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While a growing number of countries have a proven record of developing effective legal and policy frameworks for formalization with sustained efforts for policy coherence and coordination, others have only recently embarked on similar paths or are considering doing so. There is substantial demand from policymakers and employers’ and workers’ organizations at the country level for evidence-based, innovative approaches and good practices on effective policy and coordination
frameworks for facilitating the transition to the formal economy.

Against this backdrop, at its 347th Session (March 2023), the Governing Body of the ILO decided 4 to include on the agenda of the 113th Session of the International Labour Conference (2025) an item for a general discussion on innovative approaches to tackling informality and promoting transitions towards formality to promote decent work. This discussion by the Conference, ten years on from the adoption of Recommendation No. 204, will review innovative approaches that
have the potential for constituents to accelerate and scale up the operationalization of Recommendation No. 204, with the support of the Office.

This report provides a background for the discussion of the International Labour Conference on innovative approaches and good practices to addressing informality, in order to identify further action and priorities at the global, regional and country levels, and to enable the ILO and its constituents to better support successful action to promote the transition to formality, including by preventing informalization.

The report also helps to build on the evidence base of innovative approaches and good practices for the transition to formality. It complements a mapping exercise in each ILO region to identify and analyse what works and under what conditions. This work, and the knowledge produced for and through regional knowledge-sharing forums, are accessible on a platform developed by the ILO and its International Training Centre. Together, these efforts provide a wealth of relevant information to support the design and implementation of effective pathways to formality.

To read the full report: click here.

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