EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
S. No. 
644
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JU L ii  
p  1 6 i r
Introduced by SENATOR RAMON BONG REVILLA, JR.
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AN ACT
TO 
FURTHER 
STRENGTHEN 
THE 
STANDARD 
OF 
PROTECTION 
AND 
ENHANCEMENT OF THE WELFARE 
OF SELF-EMPLOYED WORKERS AND 
CRAFTSMEN 
AND 
THE 
PROMOTION 
OF 
ENTREPRENEURSHIP 
THEREBY 
AMENDING FOR THIS PURPOSE, SECTION 8 OF REPUBLIC ACT NO. 8282 
OTHERWISE KNOWN AS THE SOCIAL SECURITY ACT OF 1997
EXPLANATORY NOTE
Entrepreneurship and self-employment go together hand-in-hand. The pursuit of 
economic growth and development is propelled by capital put forth by entrepreneurs, and 
entrepreneurs more often than not come from the ranks of specialized professionals such 
as those who come from the self-employed and trade craftsmen sectors, offering very 
specific products and services.
In view of the foregoing, it is the duty of the State to protect their right and enhance 
their welfare. The urgent passage of this bill into law is sought.
'7
'
RAMOI^BONG r e v il l a , JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S. No. 
R 4 4
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T9 .111122 PI
Introduced by SENATOR RAMON BONG REVILLA, JR.
RECt,
AN ACT
TO 
FURTHER STRENGTHEN THE STANDARD OF PROTECTION AND 
ENHANCEMENT OF THE WELFARE OF SELF-EMPLOYED WORKERS AND 
CRAFTSMEN AND THE PROMOTION OF ENTREPRENEURSHIP THEREBY 
AMENDING FOR THIS PURPOSE, SECTION 8 OF REPUBLIC ACT NO. 8282 
OTHERWISE KNOWN AS THE SOCIAL SECURITY ACT OF 1997
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress Assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Self-Employed Workers
2 
Protection and Enhancement Act".
3 
Sec. 2. Declaration o f Policy. - The State shall promote self-employment as a
4 
primary tool for poverty alleviation. The State shall recognize and protect the rights of
5 
self-employed workers and the organizations that they may form under existing law.
6 
The State shall ensure their fair treatment and humane conditions of work, including
7 
the basic right to a decent living wage. The State shall respect the principle of
8 
subsidiarity, promote self-reliance and the spirit of enterprise. The State shall further
9 
promote their right to self-organization including but not limited to craft unions, guilds,
10 
workers cooperatives, and other forms of group entrepreneurship.
11 
Sec. 3. Guiding Principles. - Self-employed workers are entitled to occupational
12 
continuity, decent living wage, and basic social benefits. These basic rights can be
13 
enhanced and strengthened through legitimate organizations duly organized under
14 
existing laws which are dedicated to protecting their rights and interests.
15 
Sec. 4. Definition o f Terms. - As used in this Act, the following terms shall be
16 
defined as:


1 
a. Craft Union -  refers to a labor union with membership limited
2 
to workers of the same craft.
3 
b. Entrepreneurship -  refers to the self-organization and
4 
management of a business or enterprise by an individual
5 
c. Group Entrepreneurship -  refers to the association of
6 
different entrepreneurial organizations of common interests.
7 
d. Guild -  refers to an association of people with similar
8 
interests or pursuits.
9 
e. Self-employed -  refers to a person who has his own
10 
occupational capacity put to productive use by applying his own
11 
capital raised by himself or together with other self-employed
12 
persons pursuing related occupational and entrepreneurial
13 
interest. A self-employed individual earns form his labor as well
14 
as from his own capital. He may be contingent, non-regular, or
15 
an overseas worker.
16 
f. Workers cooperative -  refers to a cooperative owned and
17 
controlled by the workers themselves. It is organized by
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workers including self-employed, who are at the same time the
19 
members and owners of the enterprise. As understood herein,
20 
the term ownership shall mean actual contribution to the share
21 
capital of the cooperative up to the maximum allowed by the
22 
law and the bylaws. All share capital shall be entitled to interest
23 
as may be declared form time to time. The term control shall
24 
mean the exercise of right to vote. As mandated by law, each
25 
regular member shall only have one vote regardless of the
26 
number of shares actually held. Its principal purpose is to
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provide jobs and business opportunities to its members and
28 
manage it in accordance with cooperative principles.
29 
Sec. 5. Contractual Relations. -  Contracts with self-employed workers are
30 
governed primarily by the civil and commercial laws of the Philippines. Therefore, the
31 
provisions under Book III of Presidential Decree No. 442, as amended, otherwise
32 
known as the Labor Code of the Philippines, shall not be applicable to self-employed


1 
workers who have the right to determine the terms and conditions of their own
2 
engagements. Notwithstanding the foregoing, agricultural, industrial, commercial, and
3 
service sectors engaging self-employed workers shall ensure that the terms and
4 
conditions of their service should be above or comparable to the benefits provided in
5 
their respective sectors, as mandated by all social legislation.
6 
Sec. 6. Training. -  Training and certification by Technical Education and Skills
7 
Development Authority (TESDA) shall be accessible to self-employed workers in order
8 
to continuously enhance and upgrade the entrepreneurial and occupational capacity
9 
of self-employed individuals. For this purpose, TESDA may enter into agreements with
10 
various associations of self-employed workers to effect this policy.
11 
Sec. 7. Social Security. - All government agencies mandated to render services
12 
and extend social security are hereby mandated to ensure that all self-employed
13 
workers as defined under this Act are covered by a social security program and shall
14 
be allowed to enroll as members of the Social Security System (SSS) under Article 9-
15 
A of Republic Act 8282, otherwise known as the Social Security Act of 1997.
16 
The enrollment can be done directly by the self-employed workers or thru their
17 
respective guilds, craft unions, worker cooperatives, or other associations acting as
18 
their collecting agent for premiums due to SSS.
19 
Paragraph(s) of Section 8 under Republic Act 8282, is hereby amended to read
20 
as follows:
21 
"(s) Self-employed.- A self-employed is a person who has his own occupational
22 
capacity put to productive use by applying his own capital raised by himself or together
23 
with other self-employed persons pursuing related occupational interest."
24 
Sec. 8. Disputes. - disputes involving workers under this Chapter shall be under
25 
the jurisdiction of the regular courts without prejudice to the provisions of Article 137
26 
of Republic Act'9520, otherwise known as the Philippine Cooperative Code of 2008,
27 
insofar as worker cooperatives are concerned.
28 
Sec. 9. Reportoriai Requirement - Worker guilds, craft unions, worker
29 
cooperatives, and other associations organized and representing self-employed
30 
workers must register with the Department of Labor and Employment (DOLE) and
31 
Department of Trade and Industry (DTI) and other regulatory agencies under such


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forms, conditions, and frequency as may be determined by each particular regulatory 
government agency.
Sec. 10. Penalty Cause. - Any individual, association, entity or institution found 
in violation of this Act shall be punished with a fine of not less than Fifty Thousand 
Pesos (Php 50,000.00) nor more than One Hundred Thousand Pesos (Php 100,000.00).
Sec. 11. Implementing Rules and Regulations. - All government agencies are 
hereby mandated to implement rules and regulations that will enact the express 
policies of this Act, to encourage and promote self-employment as a primary tool for 
poverty alleviation and enhance the welfare of the self-employed.
Sec. 12. Mandatory Assistance. - Government agencies with special concern on 
employment and poverty alleviation such as but not limited to Department of Labor 
and Employment (DOLE), Cooperative Development Authority (CDA), Department of 
Trade and Industry (DTI), Department of Interior and Local Government (DILG), 
Department of Agriculture (DO A), Bureau of Internal Revenue (BIR), National Anti- 
Poverty Commission (NAPC), and ail local government units (LGUs) shall draw and 
adopt sustainable programs for the empowerment and encouragement of self- 
employment in support of the express intentions of this Act.
Sec. 13. Separability Cause. - If any part, section or provision of this Act is held 
invalid or unconstitutional, other provisions not affected thereby shall remain in full 
force and effect.
Sec. 14. Repealing Cause. - All laws, decrees, orders, issuances, rules and 
regulations contrary to or inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly.
Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of national circulation.
Approved,