The informal sector refers to those workers who are self employed, or who work for those who are self employed. People who earn a living through self employment in most cases are not on payrolls, and thus are not taxed. Many informal workers do their businesses in unprotected and unsecured places.n Malawi the informal sector can include vendors, such as people selling various merchandise such as vegetables. The workers in this sector also include hawkers, marketers, vendors, artisans, small veranda (khondes) businesses and cross border traders.