Seychelles is an archipelagic state located in the Indian Ocean, with a population predominantly engaged in the informal sector due to limited formal employment opportunities. The analysis is based on secondary data from official government reports, academic journals, and interviews with local stakeholders. A significant proportion (60%) of the urban population operates within informal sectors, facing frequent legal infringements such as tax evasion and lack of formal contracts. There is a need for policy reforms to improve legal protections and facilitate integration of informal sector workers into the formal economy. The government should implement targeted support programmes and develop comprehensive labour laws that recognise the rights and contributions of informal sector workers.