SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
5.B SNEoN l i l 5
*16 
SEP 13 
P 4  :45
—l*V:
Introduced by Senator Poe
AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY, INSTITUTIONALIZING 
MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR OTHER
PURPOSES
Explanatory Note
Under the National Statistical Coordination Board (NSCB) Resolution No. 15, Series 
of 2002, informal sector consists of “units” engaged in the production of goods and services 
■with the primary objective of generating employment and incomes to the persons concerned 
in order to earn a living.1
Data on workers in the informal economy in the country are hard to come by. 
However, based on past studies, we know that they are composed mostly of individuals or 
unincorporated organizations of one to two workers. 2 They are mostly employed in 
agriculture, hunting and forestry, or wholesale and retail trade, repair of motor vehicles, 
motorcycles and personal and household goods.3 Historically, the sector accounts for close to 
50 percent of total employment and 50 percent of total gross domestic product (GDP).4
It can be inferred that workers in the informal economy account for a large portion of 
the labor force and for a substantial portion of GDP, acting as a “sponge” for individuals who
1 http://nap.psa.gov.ph/resolutions/2002/I5.asp
2 Sibal, J.V. “Measuring the Informal Sector in the Philippines and the Trends in Asia” Paper presented at the 
lO* National Convention on Statistics (2007). Retrieved from 
http://www.nscb.gov.ph/ncs/l0thncs/DaDers/invited%20DaDers/iDS-22/iDs22-03.Ddf
3 Philippine Statistics Authority (PSA). “Informal sector operators counted at 10.5 million (Results from the 
2008 Informal Sector Survey) (01/14/09). Retrieved from httDs://Dsa.gov.ph/content/informal-sector-oDerators- 
counted-l05-million-results-20Q8-informal-sector-survev
4 Venida, V.S. “Employment, Productivity and The Informal Sector In The Philippines, 1974-88: An Input- 
Output Analysis” retrieved from https://www.iioa.org/conferences/12th/Ddf/nvdrfr98.pdf


could not enter the formal economy. However, despite their substantial share in employment 
and economic growth, workers in the informal economy are not provided adequate social 
protection or assistance. Around 70.6 percent of workers in the informal economy rely on 
their savings as their primary source of capital,5 while 48.6 percent lack access to capital and 
markets,6 and 98.5 percent do not receive any loan assistance.7 Workers in the informal 
economy are generally not members of the Social Security System.
Congress has yet to enact a measure that would adequately protect workers in the 
informal economy. Various laws protect subsectors of the informal economy. However, the 
informal sector as a whole is not provided with sufficient protection.8 This contradicts the 
social justice provisions of the 1987 Constitution, foremost of which is Article Xlll, Section, 
which states: “The Congress shall give highest priority to the enactment of measures that 
protect and enhance the right of all the people to human dignity, reduce social, economic, and 
political inequalities, and remove cultural inequities by equitably diffusing wealth and 
political power for the common good.”
Thus, this bill seeks to protect and support workers in in the informal economy. This 
measure seeks to achieve this by:
1. Defining who workers, businesses and organizations in the informal economy are and
specifying their rights and benefits.
2. Creating the following institutional mechanisms:
1. The Informal Economy Development Council, which serves as the policy making 
body for IE workers, businesses and organizations on the national level. The 
lEDC's powers and functions include, but are not limited to, the following:
a. Developing a simple registration system for IE workers, enterprises, and 
organizations;
5 Op. a t.
6 Ibid.
1 Ibid.
* Tolentino, M., Sibal., J.V. et.al.. “Survey and Assessment of Laws on the Informal Sector” Philippine Journal 
of Development Number 51: Vol. 27, No. I (2001). Retrieved from httD;//dim.rnids.Pov.Dh/riS/nid/nidsniHni- 
linfosector.odf


b. Crafting, implementing and monitoring plans for the informal economy, which 
shall be part of the NEDA's Medium Long-Term; and
c. Ensuring the protection of the rights of informal economy workers, enterprises 
and organizations.
2. Workers in Informal Employment Local Development Offices (WIELDO) in 
every city and municipality. WIELDOs shall lead the implementation of this 
measure on the local level.
Immediate approval of this measure is eagerly sought.
CE POE


SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
S E N A T E
S B. No. 
1 1 3 5
©
i  
> r n a tr
(®Kirt af flieiiffTrtart
•16 
SEP 13 
P4--45
J i l l
Introduced by Senator Poe
AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY, INSTITUTIONALIZING 
MECHANISMS 
FOR 
IMPLEMENTATION 
THEREOF 
AND 
FOR 
OTHER 
PURPOSES
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Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled:
TITLE I
GENERAL PROVISIONS 
Chapter I
Framework and Principles
SECTION. 1. Short Title. — This Act shall be known as the "Informal Economy 
Transition Act of 2016. ”
SEC. 2. Declaration of Policy. -  It is hereby declared the policy of the State to:
a) Promote a just and dynamic social order that will ensure that the prosperity and 
independence of the nation and free the people from poverty through policies that 
provide adequate social services, promotes decent and full employment, a rising 
standard of living, and an improved quality of life for all;
b) Protect, promote and fulfil the rights of every worker including the right to self- 
organization, just and humane conditions of work, access to social protection, 
access to justice, security of/in the workplaces, and the right to represent their
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organizations in a continuing process of consultation, in the context of tripartism, 
towards maximizing the provision of a comprehensive package of reforms, 
interventions, and services in accordance with their articulated needs and interests;
c) Recognize the role and give proper value to the contributions of workers in the 
informal economy and informal economic units, and make them visible in all 
relevant national and local statistics;
d) Promote gender equity and equality by protecting women workers in the informal 
economy against gender-based discrimination, exploitation and abuse; advancing 
women’s social, economic, political, and reproductive rights; and improving their 
access to social protection and substantial participation and representation in 
decision-making bodies and processes;
e) Establish an integrated and coherent policy at all levels of government of 
formalization, inclusive development, and greater responsiveness to the needs of 
the workers and enterprises in the informal economy;
f) Protect vulnerable workers from among the “Basic Sectors,” as defined under 
Republic Act (R.A.) No. 8425, and people living with HIV and AIDS, from 
discrimination, exploitation, abuse and harassment, as well as from performing 
work hazardous to their occupational, physical, mental, emotional, reproductive 
and spiritual health;
g) Take measures that will ensure legal security of tenure of workers and the safety 
and security of their workplaces, taking into account and including the physical 
environment, services, processes and systems needed to enable workers to 
productively and safely perform their work; and
h) Update labor, employment and establishment statistics and align the segmentation 
of assets by further segmenting the micro-enterprises to give preferential treatment 
to total asset and capital of PI50,000.00 pesos and below as defined under the 
Social Reform Agenda of 1997 (RA 8425) and conduct periodic review of them.


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i) Promote and strengthen regular employment by prohibiting contractualization and 
other non-standard forms of employment under the Labor Code and ensuring that 
outsourcing and contracting arrangements are compliant with decent work 
standards;
SEC. 3. Framework and Principles. -  Article 11, Section. 9 of the Philippine 
Constitution declares that “The State shall promote a just and dynamic social order that will 
ensure the prosperity and independence of the nation and free the people from poverty 
through policies that provide adequate social services, promote full employment, a rising 
standard of living, and an improved quality of life for all.” It shall give the highest priority to 
the enactment of measures that protect and enhance the rights of all people to human dignity; 
reduce social, economic and political inequalities; lessen vulnerabilities to risks including 
those brought about by environmental degradation and natural disasters, remove cultural 
inequities by redistributing wealth and political power for the common good; and to develop 
an enabling environment conducive to responsible citizenship. Towards this end, in the 
context of social dialogue, the government at all levels shall formulate and implement 
coherent and integrated strategies that are rights-based, participatory, gender-responsive and 
sustainable. These strategies shall also be in accordance with the most relevant and 
empowering provisions of ILO recommendation 204 concerning the transition from informal 
to formal economy:
a) Coherence of policies and programs established for the purpose of bringing 
vulnerable workers and economic units into the economic and social mainstream, 
and spur entrepreneurial or growth-oriented informal businesses to graduate to 
formal status;
b) Coordination across a broad range of policy areas in facilitating the transition to 
the formal economy including pre-employment macro-economic policies and 
labor market policies to help low-income households, unemployed persons and 
other disadvantaged persons escape poverty and access employment;
c) Structural reforms in all relevant levels of government by creating committees and 
special offices for the development and protection of workers in the informal 
economy and supporting their representational, entrepreneurial, and other rights,
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through their organizations, without being limited to tripartite structures and 
particular strategies;
d) Accessible, affordable and effective promotion of social security, including labor 
market interventions, occupational safety and health, and the extension of 
maternity protection to women in the informal economy, social welfare programs 
and safety nets, disaster risk reduction and management mechanisms, and adaptive 
measures to respond to climate change;
e) Regulated access for use of public spaces and regulated access to public natural 
resources for subsistence livelihoods through policies, programs and interventions 
that will ensure the security of workplaces of workers in the informal economic 
units, including, among others, the “relocation before demolition” of vendors and 
small transport terminals, towards a work environment that protects their rights 
and enables them to achieve greater productivity.
f) Minimum and simplified regulations to encourage the development of ingenuity 
and entrepreneurial spirit among workers in the informal economy including 
property rights;
g) Preservation and expansion, during the transition to the formal economy, of the 
entrepreneurial potential, dynamism, skills and innovative capacities of workers 
and economic units in the informal economy;
h) A balanced approach combining incentives with compliance;
i) The need to prevent deliberate avoidance of, or exit from, the formal economy for 
the purpose of evading taxation or the application of social and labor laws and 
regulations;
j) Tax reforms based on net income for informal economic units and application of 
tax laws or incentives for the informal economy workers currently enjoyed by the 
formal labor;


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k) Social Dialogue mechanisms whereby informal workers’ organizations will 
participate and be in tripartite consultation in designing, evaluating, and 
implementing policies and programs of relevance to the informal economy.
l) Support system to expand market for products, access loans for additional capital 
requirement and simplify bureaucratic systems and procedures for the Micro, 
Small, and Medium Enterprises (MSMEs);
m) Relaxation of procurement procedures for the contracting micro-entrepreneurs by 
the government;
n) Review, amendment and efficient implementation of relevant policies on sub­
contracting such as DOLE Department Order No. 5 on Industrial Homework;
o) A road map of development for both informal economy workers and economic 
units shall guide the government in all levels in the context of social dialogue; and
p) After formalization, all laws applicable to formal labor and economic units shall 
apply.
SEC. 4. Scope. -  This Act shall apply to all workers and economic imits — including 
enterprises, entrepreneurs and households -  in the informal economy, in particular:
a) Those in the informal economy who own and operate economic units, 
including:
1. Own-account workers;
2. employers; and
3. members 
of cooperatives 
and 
of social 
and 
solidarity 
economy 
units;
b) Contributing 
family 
workers, 
irrespective 
of whether 
they 
work 
in 
economic units in the formal or informal economy;


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c) Employees holding informal jobs in or for formal enterprises, or in or 
for economic units in the informal economy, including but not limited 
to those in subcontracting, and in supply chains, or as paid domestic 
workers employed by households; and
d) Workers in unrecognized or unregulated employment relationships
SEC. 5. Definition of Terms. -  As used in this Act, the following terms shall mean:
a) 
"Basic sectors" - Refer to the disadvantaged sectors of Philippine society, namely: 
farmer-peasant, artisanal fisherfolk, workers in the formal sector and migrant 
workers, workers in the informal sector, indigenous peoples and cultural 
communities, women, differently-abled persons, senior citizens, victims of 
calamities and disasters, youth and students, children, and urban poor;
b) 
'"'Community Contracting" - Refers to the process of concluding an agreement 
between a community and a contracting authority, whereby the community (or a 
section thereof) is responsible for the implementation of the work, and therefore, 
functions as a contractor;
c) 
"Daily Basis" - Refers to the per day mode of paying a worker, as bilaterally 
agreed upon by the employer and worker.
d) 
"Hazardous Work Conditions" - Refers to any activity or circumstance where a 
worker is exposed to any risk which constitutes imminent danger to his or her 
health or safety. This includes potential risks of disability, injury, illness or death 
due to the presence of biologic agents, radiation, chemicals, substances, hazardous 
materials; physical hazards in the work environment; or the nature of work, 
processes performed, or equipment used therein.
e) 
"Informal Economy" - based on the ILO Recommendation No. 204 Concerning 
the Transition From the Informal to the Formal, adopted during the 104th 
International Labor Conference (ILC) in June, 2015 this refers to “all economic 
activities by workers and economic units that are -  in law or in practice -  not
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covered or insufficiently covered by formal arrangements”. “Economic Units” in 
the informal economy include:
1. Units that employ hired labor;
2. Units that are owned by individuals working on their own account, either 
alone or with the help of contributing family workers;
3. Cooperatives and social and solidarity economy units; and
4. Informal work may be found across all sectors of the economy, in both 
public and private spaces.
f) 
"Informal Economy Workers’ Organization" - Refers to a group or groups of 
informal sector workers, whether formally constituted or otherwise, that are 
organized with the primary objective of promoting the welfare of workers in 
informal economy.
g) "Monthly Basis ” - Refers to the per month mode of paying a worker as bilaterally 
agreed upon by the employer and worker.
h) “Pakyaw Basis " - Refers to the pre-contracted wholesale mode of paying a worker as
bilaterally agreed upon by the employer and worker.
i) "Piece rate" - Refers to payment of products or services by piece of work or by
service rendered.
j) 
"Security of/in the Workplace" - Refers to the right of every worker and informal
economic units to an enabling environment that guarantees and protects the spaces 
to undertake their work, including the right to feel safe in one’s own work space, 
legal security of tenure and freedom from discrimination, risk, danger, doubt, 
anxiety, or fear of being removed, evicted or prevented from working. It shall 
include the components listed in Chapter VI of this Act.


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k) “Social Protection” - Refers to policies, programs, and all other interventions that
support communities, households and individuals, both women and men, and 
aimed at: reducing poverty through the promotion and sustenance of livelihood 
and employment; preventing, managing and overcoming risks and vulnerabilities 
throughout their life cycle, like protection against hazards emd sudden loss of 
income; and realizing their rights as citizens through their full participation in 
decision-making affecting or may affect their access to and control over resources 
necessary to maintain and sustain a decent and secure life.
Social protection schemes shall include labor market interventions, social 
insurance, social welfare, safety nets, disaster risk reduction and management 
mechanisms, adaptive measures in the context of climate change, affordable 
housing and other provisions necessary for vulnerable groups to adequately address 
and manage risks.
Social protection shall have the components enumerated and discussed in chapter 
V of this Act.
l) “Working Hours” - Refers to the period of time within which a worker is required to
be on call to perform any and all tasks that may be designated, regardless of 
whether there are actual tasks being undertaken.
m) “Volunteer workers of government instrumentalities” -  Refers to workers in
government instrumentalities receive allowances or honoraria. These include but 
are not limited to: barangay health workers (BHW), barangay tanod, barangay 
nutrition scholars (BNS), barangay daycare workers, enumerators, and among 
others
Chapter II
Coverage, Registration and Annual Dues
SEC. 5. Coverage. -  This shall include all those defined in Section 4 of this Act, IE 
businesses and enterprises, and organizations of workers in informal economy.


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SEC. 6. Registration. -
a) Workers. There shall be a simple and standard system of registration in 
accordance with the framework and principles of this Act. A one-time registration 
fee of not more than Fifty pesos (P50.00) per individual worker shall be paid to 
the municipality or city where they reside.
Any IE worker registered in the local government provided for in this Act shall be 
listed in the centralized database system, and shall be issued an identity card and a 
record book that shall list all services and benefits availed of These signify 
eligibility to avail of development programs, provided, that the poorest and the 
most vulnerable workers shall be given priority.
The concerned LGU shall review, revalidate and reassess such database as a tool 
for local planning and for other purpose every two (2) years from the date of last 
registration. Renewal of eligibility shall be in accordance with the merit and 
fitness principle, and with the conditions that no child labor shall be used and no 
activities harmful to the environment shall be implemented.
b) Informal Economic Unit. A comprehensive database of all economic units shall be 
developed and maintained. Such database shall take into account the different sub­
classifications in terms of asset size, number of workers, social insurance 
provided, statutory benefits and wages, industry, geography, premises, sex, 
ethnicity, vulnerability, and roles and functions. The database shall also indicate 
informal economic units which may be categorized as livelihood enterprises, and 
entrepreneurial or growth oriented informal businesses. Further, the database shall 
include information on payments collected from IE workers, WIE organizations 
and economic units. The BMBE Registry, in general, shall include these informal 
economic units.
The aforesaid comprehensive database shall form part of the bases of assessment 
and monitoring of the growth of informal economy.


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All local government units shall formulate a uniform and simple checklist of 
requirements for registration, and establish an IE One-Stop Shop Center which 
shall handle all transactions and processing of business permit applications within 
their respective jurisdiction and worker’s registration. The Center shall ensure that 
processing of the business permit of the informal economic units shall be 
expedited within one day. The PI 50,000.00 asset size shall be given an affordable 
business registration (Mayor’s Permit) of P500.00 renewable annually until two 
(3) years of operation after which, shall be subject to the regular business permit 
requirements of the local government.
c) Informal Economy Organizations/Associations. lEO/A shall register or accredit 
with the Department of Labor and Employment (DOLE).
SEC. 7. Annual Dues. -  IE workers and organizations shall pay annual dues to be 
determined by the Local Government Unit (LGU) concerned, in consultation with their 
respective Workers in Informal Economy Local Development Office (WIELDO) referred to 
in Title I, Chapter IX of this Act. In no case shall the annual dues to be paid by IE workers be 
more than 30% of the prescribed daily minimum wage as determined by the Regional 
Tripartite Wages and Productivity Board (RTWPB) in their respective regions or provinces.
These annual dues shall accrue to the respective LGU where they are accredited. The 
accumulated funds from these dues shall be used for programs to benefit IE workers and 
organizations/associations, 
business 
activities, 
enterprises 
and 
organizations, 
as 
recommended by the WIELDO. Such programs and disbursement of funds shall be approved 
by the concerned LGU Council in consultation with the local informal economy constituents.
Chapter III
RIGHTS AND BENEFITS
SEC. 8. Rights and Benefits of Workers in the Informal Economy. -  Workers in the 
informal economy shall have the same basic rights accorded to all workers, as enshrined in 
the Philippine Constitution, the Labor Code as amended, and relevant international human 
rights instruments and labor Conventions. These include, but are not limited to the rights to:
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a) Work, which includes the rights to: security of/in the workplace; make a living by 
work freely chosen or accepted; and avail of technical and vocational guidance 
and training programs;
b) Enjoyment of just and favorable conditions of work;
c) A living wage and equal remuneration for work of equal value without distinction 
of any kind, in particular for women who shall be guaranteed equal wages for 
work similar or equivalent to those done by men;
d) Equal opportunity for promotion, subject to no other considerations than seniority 
and competence;
e) Safe and healthy working conditions safeguarding general, occupational and 
reproductive health;
f) Access to basic services including but not limited to affordable medical care, 
reproductive and other health services, low-cost housing, water, sanitation, 
electricity and transport;
g) Rest, leisure and reasonable limitation of working hours, and periodic holidays 
with pay, as well as remuneration for public holidays whenever applicable;
h) Maternity and paternity benefits, as provided for by law;
i) Equal access to education, skills training, and economic resources to develop self- 
reliance, especially of children and young persons, without any discrimination;
j) Self-organization to collectively negotiate with government and other entities in 
the promotion of their welfare and advancement of their interests, free from any 
political interference;
k) An adequate standard of living for workers and their families, adequate food, 
clothing, and shelter, and the continuous improvement of such standard;
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l) Freedom from any form of discrimination, violence, exploitation including sexual 
exploitation, harassment, abuse, and any form of inhumane treatment which 
debases, degrades or demeans the intrinsic worth and dignity of the worker as a 
human being;
m) Accessible social protection, comprising mainly of, but not limited to labor market 
programs, social security, health care and insurance, and social welfare 
interventions;
n) Equal treatment before the law;
o) Substantial participation in policy and decision-making processes, including 
access to information and other resources relevant to the promotion and protection 
of their rights and welfare through organizations that truly represent the sector;
p) Equal access to justice though appropriate mechanisms, including, but not limited 
to, alternative dispute resolution processes; and
q) Access to public procurement including advice and reserving quotas for informal 
economic units.
SEC. 9. Rights of Own-account workers. -  Own-account workers as well as informal 
economic units, being the working poor’s primary instruments to address and overcome 
poverty, shall be accorded the following preferential rights by the State:
a) Infrastructure support such as farm to market roads, common, affordable and 
secure workplaces and facilities, merchandising centers, farmers’ markets or a 
Bagsakan with proper storage facilities, and inventory bulk-buying centers;
b) Policy support to promote and protect local and domestically-produced products 
and services;
c) Access to markets, including capacity-building to access E-marketing facilities;
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d) Access to affordable, appropriate and adequate financial services, including, 
among others, collateral-free and gender-balanced credit at low interest;
e) Access to appropriate and adequate machinery, equipment, and other 
technologies, with the end in view of increasing productivity and growth;
f) Protection from unjust dislocation from places where economic activities are 
conducted with the provision of relocation before demolition policies;
g) Measures against racketeering, extortion, and harassment, by both State and non- 
State elements;
h) Fiscal relief, including among others exemption from taxes, fees and other 
assessments, to be put into place by concerned national agencies and local 
government units sixty (60) days after the effectivity of this Act;
i) Common workplaces, common technology facilities, adequate and affordable 
marketing facilities such as economic freedom parks, merchandising centers, and 
inventory bulk-buying centers;
j) Freedom from deprivation of property without valid cause and due process of law; 
and
k) Affordable and customized social security and insurance programs.
SEC. 10. Rights of Workers Organizations in the Informal Economy. -  Organizations 
of workers in informal employment, including unions, cooperatives, social and solidarity 
economic units/organizations and mutual benefit associations, shall have the right to:
a) Freely function and act as the representatives of their members in policy and 
decision-making processes, collective negotiations, and other similar bodies and 
processes in the context of tripartism and multi-sector;
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b) Establish national federations or confederations and to protect the right of the 
latter to form or join local unions and international trade-union organizations;
c) Access information from concerned government institutions and other parties that 
are pertinent to the protection and promotion of the rights and welfare of their 
members;
d) Own property, real or personal, for the use and benefit of their organizations and 
members;
e) Sue and be sued under their registered names;
f) Undertake all other activities, not contrary to law, designed to benefit their 
organizations and members; and
g) Be accorded preferential option in the awarding of contracts for the undertaking of 
national and local projects funded by either the National or local government units 
including foreign-assisted projects. Guidelines for this shall be included in the 
Implementing Rules and Regulations of this Act.
SEC. 11. Organizing Workers in Informal Economy. -  WIE shall be encouraged to 
organize themselves for their mutual benefit and protection, and for other legitimate 
purposes. Toward this end, the State shall encourage and assist these workers in the formation 
of their self-help organizations, associations, federations, and confederations.
The State shall encourage the formation of cooperatives among marginalized farmers, 
fisher-folk, as well as manufacturing, transport, retail, services, and home-based workers to 
enable members to: purchase inputs at lower cost, obtain fair prices for their produce, avail of 
credit assistance and skills training, and share from collective gains of the cooperatives.
Attention will be given to organizing women and other vulnerable WIE.
SEC. 12. Assistance to Organizations of Workers in the Informal Economy. -  All 
concerned national government agencies, government financial institutions and local
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government units shall include in their plans, programs, projects and activities efforts that 
will support and address concerns of organizations of WIE.
SEC. 13. Monitoring of growth. -  The local government units (LGUs) shall supervise 
the Workers in Informal Economy Local Development Office (WIELDO) as created by 
Chapter IX of this Act, and monitor the growth of informal employment business activities or 
enterprises, three (3) years after the enactment of this Act, and every three (3) years 
thereafter. The centralized database referred to in Section 6 shall be the basis of this 
monitoring.
Chapter IV
Prohibited Acts Concerning Engagement of Workers in the Informal Economy
SEC. 14. Prohibition Against Recruitment or Finders ’ Fees. -  Regardless of whether 
the workers was sourced either through an employment agency or a third party, WIE shall 
neither be charged nor levied a recruitment fee or finders’ fee by the aforementioned 
employment agency or third party.
SEC. 15. Prohibition Against Hazardous Work and Conditions. -  Workers shall not 
be engaged to do hazardous work, activity or undertaking, or be exposed to hazardous 
working conditions.
For purposes of this Section, hazardous work or conditions shall include, but not be 
limited to the following:
a) Any work which requires workers to render services beyond eight (8) hours 
without commensurate compensation;
b) Any work or activity which exposes the worker to physical, emotional or sexual 
abuse or threat of such abuse;
c) Any work which involves manual handling or transport of heavy loads;
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d) Any work in an unhealthy environment which exposes workers to hazardous
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substances, agents or processes, or to temperature, noise levels, or vibrations
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damaging or potentially damaging to their health;
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e) Any work which requires workers to continuously render service during late
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Any and all forms of slavery or practices similar to slavery, such as the sale and
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trafficking of persons, forced or compulsory labor, debt bondage and serfdom;
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g) Any use, procuring or offering of the worker for prostitution or pornography;
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h) Any use, procuring or offering of the worker for the commission of any offense or
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crime, particularly for the production, trafficking, or sale of narcotic drugs and
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substances as defined in the Dangerous Drugs Act;
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i)
Any other type of work or activity which, by its nature or the circumstances in
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which it is carried out, is likely to jeopardize the health, safety, or morals of the
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workers; and
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Any other type of work, activity, condition or undertaking that maybe hereinafter
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be defined as hazardous by the Department of Labor and Employment.
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SEC. 16. Prohibition Against Interference and Coercion. -  Any person is prohibited
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from committing any of the following acts of interference and coercion:
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a) Preventing any worker from upholding or exercising his/her rights;
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b) Preventing any worker from Joining or assisting organizations for purposes not
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contrary to law;
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c) Preventing any worker from carrying out his/her duties or functions in an
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organization, or to penalize the same for any lawful action performed in that
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capacity;
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d) Harassing, threatening, coercing or intimidating any worker that result in 
preventing him or her from performing his or her duties and functions;
e) Transferring, penalizing or terminating the services of a worker without valid or 
legal ground; and
f) Other acts calculated to diminish the independence and freedom of workers’ 
organization to direct its own affairs.
Chapter V
SOCIAL PROTECTION
SEC.17. Labor Market Programs. -  The State shall provide adequate resources to 
sustain labor market programs following decent work standards, including emergency and 
guaranteed employment schemes, to ensure livelihood security and prevent or mitigate the 
effects of sudden loss of income in the context of sustainable development and developing 
local economies in both rural and urban areas.
The State shall ensure that these schemes are labor-intensive, developmental, 
sustainable, and engage women, men, the youth, and older people in building infrastructure, 
socialized housing, social forestry focusing on the planting of traditional trees, organic 
farming, and food production programs.
LGUs shall encourage and provide incentives to constituents who want to engage or 
are engaged in sustainable and/or organic farming. All idle private or public lands within 
their jurisdiction shall be cultivated or planted with organic food crops like com, root crops or 
vegetables. If applicable, LGUs must allocate a portion of their local funds for mangrove 
reforestation and prohibit conversion of any mangrove forest to residential, commercial or 
industrial use.
In pursuit of decent work, the State in all its labor market programs, shall adopt a 
comprehensive framework and plan on occupational safety and health that covers all workers, 
formal and informal, and implemented at both national and local levels.
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The State shall encourage entrepreneurship among the disadvantaged, especially 
women and young people in informal employment, through simple and efficient procedures 
and the provision of adequate and affordable marketing facilities such as those provided for 
by Section 9 (i) of this Act.
The State through LGUs shall promote community contracting to give preference to 
WIE and their organizations in accessing employment opportunities and related benefits.
SEC. 18. 
Social Security. -  In the interest of equity, the State shall endeavor to 
extend social security protection to all workers and their beneficiaries against the hazards of 
disability, sickness, maternity, old age, death, unemployment, and other contingencies 
resulting in loss of income or financial burdens. The State also, recognizing the intermittent 
nature of job and income in the informal economy, shall subsidize the contributions of the 
workers in the informal economy.
The Social Security System (SSS) shall ensure coverage for all workers, particularly 
the working poor belonging to the informal economy. The SSS, in consultation with informal 
workers’ organizations, shall customize products and services for them that are accessible 
and affordable. In the interest of equity, the State shall cover what should have been the 
employers’ share for contributions of informal workers, had they been formally employed.
The SSS shall develop schemes involving government subsidies and sponsorship 
programs to assist those who cannot afford to enroll and sustain their membership.
To achieve universal coverage, the SSS shall facilitate the accreditation of 
cooperatives, women’s and people’s organizations, trade unions and WIE associations, 
microfinance and micro-insurance institutions and similar groups as collecting agents of 
premiums and facilitators of claims with the least burdensome conditions and with 
appropriate incentives. It shall develop effective partnerships with these organizations.
The SSS Commission, in the spirit of democracy, transparency, accountability, and 
equity, shall be required to conduct regular consultations with and provide information and 
reports to its membership. Both formal and informal workers shall be represented in the SSS
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Commission, where gender balance shall also be observed.
The SSS in cooperation with other relevant national agencies and LGUs, shall support 
indigenous and community-based social protection schemes which complements other needs 
in times of risks such as damayan, lulungan, saranay, small mutual benefit associations, and 
micro-finance organizations initiated or participated in by WIE so that these can be sustained, 
systematized and scaled up.
An enabling environment for such organizations and schemes shall also be developed. 
Toward this end, the Insurance Commission (1C) and other relevant regulatory agencies are 
hereby mandated to review their policies and framework to make them more developmental 
and supportive of the alternative schemes outlined above.
SEC. 19. 
Social Security for Volunteers of Government Instrumentalities. -  
Volunteer workers of government instrumentalities as defined in Sec. 5 of this Act, shall be 
covered by the Government Service Insurance System (GSIS) and be entitled to at least a 
minimum package of customized products, services and benefits to be designed with their 
participation and with adequate government subsidy.
SEC 20. Health Care System and Financing. -  The State shall establish a 
comprehensive and integrated health care system that guarantees provision of service by 
duly-accredited and adequately-furnished health facilities, with appropriately-educated and 
rationally-compensated health personnel, to underserved areas all the way down to the 
barangay level. Provided that, such healthcare system shall include reproductive health 
services, and provided finally, that priority in the delivery of such services shall be the poor 
and marginalized.
The State shall ensure adequate resources to finance health care for all, by, among 
others, progressively increasing the budget for health care until it meets the World Health 
Organization recommendation of at least four percent (4%) of the Gross Domestic Product.
SEC. 21. 
Universal Health Insurance. -  The Philippine Health Insurance 
Corporation (PhilHealth) shall ensure and substantiate universal, actual, active, and up to date 
coverage of all Filipinos by 2015. To achieve this, PhilHealth with the participation of all
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stakeholders shall critically review its current operations. It shall also ensure the provision of 
a minimum benefit package which shall be periodically upgraded to meet the goal of 
universal coverage which is affordable, accessible and appropriate to the needs of all.
Government subsidies for PhilHealth sponsorship programs shall be expanded to 
cover not only the extremely poor, but also the working poor who mostly belong to the 
informal economy and as defined in RA 8425 Basic Sectors. For the working poor, the 
supposed employer counterpart, if they were enrolled as formally employed, shall be covered 
by government subsidies in the interest of equity.
PhilHealth shall develop effective partnerships with organized groups, especially 
those composed and led by informal workers, women, senior citizens, persons with 
disabilities, persons with HIV and AIDS and other marginalized sectors, to better serve 
increasing numbers of those in need. Organized groups with at least 500 members shall be 
allowed to be collecting agents of premiums with incentives.
PhilHealth shall immediately extend its services to underserved areas by facilitating 
and accelerating accreditation of hospitals and clinics, and by ensuring that these service 
providers remain viable through immediate reimbursement.
PhilHealth, in accordance with its guiding principles, shall promote maximum 
community participation and shall recognize the roles and strengths of the public and private 
sectors in healthcare, including people’s organizations and community-based health 
organizations. 
PhilHealth shall extend appropriate recognition, technical assistance, and 
other forms of material and non-material support to mutual benefit associations, microfinance 
organizations, community-based health insurance and other indigenous schemes initiated and 
participated in by WIE.
PhilHealth, with maximum participation of all stakeholders, shall review its benefit 
package in order to cover 
WIE, senior citizens, 
indigenous peoples, 
persons with 
disabilities persons with HIV and AIDS and other marginalized groups sustainably; 
emphasize preventive measures such as annual physical and medical check-ups and other 
outpatient services; coverage of workplace-related injuries and illnesses affecting both formal 
and informal workers, treatment of chronic ailments such as hypertension and diabetes; and
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inclusion of hospital-based reproductive health services, commodities and supplies.
SEC. 22. Women, Family and Children's Health Care Program. — The State shall 
encourage provision of and access to affordable quality childcare and other care services in 
order to promote gender equality in entrepreneurship and employment opportunities and to 
enable the transition to formal economy.
SEC. 23. The State shall sustain, enhance, and institutionalize the Social Protection 
Floor initiative through convergence of the resources of various agencies so that it can 
provide continuous social security and health insurance subsidies to vulnerable and other 
informal workers as well as initiate programs for the unemployed, children, and older persons 
based on applicable and ever improving standards.
CHAPTER VI
Security in the Workplace of Workers in Informal Employment
SEC. 22. Designation of Workplaces. -  The concerned Local Government Unit 
(LGU), in coordination with their respective WIELDO, and after consultation with WIE, 
affected communities, and other relevant groups, shall identify and designate viable 
workplaces for informal workers; routes, terminals, and specific lanes for small transport 
workers; and design a system of assigning these to accredited informal workers, These may 
include markets and vacant areas near markets, vacant public spaces and other spaces which 
may be designated as allowable workplaces for informal workers.
Should concerned WIE prefer to conduct their economic activities within an identified 
private property, the LGU shall negotiate with the owner of the property for the possible use 
of such property as WIE’s workplace. The LGU shall likewise encourage and assist the 
parties in forging a possible memorandum of agreement.
The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey to 
identify viable vacant areas suitable for routes, terminals, lanes, productivity and 
merchandizing centers and workplaces for use of WIE in their respective localities.
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The LGUs shall, within ninety (90) days after the survey and based on 
recommendations of WIELDO and consultations with concerned WIE, affected inhabitants 
and relevant sectors, pass an ordinance designating such workplaces.
SEC. 23. Protection of Agricultural Lands and their Occupants. -  The LGUs, in 
coordination with the Department of Agrarian Reform (DAR) shall protect all agricultural 
lands from conversion or reclassification to non-agricultural uses. Special Economic Zones 
Sites, Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable 
lands.
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the 
agricultural lands as protected zones.
The LGUs shall make an inventory of all agricultural lands under leasehold and shall 
enforce the security of tenure of tenants, right of redemption and right of first refusal on the 
subject land. The LGUs shall provide assistance and protection to tenants in agricultural lands 
whose landowners violate the provisions of R.A. No. 3844 or the Agricultural Land Reform 
Code. Tenants shall not be evicted based on unilateral termination of the tenancy relationship 
by landowners.
SEC. 24. Use of Municipal Waters, Beach Fronts, and Foreshore Areas. - Municipal 
waters shall be used exclusively by marginalized fisher-folk and allied workers. They shall be 
given priority in the granting of permits and licenses for the establishment of fish pens, fish 
corrals, fish traps, shellfish culture or similar structures for culture of marine products within 
the municipal waters.
Beach fronts and foreshores are public domain and may be used by any person 
especially marginalized fisher-folk. LGUs shall ensure that no beach within their jurisdiction 
is exclusive for the use of resort guests or private persons.
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LGUs in coordination with the National Housing Authority (NHA), shall establish 
and create fisher-folk settlement areas on private or public lands, specifically those near the 
fishing grounds, for municipal fisher-folk with security of tenure.
The consent of the affected fisher-folk shall be required before an area is declared a 
marine protected area or a fish sanctuary by the national or local government unit.
SEC. 25. Policy on Eviction and Demolition. -  WIE shall not be evicted from their 
homes and workplaces without legal ground as provided for R.A. No. 7279, otherwise known 
as the Urban Development and Housing Act of 1992. In cases where eviction or demolition 
is warranted under Section 28 of RA 7279, the same shall be conducted upon compliance of 
the following:
a) Notice upon the affected persons or entities at least thirty (30) days prior to the 
date of eviction or demolition;
b) Adequate consultations on the matter of resettlement with the duly designated 
representatives of the families to be resettled and the affected communities in the 
areas where they are to be relocated;
c) Presence of local government officials or their representatives during eviction or 
demolition;
d) Proper identification of all persons taking part in the demolition;
e) Execution of eviction or demolition only during regular office hours from 
Mondays to Fridays and during good weather, unless the affected families consent 
otherwise;
f) No violence or unreasonable force shall be committed against women, children, 
senior citizens, persons with disabilities and other identities similarly situated in 
the course of eviction or demolition.
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g) Non-use of heavy equipment for demolition except for structures that are 
permanent and of concrete materials;
h) Proper uniforms for members of the Philippine National Police (PNP) who shall 
occupy the first line of law enforcement and observe proper disturbance control 
procedures; and
i) Adequate relocation, whether temporary or permanent; provided, however, that in 
cases of eviction and demolition pursuant to a court order involving 
underprivileged and homeless citizens, relocation shall be undertaken by the local 
government unit concerned and the National Housing Authority (NHA) with the 
assistance of other government agencies within forty-five (45) days from service 
of notice of final judgment by the court, after which period the said order shall be 
executed; provided, further, that should relocation not be possible within the said 
period, financial assistance in the amount equivalent to the prevailing minimum 
daily wage multiplied by sixty (60) days shall be extended to the affected families 
by the local government unit concerned.
SEC. 26. Policy on Confiscation of Materials and Impounding of Vehicles. — In cases 
where demolition or eviction is warranted, the person who conducts the same shall issue an 
itemized receipt of all products, goods, and other materials seized from the affected WIE.
Tricycles, pedicabs, street vendors and other modes of transportation shall not be 
impounded for violations of license, registration, or traffic regulations unless the said vehicles 
were utilized in the conduct of criminal activities. In cases of mere violation of traffic 
regulations, a traffic violation ticket shall be issued to the erring driver without impounding 
his/her vehicle.
SEC. 27. Policy on Relocation of Vending Sites. -  Before any public market is 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to a 
temporary or new public market. Notice of the intention to close, sell, or demolish any public 
market shall be made to all concerned vendors at least sixty (60) days before the actual 
transfer or relocation to another market site. Within the sixty (60)-day period after issuance of
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notice, the LGU shall conduct consultations with affected vendors on the selection of the 
relocation site and implementation of the relocation.
Pending the designation of viable vending areas, vendors occupying public places not 
previously designated as vending sites shall be provided with viable temporary sites by the 
LGU. Notice of temporary transfer shall be given to the vendors at least fifteen (15) days 
before the actual transfer. This shall likewise apply to vendors granted with permits but 
whose workplaces are withdrawn from the list of allowable vending sites. Any change in the 
list of allowable vending sites shall only be done after consultations with affected vendors.
In the event that a new public market is constructed in place of an old one, market 
vendors with stalls displaced from their workplaces shall be given priority in the assignment 
of stalls in the new market.
SEC. 28. Policy on Relocation of Terminals. Designated terminals for tricycles and 
pedicabs shall not be arbitrarily relocated without prior notice and consultation with small 
transport groups, affected community and other relevant sectors. Provided, that relocation of 
terminals can only be effected through an Ordinance. 
Provided further, that after the 
enactment of such ordinance, notice of intention to relocate terminals shall be made to all 
small transport groups and affected community at least sixty (60) days before the actual 
relocation.
Chapter VII
Special Allocations of Development Initiatives
SEC. 29. 
Special Allocations for Development Initiatives. -  The development 
initiatives for WIE shall form part of an integrated and convergent plan to address poverty 
and vulnerability. The national and local government units shall work together in support of 
such plan to maximize impact of meager resources.
a) At least ten percent (10%) of the annual national budget shall be appropriated for 
programs and services for WIE. These programs shall be implemented based on 
the principles of merit and equity by the Department of Labor and Employment 
(DOLE) at the national level and the WIELDO at the local level.
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b) For purposes of program implementation, the DOLE shall manage 30%, and 
WIELDO, 70% of the funds from the annual General Appropriations Act (GAA) 
as provided for in the previous paragraph of this section.
c) The Implementing Rules and Regulations (IRR) of this Act shall determine 
additional guidelines on, among others, the use of such finances to ensure that 
programs and services truly benefit WIE.
SEC. 30. Sourcing and Adopting Development Initiatives. -  Other sources of funds to 
be used exclusively for initiatives addressing the needs and empowerment of WIE shall be 
identified in the IRR of this Act and may include the following:
a) Government financial institutions and mechanisms such as the Land Bank of the 
Philippines (LBP), Development Bank of the Philippines (DBP), National 
Livelihood Support Fund (NLSF), and Quedan Rural Credit and Guarantee 
Corporation shall set aside a specific percentage of their loan portfolio to informal 
economy enterprises and shall give priority to women-led informal economy 
enterprises by providing loans at an interest of not more than twelve percent 
(12%) per annum consistent with the spirit of R.A. No. 7882.
b) The Department of Social Welfare and Development (DSWD) shall strengthen its 
Self-Employment Assistance Program (SEAK) to uplift and empower women in 
poverty, particularly those in the informal economy, by adopting an integrated, 
credit-plus approach to micro-finance.
c) The Small Business Guarantee and Finance Corporation (SBGFC) created under 
Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting of 
development initiatives for competitive enterprises in terms of finance, 
technology, production, management and business linkages. It shall also provide 
and promote, develop and widen in both scope and service reach various 
alternative modes of financing for informal economy business activities or 
enterprises, including but not limited to: direct and indirect project lending, 
venture capital, financial leasing, secondary mortgage and/or rediscounting of 
loan papers to such business activities or enterprises, and crop production
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financing. Further, the Corporation shall guarantee loans obtained by qualified 
worker or business activity or enterprise, under such terms and conditions adopted 
by its Board.
d) The Department of Trade and Industry (DTI) shall contribute to enable the 
development of a business environment that shall include initiatives such as 
supply chain and market outlets, and schemes to develop Special Credit Windows 
to upscale informal enterprises.
e) The Department of Science and Technology (DOST) shall support technology- 
related initiatives of workers and enterprises in the informal economy.
SEC. 31. Exclusivity of Government Programs. -  The government shall ensure that 
programs of financing, grants and other similar incentives meant to benefit WIE shall be 
exclusively extended to accredited workers, business activities, enterprises or organizations in 
the informal economy.
SEC. 32. 
Inclusivity of Benefits. -  The exemptions and other benefits provided in 
this Act shall apply for a period of not exceeding ten (10) years from the date of accreditation 
of such IE worker, business activity, enterprise, or organization.
Chapter VIII
Informal Economy Development COUNCIL (lEDC)
SEC. 33. Creation of the Informal Economy Development Council (lEDC). -  There is 
hereby created an Informal Economy Development Council, hereinafter referred to as the 
lEDC, which shall be an agency within the Department of Labor and Employment (DOLE). 
The DOLE shall institute appropriate reforms within its structure, programming and other 
processes, including adjusting its human resource capabilities to ensure that WIE-focused 
programs are efficiently and adequately implemented to address the needs of these workers. 
Likewise, an inter-agency committee shall be formed to coordinate policies and programs of 
various government agencies towards the transition of informal economic units to formal.
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The lEDC shall be constituted within thirty (30) days after the approval of the IRR of 
this Act.
SEC. 34. Mandate and Functions of lEDC. -  The mandate and functions of lEDC 
shall include the following:
a) Develop and ensure implementation of a simple system of registration for the IE 
workers, enterprises, and organizations in accordance with the standards and 
provisions of this Act;
b) Provide guidelines for the implementation by LGUs of a fair and credible system 
of evaluation, accreditation, review and assessment, merit promotion, rendering of 
grant and incentive awards and other policies relative to the effective and efficient 
implementation of this Act;
c) Develop and ensure implementation of annual, long-term and medium term plans 
for the informal economy, the last of which should form part of the Medium Term 
Philippine 
Development 
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comprehensive, rights-based, gender-responsive and child-friendly programs and 
policies for the IE;
d) Develop and ensure effective implementation of labor standards covering WIE as 
provided for by this Act;
e) Develop and ensure implementation of gender-based monitoring and evaluation 
mechanisms, efficient and effective programs and policies, and gender- 
responsiveness of interventions toward harnessing the full potentials of women 
WIE;
f) Coordinate with LGUs for the development and implementation of periodic 
evaluation of all accredited IE members, enterprises and organizations -  taking 
into account their accomplishments, capabilities and potentials. The results of 
such evaluation shall be used as bases for accreditation, the grant of awards and 
incentives, training and retraining;
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g) Establish a performance appraisal system for all accredited workers, enterprises 
and organizations in the informal economy which shall be the basis for granting 
or renewal of incentives, rewards and recognition, training and development, 
including adequate mechanisms to ensure their active participation and 
involvement;
h) Ensure effective participation of WIE and their organizations through the 
establishment of regular consultative mechanisms and processes. Annual national, 
regional and provincial consultations among the organizations of WIE shall be 
conducted to determine specific issues and problems affecting specific WIE sub­
sectors, and monitor and evaluate implementation of programs and policies.
i) Establish and develop a centralized and sex-disaggregated database system to 
effectively guide policy formulation and implementation relative to the WIE. The 
databank shall be available for public use and shall include but not limited to the 
following: statistical profile of WIE based on age, location, type of work, average 
monthly incomes, work hours, and other relevant statistical information; data on 
informal enterprises, including capitalization and sources of capital, number and 
status of workers, average incomes; List and contact information of government 
and non-government organizations (NGOs) that provide educational, socio­
economic, legal, and other services to WIE; Inventory of resolved and pending 
cases involving activities of WIE; Database on the needs and problems of women 
and children in the informal economy nationwide aimed at strengthening policies 
and programs against child labor; and Compilation of international instruments, 
existing laws and programs affecting the interest and welfare of WIE and 
information on how these workers may use or avail of such instruments, laws and 
programs.
j) Develop and ensure implementation of a communication plan including massive 
information dissemination activities targeting WIE, their enterprises and 
organizations, in the various regions towards a better understanding and 
appreciation of the benefits this Act may bring them;
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k) Consistent with Section 2 (h) of this Act, to develop and ensure implementation of 
a comprehensive plan to eliminate child labor;
l) Monitor and coordinate implementation of policies and programs through the 
Regional lEDC officers;
m) Coordinate and harmonize all informal economy-related policies, programs, 
projects and activities of various government agencies towards greater efficiency 
and effectiveness;
n) Monitor the LGU-generated incomes from informal employment through the 
LGUs’ periodic report submitted to the Council;
o) After consultations with WIE organizations, develop and ensure implementation 
of policies and programs that will address specific needs and ensure rights of WIE 
subsectors;
p) Develop and ensure implementation of accessible and just conflict resolution and 
adjudication systems and mechanisms to promote dialogue, conciliation, 
mediation and redress of grievances to protect the rights of WIE; and
q) From time to time, call on the participation of any government agency or 
bureaucracy in its deliberations especially when such agency is directly or 
indirectly concerned with or affecting the growth and development of the IE.
SEC. 35. 
Composition. -  The Chair of the lEDC shall be the Secretary of 
Department of Labor and Employment. lEDC members may elect from among themselves a 
Vice-Chair to preside over meetings in the absence of the Chair. The members shall be the 
following:
a) Secretary of the Department of Trade and Industry (DTI);
b) Director General of the National Economic and Development Authority (NEDA);
c) Secretary of Department of Agriculture (DA);
d) Secretary of Department of Social Welfare and Development (DSWD);
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e) Secretary of the Department of Interior and Local Government (DILG);
f) Chairperson of the Commission on Human Rights (CHR);
g) Lead Convener of the National Anti-Poverty Commission (NAPC);
h) Secretary of Department of Transportation (DOTr);
i) Chairperson of the Social Security System (SSS);
j) Chairperson of Philippine Health Insurance Corporation (PhilHealth);
k) Chairperson of the Philippine Commission on Women (PCW);
l) Secretary of the Department of Public Works and Highways (DPWH);
m) One (1) REPRESENTATIVE FROM THE PRIVATE SECTOR
n) One (1) representative each from the League of Cities, League of Municipalities, 
League of Provinces and League of Councilors;
o) The incumbent NAPC Informal Sector Sectoral Representative;
At least 30% of total membership of lEDC shall come from organizations of workers 
in the informal economy accredited with DOLE and DA. Guidelines for the selection of non­
government lEDC members, including processes and mechanics shall be determined by the 
IRR of this Act. Provided, that at least 40 percent of the 30 percent are women.
Representatives from the social partners, private sector and ngos 
and WIE 
organizations shall serve as lEDC members for a term of three (3) years without re-election 
and shall be subject to terms and conditions provided for by the IRR.
The private sector, workers in informal economy and women’s organizations’ 
representatives to the lEDA shall be entitled to receive Per Diem of at least Two Thousand 
Five Hundred Pesos (P2, 500.00) per meeting.
SEC. 36. lEDC Meetings. -  The lEDC shall meet once every two (2) months and may 
call for special meetings as the need arises; provided, that the frequency of such special 
meetings shall not exceed four (4) times annually.
SEC. 37. 
Initial lEDC Funds. -  Ten million pesos (PIO, 000,000.00) shall be 
allocated from the Presidential discretionary fund for the initial operating expenses of the 
lEDC.
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SEC. 38. Executive Committee of the lEDC. -  An Executive Committee of NINE (9) 
members shall be convened. Besides the Chair and Vice-Chair, the following shall be elected 
by the lEDA members from among themselves or their duly designated alternate 
representatives: four (4) representatives of WIE organizations, one (1) from the different 
leagues of local officials, one (1) from the private sector, and one (1) from a national 
government agency, provided, that at least three (3) members of the Executive Committee are 
women.
The Executive Committee shall have the authority to act for and in behalf of lEDC during 
intervals of meetings, and only within the specific authority granted by the lEDC.
SEC. 39. lEDC Secretariat. -  The following secretariat functions shall be integrated 
in the DOLE secretariat functions:
a) Prepare and recommend, in coordination with LGUs and other government 
agencies, annual, medium-term, and long-term Informal Economy Development 
Plans for approval of the lEDC;
b) Coordinate the preparation of position papers and background materials for 
discussion or approval during lEDC and its Executive Committee meetings;
c) Assist in coordinating and monitoring policies, programs and activities of all 
government agencies with respect to the implementation of this Act;
d) Prepare, collate, and integrate all inputs to the lEDC’s yearly report on the status 
of WIE, business activities or enterprises in the country, or other matters as 
directed by lEDA;
e) Submit periodic reports to lEDC on the progress and accomplishments of its work 
programs; and
f) Perform other secretariat and administrative functions as authorized by the lEDC 
or its Executive Committee.
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SEC 40. Regional and Provincial lEDC Officers. -  The DOLE Regional and 
Provincial offices (NEDA Resolution) shall have Regional and Provincial lEDC Officers 
who shall be appointed by the lEDC and shall have functions that include: monitoring and 
coordinating of lEDC initiatives in the regions and Provinces; evaluation of policies 
programs for workers in informal economy; providing technical assistance in the 
development of local plans and programs; as well as other administrative functions necessary 
for the success of lEDC initiatives in their jurisdiction.
lEDC Regional Officers shall have automatic seats in all Regional Development 
Councils (RDCs).
SEC. 41. Rationalization of Programs. -  lEDC shall conduct continuing review of 
government programs for the poorest of the poor and the WIE and submit to Congress and 
the President of the Philippines a report thereon together with its policy recommendations.
Chapter IX
Workers in Informal Employment Local Development Office (WIELDO)
SEC. 42. Workers in Informal Employment Local Development Office (WIELDO). — 
The Workers in Informal Employment Local Development Office (WIELDO) shall be 
established in every city and municipality to perform functions that shall include but not 
limited to the following:
a) Prepare an overall development plan and work program that will address the needs 
of the WIE, prioritizing the poorest and most vulnerable, and incorporate them in 
their respective city, municipal, and barangay development plans;
b) In consultation with WIE organizations in the area, identify specific needs of 
various IE subsectors and recommend appropriate measures to be taken;
c) Ensure registration and accreditation of WIE, especially those with assets of 
PI50,000 and below, to facilitate their immediate access to benefits and services;
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d) Monitor, assess and evaluate implementation of the plans and programs as well as 
the performance of informal workers, their economic activities and their 
organizations in the areas;
e) Lead in the local implementation of Chapter VI (Security in the Workplace of 
WIE) of this Act;
f) Coordinate with other local offices, private sector and other organizations with 
existing programs for WIE towards integration and convergence;
g) Conduct education and training programs that will: raise their consciousness 
especially on but not limited to workers’, women’s and children’s rights; provide 
new ideas especially to those with the least assets and formal education; and 
develop or upgrade technical, entrepreneurial and leadership skills WIE;
h) Provide technical support and facilitate access to credit, market, technology, social 
protection schemes, and training for WIE;
i) Train pools of community trainers in business counseling and awareness-raising 
on occupational safety and health hazards, risks and social protection;
j) Support organizing activities among WIE;
k) Establish sex-disaggregated databank on human resources and skills registry to be 
used as tools for LGU planning and budgeting;
l) Provide offices and other necessary resources to support organizing, advocacy, 
training and other activities of local organizations of WIE;
m) Conduct specialized training such as negotiation skills and conduct of time and 
motion studies to determine proper wages;
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n) Provide services, which shall include but not be limited to counseling, 
conciliation, mediation, and legal assistance for the furtherance of this Act, 
prioritizing those with the least access to justice; and
o) Ensure that the LGU is capacitated to undertake and implement rights-based and 
gender-responsive programs for WIE.
The local government shall encourage organization of economic imits and set 
respective rules and regulations towards smooth interventions to support MSME and informal 
enterprise development towards transitioning to formality
In the performance of WIELDO's functions, the principle of preferential treatment to 
the poorest and most vulnerable shall be observed.
SEC. 43. Composition. -  The Local Chief Executives (LCEs) shall be the primary 
overseers of WIELDO’s operations. The IRR of this Act shall provide for WIELDO’s 
composition: Provided that, informal workers’ representatives shall form at least fifty percent 
(50%) of WIELDO’s membership. Provided further, that IE representatives shall not be less 
than five (5), and Provided finally, that at least forty percent (40%) of all WIELDO’s 
members are women. Other relevant guidelines on WIELDO’s operations shall be included 
in the IRR of this Act.
SEC. 44. Local Government Unit Informal Economy Development Fund (LGU- 
lEDF). -  An Informal Economy Development Fund shall be established by every 
municipality and city. Such fund will be supervised and managed by the concerned LGU 
through the WIELDO but subject to audit by the Commission on Audit (COA).
For the establishment and initial operations of WIELDO, each LGU shall allocate at 
least three per cent (3%) of their twenty percent (20%) Development Fund from their IRA.
Thereafter, the LGU-IEDF shall be funded using:
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a) Registration fees and annual dues paid by individual workers in the informal 
economy, their livelihood activities, and organizations and associations as 
provided for by Sections 6 and 7 of this Act;
b) Shares from the 70% of the at least 10% funds from the Annual General 
Appropriations Act as provided for by Chapter VII, Section 29 (a) and (b) of this 
Act; and
c) Annual allocations from LGUs Development Fund the percentage of which shall 
be determined by LGUs.
Following the principle of merit and equity, LGUs that fulfill such allocations may 
receive additional assistance from the national government as recommended by lEDC; 
provided, that they have formulated their local development plan for WIE.
SEC. 45. Additional Sources of Funds. -  The following may tapped by LGUs as 
additional sources of funds for WIELDO initiatives:
a) At least fifty percent (50%) of fees and annual dues collected from small transport 
for programs for workers in the small transport industry;
b) At least fifty percent (50%) of collected fees and annual dues from business 
establishments and entrepreneurs falling under the category of informal sector for 
programs focusing on micro-entrepreneurs and their workers;
c) At least fifty percent (50%) of collected fees and annual dues from small vendors 
for programs focusing on vendors;
d) At least fifty percent (50%) of fees and annual dues collected from marginalized 
fisherfolks -  for programs focusing on fisherfolk; and
e) At least ten percent (10%) of funds from the Philippine Amusement and Gaming 
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO).
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TITLE II
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY
Chapter I
Requisites for Employment Agreement
SEC. 46. Minimum Standards. -  All working arrangements entered into by WIE shall 
be in accordance with the minimum applicable labor and social standards as contained in 
Title II of this Act.
These standards shall be strictly enforced in informal economic enterprises supplying 
or doing outsourcing work for exporters, investors-locators in export processing zones or 
industrial parks licensed by the Export Processing Zone, and domestic formal sector 
manufacturers and retailers-distributors.
For workers engaged by independent informal economic enterprises, DOLE, in 
coordination with lEDA shall audit the capacity of these enterprises to comply with these 
standards. Those incapable of meeting the standards shall be assisted to upgrade their 
capacity to improve their businesses, as well as the capacity comply with relevant labor and 
social standards.
SEC. 47. Provisions of Employment Agreement. -  The employment contract shall be 
in written form. However, the absence of a written agreement does not mean the absence of 
an employment relationship. As a matter of right, WIE can insist on a written agreement 
based on minimum standards
In cases wherein minors are contracted with, the said negotiated contract shall be 
signed on his/her behalf by either parent or legal guardian, with the expressed written consent 
of the said minor.
In cases wherein illiterate workers are contracted with, the said contract shall be 
explained to the worker concerned and attested to by a representative from the LGU or an 
elected Barangay official in the city or municipality where the worker is designated to work.
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Each of the contracting parties shall be provided with a full set of the duly signed 
agreement which shall include the following basic provisions:
a) Working arrangement/mode;
b) Period/duration of employment;
c) Compensation, which shall not be below the minimum standard, and mode of 
payment;
d) Computation of contributions for social security and medical insurance including 
for those who fall under DOLE Department Order No. 5;
e) Duties and responsibilities;
f) Working hours and day-off schedules;
g) Living quarters or sleeping arrangements (for live-in workers);
h) The date, term and mode of delivery or date of completion;
i) A minimum of twenty percent (20%) down payment for labor cost and services 
and minimum of 50% for inventory of raw materials used in the production for 
homeworkers per DOLE Order No.5.
Minimum standard compensation referred to above shall be determined by the 
Regional Wage Boards per subsector of WIE. In the case of piece rates, this shall be based on 
the conduct of time and motion studies facilitated by the DOLE Bureau of Working 
Conditions. While there are no standardized rates for workers in informal economy jobs, the 
basis of computation shall not be below the applicable minimum wage of the region where 
they are covered.
Enforcement of the standard compensation rates shall be in accordance with the 
capability to comply as explained in Section 40 of this Act.
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SEC. 48. Payment of Wages. -  Payment derived from negotiated agreement shall be 
made directly to the workers. No deductions from such payments shall be made by the 
employer except those provided for by law. The expressed written consent of the worker shall 
be first secured before deductions are made.
No parent, guardian, relative or any other person shall be allowed to take a loan 
against the compensation of his or her relative-worker without the express written consent of 
the concerned worker. Neither shall a worker of minor age be mandated to work in payment 
of loan or liability incurred by a parent, guardian, relative, or any other person.
Chapter II
IE Workers of Minor Age
SEC. 49. Allowable Employment of Workers of Minor Age. -  Children fifteen (15) 
years but below eighteen (18) years of age may be employed; provided, that parental or legal 
guardian consent is presented and attested to by any representative of the LGU or duly 
elected Barangay official where the work is to be done. In no instance however, shall children 
below fifteen (15) years old be engaged in whatever form of productive services.
Further, workers of minor age shall not be allowed to render work for more than four 
(4) hours, five (5) days a week, exclusive of one (1) hour break for breakfast or lunch 
whichever is applicable.
TITLE III
FINAL PROVISIONS
SEC. 50. Penalties. -
a) Any person who shall interfere with, restrain or coerce a worker in the exercise of his 
or her rights, or shall in any manner commit any act in violation of any of the 
provisions of this Act shall, upon conviction, be punished by a fine of not less than 
Twenty Thousand Pesos (P20.000.00) or imprisonment of one (1) to six (6) years 
or both fine and imprisonment at the discretion of the Court.
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b) If the offender is a public official, the Court, in addition to the penalties provided in
the preceding paragraph, may impose the additional penalty of disqualification 
from public office.
c) Any person who violates Section 26 of this Act (Policy on Confiscation of Materials
and Impounding of Vehicles) shall be liable. Nothing herein shall prohibit the 
aggrieved WIE from initiating a criminal or civil action against the responsible 
person or officer applicability.
d) Failure to implement Sections 27 and 28 of this Act (Policy on Relocation of Vending
Sites and Policy on Relocation of Terminals) shall render the responsible official/s 
administratively liable pursuant to Republic Act 7160 and other pertinent laws and 
criminally liable whenever applicable.
e) In the case of a private institution/company found to be violating any provision of this
Act, it shall be subject to additional penalty ranging from suspension or revocation 
of business license at the discretion of the Court.
SEC. 51. Implementing Rules and Regulations (IRR). -  The Implementing Rules and 
Regulations (IRR) of this Act shall be formulated by a drafting committee composed of 
representatives of offices that will be members of lEDA and WIE organizations provided 
that, at least 30% of the drafting committee members shall come from the latter and provided 
further that at least 30% of committee members are women. Said committee will start work 
on the IRR within three (3) months after the effectivity of this Act and finish within six (6) 
months thereafter.
SEC. 52. 
Separability Clause. -  If any provision of this Act is declared 
unconstitutional or invalid, the provisions not affected shall continue to be in full force and 
effect.
SEC. 53. Repealing Clause. -  All laws, decrees, orders, rules and regulations or other 
issuances inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly.
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SEC. 54. Effectivity. -  This Act shall take effect fifteen (15) days after its publication 
in at least two (2) newspapers of general circulation or the Official Gazette, whichever comes 
first.
Approved,
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