TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SaiMTl ::
, if&Hirr ot ID 
i
25 JUL 14 P3 SO
SENATE
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND INSTITUTIONALIZING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY, FOR IMPLEMENTATION THEREOF AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
Based on the March 2022 Labor Force Survey of the Philippine Statistics 
Authority, workers in the informal sector are at 17 million or 36.2% of the total number 
of employed persons in the country.1 The informal economy hums with activities of 
millions of Filipinos who work tirelessly on sometimes thankless jobs where they are 
not regulated or protected by the State. Flowever, policy makers and legislators should 
understand that the informal economy is still a relatively underdeveloped and 
unexplored avenue for reducing poverty, inequality, and unemployment.
It is then in the interest of everybody that workers in the informal economy are 
protected. In relation to this, the Magna Carta of Workers in the Informal Economy 
(MACWIE) is written with the end in view of establishing the formal rights of informal 
economy workers like the right to security in the workplace and the right to a living 
wage and equal renumeration. Their right to organization is also secured and workers 
in the formal economy are encouraged to organize themselves for their mutual benefit 
and cooperation.
The importance of social protection is also highlighted in the bill. As such, 
government agencies and local government units are encouraged to provide social 
safety nets like conditional case transfers, cash-for-work, emergency employment 
schemes, and fee waivers, among others. Social insurance also takes prime 
importance: there is a focus on making social insurance universally available to 
workers in the informal sector. Social Security, PagTBIG, and PhilHealth shall be made 
accessible and affordable to them, and the State is enlisted to subsidize the 
corresponding contribution of employers' had the informal economy workers have
1 https://www.dole.gov.ph/news/dole-awards-p20m-to-informal-workers/
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been in formal employment.
Perhaps more importantly, the bill also seeks to protect the dignity of informal 
economy sectors by securing their workplaces and prohibiting demeaning acts against 
them. For instance, the bill states that the workers in the informal economy sector 
shall not be evicted from their homes and workplaces without the proper legal 
grounds. Confiscation of materials and impounding of their vehicles like tricycles and 
pedicabs are also not allowed unless these have been used for criminal activities.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
RISA HONTIVEROS 
u
Senator


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
I'Dfliiv of I!):1 
; .’i.u'i
25 JUL 14 P3 50
SENATE
c* o ^
S.B. No.
niiCElv' D |!V
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND INSTITUTIONALIZING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO 
THE FORMAL ECONOMY, FOR IMPLEMENTATION THEREOF AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
TITLE I
GENERAL PROVISIONS
Chapter I
GENERAL PRINCIPLES
SECTION 1. Short Title. - This Act shall be known as the "Magna Carta of 
Workers in the Informal Economy"or MACWIE.
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to:
a) Promote a just and dynamic social order that shall ensure the 
prosperity and independence of the nation and free the people from 
poverty through policies that provide adequate social services; 
promote decent, environmentally sound and full employment; a rising 
standard of living; and an improved quality of life for all;
b) Protect, promote, and fulfill the rights of every worker including gender 
equity, non-discrimination, the right to self-organization, just and
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humane conditions of work, access to social protection programs and
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services, access to justice, security of and in the workplaces, and the
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right to represent their organizations in a continuing process of
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consultation and social dialogue, with equitable membership in
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relevant tripartite bodies; and
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c) Establish and fully implement an integrated and coherent policy, at all
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levels of government, of formalization of informal economic units and
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informal economy workers and make them visible in all relevant
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national and local statistics.
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Sec. 3. Coverage. - This Act shall apply to all workers and economic units -
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including enterprises, entrepreneurs and households - in the informal economy, in
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particular:
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a) Those who own and operate economic units including:
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a. self-employed workers;
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b. self-employed own-account workers;
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c. employers;
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d. members of cooperatives; 
and
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e. members of other social and solidarity economy units;
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b) Home-based workers or contributing family workers, irrespective of
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whether they work in economic units in the formal or informal
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economy;
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c) Employees holding informal jobs in or for formal enterprises, or for
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economic units in the informal economy, including but not limited to
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those in contract arrangement and/or in supply chains, or as non-
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regular paid domestic workers employed by households;
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d) Workers in unrecognized or unregulated employment relationships,
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provided that the work performed is not illegal;
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e) Volunteer; contractual; job orders; and other vulnerable workers in
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government instrumentalities; and
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f) Agricultural workers or fisherfolk in unrecognized or unregulated
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agricultural or farming endeavors and fishing activities.
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mean:
Sec. 4. Definition of Terms. - As used in this Act, the following terms shall
a) "Informal Economy"- refers to "all economic activities by workers and 
economic units that are, in law or in practice, not covered or 
insufficiently covered by formal arrangements."
b) "Economic Units" - in the informal economy include but are not limited 
to:
a. Units that employ hired labor;
b. units that are owned by individuals working on their own 
account, either alone or with the help or contributing family 
workers;
c. cooperatives and other social and solidarity economy units; and
d. informal work that may be found across all sectors of the 
economy, in households, as well as public and private spaces 
including government instrumentalities and Government Owned 
and Controlled Corporations (GOCCs)
c) "Informal Economy Workers' Organization" - Refers to a group or 
groups of informal workers, whether formally constituted or otherwise, 
that are organized with the primary objective of promoting the rights 
and welfare of workers in informal economy.
d) "Informal employment"- Refers to an employment arrangement in the 
formal or informal sectors or in households that exist based mostly on 
casual employment, kinship or personal and social relations with no 
formal guarantees on legal and social protection and employment 
benefits, and prevalent in economic units that are unregistered, 
unlicensed and unregulated.
e) "Security of and in the Workplace"- refers to the right of every worker 
and informal economic unit to an enabling environment that 
guarantees and protects the spaces, facilities, and structures 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.


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danger, doubt, anxiety, or fear of being removed, evicted or prevented 
from working.
f) "Social Protection" - Refers to policies and programs that seek to 
reduce poverty and vulnerability to risks and enhance the social status 
of the marginalized by promoting and protecting livelihood and 
employment, protecting against hazards and sudden loss of income, 
and improving people's capacity to manage risk, as well as all other 
interventions that support communities, households, and individuals, 
both women and men, 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, 
vulnerabilities, and threats to workers' livelihood activities and overall 
quality of life.
g) "Social and Solidarity Economy Units" - Refers to enterprises and 
organizations including cooperatives as defined under Republic Act No. 
9520, mutual benefit societies, associations, foundations and social 
enterprises which produce goods, services and knowledge that meet 
the needs of the community they serve, through the pursuit of specific 
social and environmental objectives and the fostering of solidarity.
h) "Volunteer, contractual, job orders, and other vulnerable workers In
government Instrumentalities" - Refers to workers in government
instrumentalities who do not occupy plantilla positions; receive salaries
but not benefits; are contracted out for specific periods of time; and/or
who receive allowances or honoraria. These include but are not limited
to: [job order and other contractual workers,] project staff, barangay
health workers, barangay tanod, barangay nutrition scholars, barangay
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daycare workers, barangay volunteers and other vulnerable workers in
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government instrumentalities for disasters, enumerators, among
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others.
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i) "Social Protection Floor"- Refers to a set of guarantees ensuring
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access to essential health services, income support for children for
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education, health, and nutrition, income assistance for economically
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active groups who do not have sufficient earnings in case of
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emergencies, and financial support for elderly population, and women
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informal workers in difficult and vulnerable circumstances like single
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mothers, and women survivors of abuse and violence.
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Chapter II
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RIGHTS AND BENEFITS
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Sec. 5. Workers in the informal economy shall have the same basic rights
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accorded to all workers, as enshrined in the Philippine Constitution, the Labor Code as
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amended, and relevant international human rights instruments and international labor
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standards. Accordingly, the state shall guarantee all workers in the informal economy
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the following rights:
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a) Security of and in the workplace;
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b) Make a living through work freely chosen or accepted; and avail of
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technical and vocational guidance and training programs;
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c) Just and favorable conditions of work, including provision for work-life
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balance such as 
child-care and other facilities to reduce and
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redistribute family and domestic responsibilities;
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d) A living wage and equal remuneration for work of equal value without
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distinction of any 
kind, in particular for women who shall be
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guaranteed equal wages for work similar or equivalent to those done
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by men;
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e) Equal opportunity for promotion, subject to no other considerations
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than seniority and competence;


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f) Safe and healthy working conditions safeguarding general, 
occupational and reproductive health;
g) Basic services including but not limited to affordable medical care, 
reproductive and other health services including modern family 
planning, low-cost housing, water, sanitation, electricity and transport;
h) Rest, leisure and reasonable limitation of working hours and periodic 
holidays with pay, as well as remuneration for public holidays whenever 
applicable;
i) Maternity and paternity benefits, as provided for by law;
j) Equal access to education, skills training, and economic resources to 
develop self-reliance, especially of children and young persons, without 
any discrimination;
k) 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;
l) An adequate standard of living for workers and their families, adequate 
food, clothing, and shelter, and the continuous improvement of such 
standard;
m) 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;
n) Accessible, affordable, and appropriate social protection as defined in 
Section 4 (f) of this Act;
o) Equal treatment before the law;
p) Substantial participation in policy and decision-making processes 
through their organizations and the use of social dialogue, including 
access to information and other resources relevant to the promotion 
and protection of their rights and welfare;
q) Equal access to justice through appropriate mechanisms, including, 
but not limited to, alternative dispute resolution processes; and


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r) Access to public procurement including advice and reserving quotas
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for informal economic units.
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Sec. 6. Own-account workers as well as informal economic units, being the
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working poor's primary instruments to address and overcome poverty, shall be
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accorded the following preferential rights by the State:
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a) Infrastructure support such as farm to market roads, common,
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affordable and secure workplaces and facilities, merchandising
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centers, farmers' markets or Bagsakan with proper storage facilities,
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and inventory bulk-buying centers;
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b) Policy support to promote and protect local and domestically-produced
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products and services, and support in enhancing their participation in
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the value chain process;
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c) Ease and facilitation of access to markets, including capacity-building
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to access and maximize e-marketing facilities;
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d) Access to affordable, appropriate and adequate financial services,
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including, among others, collateral-free and gender-responsive credit
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at low interest;
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e) Access to appropriate and adequate machinery, equipment, and other
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technologies, with the end in view of increasing 
productivity,
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enhancing quality of products and services, and growth;
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f) Protection from unjust dislocation from places where economic
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activities are conducted with the "provision of relocation before
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demolition";
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g) Measures against racketeering, extortion, and harassment, by both
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State and non-State elements;
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h) Freedom from deprivation of property without valid cause and due
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process of law; and,
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i) Affordable and customized social security and insurance programs.
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Sec. 7. Rights of Legitimate Organizations of Workers in the Informal Economy
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(WIE), Organizations of workers in informal employment, including unions,
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cooperatives, social and solidarity economic units/organizations and mutual benefit


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associations, shall have the right to:
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a) Freely function and act as the representatives of their members in
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policy and decision-making processes, collective negotiations, and
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other similar bodies and processes in the context of tripartism and
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multi-sector;
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b) Establish, join or affiliate with local unions, national federations or
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confederations, and international trade union organizations, 
a right
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which shall be duly recognized, protected and 
supported by the
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national government;
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c) Access information from concerned government institutions and other
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parties that are pertinent to the protection and promotion of the rights
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and welfare of their members;
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d) Own property, real or personal, for the use and benefit of their
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organizations and members;
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e) Sue and be sued under their registered names; and
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f) Undertake all other activities, not contrary to law, designed to benefit
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their organizations and members.
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Sec. 8. Organizing Workers in Informal Economy. - Workers in informal
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economy [WIE] shall be encouraged to organize themselves into self-help
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organizations, associations, federations, and confederations for their mutual benefit
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and protection, and for other legitimate purposes. Special attention shall be given to
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organizing women and other vulnerable workers in informal economy.
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Sec. 9. Assistance to Organizations of Workers in the Informal Economy. - All
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concerned national government agencies, government financial institutions and local
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government units shall include in their annual plans and budgets, programs and
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projects that support and address concerns of organizations of WIE and their
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members.
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Chapter III
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SECURITY IN THE WORKPLACE OF WORKERS IN INFORMAL ECONOMY
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Sec. 10. Designation of Workpiaces. - Local Government Units (LGU), in
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coordination with organizations of WIE within their jurisdiction, affected communities,
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and other relevant groups, shall endeavor to identify, designate, and design a system
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of assignment on the following;
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a) Productivity and merchandizing centers as viable workplaces for
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informal workers; which may include markets and vacant areas near
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markets, vacant public spaces and spaces which may be private
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property that the LGU may acquire, lease or negotiate with legitimate
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organizations of workers in the informal economy for lease under a
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memorandum of agreement, and
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b) routes, terminals, and specific lanes for small transport workers;
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The process of identifying and designation of such workplaces shall be determined in
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the Implementing Rules and Regulations (IRR) of this Act, provided, that such process
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shall have the substantial participation of relevant WIE organizations and stakeholders.
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Sec. 11. Poiicy on Eviction and Demolition. - Workers in the informal economy
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or employment shall not be evicted from their homes and workplaces without legal
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ground as provided for by R.A. 7279, otherwise known as the "Urban Development
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and Housing Act of 1992" and provision of livelihood opportunities, adequate water
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and electricity availability, as well as decent conditions of living in accordance with
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law. Logistical viability for the displaced shall be given priority in determining
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resettlement areas, provided that, there shall be no demolition without ensuring
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appropriate resettlement.
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Sec. 12. Policy on Confiscation of Materials and Impounding of Vehicles. - In
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cases where demolition or eviction is warranted, the person, government agencies or
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their agents who conduct the same shall issue a duly signed itemized receipt of all
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products, goods, and other materials seized from vendors and other affected WIE.
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Tricycles, pedicabs, and other modes of transportation shall not be impounded for
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violations of license, registration, or traffic regulations unless the said vehicles were
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utilized in the conduct of criminal activities. In cases of violation of traffic regulations,
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the issuance of a traffic violation ticket shall suffice.
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Sec. 13. Policy on Relocation of Vending Sites. - Before any public market is


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closed, sold or demolished, all market vendors shall first be relocated by the LGU to a
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temporary or new public market. Notice of the intention to close, sell, or demolish any
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public market shall be made to all concerned vendors at least sixty (60) days before
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the actual transfer or relocation to another market site. Within the sixty (60)-day
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period after issuance of notice, the LGU shall conduct consultations with affected
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vendors on the selection of the relocation site and implementation of the relocation.
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Vendors, ambulant or otherwise, occupying public places not previously designated as
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vending sites shall be provided with viable temporary sites by the LGU. Notice of
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temporary transfer shall be given to the vendors at least fifteen (15) days before the
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actual transfer. This shall likewise apply to vendors granted permits but whose
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workplaces are withdrawn from the list of allowable vending sites. Any change in the
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list of allowable vending sites shall only be done after consultations with affected
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vendors.
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In the event that a new public market is constructed in place of an old one, market
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vendors with stalls displaced from their workplaces shall be assured of stall assignment
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in the new market. Displaced ambulant vendors, shall, as much as practicable also be
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given appropriate selling sites.
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Sec. 14. Policy on Relocation of Terminals. - Designated terminals for tricycles,
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pedicabs and other similar modes of transportation shall not be arbitrarily relocated
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without prior notice and consultation with small transport groups, legitimate
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organizations of workers in the informal economy, affected community and other
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relevant sectors. Relocation of terminals can only be effected through an Ordinance.
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Provided further, that after the enactment of such ordinance, notice of intention to
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relocate terminals shall be made to affected transport groups and community at least
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sixty (60) days before the actual relocation.
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Chapter IV
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SOCIAL PROTECTION FOR WORKERS IN THE INFORMAL ECONOMY
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Social protection as defined in Section 4(f) of this Act shall have the following
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components:
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Sec. 15. Institutionalization of Social Protection Floor for the Workers in the
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Informal Economy. - The State shall support, sustain, enhance, and institutionalize
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social protection initiatives for WIE through the convergence of resources of various
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agencies to provide continuous social security and health insurance subsidies to WIE.
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Such resources shall also be used for programs for the unemployed, children, women
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in difficult and vulnerable circumstances, and older persons based on applicable and
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ever-improving standards.
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Sec. 16. Social Welfare Efforts. - The Department of Social Welfare and
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Development (DSWD) shall consolidate its strategic social welfare efforts to address
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the needs of the workers in the informal economy, including but not limited to direct
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assistance, policy development and community engagement for the workers.
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Sec. 17. Rote of the Department of Labor and Employment - The DOLE shall
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engage in labor market interventions that shall provide adequate protection for the
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WIE. The DOLE shall likewise ensure timely and immediate action for labor concerns,
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security of tenure, job generation and other pertinent concerns. It shall, in
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collaboration with other livelihood and enterprise development implementing
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agencies. Department of Local Government (DILG) and Department of Finance (DOF),
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develop a typology of formalization of informal economic units in terms of, among
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others, registration and standardized, affordable business permit cost, increased
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compliance, and extension of labor and social security program.
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Sec. 18. Social Safety Nets. -The State shall ensure that the social safety nets
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provided by the DOLE, DSWD, Department of Agriculture (DA) and other government
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agencies shall be easily accessible to the WIE and their organizations. These shall
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Include, but not be limited to, conditional cash transfers, unconditional cash transfers,
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school feeding programs, unconditional in-kind transfers, public works, cash-for-work,
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emergency employment schemes, and fee waivers.
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Sec. 19. Women, Family and Child Care Program. - The DOLE, Department of
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Health (DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall
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ensure that maternity protection is extended to informal economy workers in
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accordance with Sections 9 and 10 of R.A. 11210, the Expanded Maternity Leave Law.
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Programs on maternal and child health and nutrition; child feeding; modern family
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planning; and other health-related services shall be strengthened and target women
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WIE.
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The State shall encourage the provision of and access to affordable quality childcare
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and other care services to promote gender equality in entrepreneurship, employment
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opportunities, and to enable the transition to formal economy.
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Sec. 20. Social Insurance. - As specified in the IRR of this Act, the government
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shall ensure that all social insurance programs including but not limited to Social
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Security, Pag-ibig (Home Development Mutual Fund) and PhilHealth shall be fully
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available, accessible and affordable to WIE, and that the government agencies
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governing them shall formulate policies and mechanisms for their full utilization and
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benefit, in consultation with the representatives of WIE. In the interest of equity, the
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State shall subsidize the corresponding employers' contribution, had they been in
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formal employment.
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Sec. 21. Disaster Risk Reduction and Management (DRRM) and Climate
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Change. - The state, particularly at the community level, shall engage WIE and their
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organizations in DRRM efforts from preparedness, to response, rehabilitation and
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recovery. Responding to climate change in terms of minimizing contributions to
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greenhouse gas emissions and adapting to its long-term impact through resiliency-
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building programs shall also involve WIE and their organizations.
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Chapter V
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LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS
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FOR WORKERS IN THE INFORMAL ECONOMY
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Sec. 22. Applicability of the Provisions of the Labor Code. -The provisions of
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the Labor Code governing the employer-employee relationship, particularly on general
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labor standards and occupational safety and health standard,s shall apply to all forms
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of work arrangements in the informal economy.
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The state shall adopt a developmental perspective in dealing with informal economic
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units. The DOLE, in coordination with the lEDC, shall assess the capacity of these
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enterprises to comply with general labor standards. Those incapable of meeting the
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standards shall be assisted to upgrade their capacity to improve their businesses, as
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well as the capacity to comply with relevant labor and social standards.
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Sec. 23. Prioritization for Education and Training. - The State shall implement
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adequate training and information campaigns to provide WIE and their employers the
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full knowledge on applicable labor and occupational safety and health standards for
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their subsequent compliance.
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Sec. 24. Prohibited Acts Specific to Workers in the Informai Economy. - The
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following are deemed prohibited:
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a) Non-compliance with minimum labor standards and occupational health and
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safety standards. The employment contract shall be in writing specifying
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the terms and conditions of engagement, which must not be lower than the
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minimum standards provided by law. However, the absence of a written
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agreement does not mean the absence of an employment relationship.
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The contract shall be explained to the worker and attested to by an elected
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Barangay official in the barangay where the worker is designated to work.
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b) Recruitment or Finders' Fees. Regardless of whether the worker was sourced
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either through an employment agency or a third party, WIE shall neither be
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charged nor levied a recruitment fee or finders' fee.
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c) Hazardous Work and Conditions in Formal Workplaces. Workers shall not be
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engaged to do hazardous work, activity or undertaking, or be exposed to
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hazardous working conditions in accordance with existing laws and the IRR
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of this Act.
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d) Interference and Coercion. Any person is prohibited from committing any of
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the following acts of interference or 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 an organization for
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purposes not contrary to law;
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c. Preventing any worker from carrying out his/her duties or functions
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in an organization, or to penalize the same for any lawful action
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performed in that capacity;
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d. Harassing, threatening, coercing or intimidating any worker that
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results in preventing him or her from performing his or her duties and
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functions;
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e. Transferring, penalizing or terminating the services of a worker
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without valid or legal ground; and
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f. Other acts that or threaten to diminish the independence and
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freedom of a workers' organization to direct its own affairs.
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e) Non-compliance with Republic Act No. 7610, as amended by Republic Act
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No. 9231 in the employment of minors. In cases where minors are
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contracted or hired to render work or services, the age should be at least
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fifteen (15) years old and there is parental or legal guardian consent in the
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employment contract, which is presented and attested to by any
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representative of the LGU or duly elected Barangay official where the work
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is to be done, and that the employers of these children should provide them
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with access to at least elementary or secondary education, either through
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traditional schooling or alternative learning systems.
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Sec. 25. Visitoria! and Enforcement Power of the Secretary of Labor and
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Employment - Employment contracts and/or engagements in the Informal Economy
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shall be subject to the visitorial and enforcement power of the Secretary of Labor and
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Employment pursuant to Article 128 of the Labor Code of the Philippines.
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TITLE II
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Chapter I
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INFORMAL ECONOMY DEVELOPMENT COUNCIL (lEDC)
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Sec. 26. Creation of the Informal Economy Development Council (lEDC). -
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There is hereby created an Informal Economy Development Council, hereinafter
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referred to as the lEDC, which shall be an attached agency of the National Economic
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and Development Authority (NEDA). The lEDC shall institute appropriate reforms
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within its structure, programming and other processes, including adjusting its human
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resource capabilities to ensure that WIE-focused programs are efficiently and
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adequately implemented to address the needs of these workers. An inter-agency
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committee shall be formed to coordinate policies and programs of various government
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agencies towards the transition of informal economic units to formal.
32 
The lEDC shall be constituted within thirty (30) days after the approval of the IRR of
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this Act.
2 
Sec. 27. Mandate and Functions of lEDC. - The mandate and functions of
3 
lEDC shall include the following:
4 
a) Develop and ensure implementation of annual, long-term and
5 
medium-term plans for the informal economy. The last of which should
6 
form part of the Medium Term Philippine Development Plans (MTPDP)
7 
towards institutionalizing comprehensive, needs and rights-based,
8 
gender-responsive and child-friendly programs and policies for the IE;
9 
b) Develop policies to transition WIE and informal economic units to
10 
formal economy and according to standards provided for in this Act
11 
and related laws, treaties or statutes;
12 
c) Develop and implement training programs, and certify workers for jobs
13 
in industries that produce goods and render services for the benefit of
14 
the WIE;
15 
d) Develop and ensure implementation of gender-based monitoring and
16 
evaluation mechanisms, efficient and effective programs and policies,
17 
and gender-responsive interventions toward harnessing the full
18 
potential of women WIE;
19 
e) Ensure that concerned government agencies shall allocate in their
20 
respective Special Allocation for Development Initiatives adequate
21 
resources for programs that will benefit WIE;
22 
f) Develop and ensure implementation of a simple system of registration
23 
of WIE, and accreditation of informal livelihood activities enterprises,
24 
and organizations in accordance with the standards and provisions of
25 
this Act;
26 
g) Provide guidelines for the implementation by LGUs of a fair and
27 
credible system of evaluation, accreditation, review 
and assessment,
28 
merit promotion, rendering of grant and incentive awards and other
29 
policies relative to the effective and efficient implementation 
of this
30 
Act;
31 
h) Ensure the effective implementation of labor standards covering WIE
32 
as provided for by this Act and corresponding IRR;
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i) Coordinate with LGUs for the development and implementation of 
periodic evaluation of all accredited IE members, enterprises and 
organizations for use as bases for accreditation, the grant of awards 
and incentives, training and retraining;
j) Ensure effective participation of WIE and their organizations through 
the establishment of regular consultative mechanisms and processes.
k) 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 while 
strictly complying with laws on privacy and confidentiality. The 
database [and] shall include pertinent information as specified in the 
IRR of this Act.
l) Develop and implement a communication plan and campaign targeting 
WIE, their enterprises and organizations, towards a better 
understanding and appreciation of the benefits of this Act;
m) Consistent with Section 2 (h) of this Act, to develop and ensure 
implementation of a comprehensive plan to eliminate child labor;
n) Assess all means to ensure the transition of Informal economic units 
and the WIE from their position In the informal economy to formal 
economy as contained in the IRR of this Act;
o) Coordinate and harmonize all informal economy-related policies, 
programs, projects and activities of various government agencies, 
including the Regional lEDC Officers towards greater efficiency and 
effectiveness;
p) Monitor the LGU-generated incomes from informal employment;
q) Conduct annual reviews of government programs for the WIE and 
submit to Congress and the President of the Philippines corresponding 
reports thereon, together with policy and other recommendations;
r) Develop and ensure implementation of accessible just conflict 
resolution and adjudication systems and mechanisms to promote 
dialogue, conciliation, mediation and redress of grievances to protect 
the rights of WIE; and
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s) From time to time, call on the participation of relevant government
2 
agencies in its deliberations as necessary.
3 
Sec. 28. Composition. - The lEDC shall be co-chaired by the Director General
4 
of NEDA and the Secretary of Department of Labor and Employment. lEDC members
5 
may elect from among themselves a Vice-Chair to preside over meetings in the
6 
absence of the Chair. The members shall be the relevant government instrumentalities
7 
as determined by the IRR of this Act provided that, at least 30% of total membership
8 
of lEDC shall come from organizations of WIE accredited with the SEC, DOLE or DA.
9 
Provided, further, that at least 40 percent of the 30 percent are women.
10 
Representatives from the Social Partners, private sector, NGOs and WIE organizations
11 
shall serve as lEDC members for a term of three (3) years without re-election and
12 
shall be subject to terms and conditions provided for by the IRR.
13 
Sec. 29. Initial lEDC Funds, - PlOO million pesos (P100,000,000.00) shall be
14 
allocated from the Presidential discretionary fund for the initial operating expenses of
15 
the lEDC, which shall include the initial allocation of funds for the operations of the
16 
WIELDU at the LGU level.
17 
Sec. 30. lEDCSecretariat - The lEDC Secretariat shall be jointly organized by
18 
the NEDA and the DOLE with functions that shall be determined by the IRR of this Act
19 
and integrated in the DOLE secretariat functions.
20 
Sec. 31. Regional and Provincial lEDC Officers. - There shall be Regional and
21 
Provincial lEDC Officers who shall be appointed by the lEDC and shall have functions
22 
that include: monitoring and coordinating of lEDC initiatives in the regions and
23 
Provinces; evaluation of policies programs for WIE; providing technical assistance in
24 
the development of local plans and programs; as well as other administrative functions
25 
necessary for the success of lEDC initiatives in their jurisdiction.
26 
lEDC Regional Officers shall have automatic seats in all Regional Development Councils
27 
(RDCs).
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Chapter II
30 
WORKERS IN INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT
31 
(WIELDU)
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Sec. 32. Workers in Informal Economy Local Development Unit (WIELDU). -
2 
The Workers in Informal Economy Local Development Unit (WIELDU) shall be
3 
established in every city and municipality to perform the following functions, among
4 
others, in consultation with the WIE and their organizations:
5 
a) prepare an overall development plan and work program that will
6 
address the needs of the WIE. The barangay development plans shall
7 
be incorporated in this overall development plan;
8 
b) encourage the organizing of informal economic units and WIE;
9 
c) develop and maintain a comprehensive, age, and sex-disaggregated
10 
database of all WIE and economic units within the jurisdiction of the
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LGU that shall include all relevant information as contained in the IRR
12 
of this Act. Provided that, laws on privacy and confidentiality shall be
13 
fully complied with. Provided further, that the database shall include
14 
information on payments collected from WIE, organizations and
15 
economic units;
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d) establish an IE One-Stop Shop Center which shall handle all
17 
transactions and processing of business permit applications within their
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respective jurisdiction and worker's registration; and,
19 
e) support MSME informal enterprise development towards transitioning
20 
to formality.
21 
In addition, the WIELDU may also perform other similar functions and undertakings
22 
pursuant to the provisions of this Act. In the performance of WIELDU's functions, the
23 
principle of preferential treatment to the poorest and most vulnerable shall be
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observed.
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Sec. 33. Composition. - The Local Chief Executives (LCEs) shall be the primary
26 
overseers of WIELDU's operations. The IRR of this Act shall provide for WIELDU's
27 
composition provided that, informal workers' representatives shall form at least fifty
28 
percent (50%) of WIELDU's membership. Provided further, that IE representatives
29 
shall not be less than five (5), and provided finally, that at least forty percent (40%)
30 
of all WIELDO's members are women. Other relevant guidelines on WIELDU's
31 
operations shall be included in the IRR of this Act.
32 
Sec. 34. Local Government Unit Informal Economy Development Fund (LGU-
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lEDF). - An Informal Economy Development Fund shall be established by every
2 
municipality and city. Such fund will be supervised and managed by the concerned
3 
LGU through the WIELDU and subject to audit by the Commission on Audit (COA).
4 
For the initial operations of WIELDU, each LGU shall allocate a portion from their
5 
Internal Revenue Allotment or IRA.
6 
Thereafter, the LGU-IEDF shall be funded using:
7 
a) Registration fees and annual dues paid by individual workers in the
8 
informal economy; and accreditation fees for their livelihood activities,
9 
organizations, and enterprises; and
10 
b) Annual allocations from LGUs' Development Fund the percentage of
11 
which shall be determined by LGUs.
12 
Following the principle of merit and equity, LGUs that fulfill such allocations may
13 
receive additional assistance from the national government as recommended by lEDC;
14 
provided, that the LGUs have sufficiently complied with all requirements by the lEDC.
15 
Sec. 35. Registration of Informal Economy Workers, and Accreditation of
16 
Economic Units and Organizations. - Pursuant to its functions under the Local
17 
Government Code, the Local Development Council in coordination with the WIELDU,
18 
shall establish a standard system of registration of WIE, and accreditation of informal
19 
livelihood activities, organizations, and economic units provided that the system shall
20 
be simple, efficient, affordable, uniform, and accessible to all.
21 
Such registration or accreditation shall signify eligibility of the WIE, their livelihood
22 
activities, organizations, or enterprises to avail of development programs, provided
23 
that, the poorest and most vulnerable shall be given priority. The registration or
24 
accreditation may be renewed subject to requirements set forth by the LDC in
25 
coordination with the WIELDU.
26 
Sec. 36. Annual Dues. - WIE and their organizations shall pay annual dues to
27 
be determined by the concerned LGU) in consultation with their WIELDU). Said annual
28 
dues shall be no more than 30% of the legally prescribed daily minimum wage in their
29 
respective regions or provinces.
30 
These annual dues shall accrue to the concerned LGU and shall be used for programs
31 
to benefit WIE, their organizations, business activities, and enterprises based on
32 
recommendations by the WIELDU and the local informal economy constituents.
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Sec. 37. Registration and Non-Registration. - In no case shall registration be 
construed as a basis for rights and entitlements under this Act. Non-registration should 
not deprive WIE of their rights stated in the Act. Registration as a WIE in the LGU is 
voluntary and shall not be made a prerequisite to work by any private enterprise or 
government unit. However, registration shall guarantee prioritization and immediate 
recognition of the rights and benefits due to the workers in the informal economy.
TITLE III
FINAL PROVISIONS
Sec. 38. Pena! Provisions. -
a) Any person who shall willfully 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.
b) If the offender is a public official or an official of a GOCC, the Court, in 
addition to the penalties provided in the preceding paragraph, may 
impose the additional penalty or disqualification from public office.
c) Any person who violates the provision of this Act on 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.
d) Failure to implement the provisions of this Act 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 applicable laws without prejudice to any civil or criminal case 
that may be filed against erring officials. If a private institution or 
company is found to have violated any provision of this Act, its 
business license shall be suspended or revoked at the discretion of the 
Court.
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Sec. 39. Implementing Rules and Regulations (IRR). - The Implementing Rules 
and Regulations (IRR) of this Act shall be formulated by a committee to be co-led by 
DOLE and NEDA. The members of the committee shall be the representatives of 
government offices mentioned in this Act, and WIE organizations. Provided that, at 
least 30% of the 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. 40. Appropriations. - The amount of one hundred (100) million pesos 
(P100,000,000.00) shall be appropriated for the initial implementation of this Act.
Sec. 41. 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. 42. 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.
Sec. 43. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation of the Official Gazette, 
whichever comes first.
Approved,
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