The informal economy has its own dynamic in developing countries like India. This sector shares a huge percentage of informal workforces contributing to Gross Domestic Product of the Indian economy but the workers remaining in a vulnerable situation. Due to liberalization in India, the flourishment of new industries seen in Sikkim and this generates new form of employment opportunities in the state. The State capital Gangtok provides a huge number of migrant workers in the informal sector from the neighbouring states, Bihar, West Bengal, Assam, etc. As per the recent data around 142195 workers are under informal sector in Sikkim. These workers come from outside of the State and are engaged in various urban informal services. To study the informal employment and their vulnerability, sub-sectors namely tailors, taxi drivers, construction and garage workers are chosen and samples of 100 worker having 25 in each sub-sector. The analysis shows that the wage rate is lower than the legally prescribed minimum wage in Sikkim. The poor wage security is seen in their wages as the savings are very low. Even the workers don't have decent living and working condition in their workplace. The lack of skill affects their wage pattern. There is low level of social security for them. They are not even aware of the Governmental schemes. Therefore, they are still living in vulnerable condition.