceding the date of the survey.
• A person must have worked for 30 days or more during this period in any economic activity to qualify as a subsidiary worker.
• The classification is determined after establishing the person’s principal activity and then checking for any secondary economic engagement.

The combined status, which accounts for both principal and subsidiary activities, is referred to as the Usual Status (Principal + Subsidiary).

Importance of the Concept

The inclusion of subsidiary status in employment surveys has several advantages:

• Comprehensive Employment Estimation: Captures part-time and intermittent employment that principal status alone would overlook.
• Realistic Labour Force Assessment: Reflects seasonal and occasional work patterns prevalent in agrarian and informal sectors.
• Policy Relevance: Helps design policies for underemployed or marginal workers.
• Gender Inclusion: Recognises economic contributions of women who engage in household-based or seasonal work intermittently.

Role in India’s Employment Statistics

India’s labour market exhibits a high degree of seasonal and informal employment, especially in agriculture and rural areas. The concept of subsidiary status thus provides a more accurate picture of labour force participation.
For example:

• Agricultural labourers may remain unemployed during off-seasons but take up wage work or self-employment occasionally.
• Rural women, though primarily engaged in domestic duties, often assist in family enterprises or agricultural work for limited periods.

By including these categories, the employment data based on Usual Principal and Subsidiary Status (UPSS) give a fuller measure of workforce participation than data based solely on principal status or current weekly status.

Statistical Presentation

Employment surveys in India, such as the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO), classify the working population as follows:

• Usual Principal Status (UPS): Persons engaged in an economic activity for the majority of the reference year.
• Usual Principal and Subsidiary Status (UPSS): Persons engaged either on a principal basis or subsidiary basis during the reference year.

The difference between UPSS and UPS figures represents the proportion of subsidiary status workers in the economy.

Characteristics of Subsidiary Status Workers

• Predominantly found in rural areas and agricultural sectors.
• Often engaged in informal, part-time, or seasonal employment.
• High representation among women and marginal workers.
• Work participation influenced by seasonality, economic need, and social factors.

Example Illustration

• A rural woman primarily engaged in household chores but participating in paddy transplanting for two months during the agricultural season would be classified as a subsidiary status worker.
• A retired government employee who occasionally offers consultancy services for a few weeks in a year also qualifies as a subsidiary worker.

Policy Implications

Understanding subsidiary employment has significant implications for labour policy and welfare planning:

• Employment Programmes: Guides schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) that target underemployed workers.
• Skill Development: Helps identify populations that can be integrated into more stable forms of employment through training.
• Social Security Design: Assists in extending benefits to irregular or part-time workers.
• Gender-sensitive Policies: Highlights women’s economic contributions beyond formal employment.

Limitations of the Concept

While useful, the subsidiary status classification has certain limitations:

• Underestimation of Work Intensity: It may not capture the actual duration and nature of part-time work.
• Data Reliability: Relies on recall over a one-year period, which may lead to response bias.
• Informality Overlap: In economies with high informality, distinction between principal and subsidiary work may blur.

Contemporary Relevance

In India’s evolving labour landscape, the concept of subsidiary status remains highly relevant due to the persistence of informal and seasonal employment. With increasing diversification of rural livelihoods and the rise of gig and platform-based work, measuring subsidiary employment continues to be essential for understanding the real extent of labour participation and underemployment.