The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

FORMAL SECTOR Definition & Legal Meaning

Definition & Citations:

A group of people, usually employees, that includes recognized income sources for paying income taxes based on all 40-hour, regular wage jobs. Contrast to informal sector.

TLD Example: His primary source of income was in the formal sector as a mechanic at a car dealership, but his friends knew also fixed cars after his normal working hours and did not declare it as income on his taxes.


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