1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by CIBAC Party-List Representative 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
EXPLANATORY NOTE 
The International Labor Organization (ILO) reports that more than half of the 
world’s workforce is engaged in informal employment.1 Similarly, the International 
Monetary Fund (IMF) estimates that about 60% of all workers hold unregulated jobs—
roughly two billion people worldwide—while four in every five enterprises operate 
without formal registration.2 
In the Philippine context, the Philippine Statistics Authority’s 2018 Informal 
Sector Survey counted around 15.68 million self-employed or informal workers, 3 
representing over one-third of the country’s 43 million-strong workforce at the time.4 
More recent data from the April 2025 Labor Force Survey5 shows 19.342 million 
workers classified as self-employed, domestic workers, or engaged in family-run farms 
and businesses—equivalent to nearly 40% of the 48.35 million employed during that 
period. 
The informal economy undeniably sustains much of the nation’s economic life, 
especially for those who cannot easily enter formal employment.6 Yet despite this role, 
informal workers continue to be left out of the reach of labor laws and social protection 
systems. This exclusion denies a significant portion of the workforce basic safeguards, 
workplace rights, and access to social security. 
1  World Economic Forum. What is the informal economy and how many people work in it Available at 
https;//www.weforum.org/stories/2024/06/what-is-the-informal-economy/ (Accessed on 1 July 2025). 
2
 IMF. 
Five 
Things 
to 
know 
about 
the 
Informal 
Economy. 
Available 
at 
https://www.imf.org/en/News/Articles/2021/07/28/na-072821-five-things-to-know-aboLit-the-informaleconomy 
(Accessed on 1 July 2025). 
3  Philippine 
Commission 
on 
Women. 
Available 
at 
https://pcw.gov.ph/magna-carta-of-workers-ln-the-
lnformaleconomy/ (Accessed on 1 July 2025). 
4
 Philippine 
Statistics 
Authority 
(PSA). 
July 
2018 
Labor 
Force 
Survey. 
Available 
at 
https://psa.gov.ph/statlstics/survey/labor-and-employment/labor-force-survey/ 
title/Employment%20Situation%20in0/o20July%202018 (Accessed on 1 July 2025) 
5 PSA. April2025Labor Force Survey. Available at https://psa.qov.ph/statistics/labor-force-survey (Accessed on 1 
July 2025). 
6 Op. cit., IMF 
September 1, 2025
8:00 am
4203


2 
This lack of protection stands in stark contrast to constitutional directives. The 
Constitution commits the State to build a just and dynamic social order, eradicate 
poverty through adequate social services and decent jobs, raise living standards, and 
improve quality of life for all. It further mandates the full protection of workers’ rights 
and the promotion of their welfare, regardless of the nature of their employment. 
To bridge this gap, this bill seeks to formally recognize informal workers and 
enterprises, ensuring that they are covered by labor standards and constitutional 
guarantees. It strengthens their right to organize and obliges government agencies to 
extend targeted assistance, such as social protection, infrastructure support, and 
improved market access. This includes capacity-building programs to help self-
employed workers use digital platforms and lessen reliance on middlemen—a 
pressing need made clear during the COVID-19 lockdowns, when direct consumer 
access proved essential. 
The bill likewise mandates the creation of a national registry of informal 
economy workers, to be led by the DSWD in partnership with the DILG, DICT, DOLE, 
and other agencies. The confusion in aid distribution during the pandemic underscores 
the urgency of establishing such a system. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by CIBAC Party-List Representative 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT  
PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE INFORMAL 
ECONOMY AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Chapter I 
1 
GENERAL PRINCIPLES 
2 
3 
SECTION 1. Short Title. - This Act shall be known as the "Magna Carta for 
4 
Workers in the Informal Economy." 
5 
6 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to: 
7 
a) Promote a just and dynamic social order that shall ensure the prosperity and
8 
independence of the nation, and free the people from poverty through policies
9 
that provide adequate social services, promote decent, sustainable, and full
10 
employment, a rising standard of living, and an improved quality of life for all;
11 
b) Protect, promote, and fulfill the rights of every worker, including gender equity,
12 
non-discrimination, the right to self-organization, just and humane conditions of
13 
work, access to social protection programs and services, access to justice,
14 
security of and in the workplaces, and the right to represent their organizations
15 
in a continuing process of consultation, social dialogue, and tripartite bodies;
16 
and
17 
c) Establish an integrated and coherent policy, at all levels of government, of
18 
formalization of informal economic units and informal economy workers, and
19 
make them visible in all relevant national and local statistics.
20 
21 
SEC. 3. Coverage. - This Act shall apply to all workers and economic units,
22 
including enterprises, entrepreneurs, and households in the informal economy, in 
23 
particular: 
24 
a) The self-employed workers, own-account workers and employers, members of
25 
cooperatives, and members of other social and solidarity economy units;
26 
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4 
 
b) Home-based workers or contributing family workers, irrespective of whether 
1 
they work in economic units in the formal or informal economy;  
2 
c) Employees holding informal jobs in or for formal enterprises, or for economic 
3 
units in the informal economy, including those in contract arrangement and/or 
4 
in supply chains, or as paid domestic workers employed by households;  
5 
d) Workers in unrecognized or unregulated employment relationships;  
6 
e) Agricultural workers or fisherfolk in unrecognized or unregulated agricultural or 
7 
farming endeavors and fishing activities; and 
8 
f) Non-regular domestic workers 
9 
 
10 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall: 
11 
a) Informal Economy refers to all economic activities by workers and economic 
12 
units that are, in law or in practice, not covered or insufficiently covered by 
13 
formal arrangements and does not cover illicit activities;  
14 
b) Economic Units in the Informal Economy include units that employ hired labor, 
15 
units that are owned by individuals working on their own account, either alone 
16 
or with the help or contributing family workers, cooperatives and other social 
17 
and solidarity economy units, and informal work that may be found across all 
18 
sectors of the economy, in households, as well as public and private spaces;  
19 
c) Informal Economy Workers' Organization refers to a group of informal sector 
20 
workers, whether formally constituted or otherwise, that are organized with the 
21 
primary objective of promoting the rights and welfare of workers in the informal 
22 
economy;  
23 
d) Informal Employment or Work refers to an employment or work arrangement 
24 
with no legal protection and social benefits, unrecognized or unregulated, either 
25 
in the formal or informal sector whether public or private, or in households either 
26 
based on casual or contractual employment, kinship, or personal and social 
27 
relations;  
28 
e) Own-account worker refers to workers who, working on their own account or 
29 
with one or more partners, hold the type of job defined as a self-employed job, 
30 
and have not engaged, on a continuous basis, any employee to work for them 
31 
during the reference period; 
32 
f) Security of and in the Workplace refers to the right of every worker and informal 
33 
economic units to an environment that guarantees and protects the spaces to 
34 
undertake their work, including the right to be safe in one's own workspace, 
35 
security of tenure and freedom from discrimination, risk, danger, doubt, anxiety, 
36 
or fear of being removed, evicted, or prevented from working;  
37 
g) Social Protection refers to policies and programs that seek to reduce poverty 
38 
and vulnerability to risks and enhance the social status of the marginalized by 
39 
promoting and protecting livelihood and employment, protecting against 
40 
hazards and sudden loss of income, and improving people's capacity to 
41 
manage risk, as well as all other interventions that support communities, 
42 
households, and individuals, both women and men, and realizing their rights as 
43 
citizens through their full participation in decision-making affecting or which may 
44 
affect their access to and control over resources necessary to maintain and 
45 
sustain a decent and secure life;  
46 
h) Social and Solidarity Economy Units refers to enterprises and organizations, 
47 
including cooperatives as defined under Republic Act No. 9520, otherwise 
48 
known as the Philippine Cooperative Code of 2008, mutual benefit societies, 
49 
associations, foundations, and social enterprises which produce goods, 
50 


5 
 
services, and knowledge that meet the needs of the community they serve, 
1 
through the pursuit of specific economic and social objectives and the fostering 
2 
of solidarity. 
3 
 
4 
Chapter II 
5 
RIGHTS AND BENEFITS 
6 
 
7 
SEC. 5. Rights and Benefits of Workers in the Informal Economy. - 
8 
Workers in the informal economy shall be entitled to all the rights accorded to workers 
9 
by the Philippine Constitution, the Labor Code of the Philippines, as amended, and 
10 
relevant international human rights instruments and international labor standards. 
11 
Accordingly, the State shall guarantee all workers in the informal economy the 
12 
following: 
13 
 
14 
a) Right to security of and in the workplace; 
15 
 
16 
b) Right to make a living by work freely chosen or accepted; 
17 
 
18 
c) Right to just and favorable conditions of work, including provision for work-life 
19 
balance, childcare, and other facilities; 
20 
 
21 
d) Right to a living wage and equal remuneration for work of equal value without 
22 
distinction of any kind, especially for women who shall be guaranteed equal 
23 
wages for work similar or equivalent to those done by men; 
24 
 
25 
e) Right to equal opportunity for promotion, subject to no other considerations than 
26 
seniority and competence; 
27 
 
28 
f) Right to safe and healthy working conditions, safeguarding general, 
29 
occupational, and reproductive health; 
30 
 
31 
g) Right to basic services, including affordable medical care, reproductive and 
32 
other health services, low-cost housing, water, sanitation, cheap and affordable 
33 
electricity, and efficient and effective transportation system;  
34 
 
35 
h) Right to rest, leisure, and reasonable limitation of working hours;  
36 
 
37 
i) Right to maternity and paternity benefits, as provided for by law;  
38 
 
39 
j) Right to equal access to education, skills training, and economic resources to 
40 
develop self-reliance, especially for the youth, without any discrimination;  
41 
 
42 
k) Right to self-organization and to collectively negotiate with government and 
43 
other entities in the promotion of their welfare and in the advancement of their 
44 
interests, free from any political interference; 
45 
 
46 
l) Right to adequate food, clothing, shelter and standard of living, and the 
47 
continuous improvement of such standard; 
48 
 
49 


6 
 
m) Right to be free from any form of discrimination, violence, exploitation, including 
1 
sexual exploitation, harassment, abuse, and any form of inhumane treatment 
2 
which debases, degrades, or demeans the intrinsic worth and dignity of the 
3 
worker as a human being; 
4 
 
5 
n) Right to accessible social protection and safety nets, labor market programs, 
6 
and social welfare interventions such as social security, health care, and 
7 
insurance; 
8 
 
9 
o) Right to participate in policy and decision-making processes and social 
10 
dialogue, including access to information and resources relevant to the 
11 
promotion and protection of their rights and welfare; and 
12 
 
13 
p) Right to equal and equitable access to justice for redress of grievances, 
14 
including alternative dispute resolution processes. 
15 
 
16 
SEC. 6. Rights and Benefits of Own-Account Workers. - In addition to the 
17 
rights of workers in the informal economy, own-account workers, as well as informal 
18 
economic units, being the working poor's primary instruments to address and 
19 
overcome poverty, shall be accorded preferential rights by the State over the following: 
20 
 
21 
a) Infrastructure support, such as farm to market roads, common, affordable, and 
22 
secure workplaces and facilities, merchandising centers, farmers markets or 
23 
bagsakan with proper storage facilities, and inventory bulk-buying centers; 
24 
 
25 
b) Policy support to ensure the unimpeded transport of their produce or products; 
26 
 
27 
c) Policy support to promote and protect locally-produced products and services, 
28 
including enhancement of the local value chain; 
29 
 
30 
d) Ease and facilitation of access to markets, including capacity-building to access 
31 
e-marketing facilities that will especially remove middlemen in the transaction 
32 
and facilitate the sale of produce or products directly to the consumers; 
33 
 
34 
e) Access to affordable, appropriate, and adequate financial services, including, 
35 
among others, collateral-free and gender-balanced credit at low interest; 
36 
 
37 
f) Access to appropriate and adequate machinery, equipment, and other 
38 
technologies, with the end view of increasing productivity and growth; 
39 
 
40 
g) Protection from unjust dislocation from places where economic activities are 
41 
conducted, observing the policy of "relocation before demolition"; 
42 
 
43 
h) Measures against racketeering, extortion, and harassment, by both State and 
44 
non-State elements;  
45 
 
46 
i) Common workplaces, shared facilities, product development and technology 
47 
support, and adequate and affordable marketing facilities;  
48 
 
49 


7 
 
j) Freedom from deprivation of property without valid cause and due process of 
1 
law; and 
2 
 
3 
k) Affordable and customized social security and insurance programs.  
4 
 
5 
SEC. 7. Rights of Legitimate Organization of Workers in the Informal 
6 
Economy or Employment. - Workers in the informal economy or employment may 
7 
organize into unions, cooperatives, social and solidarity economic units' organizations, 
8 
and mutual benefit associations. Organization of workers in the informal economy or 
9 
employment shall register with the Department of Labor and Employment (DOLE) and 
10 
shall have the right to:  
11 
 
12 
a) Freely function and act as the representatives of their members in policy and 
13 
decision-making processes, collective negotiations, tripartite bodies and 
14 
consultations, multi-sectoral and other similar bodies;  
15 
b) Establish, join, or affiliate with national federations or confederations and 
16 
international trade union organizations;  
17 
c) Access information from concerned government institutions and other parties 
18 
that are pertinent to the protection and promotion of the rights and welfare of 
19 
their members;  
20 
d) Own property, whether real or personal, for the use and benefit of their 
21 
organizations and members;  
22 
e) Sue and be sued under their registered name; and  
23 
f) Undertake all other activities, not contrary to law, designed to benefit their 
24 
organizations and members.  
25 
 
26 
SEC. 8. Assistance to Organizations of Workers in the Informal Economy. 
27 
- The State shall promote and support the formation of organizations among 
28 
marginalized farmers, fisherfolk, women, and workers in the informal economy or 
29 
employment, whether in manufacturing, agriculture, transport, retail, services, or 
30 
home-based enterprises. 
31 
 
32 
Towards this end, all national government agencies, government financial 
33 
institutions, and local government units' plans, programs, and policies shall foster an 
34 
atmosphere conducive to the exercise of the right to self-organization of the workers 
35 
in the informal economy. Such policies shall also facilitate and promote access to 
36 
credit, skills training, and inputs at lower cost. These policies shall also be geared 
37 
towards assisting such workers in obtaining fair prices for their produce or products 
38 
and ensuring uninterrupted supply chain for the efficient, effective and economical 
39 
transport of their products to consumers.  
40 
 
41 
Chapter III 
42 
SECURITY IN THE WORKPLACE OF WORKERS IN THE INFORMAL 
43 
ECONOMY OR EMPLOYMENT 
44 
 
45 
SEC. 9. Designation of Workplaces. - Local Government Units (LGUs), in 
46 
coordination with legitimate organization of workers in the informal economy and their 
47 
members, affected communities, and other relevant groups, shall identify, designate, 
48 
and design a system of assignment on the following:  
49 
 
50 


8 
 
a) Productivity and merchandizing centers as viable workplaces for informal 
1 
workers, which may include markets and vacant areas near markets, vacant 
2 
public spaces and other spaces which may be a private property that the LGU 
3 
may acquire, lease, or negotiate with legitimate organization of workers in the 
4 
informal economy for lease under a memorandum of agreement; and  
5 
b) Routes, terminals, and specific lanes for small transport workers.  
6 
 
7 
SEC. 10. Policy on Eviction and Demolition. - Workers in the informal 
8 
economy or employment shall not be evicted from their homes and workplaces without 
9 
any legal ground as provided under Republic Act No. 7279, otherwise known as the 
10 
"Urban Development and Housing Act of 1992." They shall also be provided with the 
11 
same or similar livelihood opportunities, adequate water and electricity and decent 
12 
conditions of living in accordance with law. Logistical viability for the displaced shall 
13 
be given priority in the course of determining the relocation sites or areas.  
14 
 
15 
SEC. 11. Policy on Confiscation of Materials and Impounding of Vehicles. - 
16 
In cases where demolition or eviction is warranted by appropriate court order, the 
17 
public officer or government agency that conducted the same shall ensure non-
18 
violence and shall issue an itemized receipt of all products, goods, and other materials 
19 
seized or confiscated from vendors and other affected workers in the informal 
20 
economy or employment. In no event shall these products be destroyed or discarded 
21 
in the course of such demolition or eviction.  
22 
 
23 
Tricycles, pedicabs, and other modes of transportation shall not be impounded 
24 
for violations of license, registration, or traffic regulations unless the said vehicles were 
25 
utilized in the conduct of criminal activities. In cases of violation of traffic regulations, 
26 
a traffic violation ticket shall be issued to the erring driver without impoundment.  
27 
 
28 
SEC. 12. Policy on Relocation of Vending Sites. - Before any public market is 
29 
closed, sold, or demolished, all market vendors shall first be relocated by the LGU to 
30 
a temporary or new public market. Notice of the intention to close, sell, or demolish 
31 
any public market shall be made to all concerned vendors at least sixty (60) days 
32 
before the actual transfer or relocation to another market site. Within the sixty-day 
33 
period after issuance of notice, the LGU shall conduct consultations with affected 
34 
vendors on the relocation site and implementation of the relocation.  
35 
 
36 
Vendors, ambulant or otherwise, occupying or selling in public places not 
37 
previously designated as vending sites shall be provided notice of transfer at least 
38 
fifteen (15) days before the actual transfer to the designated vending site. The fifteen 
39 
(15)-day notice shall likewise apply to vendors granted with permits but whose 
40 
workplaces are withdrawn from the list of allowable vending sites. Any change in the 
41 
list of allowable vending sites shall only be done after consultation with the affected 
42 
vendors. 
43 
 
44 
In the event that a new public market is constructed in place of an old one, market 
45 
vendors with stalls displaced from their workplaces shall be given priority in the 
46 
assignment of stalls in the new market.  
47 
 
48 
SEC. 13. Policy on Relocation of Terminals and Change of Route. - 
49 
Relocation of designated terminals for tricycles, pedicabs, jeepneys and other similar 
50 


9 
 
modes of transportation and any change of route shall not be arbitrarily carried out 
1 
without prior notice and consultation with the drivers and/or transport groups 
2 
concerned, legitimate organizations of workers, affected community, and other 
3 
relevant sectors. The relocation of terminals and change of route shall be implemented 
4 
through an ordinance, the enactment of which shall be subject to the 8 required 
5 
consultation and notice of intention as provided in the immediately preceding section.  
6 
 
7 
Chapter IV 
8 
SOCIAL PROTECTION FOR THE INFORMAL SECTOR 
9 
 
10 
SEC. 14. Formalization of the Social Protection Floor. - The State shall 
11 
support, sustain, enhance, or institutionalize the social protection floor initiative 
12 
through convergence of the resources of various agencies of the government for 
13 
continuous social security and health insurance subsidies to vulnerable and other 
14 
informal workers, as well as initiate programs for the unemployed, children, and older 
15 
persons based on applicable and ever improving standards.  
16 
 
17 
SEC. 15. Social Welfare and Safety Nets. - The Department of Social Welfare 
18 
and Development (DSWD), in coordination with the DOLE, Department of Agriculture 
19 
(DA) and other government agencies, shall consolidate all social welfare programs 
20 
and safety nets to address the needs of the workers in the informal economy, including 
21 
direct assistance, policy development, and community engagement for the workers.  
22 
 
23 
SEC. 16. Role of the Department of Labor and Employment. - The DOLE 
24 
shall engage in labor market interventions that shall provide adequate protection and 
25 
enable transition of workers in the informal economy to formal work arrangements. It 
26 
shall ensure timely and immediate action for labor concerns, as well as job generation, 
27 
and other pertinent concerns.  
28 
 
29 
SEC. 17. Social Insurance. - Social insurance programs including Social 
30 
Security, Pag-ibig (Home Development Mutual Fund), and universal health care shall 
31 
be made fully available to workers in the informal economy. For this purpose, policies 
32 
and mechanisms for their full utilization and benefit shall be formulated by the Social 
33 
Security System, HDMF, and the Philippine Health Insurance Corporation. 
34 
 
35 
Chapter V 
36 
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS FOR 
37 
WORKERS IN THE INFORMAL ECONOMY 
38 
 
39 
 SEC. 18. Applicability of the Provisions of the Labor Code. -The provisions 
40 
of the Labor Code particularly, the minimum age requirement, general labor standards 
41 
and occupational safety and health shall be adapted to work, engagement or 
42 
employment in the informal economy.  
43 
 
44 
SEC. 19. Prohibited Acts Specific to Workers in the Informal Economy. - 
45 
The following are deemed prohibited:  
46 
a) Non-compliance with Minimum Labor Standards and Occupational 
47 
Health and Safety Standards. The terms and conditions of employment of 
48 
workers in the informal economy shall not be lower than the minimum 
49 
standards set by law. The lack of formality of the work arrangement between 
50 


10 
 
the employer and the worker or intermittency of work shall not mean the 
1 
absence of an employment relationship in the informal economy; it is 
2 
sufficient that there is control on how the work is to be done at the time of the 
3 
engagement or economic dependence of the worker on the employer is 
4 
present. In all cases, the employment agreement shall be explained to the 
5 
worker, and be in a language that is easily understandable to the worker. The 
6 
worker shall also be furnished a copy of such employment agreement for his 
7 
records.  
8 
b) Recruitment or Finders' Fees. Regardless of whether the worker was 
9 
sourced either through an employment agency or a third party, workers in the 
10 
informal economy shall neither be charged nor levied a recruitment fee or 
11 
finders' fee by the employment agency or third party.  
12 
c) Hazardous Work and Conditions. Workers in the informal economy shall 
13 
not be engaged to do hazardous work, activity, or undertaking, or be exposed 
14 
to hazardous working conditions. The rights of all workers under Republic Act 
15 
No. 11058, otherwise known as An Act Strengthening Compliance with 
16 
Occupational Safety and Health Standards and Providing Penalties for 
17 
Violations Thereof, shall be promoted and fulfilled.  
18 
d) Interference and Coercion. Any person is prohibited from committing any of 
19 
the following acts of interference and coercion:  
20 
1) Preventing any worker from upholding or exercising his/her rights;  
21 
2) Preventing any worker from joining or assisting organization for 
22 
purposes not contrary to law; 
23 
3) Preventing any worker from carrying out his/her duties or functions in 
24 
an organization, or to penalize the same for any lawful action 
25 
performed in that capacity and in the performance of his/her work or 
26 
undertaking;  
27 
4) Harassing, threatening, coercing, or intimidating any worker that has 
28 
the tendency or has the result of preventing him or her from performing 
29 
his or her duties and functions;  
30 
5) Transferring, penalizing, or terminating the services of a worker 
31 
without valid or legal ground; and  
32 
6) Other acts calculated to diminish the independence and freedom of 
33 
workers' organization to direct its own affairs.  
34 
e) Non-compliance with Republic Act No. 7610, as amended by Republic 
35 
Act No. 9231 in the employment of minors. - In cases where minors are 
36 
contracted or hired to render work or services in any informal economic 
37 
activity, the DOLE and the LGU or a duly elected Barangay official where the 
38 
work is to be done shall ensure compliance with Republic Act No. 7610, as 
39 
amended by Republic Act No. 9231. The employer of the minors shall also 
40 
provide them with access to at least elementary or secondary education, 
41 
either through traditional schooling or alternative learning systems.  
42 
 
43 
SEC. 20. Visitorial and Enforcement Power of the Secretary of Labor and 
44 
Employment. - The scope of the visitorial and enforcement power of the Secretary of 
45 
Labor under Article 128 of the Labor Code of the Philippines, as amended, shall 
46 
include employment and other work engagement in the informal economy.  
47 
 
48 
Chapter VI 
49 
POLICY COORDINATION AND DEVELOPMENT 
50 


11 
 
 
1 
SEC. 21. Function of National Economic Development Authority. - The 
2 
Committee on Social Development of the National Economic Development Authority 
3 
(NEDA) shall develop policies and programs that shall:  
4 
 
5 
a) facilitate the transition of workers and economic units from the informal to the 
6 
formal economy to achieve inclusive development and to realize decent work 
7 
for all, while respecting workers' fundamental rights and ensuring 
8 
opportunities for income security, livelihoods and entrepreneurship; 
9 
b) promote the creation, preservation and sustainability of enterprises and 
10 
decent jobs in the formal economy and the coherence of macroeconomic, 
11 
employment, social protection and other social policies; and c)  
12 
c) prevent the informalization of the formal economy.  
13 
 
14 
SEC. 22. Informal Economy Initiatives of Local Development Council. - The 
15 
Local Development Councils of all provinces, cities, and municipalities shall establish 
16 
a body of coordination, registration, and assistance for workers in the informal 
17 
economy within their respective jurisdictions. The Local Development Councils shall 
18 
also form a sectoral or functional committee that shall facilitate the registration of 
19 
informal economy workers.  
20 
 
21 
Chapter VII 
22 
REGISTRATION OF INFORMAL ECONOMY WORKERS 
23 
 
24 
SEC. 23. Registration. - The DSWD, in coordination with the Department of 
25 
Interior 
and 
Local 
Government 
(DILG), 
Department 
of 
Information 
and 
26 
Communications Technology (DICT), DOLE, and other appropriate government 
27 
agencies, shall establish a system of registration of workers in the informal economy. 
28 
The national and local governments shall review, revalidate, and reassess such 
29 
database as a tool for national and local planning and for other purposes every two 
30 
(2) years. The registry of economic units shall take into account the different sub-
31 
classifications in terms of asset size, number of workers, social insurance provided, 
32 
statutory benefits and wages, industry, geography, premises, sex, ethnicity, 
33 
vulnerability, and roles and functions. The database shall also indicate informal 
34 
economic units which may be categorized as livelihood enterprises and 
35 
entrepreneurial or growth-oriented informal businesses.  
36 
 
37 
Chapter VIII 
38 
FINAL PROVISONS 
39 
 
40 
SEC. 24. Penalties. –  
41 
a) Any person who shall willfully interfere with, restrain or coerce a worker in the 
42 
exercise of his or her rights or shall in any manner commit any act in violation 
43 
of any of the provisions of this Act shall, upon conviction, be punished by a 
44 
fine of not less than Twenty Thousand Pesos (Php20,000.00) or 
45 
imprisonment of one (1) to six (6) years or both fine and imprisonment at the 
46 
discretion of the Court.  
47 
b) If the offender is a public official, the Court, in addition to the penalties 
48 
provided in the preceding paragraph, may impose the additional penalty or 
49 
disqualification from public office.  
50 


12 
 
c) Any person who violates Section 11 of this Act (Policy on Confiscation of 
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Materials and Impounding of Vehicles) shall be liable. Nothing herein shall 
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prohibit the aggrieved workers in the informal economy from initiating a 
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criminal or civil action against the responsible person or officer.  
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d) Failure to implement Sections 12 (Policy on Relocation of Vending Sites) and 
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13 (Policy on Relocation of Terminals and Change of Route) shall render the 
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responsible official/s administratively liable pursuant to Republic Act No. 7160 
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and other applicable laws, without prejudice to any civil or criminal cases that 
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may be filed against such erring official/s.  
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e) If a private institution/company is found to have violated any provisions of this 
10 
Act, its business shall be suspended or revoked at the discretion of the Court. 
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SEC. 25. Implementing Rules and Regulations (IRR). - The DOLE, DILG, 
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DSWD, and NEDA, in coordination with other concerned government agencies and 
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stakeholders, shall formulate the implementing rules and regulations within 180 days 
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from the effectivity of this Act. 
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SEC. 26. Separability Clause. – If any portion or provision of this Act is declared 
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unconstitutional, the remainder hereof or any provisions not affected thereby shall 
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remain in force and effect. 
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SEC. 27. Repealing Clause. – Any law, presidential decree or issuance, 
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executive order, letter of instruction, rule, or regulation inconsistent with the provisions 
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of this Act is hereby repealed or modified accordingly. 
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SEC. 28. Effectivity. – This Act shall take effect fifteen (15) days after its 
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complete publication in the Official Gazette or in a newspaper of general circulation. 
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27 
Approved, 
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