Difference Between Public Sector and Organized Sector (With Table)

Since the beginning of human civilization, different systems have been implemented to provide a sustainable life to humans.

The main purpose of all those systems was to provide the necessary services to its people. Those services included military protection, healthcare, education, etc.

As time passed, separate organizations were established to take care of these matters. People were appointed to resolve the issues and bring the necessary reforms.

As the population increased to millions and billions, different sectors were set up like the public sector, the private sector, the organized sector, etc.

All these sectors had certain benefits for their employees and rules and regulations to run these organizations. But a layperson mostly does not know the difference between them or why a certain sector exists.

Public Sector vs Organized Sector

The difference between the public sector and the organized sector is that the public sector comprises of organizations that are controlled by the government.

While the organized sector comprises of those organizations that are registered with the government. It may be clinics, shops, factories, businesses, schools, hospitals, etc.

Some other differences between the public sector and the organized sector are given in the comparison table below:


Comparison Table Between Public Sector and Organized Sector (in Tabular Form)

Parameter of ComparisonPublic SectorOrganized Sector
DefinitionComprises of organizations owned by the government.Comprises of organizations registered with the government.
ExamplesPost office, railways, and airports.Schools, hospitals, factories.
ObjectiveDo not seek profits. Provide services to citizens.Provide services to citizens. Additional benefits for employees.
Rules imposedDirectly owned by the government so no special rules imposed by anyone.Registered with government so special rules imposed like the Minimum Wages Act.


What is Public Sector?

Public Sector comprises of all those organizations that are owned and controlled by the government. The main objective of public sector organizations is to provide services to citizens. The services could be related to lifestyle, education, and everything that is needed to sustain a good life.

These organizations do not intend to generate profit from these services. Since their primary purpose is not to generate large amounts of revenues but instead work for its citizens.

Examples of the public sector include railways, airports, public schools, public hospitals, public libraries, public roads, and bridges, etc.

Mostly, the public sector operates in industries like Oil and Gas, Electricity, Water, Agriculture, Finance, Defense, Education, etc. So how does the public sector generate revenue to continue providing these services? The Public sector gets funds through different methods.

Those methods include fees, taxes, and financial transfers from other governments like federal to provincial, etc.

Different countries around the world may have different systems of funding for their public sector. Generally, there are three levels of the public sector: Federal, Regional, and Local. Public sector organizations do not have any strict rules imposed on them as they are operated directly by the government.

But if the government changes or bring about some unfavorable decision, then that can impact the working of this sector.

In some parts of the world, the public sector performs well and outgrows the private sector. While in some parts, the private sector or organized sector is working better than the public sector. So there is a trend that exists in every country. But their first and foremost objective is to provide services to the citizens of their country to make their lives better.


What is Organized Sector?

Organized Sector comprises of all those organizations that are registered with the government.

These organizations have to follow some rules which are imposed on them as they are registered with the government. Some of the rules are:

  1. Minimum Wages Act
  2. Factories Act
  3. Shops Act
  4. Payment of Gratuity Act

All of these acts impose some fixed procedures and regulations on the organizations belonging to this sector.

There are some benefits for employees working in the Organization Sector. Employees have fixed contracts, which means, they have a surety of work for the required period.

They have regular salaries with fixed working hours and provisions like social security and fixed days for leaves like public holidays, sick leave, etc.

Some organizations can fire their employees without any prior notice. But in the organized sector, employees are working under a fixed contract and so they cannot be terminated without prior notice. Other than the security of employment, they are also given access to clean drinking water and safe working conditions.

Examples of the organized sector include factories, banks, and all those units which are registered with the government. It can include schools and hospitals as well. But all the rules and benefits that we discussed above are applied to them.

Main Differences Between Public Sector and Organized Sector

Some of the features that differentiate between Public Sector and Organized Sector are given below:

  1. Public Sector comprises of all those organizations owned and controlled by the government while the Organized Sector comprises of all those organizations registered with the government.
  2. Examples of Public sectors include railways, airports, post offices, public schools, and hospitals. Examples of Organized Sector include factories, banks, and enterprises.
  3. The main objective of the Public Sector is to provide services to citizens. The organizations do not seek profit while Organized Sector also provides services to citizens but they have additional benefits for their employees.
  4. Public Sector is controlled by the government so no special rules are imposed on the organizations while Organized Sector has to follow some procedures and rules such as the Minimum Wages Act, Factories Act, etc.



The overall economy of the country and the overall well-being of its citizens are in the hands of these sectors. They, directly and indirectly, affect the operations of the country.

Any sector or organization can succeed in their objectives if their employees work with hard work and sincerity.

On the other hand, if the employers care for their workers and provide them with safe working environments, then they stay happy too and work with passion and determination.

In the end, we need to become the strong hands for our country and contribute to society in whatever way we can.



  1. https://www.britannica.com/topic/public-sector
  2. https://www.topperlearning.com/answer/what-is-an-organised-sector-describe-its-working-conditions/005wy7mww
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