SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
SENATE BILL NO. 1376
^eiinte
nf l!;r t b c c : m i y
*17 MAR-8 P6:17
RECEIVc
“ ' - 1
^
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL 
ECONOMY, INSTITUTIONALIZING MECHANISM FOR 
IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES
EXPLANATORY NOTE
that:
The 1987 Philippine Constitution, Article XIII, Section 3 thereof, states
The State shall afford fidl protection to labor, local and overseas, organized 
and unorganized, and promote full employment and equality of 
employment opportunities for all. xxx
According to the January 2015 Labor Force Survey of the Philippine 
Statistics Authority (PSA), there are 14.5 million workers in the informal 
economy which is equivalent to 39.1 percent of the total employment of the 
country. They are categorized mostly as self-employed and unpaid family 
workers. The predominance of the informal workers and employers work in 
various industries like agriculture, wholesale and retail trade, fishing, 
forestry, transport, storage, communication and services sector.1 Informal 
workers comprises of independent, self-employed small-scale producers and 
distributors of goods and services.
Most of our informal workers are not covered by our labor code, laws 
and regulations despite their contribution to our economy.
1 http://dole.gov.ph/news/view/2803


The bill seeks to give protection and promote the rights of our 
kahalmjans in the informal sector. The Act shall apply to all workers and 
economic limits including enterprises, entrepreneurs and households - in the 
informal economy. With the passage of this bill, the informal workers shall 
have the same basic rights bestowed to all workers, as provided under 
existing laws, specifically the Labor Code and relevant international human 
rights and international conventions.
In view of the foregoing, the passage of the bill is earnestly sought.
JOSEPH VICTOR G. EJERCITO


SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
R 0 I  . S fnaft
of ll|p
'17 MAR-8 P6:17
SENATE 
SENATE BILL NO. 1376
R EC EIVtD  BY:
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN AC I
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL 
ECONOMY, INSTITUTIONALIZING MECHANISM FOR 
IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES
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Be it enacted by the Senate and the House of Representatives of the republic of the 
Philippines in Congress assembled:
TITLE I
GENERAL PROVISIONS 
Chapter 1
Framework and Principles
SECTION 1. Short Title. - The Act shall be known as the "Magna Carta of 
Workers in Informal Economy."
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State;
(a) To promote the total well-being of all workers in the informal 
economy, provided, that focus will be on the poorest and most 
vulnerable of these workers;
(b) To secure their human dignity, economic advantage and access to 
justice by providing timely services, including social, political, 
economic, and legal;
(c) To recognize, promote, protect, fulfill, and ensure the civic and 
constitutional rights of workers in informal economy, including the 
rights to: self-organization; just and humane working conditions;


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access to social protection; security of workplaces; peaceful 
concerted activities; represent their organizations, and participate in 
policy and decision making processes affecting their rights and 
benefits and towards tlie provision of comprehensive package of 
reforms, interventions, and services in accordance with their 
articulated needs and interest;
(d)To recognize the roles, give proper value to the contributions of 
workers in the informal economy, and make them visible in the 
national and local statistics;
(e) To provide venues for dialogue and consultation with informal 
economy workers so that their concerns and needs are effectively 
addressed by lasting and workable reforms in enforcement of labor 
standards, advancement of labor relations;
(f) To develop and enhance their technical, special, entrepreneurial and 
other skills and capabilities necessary towards their empowerment 
and enjoyment of benefits and entitlements associated with the 
formal economy; and becoming more productive and self-reliant 
citizens, thereby ensuring participation in mainstream economic 
activities based on their own pace and self-determination;
(g) To progressively eliminate child labor through the creation of more 
quality jobs for adults, effective enforcement of laws against child 
labor, elimination of gender based discrimination against girl child 
workers, improved access to universal education and social 
protection, and elimination of cultural factors that directly or 
indirectly tolerate, and even accept child labor;
(h) To 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 participation in decision-making 
bodies and processes;
(i) To develop the local economy through maximization of the potential 
and contribution of informal economy business activities and 
enterprises;


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0  To encourage and support workers in informal economy to form 
self-help groups, mutual benefit associations, unions, cooperatives, 
and other forms of self-organization for their mutual aid, benefit, 
protection and for other legitimate purposed;
(k) To include the concerns of workers in the informal economy in the 
policies, plans, programs, projects and activities of relevant national 
government agencies, government financial institutions, and local 
government units;
(l) To advance the autonomy and empowerment of local government 
units and their capability to be more responsive to the needs of the 
workers in informal economy among their constituents;
(m) 
To protect vulnerable groups in the informal economy such as 
children, older persons, differently-abled persons, indigenous 
peoples, 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; and
(n) To integrate ethnicity as a factor in the formulation of programs and 
mechanisms to promote and protect rights of workers in the 
informal economy.
SECTION 3. Framework and Principles. Article II Section 9 of the Pliilippine 
Constitution declares that "Tlie State shall promote a just and dynamic social 
order that will ensure the prosperity and independence of tire nation and free 
the people from poverty through policies tlrat provide adequate social 
services, promote full employment, a rising standard of living, and an 
improved quality of life for all 'Therefore, it is the State's responsibility to 
give the highest priority to the enactnrent of measures that protect and 
enhance the rights of all people to human dignity; social, economic and 
political inequalities: lessen vulnerabilities to risks including those brought 
about environment brought by environmental degradation and natural 
disasters, remove cultural inequalities by redistributing wealth and political 
power for common good; and to develop an enabling environment conducive 
to responsible citizenship. Towards this end, the government shall pursue and 
implement a comprehensive, rights-based, participatory, sustainable and 
gender responsive framework for workers in the iiiformal economy that 
includes but not limited to:
(a) Policies and programs that will bring marginalized workers and 
economic units into economic and social mainstream; and spur


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entrepreneurial or growth-oriented informal business to graduate to 
formal status based on their own pace and self-determination 
thereby reducing their vulnerability and exclusion;
(b) Structural reforms in all relevant levels of government by creating 
committees, special offices for development and protection of 
workers 
in 
the 
informal 
economy 
and 
supporting 
their 
representational, entrepreneurial and other rights through their 
organizations;
(c) Accessible and affordable social protection, including labor market 
interventions, social insurance coverage, basic health care, 
occupational safety and health, reproductive health services, social 
welfare programs and safety nets;
(d) Policies, programs and interventions that will ensure security of 
workplace of workers in informal economy towards a work 
environment that protects their rights and enables them to become 
more productive.
(e) Minimum an simplified regulations to enourage he development of 
ingenuity and entrepreneurial spirit among workersin informal 
economy;
(f) Mechanisms for growth and expansion of various business activities 
or enterprise in informal economy preferably with the cooperation 
and support of private sector.
(g) Organization, establishment, strengthening and expansion of the 
various business activities or enterprises in tlie informal economy at 
the barangay level, preferably to be unified under municipality-, 
provincial-, regional- and national- level federations or associations;
(h) Applicable labor standards;
(i) Recourse mechanism to address violations of informal workers' 
rights;
(j) Mechanisms and processes that prioritize the provision of service to 
the poorest and the most vulnerable workers;
(k) Exacting responsibility on the part of the workers in the informal 
economy to comply with their obligations, provided that the state 
shall put in place responsive, transparent and accountable


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mechanisms and systems that ensure recognition, protection, 
promotion and realization of their rights
SECTION 4. Definition of Terms. - As used in this Act, the following terms 
shall mean:
(a) Informal Economy - Based on the International Labor Conference (ILC) 
2002, this 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.
The informal economy includes a wide variety of activities, enterprises 
and workers. Self-employment consists of employers of informal 
enterprises who hire other workers and own account workers. Wage- 
employment includes informal employees of both formal and informal 
firms, subcontracted workers, wage workers for households or 
domestic workers, and wage workers with no fixed employer or casual 
day workers. The working conditions, opportunities and risks faced by 
these different categories of informal workers are very diverse.
Informal workers often experience poor working conditions such as 
long working hours, high level of health hazards, lack of social security, 
poor earnings, low productivity, and lack of legal protection. To a large 
extent, women and disadvantage groups such as youth, persons living 
with HIV and AIDS, persons with disabilities, indigenous and migrant 
workers are overrepresented in the informal economy.
(b) Informal Sector as defined by the National Statistical Coordination 
Board (NSCB) Resolution No. 15, series of 2002, refers to units engaged 
in the production of goods and services with primary objective of 
generating employment and incomes to the persons concerned. It 
consists of households and unicorporated enterprise that are market 
and non-market producers of goods, as well as market producers of 
services.
These enterprises are operated by own-account workers, which may 
employ unpaid family workers as well as occasional or seasonally-hired 
workers.
These enterprises may also be owned and operated by employers which 
may employ less than (10) employees on continuous basis.


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(c) Workers in Informal Economy hereinafter referred to as (WIE) include 
but are not limited to the following:
1. Small farmers owning land not more than three (3) hectares;
2. Rural 
and 
agricultural 
workers 
who 
are 
tenants, 
sharecroppers, or laborers;
3. Small fisherfolks/operators owning boats of three (3) tons or 
less and other fishing equipment;
4. Fisherfolk who are without fishing equipment and who 
market their catch;
5. On-call fish workers, porters and batillo;
6. Home-based workers who are independent producers of 
goods or services;
7. Industrial homeworkers - workers involved in a system of 
production under which work is carried out at their homes 
and where materials may or may not be furnished by tlie 
employer or contractor;
8. Self-employed who are engaged by other enterprise through 
subcontracting arrangements;
9. Ambulant vendors or peddlers refer to vendors who ply their 
trades in search of buyers;
10. Street vendors refer to vendors who sell their merchandise on 
street and sidewalks;
11. Vendors with stall in public and private markets and those 
engaged in sari-sari stores with operating capitalization of not 
more than one million pesos (P1,000,000.00) excluding land 
and building;
12. Drivers and workers o modes of transportation on land and 
sea whether motorized or not, including: two (2) wheels such 
as calesa; three (3) wheels such as pedicabs, tricycle; four (4) 
wheels such as jeepneys and buses; and boats one (1) ton and 
below; 'barkers'; fare collectors; dispatchers; and other


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workers 
who 
share 
income 
with 
self-employed 
or 
unicorported operators;
13. Operators of jeepneys, tricycles, pedicabs, taxi and other 
vehicles or transportation whose capitalization is not more 
than one million pesos (Pl/000/000.00) excluding land and 
building;
14. All unregistered and unprotected domestic workers who are 
generally not covered by social [protection such as maids, 
cooks, family drivers, gardeners and baby sitters;
15. Non-corporate construction workers;
16. Small scale miners doing their own product processing; 
including those involved in small scale mining and quarrying 
with capitalization of below one million pesos (P1,000,000.00);
17. Workers of Barangay Micro Business Enterprises (BMBEs);
18. Non-corporate cargo handlers and allied workers;
19. Workers engaged in producing seasonal products;
20. Workers engaged in producing seasonal products;
21. Own account workers including but not limited to those
enSaSei^ 
maintenance and repair of equipment and
appliances, clothing and footwear, as well as those providing 
services such as beauticians barbers, masseuses;
22. "on-call" workers in the entertainment, movie and media, 
industries, such as but not limited to bit players, stuntmen and 
women, crew, make-up artists, etc.:
23. Volunteer workers in government and non-government 
entities who only receive allowances or honoraria, including 
but not limited to: barangay health workers (BHWs), barangay 
tanod, barangay nutrition scholars (SNS), barangay daycare 
workers, and volunteers in non-government or people's 
organization;


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24. Unpaid family members, or workers receiving allowances and 
seasonally hired workers who are engaged in micro- 
enterprises or assist unicorporated household enterprises; and
25. Other similar economic activities that are not illegal, criminal 
or life-threatening in nature.
(d) Worker is a general term that refers to both self-employed and paid 
employees covered under the provisions of this Act.
(e) Self-Employed Worker refers to any person who has no employer and 
who works for himself/herself by producing goods or services for the 
market.
(f) Worker of Minor Age refers to a child fifteen (15) to seventeen (17) 
years of age who is engaged in productive employment under a valid 
contract of employment.
(g) Employer refers to a natural person or group or partnership of people 
or a corporation for whom a paid worker renders productive 
employment or service.
(h) Security in the Workplace refer to the right of every worker to an 
enabling environment that guarantees and protects the spaces for WIE 
to undertake their worker, 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 to work. Towards this end, the State shall take measures that 
will ensure legal security of tenure of workplaces, taking into account 
and including the physical environment, services, process, and systems 
needed to enable workers to productively and safely perform their 
work.
(i) Hazardous Work Conditions refers to any activity or circumstances 
where a worker is exposed to any risk which constitutes imminent 
danger to his or her healtli 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 process performed, or 
equipment used therein.
0) 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


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designated, regardless of whether there are actual tasks being 
undertaken.
(k) Daily Basis refers to the per day mode of paying a worker as bilaterally 
agreed upon by tlie employer and worker.
(l) Monthly Basis refers to the per month mode of paying a worker as 
bilaterally agreed upon by the employer and worker.
(m) Pakxjaw Basis refers to the pre-contacted wholesale mode of paying a 
worker as bilaterally agreed upon by employer and worker.
(n) Social Protection refers to policies, programs and all other intervention 
that supports communities, households and individuals, both women 
and men, and aimed at: reducing poverty through the promotion of 
sustenance of livelihood and employment; preventing, managing and 
overcoming risks and vulnerabilities throughout their life cycle 
protection against hazards and 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 resources 
necessary to maintain and sustain a decent and secure life.
(o) Social Protection schemes shall include labor markets interventions, 
social, insurance, basic health care, social welfare, and safety nets.
(p) Community Contracting refers to the process of concluding cm 
agreement between a community and a contracting authority, whereby 
the community (or a section thereof) is responsible for implementation 
of the work, and therefore, functions as contractor.
(q) Non-Government Organization (NGO) as defined in R.A 8425, refers 
to a duly registered non-stock, non-profit organization focusing on the 
upliftment of die basic and or disadvantage sectors of the society by 
among others, providing advocacy, training, community organizing, 
research, access to resources, and other similar activities.
(r) People's Organization (PO) consistent with R.A No. 8425, refers to a 
self-help group belonging to the basic sectors or disadvantage groups 
composed of members having a common bond of interest who 
voluntarily join together to achieve lawful common goals.
(s) Informal Economy Workers' Organization refers to a group or groups 
of Informal sector workers, whether formally constituted or otherwise.


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that are organized with the primary objective of promoting the welfare
of workers in informal economy.
Chapter II
Coverage, Qualifications, and Accreditation
SECTION 5 Coverage. This shall include individual WIE, as defined in 
Section 4 of this Act, IE business and enterprises, and organizations of 
workers in informal economy.
SECTION 6 Accreditation. There shall be a simple and standard systems of 
accreditation in accordance with tlie framework and principle of this Act. A 
one-time accreditation fee of not more than Fifty pesos (P50.00) per individual 
worker and not less than One hundred pesos (PIOO.OO) per IE business 
activity, enterprise, or organizations shall be paid to the municipality or city 
where they operate or intend to operate.
Any IE worker meeting the necessary accreditation requirements 
provided for in this Act shall be listed in the centralized database system, and 
shall be issued an identification card and a record book that shall list all 
services availed of it by the WIE. These signify eligibility to avail of 
development program, provided, that the poorest and the most vulnerable 
workers shall be given priority.
Qualified IE business activity or enterprise, or organization of WIE, 
shall be issued a certificate of accreditation, which shall be released witliin 
thirty-six (36) hours upon submission of complete requirement and payment 
of accreditation fees.
The concerned LGU shall review, revalidate and reassess such 
accreditation every two (2) years from the date of accreditation. Renewal of 
the 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.
A comprehensive database of accredited IE business activities and 
enterprise shall be developed and maintained, shall database shall take into 
account the different sub-classifications in terms of geography, premises, sex, 
ethnicity, vulnerability, occupation, nature of employment and role and 
functions. The database shall also indicate informal business which may be 
categorize as livelihood enterprises, and entrepreneurial and growth oriented 
informal businesses. Further, the database shall include information on 
payments collected from IE workers, businesses, activities and enterprises and 
organization.
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The aforesaid comprehensive database shall form part of the bases of 
assessment and monitoring of the growth of informal economy.
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 transaction and processing of business permits 
applications with their respective jurisdiction. The center shall ensure that 
processing of the business permit of the informal sector business activities or 
enterprise shall be expedited within one day.
SECTION 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 Two 
Hundred percent (200%) 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, business activities, enterprises and 
organization, as recommended by the WIELDO. Such programs and 
disbursement of funds shall be approved by the concerned LGU Council.
Chapter III 
Rights and Benefits
SECTION 8. Workers in informal economy 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. Tliese include, but are not limited to the rights to;
(a) Work, which includes the rights to: security at workplace; make a 
living by work freely chosen or accepted; and avail of technical and 
vocational guidance and training programs,
(b) The enjoyment of just and favorable conditions of work;
(c) A living wage and equal remuneration for work of legal value 
without distinction of any kind, in particular for women who shall
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be guaranteed equal wages for work similar or equivalent to those 
done by men;
(d) Equal opportunity for promotion, subject to no otlier 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 limitations 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, 
sufficient food, clothing, and shelter, and the continuous 
improvement of such standards;
(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 workers as human beings;
(m) 
Accessible social protection, comprising mainly of, but not 
limited to labor market programs, social security, healthcare 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
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promotion and protection of their rights and welfare through 
organizations that truly represents the sector;
(р) Equal access to justice through appropriate mechanisms, including, 
but not limited to, alternative dispute-resolution processes.
SECTION 9. Own account workers as well as marginal economic enterprises 
in the informal economy, being the working poor's primary instrument to 
address and overcome poverty, shall be accorded by the state the following 
rights:
(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 locally/domestically 
produced products;
(с) Access to markets, including capacity building to access E-marketing 
facilities,
(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;
(g) Measures against racketeering, extortion and harassments, by both 
State and non-State elements; and
(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 60 days after the effectivity of 
this Act;
(i) Common workplaces, adequate and affordable facilities such as 
economic freedom parks, merchandising centers, and inventory 
bulk-buying centers;
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(j) Freedom from deprivation of property without valid cause and due 
process of law.
SECTION. 10. Organizations of workers in informal employment, including 
unions, cooperatives, mutual benefits associations, etc. shall have the rights to:
(a) Freely function and act as representatives of their members in 
policy-and decision-making processes, collective negotiations, and 
other similar bodies and processes;
(b) Establish national federations or confederations and the rights of the 
latter to form or join 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 activities, not contrary to law, designed to benefit their 
organizations and members; and
(g) Be accorded preferential option in awarding of contracts for the 
undertaking of national and local projects funded by either national 
or local government units including foreign-assisted projects. 
Guideline for this shall be developed by the implementing rules and 
regulations of this Act.
Further,
(h) Notwithstanding of any provision of a general or special law to the 
contrary, the income and properties of the legitimate worker's 
organizations, including grants, endowments, gifts, donations and 
contributions they may receive from fraternal and similar 
organizatioi'is, local or foreign, which are actually, directly and 
exclusively used their lawful purposes, shall be free from taxes, 
duties and otlier assessments. The exemptions provided herein may 
be withdrawn only by a special law expressly repealing tliis 
provision.
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SECTION 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 government shall 
encourage and assist tliese workers in the formation of their self-help 
organizations, associations, federations and confederations.
Government shall encourage the formation of cooperatives among the 
marginalized farmers, fisherfolk, 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 cooperatives.
WIE.
Attention will be given to organizing women and other vulnerabilities
SECTION 12. Assistance to Organizations of Workers in the Informal 
Economy. All concerned national government agencies, government financial 
institutions and local government units shall include their plans, programs, 
projects, and activities efforts that will support and address concerns of 
organizations of WIE.
SECTION 13. Monitoring of growth. The local government units (LGU) 
which will supervise the workers in informal economy local development 
office (WIELDO) as created by Chapter IX of this Act, shall monitor the 
growths of informal employment business activities or enterprise three (3) 
years after the enactment of this Act, and every 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
SECTION 14. Prohibition Against Recruitment or Finders' Fees. Regardless 
of whether the workers were sourced either through an employment agency 
or a third party, said workers shall neither be charged nor levied a 
recruitment fee or finders' fee by the aforementioned employment agency or 
third part.
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SECTION 15. Prohibition Against Hazardous Work and Conditions.
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Workers shall not be engaged to do any hazardous work, activity or
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undertaking, or to be exposed to hazardous working conditions.
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For purpose of this Section, hazardous work or conditions shall include, 
but shall 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 threats of such abuse;
(c) Any work which involves manual handling or transport of heavy 
loads;
(d) Any work in unhealthy environment, which exposes workers to 
hazardous substance, gents or processes, or to temperature, noise 
levels, or vibrations damaging or potential damaging to their health;
(e) Any work which requires workers to continuously render service 
during late nights;
(f) Any and all forms of slavery or practices similar to slavery, such as 
the sale and trafficking of persons, forced or compulsory labor, debt 
bondage and serfdom;
(g) Any use, procuring or offering of the worker for prostitution or 
pornography;
(h) Any use procuring or offering the workers for the commission of any 
offense or crime, particularly for the production, trafficking, or sale 
of narcotic drugs and substances as defined in the Dangerous Drug 
Acts;
(i) Any other type of work or activity which, by its nature of the 
circumstances in which it is carried out, is likely to jeopardize the 
health, safety, or morals of the workers; and
0  Any other type of work, activity, condition or undertaking that 
maybe hereinafter be defined as hazardous by the Department of 
Labor and Employment.
SECTION 16. Prohibition Against Interference and Coercion. Any person is
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prohibited 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;
(b) Preventing any worker from joining or assisting organizations for 
purpose not contrary to law;
(c) Preventing any worker from carrying out his/her duties or functions 
in an organization, or to penalize the same for any lawful action 
performed in that capacity;
(d) Harassing, tlireatening, coercing or intimidating any work 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 owm affairs.
Chapter V
SOCIAL PROTECTION
Social Protection as defined in Section 4 of tliis Act shall have the 
following components:
SECTION 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 context of sustainable development and developing local 
economies in both rural and urban areas.
(a) The State shall ensure that these schemes shall be labor-intensive, 
developmental, sustainable, and engaging both women and men, 
youth and older people in building infrastructure, socialized 
housing, social forestry focusing on the planting of traditional trees, 
organic farming, and food production programs.
(b) LGU's shall encourage and provide incentives to constituents who 
want to engage or are engaged in sustainable and/or organic
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farming. All idle private or public lands within their jurisdiction 
should be cultivated or planted with organic food crops like corns, 
root crops, or vegetables. Relevant LGU's must allocate their local 
funds for mangrove reforestation and prohibit conversion of any 
mangrove forest to residential, commercial or industrial use.
(c) 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.
(d) The state shall encourage entrepreneurship among the disadvantage, 
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;
(e) The State through LGUs shall promote community contracting to 
give preference to WIE and their organizations in accessing 
employment opportunities and related benefits.
SECTION 18. Social Security. - In the spirit of promoting social justice, the 
State shall endeavor to extent 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 burden.
(a) The Social Security System (SSS) shall cover all workers, particularly 
the working poor who mostly belong 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.
(b) The SSS shall also develop schemes involving government subsidies 
and sponsorship programs to enable those who cannot afford to 
enroll and sustain their membership.
(c) To achieve universal coverage the 
accreditation 
of 
the 
cooperatives, 
organization, trade unions and NIE associations, microfinance and 
micro-insurance institutions and similar groups as collecting agents
SSS shall facilitate the 
women's 
and 
peoples'
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of premiums and facilitators of claims with tlie least burdensome 
conditions and with appropriate incentives, it shall develop effective 
partnerships with these organizations.
(d) The SSS Commission, in the spirit of democracy, transparency, 
accountability, and equity, shall be required to conduct regular 
consultation witli and provide information and reports to its 
membership formal or informal workers shall be represented in the 
SSS commission. Where gender balance shall also be observed.
(e) The SSS in cooperation with other relevant national agencies and 
LGUs, shall support indigenous and community based social 
protection schemes such as dmmyan, hiliimgn, snrnmy, small mutual 
benefit associations and micro-finance organizations initiated or 
participated in by WIE so that these can be sustained, systemized 
and up-scaled.
(f) An enabling environment for such organizations and schemes shall 
be developed. Toward this end, the Insurance Commission (1C) and 
other relevant regulatory agencies are hereby mandated to review its 
policies and framework to make them more developmental and 
supportive of the alternative schemes outlined above.
SECTION 
19. 
Social 
Secmity 
for 
Volunteers 
of 
Government 
Instrumentalities. Volunteer workers of government instrumentalities as 
defined in Sec 4 of this Act, shall be covered by the Government Services 
Insurance System (GSIS) and be entitled to at least a minimum package of 
customized product, services and benefits to be designed with their 
participation and with adequate government subsidy.
SECTION 20. Health Care System and Financing. The State shall establish a 
comprehensive and integrated healthcare system that guarantees provision, 
oil service by duly accredited and adequately furnished health facilities, and 
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
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meets the World Health Organization recommended of at least four percent 
(4%) of the Gross Domestic Product.
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SECTION 21. Universal Health Insurance. All citizens of the Philippines 
shall be covered by the National Health Insurance Program as provided for in 
RA 0606, Tlie National Health Insurance Act of 2013. To achieve this, 
PhilHealth with the participation of all 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.
(a) Government subsidies for PhilHealth sponsorship programs shall 
be expanded to cover not only the ultra poor but also the working poor 
who mostly belong to the informal economy. For the working poor, what 
should have been contributed by employers if they were enrolled as 
formally employed shall be covered by government subsidies in the 
interest of equity.
(b) PhilHealth programs for indigents and the working poor shall be 
expanded and improved in order to 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 incentive
(c) PhilHealth shall immediately extend its services to undeserved 
areas by facilitating and accelerating accreditation of hospitals and clinics, 
and by ensuring that these service providers remain viable tluough 
immediate reimbursement.
(d) 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 
healtli 
insurance and other indigenous schemes initiated and participated in WIE.
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(e) 
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; emphasizes preventive 
measures such as annual physical and medical check-ups and other 
outpatient services, coverage of workplace-related injuries and illness 
affecting both formal and informal workers, treatment of chronic ailments 
such as hypertension and diabetes; and inclusion of hospital-based 
reproductive health services, commodities and supplies.
CHAPTER VI
Security in the Workplace of Workers in Informal Employment
Security in the workplace as defined in Sec. 4 of this Act shall involve 
the following;
SECTION 22. Designation of Workplaces. The concerned Local Govermiient 
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 WlE's workplace. The 
LGU shall likewise encourage and assist the parties in forging a possible 
memorandum 
agreement.
The LGU's, 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 merchandising centers and workplaces for use of WIE in 
their respective localities.
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The LGU's shall, within 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.
SECTION 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.
Tire 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 RA 3844 or the Agricultural Land 
Reform Code. Tenants shall not be evicted based on unilateral termination of 
the tenancy relationship by landowners.
SECTION 24. Use of Mimidpal Waters, Beach Fronts, and Foreshores. 
Municipal waters shall be used exclusive for marginalized fisherfolk 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 fisherfolk. LGUs shall ensure that no beach 
within their jurisdiction is exclusive for the use of resort guests or private 
persons.
LGUs in coordination with the National Housing Authority (NHA) 
shall establish and create fisherfolk settlement areas on private or public 
lands, specifically those near the fishing grounds, for municipal fisherfolk 
with security of tenure.
The consent of the affected fisherfolk shall be required before an area 
can be declared a marine protected area or a fish sanctuary to the national or
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SECTION 25. Policy on Eviction and Demolition. WIE shall not be evicted 
from their homes and workplaces without legal round as provided for in 
Republic Act 7279 or tlie 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 the eviction or demolition;
b) adequate consultations on the matter of resettlement with the duly 
designated representative 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;
g) non-use of heavy equipment for demolition except for structures 
that are permanent and of cemented material;
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
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executed; provided, further, that 
relocation should 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.
SECTION 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, 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 i.ssued to 
the erring driver without impounding l\is/her vehicle
SECTION 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 actualo transfer or 
relocation to another market site. Within sixty (60) day period after issuance of 
notice, the LGU shall conduct consultations with affected vendors on the 
selection of 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.
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Chapter VII
Special Allocations of Development Initiatives
SECTION 29. Special Allocations of Development Initiatives. - The 
development of 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 lea.st ten percent (10%) or the amuial national budget shall be 
appropriated for programs and services for WIE. These programs shall 
be implemented based on the principles of merit and equity of the 
Department of Labor and Employment (DOLE) at the national level and 
the WIELDO at the local level.
(b) For purposes of program implementation, the DOLE shall manage 
30%, and WIELDO, 70% of tlie funds from the General Annual 
Appropriations Act (GAA) as provided for in the previous paragraph 
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.
SECTION 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 tliis 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 set 
aside a specific 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 RA 7882, An Act Providing 
Assistance to Women Engaging in Micro and Cottage Enterprises.
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(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 (SBGFQ 
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, teclmology, production, management and business 
linkages. It shall also provide and promote, develop and widen in both 
scope and service reach various alternative models 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 financing. Further, 
the Corporation shall guarantee loans obtained by the 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 Teclmology (DOST) shall support 
technology-related initiatives of workers and enterprises in the informal 
economy.
SECTION 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.
SECTION 32, Exclusivity 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)
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SECTION 33. Creation of the Informal Economy Development Council 
(lEDC). - There is hereby created a 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 will be efficiently and adequately implemented to address 
the needs of these workers.
The lEDC shall be constituted witlain thirty (30) days after the approval 
of the IRR of this Act.
SECTION 34. Mandate and Fimctions of lEDC. - The mandate and functions 
of lEDC shall include the following:
(a) Develop and ensure implementation of a simple system of 
accreditation of the IE workers, enterprises, and organizations in 
accordance 
with 
the 
standards 
and 
provisions 
of 
this 
Act;
(b) Provide guideline 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 Philippine Development Plan towards institutionalizing 
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;
(f) Coordinate with LGUs for the development and implementation of 
periodic evaluation of periodic evaluation of all accredited IE members, 
enterprises 
and 
organizations 
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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 this informal economy which shall be 
the basis for granting or renewal of incentives 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:
i. Sex-dLsaggregated statistical profile of WIE based on age, location, 
type of work, average monthly incomes, work hours, and other 
relevant statistical information;
ii. Sex-disaggregated data on information enterprises, including 
capitalization and sources of capital number and status workers, 
average incomes;
iii. List and contact information of government and non-government 
organizations (NGOs) that provide educational, socio-economic, 
legal and otlier services to WIF;
iv. Inventory of resolved and pending cases involving activities of 
WIE;
V. 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
vi. 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
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better understanding and appreciation of the benefits this Act may bring 
them;
(k) Consistent with Section 2(b) of this Act, to develop and ensure 
implementation of a comprehensive plan to eliminate child labor;
(l) Monitor and coordinate interpretation of policies and programs 
through the Regional lEC offices;
(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 right 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 direct 
or indirectly concerned with or affecting the growth and development of 
the IE.
SECTION 35. Composition. - Tlie 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 meeting 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 Plan 
(NEDA)
c) Secretary of Department of Agriculture (DA)
d) Secretary of Social Welfare and Development (DSWD)
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e) Secretary of the Department of Interior and Local Government 
(DILG)
f) Chair of the Commission on Human Rights (CHR)
g) Lead Convenor of the National Anti-Poverty Commission (NAPC)
h) Secretary of Department of of Transportation and Communication 
(DOTC)
i) Chair of Social Security System (SSS)
j) Chair of the Philippine Health Insurance Corporation (PhilHealth)
k) Chair 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 at large, all Filipino 
citizens, proven to have been active in assisting the informal economy 
workers.
(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
(p) At least 30% of total membership of lEDC shall come from 
organizations of workers in the informal economy, as well as People's 
Organizations (POs), NGOs, and women's organizations actively 
working with and for the rights of WIE provided tliat regional and 
sub-sectoral representation shall be ensured. Provided further, tliat at 
least 40?^ of the 30% are women. Guidelines for the selection of 
non-government lEDC members, including processes and mechanics 
shall be determined by the IRR of this Act.
Representatives from the private sector, NGOs and WIE organizations 
shall serve as lEDC members from a term of three (3) years without re-election 
and shall be subject to terms and conditions provided by the IRR.
The private sector, workers in the 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) per meeting.
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SECTION 36. lEDC Meetings. - The lEDC shall meet once every two (2) 
months and may call for special meeting as the need arises; provided, that the 
frequency of such special meeting shall not exceed four (4) times annually.
SECTION 37. Initial lEDC Funds. - Ten million pesos (P10/000,000) shall be 
allocated from the Presidential discretionary fund for the initial operating 
expenses of the lEDC.
SECTION 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 their 
duly designated alternate representatives; four (4) representatives of WIE 
organizations, 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 in behalf of 
lEDC during intervals of meetings, and only within the specific authority 
granted by the lEDC.
SECTION 39. lEDC Secretariat. - Tlie following secretariat funds shall be 
integrated in the DOLE secretariat functions:
(a) Prepare and recommend, in coordination with the LGU 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 the lEDA;
(e) Submit periodic reports of the 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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Chapter IX
Workers In Informal Employment Local Development Office (WIELDO)
SECTION 42. Workers in Informal Employment Local Development Office 
(WIELDO). - Uie 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 tire 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 accreditation of WIE, especially those with assets of P150,000 
and below, to facilitate their immediate access to benefits and services;
(d) Monitor, assess and evaluate implementation of the plans and 
programs as well as the performance of informal workers, tlieir economic 
activities and their organizations in the areas;
(e) Lead in the local implementation of Chapter VI ( Security on 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 teclmical, 
entrepreneurial and leadership skills WIE;
(h) Provide technical supports 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;
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(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;
(n) Provide services, which shall include but not 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.
In performance of WIELDO's functions, the principle of preferential 
treatment to the poorest and most vulnerable shall be observed.
SECTION 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 worker's representatives 
shall form at least fifty percent (50%) of WIELDO's decision-making body. 
Provided further, that IE representatives shall 
not be less than five (5), and 
provided finally that at least forty percent (40%) 
of 
the 
members 
of 
WIELDO's decision-making body are women. Other relevant guidelines on 
WIELDO's operations shall be included int he IRR of this Act.
SECTION 44. Local Government Unit Informal Economy Development 
Fund (LGU-IEDF). - 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 percent (3%) of their twenty percent (20%) 
Development Fund from their IRA HB 768 Section 38 with modifications.
Thereafter, the LGU-IEDF shall be funded using:
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(a) Accreditation and registration fees and annual dues paid by 
individual workers in the informal economy, their liveliliood activities, 
and organizations and associations as provided for by Sections 6 and 7 of 
this Act;
(b) Shares from the 70% of 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.
SECTION 45. Additional Sources of Funds. - The following may be 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 establi.shments 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;
(e) at least fifty percent (50%) of funds from the Philippine Amusement 
and 
Gaming 
Corporation 
(PAGCOR) 
and 
Philippine 
Charity 
Sweepstakes Office (PCSO).
TITLE II
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY
Chapter I
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Requisites for Employment Agreement
SECTION 46. Minimum Standards. - All working arrangements entered into 
by WIE shall be in accordance with tlie minimum applicable labor and social 
standards as contained in Title 11 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 of 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 to comply with relevant labor and social standards.
SECTION 47. Provisions of Employment Agreement. Tlie 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 by his/her behalf by either parent or legal 
guardian, with the expressed written content 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.
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) duration of employment;
(c) compensations, which shall not be below the minimum standard, and
mode of payment;
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(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) 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 andmotion studies 
facilitated by the DOLE Bureau of Working Conditions. While there are no 
standardized rated 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.
SECTION 48. Payment of Wages - 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 on payment of loan or liability incurred by a 
parent, guardian, relative, or any person.
Chapter II
IE Workers of Minor Age
SECTION 49. Allowable Employment of Workers of Minor Age - Children 
fifteen (15) years up to seventeen (17) years of age may be employed
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provided, that parental or legal guardian consent is presented and attested to 
by any representative of the LGU or duly elected Barangay Official where to 
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 
money 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 
SECTION 50. Penal Provisions -
(a) Any person who shall willfully interfere with restraint 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 of a fine of not less than Twenty Thousand Pesos 
(P20,000) or imprisonment of one (1) to sic (6) years or both fine and 
imprisonment at the discretion of the Court.
(b) If the offender is a public official or, 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 Section 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.
SECTION 51. Implementing Rules and Regulation (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
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members of lEDC and WIE organizations provided 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.
SECTION 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.
SECTION 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.
SECTION 54 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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