As Zambia plans for extending social protection coverage, this high level of informality will be an important challenge for the social protection system, in particular in terms of coordinating both non-contributory social assistance mechanisms and contributory social insurance programmes. This report on informality and poverty presents useful and critical information to support comprehensive policy dialogue on suitable interventions for extension of coverage by providing in-depth analyses of the socioeconomic characteristics of informal workers and analyzing the relationship between household welfare and formal/informal employment status of household members. For the first time this study provides a detailed distributional analysis of welfare and wellbeing levels of informal workers in Zambia.