Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY 
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR 
OTHER PURPOSES 
EXPLANATORY NOTE 
The informal economy, which consists of independent, self-employed, small-scale producers and 
distributors of goods and services, plays a significant and crucial role in job and income generation 
particularly in situations where there is high unemployment, inequality and poverty. It generally 
serves as a refuge for individuals who would otherwise be unemployed or without livelihood. The 
2008 Informal Sector Survey (2008 ISS) of the Philippines reported an estimated 15.68 million 
individuals employed in the informal sector.  
While the informal economy provides reasonable economic opportunities to some, most workers 
in the informal economy are exposed to unsafe working conditions; are not provided adequate 
skill training; do not have security of tenure; have lower and irregular incomes; and lack collective 
bargaining and representation rights. It is then upon the State to legislate a Magna Carta for 
these workers which will recognize, defend, protect, promote and fulfill their rights through a 
continuous process of capacity-building and empowerment. 
Among the salient provisions of this measure is the establishment of a simple and standard system 
of accreditation of informal economy workers, enterprises, and organizations. This measure shall 
likewise provide informal workers access to social protection and justice; make them visible in 
statistics; provide appropriate standards and regulations in their favor; develop and implement 
meaningful plans, policies and programs that will harness their full potential to become effective 
and productive economic actors. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 12, 2022
3:21 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY 
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. – This Act shall be known as the “Magna Carta of Workers in the Informal 
Economy.” 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State: 
a) To develop a just and dynamic social order by creating and implementing policies that
promote full employment and equality of employment opportunities for all;
b) To recognize the vital role and contribution of workers in the informal sector in the
country's economy;
c) 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;
d) To ensure their human dignity, economic advancement and access to justice by providing
timely services, including social, political, economic and legal.
e) To recognize, promote, protect, fulfill and ensure the civic and constitutional rights of
workers in the informal economy, including the rights to self -organization, just and
humane working conditions, 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 the provision of a
comprehensive package or reforms, interventions, and services in accordance with their
articulated needs and interests;
f)
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;
g) 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;
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h) To develop and enhance their technical, special, entrepreneurial and other skills and 
capabilities necessary towards their empowerment and enjoyment of benefits and 
entitlement 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; 
i) 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; 
j) 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; 
k) To develop the local economy through maximization of the potential and contribution of 
informal economy business activities and enterprises; 
l) To encourage and support workers in the 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 purposes; 
m) 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; 
n) 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; 
o) 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 
p) To integrate ethnicity as a factor in the formulation of programs and mechanisms to 
promote and protect rights of workers in the informal economy. 
 
SEC. 3. Framework and Principles. – Article II Section 9 of Philippine Constitution declares 
that “The State shall promote a just and dynamic social order that will ensure the prosperity and 
independence of the nation and free the people from poverty through policies that provide 
adequate social services, promote full employment, a rising standard of living, and an improved 
quality of life for all.” 
 
Therefore, it is the State's responsibility to give the highest priority to the enactment of measures 
that protect and enhance the rights of all people to human dignity; reduce social, economic and 
political inequalities; lessen vulnerabilities to risks including those brought about by the 
environmental degradation and natural disasters, remove cultural inequalities by redistributing 
wealth and political power for the common good; and to develop an enabling environment 
conductive 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 informal economy that includes but not limited to: 
 
a) Policies and programs that will bring marginalized workers and economic units into the 
economic and social mainstream; and spur 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 workplaces or workers in 
the informal economy towards a work environment that protects their rights and enables 
them to become more productive; 
e) Minimum and simplified regulations to encourage the development and entrepreneurial 
spirit among workers in informal economy; 
f) Mechanisms for the growth and expansion of the various business activities or enterprises 
in the informal economy preferably with the cooperation and support of the private sector; 
g) Organization, establishment, strengthening, and expansion of the various business 
activities or enterprises in the 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 mechanisms to address violations of informal workers' rights; 
j) Mechanisms and processes that prioritize the provision of services to the poorest and the 
most vulnerable workers; and 
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 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) 2002a, this 
refers to "all economic activities by workers and economic units that are - in law or in 
practices 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 disadvantaged groups such as 
youth, persons living with HIV and AIDS, persons with disabilities, indigenous peoples and 
migrant workers are very diverse. 
 
b) Informal Sectors – as defined by the National Statistics Coordination Board (NSCB) 
Resolution No.15, series of 2002, refers to units engaged in the production of goods and 
services with the primary objective of generating employment and incomes to the persons 
concerned. It consists of households and unincorporated enterprises that are market and 
nonmarket 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 ten (10) employees on a 
continuous basis. 
 
c) Workers in the Informal Economy – are 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 fisherfolk/operators owning boat of three (3) gross 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 who are workers involved in a system of production under 
which work is carried out at their homes and where materials mayor may not be 
furnished by the employer or contractor. 
8) 
Self-employed who are engaged by other enterprises through subcontracting 
arrangements. 
9) 
Ambulant vendors or peddlers refer to vendors who ply their trades in search of 
buyers; 
10) Street vendors refer to vendor who sell their merchandise on streets and sidewalks 
11) Vendors with stalls in public or private markets and those engaged in sari-sari stores 
with operating capitalization of not more than one million pesos (P 1,000,000.00) 
excluding land and building; 
12) Drivers and workers of modes of transportations on land and sea whether motorized 
or not, including: two (2) wheels such as calesa; three (3) wheels such as pedicabs, 
tricycles; four (4) wheels such as jeepneys and buses; and boats one (1) ton and 
below; 'barkers'; fare collectors; dispatchers; and other workers who share income 
with self-employed or unincorporated operators; 


13) Operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or transportation 
whose capitalization is not more than one million pesos (P 1,000,000.00) excluding 
land and rebuilding; 
14) All unregistered and unprotected domestic workers who are generally not all 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 (P 
1,000,000.00); 
17) Workers of Barangay Micro Business Enterprises (BMBEs); 
18) Non-corporate cargo handlers and allied workers; 
19) Waste pickers and recyclers; 
20) Workers engaged in producing seasonal products; 
21) Own account workers including but not limited to those engaged in the 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, etch.; 
23) Volunteer workers in government and non-government entities who only receive 
allowances or honoraria, including but not limited to barangay health workers 
(BHW), barangay nutrition scholars (BNS), barangay daycare workers, and 
volunteers in non-government or people's organizations. 
24) Unpaid family members, or workers receiving allowances and seasonally hired 
workers who are engaged in micro-enterprises or assists unincorporated 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 employee 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 – refers to the right of every worker to an enabling 
environment that guarantees and protects the spaces for WIE to undertake their work, 
including the right to feel safe in one's own work space, legal security of tenure and 
freedom from discrimination, risk, danger, doubt, anxiety, or fear of being removed, 
evicted or prevented 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, processes and systems needed to enable workers to 
productively and safety perform their work: 
 
i) Hazardous Work Condition – refers to any activity or circumstance where a worker is 
exposed to any risk which constitutes imminent danger to his or her health or safety. This 
includes potential risks of disability, injury, illness or death due to the presence of biologic 
agents, radiation, chemicals, substances, hazardous materials; physical hazards in the 
work environment; or the nature of work, processes performed, or equipment used 
therein.  
 
j) Working Hours – refers to the period of time within which a worker is required to be on 
call to perform any and all tasks that may be designated, regardless of whether there are 
actual tasks being undertaken. 
 
k) Daily Basis – refers to the per day mode of paying a worker as bilaterally agreed upon 
by the 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) Pakyaw – basis refers to the pre-contracted wholesale mode of paying a worker as 
bilaterally agreed upon by the employer and worker. 
 
n) Social Protection – refers to policies, programs, and all other interventions that support 
communities, households and individuals, both women and men, and aimed at: reducing 
poverty through the promotion and sustenance of livelihood and employment; preventing, 
managing and overcoming risks and vulnerabilities throughout their life cycle like 
protection against hazards 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 over resources necessary to maintain and sustain a decent and secure life. 
 
o) Social protection schemes – refers include labor market interventions, social insurance, 
basic health care, social welfare and safety nets. 
 
p) Community Contracting – refers to the process of concluding an agreement between 
a community and a contracting authority, where by the community (or a section thereof) 
is responsible for the implementation of the work, and therefore, functions as contraction. 
 
q) Non-government Organization (NGO) – as defined in R.A. 8425, refers to a duly 
registered nonstock, nonprofit organization focusing on the upliftment of the basic or 
disadvantaged sectors of society by among other, providing advocacy, training, 
community organizing, research, access to resources, and other similar activities. 
 


r) People's Organization (PO) – consistent with R.A. 8425 refers to a self-help group 
belonging to the basic sectors or disadvantaged 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, 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 individuals WIE, as defined in Section 4 of this Act. 
IE business and enterprises, and organization of workers in informal economy.  
 
SECTION 6. Accreditation. – There shall be a simple and standard system of accreditation in 
accordance with the framework and principles 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 
(P100.00) 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 identity card and a record book 
that shall list all services and benefits availed of by the WIE. These signify eligibility to avail of 
development programs. 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 within thirty-six (36) hours upon submission of complete 
requirements and payment of accreditation fees.  
 
The concerned LGU shall review, revalidate and reassess such accreditation every two (2) years 
from the date of last accreditation. Renewal of eligibility shall be in accordance with the merit and 
fitness principle, and with the conditions that no child labor shall be used and no activities harmful 
to the environment shall be implemented. A comprehensive database of accredited IE business 
activities and enterprises shall be developed and maintained. Such database shall take into 
account the different sub-classifications in terms of geography, premises, sex, ethnicity, 
vulnerability, occupation, nature of employment, and roles and functions. The database shall also 
indicate informal growth oriented informal businesses. Further, the database shall include 
information on payments collected from IE workers, business activities or enterprises and 
organizations.  
 
The aforesaid comprehensive database shall form part of the bases of assessment and monitoring 
of the growth 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 transactions and processing of business permit applications within their respective 
jurisdiction. The Center shall ensure that processing of the business permit of the informal sector 
business activities or enterprises shall be expedite 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 LGU where they are 
accredited. The accumulated funds from these dues shall be used for programs to benefit IE 
workers, business activities. Enterprises, and organizations, 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. These include, but are limited to the rights to: 
 
a) work, which includes the right to: security at the 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 equal value without distinction of any 
kind, in particular for women who shall be guaranteed equal wages for work similar or 
equivalent to those done by men; 
d) equal opportunity for promotion, subject to no other considerations than seniority and 
competence; 
e) safe and healthy working conditions safeguarding general, occupational and reproductive 
and transport; 
f) access to basic services including but not limited to affordable medical care, reproductive 
and other health services, low-cost housing, water, sanitation, electricity and transport; 
g) rest, leisure and reasonable limitation of working hours, and periodic holidays with pay, 
as well as remuneration for public holidays whenever applicable; 
h) maternity and paternity benefits, as provided for by law; 
i) equal access to education, skills training, and economic resources to develop self-reliance, 
especially of children and young persons, without any discrimination; 
j) self-organization to collectively negotiate with government and other entities in the 
promotion of their welfare and advancement of their interests free from any political 
interference; 
k) an adequate standard of living for workers and their families, sufficient food, clothing and 
shelter, and the continuous improvement of such standard; 
l) freedom from any form of discrimination, violence, exploitation including sexual 
exploitation, harassment, abuse, and any intrinsic worth and dignity of the worker as a 
human being; 
m) accessible social protection, comprising mainly of, but not limited to labor market 
programs, social security, health care and insurance, and social welfare interventions; 
n) equal treatment before the law; 


o) substantial participation in policy and decision-making processes, including access to 
information and other resources relevant to the promotion and protection of their rights 
and welfare through organization that truly represent the sector; 
p) equal access to justice through appropriate mechanisms, including, but not limited to 
alternative dispute resolution processes. 
 
SECTION 10. Organization of workers in informal employment, including unions, cooperatives, 
mutual benefit associations, etc. shall have right to: 
 
a) freely function and act as the representatives of their members in policy and decision-
making processes, collective negotiations, and other similar bodies and processes; 
b) establish national federations or confederations and the right of the latter to form or joint 
international trade-union organization; 
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 organization and members; 
e) sue and be sued under their registered names; 
f) undertaken all other activities, not contrary to law, designed to benefit their organizations 
and members; and 
g) be accorded preferential option in the awarding of contracts for the undertaking of 
national and local projects funded by either the National or local government units 
including foreign assisted projects. Guidelines for the implementation of this Act shall be 
provided for in the Implementing Rules and Regulations of this Act. 
h) notwithstanding any provision of a general or special law to the contrary, the income and 
properties of legitimate workers' organizations, including grants, endowments, gifts, 
donations and contributions they may receive from fraternal and similar organizations, 
local or foreign, which are actually, directly and exclusively used for their lawful purposes, 
shall be free from taxes, duties and a special law expressly repealing this provision. 
 
SECTION 11. Organizing Workers in Informal Economy. – WIE shall be encouraged to 
organize themselves for their mutual benefit and protection, and for other legitimate purpose. 
Towards this end, the government shall encourage and assist these workers in the formation of 
their self-help organizations, associations, federations and confederations. Government shall 
encourage the formation of cooperatives among marginalized farmers, fisher folk, manufacturing, 
transport, retail, services, and home-based workers to enable members to: purchase inputs at 
lower cost, obtain fair prices for their produce, avail of credit assistance and skills training, and 
share from collective gains of the cooperatives. Attention will be given to organizing women and 
other vulnerable WIE. 
 
SECTION 12. Assistance to Organization of Workers in the Informal Economy. – All 
concerned national government units shall include in 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 (LGUs) which will supervise 
the Workers in Informal Economy Local Development Office (WIELDO) as created by Chapter IX 
of this Act, shall monitor the growth of informal employment business activities or enterprises 


three (3) years after the enactment of this Act and every three (3) years thereafter. The 
centralized database referred to in Section 6 shall be the bas is of this monitoring. 
 
Chapter IV 
Prohibited Acts Concerning Engagement of Workers in the Informal Economy 
 
SECTION 14. Prohibition against Recruitment of 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 party. 
 
SECTION 15. Prohibition against Hazardous Work and Conditions. - Workers shall not be 
engaged to do any hazardous work. Activity or undertaking or be exposed to hazardous working 
conditions. 
 
For purposes 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 an unhealthy environment which exposes workers to hazardous substances, 
agents or processes, or to temperature, noise levels, or vibrations damaging or potentially 
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 of the production, trafficking, or sale of offense or crime, 
particularly for the production, trafficking, or sale of narcotic drugs and substance as 
defined in the Dangerous Drugs Act; 
i) Any other type of work or activity which, by its nature or the circumstances in which if 
carried out, is likely to jeopardize the health, safety, or morals of the workers; and 
j) Any other type of work, activity, condition or undertaking that maybe hereinafter be 
defined as hazardous be defined as hazardous by the Department of Labor and 
Employment. 
 
SECTION 16. Prohibition Against Interference and Coercion. – Any person is prohibited 
from committing any of the following acts of interference and coercion: 
 
a) Preventing any worker from upholding or exercising his/her rights; 
b) Preventing any worker from joining or assisting organizations for purposes 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, threatening, coercing or intimidating any worker that result in preventing him 
or her from performing his or her duties and functions; 
e) transferring, penalizing or terminating the services of a wor½er without valid or legal 
ground; and 
 
Chapter V 
Social Protection 
 
Social protection as defined in Section 4 of this 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 the 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) LGUs shall encourage and provide incentives to constitutions who want to engage or are 
engaged in sustainable and/or organic farming. All idle private or public lands within their 
jurisdiction shall be cultivated or planted with organic food crops like corn, root, crops or 
vegetables. Relevant LGUs 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 encourage entrepreneurship among the disadvantaged, especially women and 
young people in informal employment, through simple and efficient procedures and the 
provision of adequate and affordable marketing facilities such as those provided for by 
Section 9 (i) of this Act. 
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 extend social security protection to all workers and their beneficiaries against the hazards of 
disability, sickness maternity, old age, death, unemployment, and other contingencies resulting 
in loss of income of 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' organization, shall customize products and service for them that are accessible 


and affordable. In the interest of equity, the State shall cover what should have been the 
employer's share for contribution 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 SSS shall facilitate the accreditation of cooperatives, 
women's and people's organizations, trade unions and WIE associations, microfinance and 
micro-insurance institutions and similar groups as collecting agents of premiums 
facilitators of claims with the 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 require conducting regular consultations with and provide information and reports to 
its membership. Both formal and 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 LGU's, shall support 
indigenous and community-based social protection schemes such as 'damayan', 
'tulungan', 'saranay', small mutual benefit associations, and micro-finance organizations 
initiated or participated in by WIE so that these can be sustained, systematized and 
updated. 
f) An enabling environment for such organizations and schemes shall be developed. Toward 
this end, the Insurance Commission (IC) and other relevant regulatory agencies are 
hereby mandated to review its policies a framework to make them more development and 
supportive of the alternative schemes outlined above. 
 
SECTION 19. Social Security for Volunteers of Government Instrumentalities. – 
Volunteer workers of government instrumentalities as defined in Sec. 4. of this Act, shall be 
covered by the Government Service Insurance System (GSIS) and be entitled to at least minimum 
package of customized products, 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 health care system that guarantees provision of 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 healthcare for all, by, among others, 
progressively increasing the budget for health care until it meets the World Health Organization 
recommendation of at least four percent (4%) of the Gross Domestic Product.  
 
SECTION 21. Universal Health Insurances. – All citizens of the Philippines shall be covered 
by the National Health Insurance Program as provided for in R.A No. 10606. Participation of all 
stakeholders shall critically review its current operations. It shall upgrade to meet the goal of 
universal coverage, which is affordable, accessible and appropriate to the needs of all. 


a) Government subsidies for Phil Health sponsorship programs shall be expanded to cover 
not only the ultra-poor but also the working poor, what should have been contributed by 
employers if they enrolled as formally employed shall be covered by government subsidies 
in the interest of equity. 
 
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, 
person with HIV zed groups with at least 500 members shall be allowed to be collecting 
agents of premiums with incentives. 
 
b) PhilHealth shall immediately extend its services to underserved areas by facilitating and 
accelerating accreditation of hospitals and clinics, and by ensuring that theses service 
providers remain viable through immediate reimbursement. 
 
c) PhilHealth, in accordance with its guiding principles, shall promote maximum community 
in participation and shall recognize the roles and strengths of the Public and private sectors 
healthcare, including people's organization and community-based health organizations. 
PhilHealth shall extend appropriate recognition, technical assistance, and other forms of 
material and non-material support to mutual benefit associations, microfinance 
organizations, community-based health insurance and other indigenous schemes initiated 
and participated in by WIE. 
 
d) PhilHealth, with maximum participation of all stakeholders, shall review its benefits 
package in order to cover WIE, senior citizens, indigenous peoples, persons, with 
disabilities persons with HIV and AIDS and other marginalized groups sustainably; 
emphasize preventive measures such as annual physical and medical checkups 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 Government Unit (LGU), in 
coordination with their respective WIELDO, and after consultation with WIE, affected 
communities, and other relevant groups, shall identify, and designated 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.  
 


In the event the concerned WIE prefer to conduct their economic activities within an identified 
private property, the LGU shall negotiate with the owner of the property for the possible use of 
such property as WIE's workplace. The LGU shall likewise encourage and assist the parties in 
forging a possible memorandum of agreement.  
 
The 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 
workplaces for use of WIE, affected inhabitants localities.  
 
The LGU's shall, within 90 days after survey and based on recommendations of WIELDO and 
consultations with concerned WIE, affected inhabitations and relevant sectors, pass an ordinance 
designating such workplaces.  
 
SECTION 23. Protection of Agricultural Lands and their Occupants. – The LGU's, 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, Tourists 
Sites or Socialized Housing Sites shall not be allowed in irrigated and irrigable lands.  
 
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the agricultural land as 
protected zones, The LGU s shall make an inventory of all agricultural lands under leasehold and 
shall enforce the security of tenure or tenants, right if redemption and right of first refusal on the 
subject land. The LGUs shall provide assistance and protection to tenants in agricultural lands 
whose landowners violate the provisions of R.A. No. 3844 or the Agricultural Land Reform Code. 
Tenants shall not be evicted based on unilateral termination of the tenancy relationship by 
landowners. 
 
SECTION 24. Use of Municipal Waters, Beach Fronts, and Foreshores. – Municipal water 
shall be used exclusively 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, especially those near the fishing grounds, 
for municipal fisherfolk with security of tenure.  
 
The consent of the affected fisherfolk shall be required before an area is declared marine 
protected area or a fish sanctuary by the national or local government unit.  
 
SECTION 25. Policy on Eviction and Demolition. – WIE shall not be evicted from their homes 
and workplace without legal ground as provided for in Republic Act 7279 or the Urban 
development and Housing Act 1992. In cases where eviction or demolition is warranted under 
Section 28 of RA 7279, the same shall be conducted upon compliance of the following: 
 
a) Notice upon the affected persons or entities at least thirty (30) days prior to the date of 
eviction or demolition; 


b) Adequate consultations on the matter of resettlement with the duty designated 
representatives of the families to be resettled and the affected communities in the areas 
where they are to be relocated.  
c) Presence of local government officials or their representatives during eviction or 
demolition; 
d) Proper identification of all persons taking part in 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 heavy equipment for demolition except for structures that are permanent and of 
concrete materials;  
h) Proper uniforms for members of the Philippine National Police (PNP) who shall occupy the 
first line of law enforcement and observe proper disturbance control procedures; and  
i) Adequate relocation, whether temporary or permanent providing, however, that in cases 
in eviction and demolition pursuant to a court order involving underprivileged and 
homeless citizens, relocation shall be undertaken by the local government unit concerned 
and the National Housing Authority (NHA) with the assistance of other government 
agencies within forty-five (45) days from service of notice of final judgment by the court, 
after which period the said order shall be executed; provided, further, that should 
relocation not be possible within the said period, financial assistance in the amount 
equivalent to the prevailing minimum daily wage multiplied by sixty (60) days shall be 
extended to the affected families by the local government unit concerned. 
 
SECTION 26. Policy on Confiscation Materials of Impounding of Vehicles. – In cases 
where demolition or eviction is warranted, the person who conducts the same shall issue and 
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 issued to the erring driver without impounding his/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) clays before the actual transfer or relocation to another 
market site. Within the sixty (60) pay period after issuance of notice the LGU shall conduct 
consultations with affected vendors on the selection of the relocation site and implementation of 
the relocation.  
 
Pending the designation of viable vending areas, vendors occupying public places not previously 
designated as vending sites shall be given to the vendors at least fifteen (15) clays 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.  
 
SECTION 28. Policy on Relocation of Terminals. – Designated terminals for tricycles and 
pedicabs shall not be arbitrarily relocated without prior notice and consultation with small 
transport groups, affected community and other relevant sectors. Provided, that relocation of 
terminals can only be effected through an Ordinance. Provide further, that after the enactment 
of such ordinance, notice of intention to relocate terminals shall be made to all small transport 
groups and affected community at least sixty (60) days before the actual relocation. 
  
CHAPTER VII 
Special Allocations of Development Initiatives 
 
SECTION 29. Special Allocations for Development Initiatives. – The development 
initiatives for WIE shall form part of an integrated and convergent plan to address poverty and 
vulnerability. The national and local government units shall work together in support of such plan 
to maximize impact of meager resources. 
 
a) At least ten percent (10%) of the annual national budget shall be appropriated for 
programs and services for WIE. These programs shall be implemented based on the 
principles of merit and equity by the Department of Labor and Employment (DOLE) at the 
national level and the WIELDO at the local level. 
b) For purposes of programs implementation the DOLE shall manage 30% and WIELDO, 
70%, of the funds from the annual General Appropriations Act (GAA) as provided for in 
the previous paragraph of this section. 
c) The Implementing Rules and Regulations (IRR) of this Act shall determine additional 
guidelines on, among others, the use of such finances to ensure that programs and 
services truly benefit WIE. 
 
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 this Act and may include the following: 
 
a) Government financial institutions and mechanisms such as the Land Bank of the 
Philippines (LBP), Development Bank of the Philippines (DBP),National Livelihood Support 
Fund (NLSF), and Quedan Rural Credit and Guarantee Corporation shall set aside a specific 
percentage of their loan portfolio to informal economy enterprises by providing loans at 
an interest of not more than twelve percent (12%) per annum consistent with the spirit 
of R.A. 7882, An Act Providing Assistance to Women Engaging in Micro and Cottage 
Enterprises.  
b) The Department of Social Welfare and Development (DSWD) shall strengthens its Self-
Employment Assistance Program (SEAK) to uplift and empower women in poverty, 


particularly those in the informal economy, by adopting an integrated, credit-plus 
approach to micro-finance. 
c) The Small Business Guarantee and Finance Corporation (SBGFC) created under Republic 
Act (R.A) No. 8289 shall assist in the sourcing and adopting of technology, production, 
management, and business linkages. It shall also provide and promote, develop and widen 
in both scope and service reach various alternative modes of financing for informal 
economy business activities or enterprises, including but not limited to: direct and indirect 
project lending, venture capital, financial leasing, secondary mortgage and/ or 
rediscounting of loan papers to such business activities or enterprises, and crop production 
financing. Further, the Corporation shall guarantee loans obtained by qualified worker or 
business activity or enterprise, under such terms and conditions adopted by its Board. 
d) The Department of Trade and Industry (DTI) shall contribute to enable the development 
of a business environment that shall include initiatives such as supply chain and market 
outlets, and schemes to develop Special Credit Windows to upscale informal enterprises. 
e) The Department of Science and Technology (DOST) shall support technology related 
initiatives of workers and enterprises in the informal economy. 
 
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, such as supply chain and market 
outlets, and schemes to develop Special Credit Windows to upscale informal enterprises. 
 
SECTION 32. Inclusivity of Benefits. – The exemptions and other benefits provided in this 
Act shall apply for a period of not exceeding ten (10) years from the date of accreditation of such 
IE worker, business activity, enterprise, or organization. 
 
CHAPTER VII 
Informal Economy Development COUNCIL (IEDC) 
 
SECTION 33. Creation of the Informal Economy Development Council (IEDC). – There 
is hereby created an Informal Economy Development Council, here in after referred to as the 
IEDC, which shall be an agency 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 IEDC shall be 
constituted within thirty (30) days after the approval of the IRR of this Act.  
 
SECTION 34. Mandate and Functions of IEDC. – The mandate and functions of IEDC shall 
include the following: 
 
a) Develop and ensure implementation of a simple system of accreditation for the WIE 
workers, enterprises, and organizations in accordance with the standards and provisions 
of this Act; 
b) Provide guidelines for the implementation of a 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 by 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; 
e) Develop and ensure implementation of gender-based monitoring and evaluation 
mechanisms, efficient, and effective programs and policies, and gender-responsiveness of 
interventions toward harnessing the full potentials of women WIE; 
f) Coordinate with LGUs for the Development of Implementation of periodic evaluation of al 
accredited IE members, enterprises and organizations taking into account their 
accomplishments, capabilities and potentials. The results of such evaluation shall be uses 
as basis for accreditation, the grant of awards and incentives, training and retraining. 
g) Establish a performance appraisal system for all accredited workers, enterprise and 
organizations in the informal economy which shall be the basis for granting or renewal of 
incentives, rewards and recognition, training and development, including adequate 
mechanisms 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-disaggregated 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 informal enterprises, including capitalization and 
sources of capital, number and status of workers, average incomes; 
iii. 
List and contact information of government and non-government organizations 
(NGOs) that provide educational, socio-economic, legal, and other services to WIE; 
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 instrument's laws and programs. 
 
j) Develop and ensure implementation of a communication plan including massive 
information dissemination activities targeting WIE, their enterprises and organizations, in 
the various regions towards a better understanding and appreciation of the benefits this 
Act may bring them;  


k) Consistent with Section 2 (h) of his Act, to develop and ensure implementation, of a 
comprehensive plan to eliminate child labor; 
l) Monitor and coordinate implementation of policies and programs through the Regional 
IEDC officers; 
m) Coordinate and harmonize all informal economy-related policies, programs, projects and 
activities effectiveness; 
n) Monitor the LGU-genera ted incomes from informal employment through the LGUs' 
periodic report submitted to the Council; 
o) After consultations with WIE organizations, develop and ens4re implementation of Policies 
and programs that will address specific needs and ensure rights of WIE subsectors; 
p) Develop and ensure implementation of accessible and just conflict resolution and 
adjudication system and mechanisms to promote dialogue, conciliation, mediation and 
redress of grievances to protect the rights of WIE; and 
q) From time to time, call on the participation of any government agency or bureaucracy in 
its deliberations especially when such agency is directly or indirectly concerned with or 
affecting the growth and development of the IE. 
 
SECTION 35. Composition. – The Chair of the IEDC shall be the Secretary of Department of 
labor and Employment. IEDC members may elect from among themselves a Vice-Chair to preside 
over meetings in the absence of the Chair. The members shall be the following: 
 
a) Secretary of the Department of Trade and Industry (DTI) 
b) Director General of the National Economic and Development Authority (NEDA); 
c) Secretary of Department of Agriculture (DA) 
d) Secretary of Department of Social Welfare and Development (DSWD); 
e) Secretary of the Department of Interior and Local Government (DILG); 
f) Chair of the Commission on Human Right (CHR); 
g) Lead Convenor of the National Anti-poverty Commission (NAPC); 
h) Secretary of Department of Transportation and. Communication (DOTC); 
i) Chair of the 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, a Filipino citizen proven to have 
been active in assisting 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 IEDC shall come from organization of workers in the 
informal economy, as well as People's Organization (POs), NGOs. And women's 
organizations actively working with and for the rights of WIE, provided that regional and 
sub sectoral representation shall be ensured. Provided further, that at least 40% of the 
30% are women. Guidelines for the selection of nongovernment IEDC members, including 
processes and mechanics shall be determined by the IRR of this Act. 


Representative from the private sector, NGOs and WIE organizations shall serve as IEDC 
members for a term of three (3) years without re-election re-election and shall be subject 
to terms and conditions provided for in the IRR.  
 
The private sector, workers in informal economy and women's organizations 
representative to the IEDC shall be entitled to receive per diem of at least Two Thousand 
Five Hundred Pesos (P 2,500.00) per meeting. 
 
SECTION 36. IEDC Meetings – The IEDC shall meeting once every two (2) months and may 
call for special meetings as the need arises; provided, that the frequency of such special meeting 
shall not exceed four (4) times annually.  
 
SECTION 37. Initial IEDC Funds – Ten million pesos (P 10,000,000.00) shall be allocated from 
the Presidential discretionary fund for the initial operation expenses of the IEDC.  
 
SECTION 38. Executive Committee of the IEDC – An Executive Committee of nine members 
shall be convened. Besides the Chair and Vice-Chair, the following shall be elected by the IEDC 
members from among themselves or their duty designated alternate representatives: four (4) 
representatives of WIE organizations, one (1) from the different leagues of local officials, one (1) 
from the private sector, and one (1) from a national government agency, provided that at least 
three (3) members of the Executive Committee are women. 
 
The Executive Committee shall have the authority to act for and in behalf of IEDC during intervals 
of meetings, and only within the specific authority granted by the IEDC. 
 
SECTION 39. IEDC Secretariat. The following secretariat functions shall be integrated in the 
DOLE secretariat functions: 
 
a) Prepare and recommend, in coordination with LGUs and other government agencies, 
annual, medium-term, and long-term Informal Economy Development Plans for approval 
of the IEDC; 
b) Coordinate the preparation of position papers and background materials for discussion or 
approval during IEDS and its Executive Committee meetings; Assist in coordinating and 
monitoring policies, programs and activities of all government 
c) Agencies with respect to the implementation of this Act; 
d) Prepare, collate, and integrate all inputs to the IEDC's yearly report on the status of WIE, 
business activities or enterprises in the country, or other matters as directed by IEDC; 
e) Submit periodic reports to IEDC on the progress and accomplishments of its work 
programs: and 
f) Perform other secretariat and administrative functions as authorized by the IEDC or its 
Executive Committee. 
 
SECTION 40. Regional and Provincial IEDC Officers. – The DOLE Regional and Provincial 
offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers who shall be appointed 
by the IEDC and shall functions that include: monitoring and coordinating of IEDC initiatives in 
the regions and Provinces; evaluation of policies programs for workers on informal economy; 


providing technical assistance in the development of local plans and programs; as well as other 
administrative functions necessary for the success of IEDC initiatives in their jurisdiction. 
 
IEDC Regional Officers shall have automatic seats in all Regional Development Councils (RDCs).  
 
SECTION 41. Rationalization of Programs. IEDC shall conduct continuing review of 
government programs for the poorest of the poorest of the poor and the WIE and submit to 
Congress and the President of the Philippines a report thereon together with its policy 
recommendations. 
 
Chapter IX 
Workers in Informal Employment Local Development Office 
(WIELDO) 
 
SECTION 42. Workers in Informal Employment Local Development Office (WIELDO). 
– The Workers in Informal Employment Local Development Office (WIELDO) shall be established 
on every city and municipality to perform functions that shall include but not limited to the 
following: 
 
a) Prepare an overall development plan and work program that will address the needs of the 
WIE, prioritizing the poorest and most vulnerable, and incorporate them in their respective 
city, municipal, and barangay development plains; 
b) In consultation with WIE organization in the area, identify specific needs of various IE sub 
sectors and recommend appropriate measures to be taken; 
c) Ensure accreditation of WIE, especially those with assets of PlS0,000 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, their economic activities and their organization in the 
areas; 
e) Lead in the local implementation of Chapter VI (Security in the Workplace of WIE) of this 
Act; 
f) Coordinate with other local offices, private sector and other organization with existing 
programs for VIE towards integration and convergence; 
g) Conduct education and training programs that will: raise their consciousness especially on 
but not limited to workers', women's and children's rights; provide new ideas especially to 
those with the least assets and formal education; and develop or upgrade technical, 
entrepreneurial and leadership skills of WIE; 
h) Provide technical support and facilitate access to credit, market, technology, social 
protection schemes, and training for WIE; 
i) Train pools of community trainers in business counseling and awareness-raising on 
occupational safety and health hazards, risks and social protection; 
j) Support organizing activities among WIE; 
k) Establish sex-disaggregated databank on human resource and skills registry to be used as 
tools for LGU planning and budgeting; 
l) Provide officers and other necessary 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 be limited to counseling, conciliation, 
mediation, and legal assistance for the furtherance of this Act, prioritizing those with the 
least access to justice; and 
o) Ensure that the LGU is capacitated to undertake and implement rights-based and gender-
responsive programs for WIE. 
 
In the 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 workers' representatives shall form at least fifty percent (50%) of WIELDO's 
decision-making body: Provided further, that IE representative 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 operation shall be included in the 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. Thereafter, the 
LGU-IEDF shall be funded using: 
 
a) Accreditation and registration fees and annual dues paid by individual workers in the 
informal economy, their livelihood activities, and organizations and associations as 
provided for by Sections 6 and 7 of this Act; 
b) Shares from the 70% of the at least 10% funds from the Annual General Appropriations 
Act as provided for by Chapter VII, Section 29 (a) and (b) of this Act; and 
c) Annual allocations from LGUs Development Fund the percentage of which shall be 
determined by LGUs. 
 
Following the principle of merit and equity, LGUs that fulfill such allocations may receive additional 
assistance from the national government as recommended by IEDC; 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 
establishments and entrepreneurs falling under the category of informal sector for 
programs focusing on micro entrepreneurs and their workers; 
c) At least fifty percent (50%) of collected fees and annual dues from small vendors for 
programs focusing on vendors; 
d) At least fifty percent (50%) of fees and annual dues collected from marginalized fisher 
folks - for programs focusing on fisher folk; 
e) At least fifty percent (50%) of funds from the Philippine Amusement and Gaming 
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO). 
 
TITLE II 
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY 
 
Chapter I 
Requisites for Employment Agreement 
 
SECTION 46. Minimum Standard. – All working arrangements entered into by WIE shall be 
in accordance with the minimum applicable labor and social standards as contained in Title II of 
this Act.  
 
These standards shall be strictly enforced in informal economic enterprises supplying or doing 
outsourcing work for exporters, investors-locators in export processing zones or industrial parks 
licensed by the Export Processing Zone, and domestic formal sector manufacturers and retailers-
distributors.  
 
For workers engaged by independent informal economic enterprises, DOLE, in coordination with 
IEDC shall audit the capacity of these enterprises to comply with these standards. Those incapable 
of meeting the standards shall be assisted to upgrade their capacity to improve their businesses, 
as well as the capacity comply with relevant labor and social standards.  
 
SECTION 47. Provisions of Employment Agreement. – The employment contract shall be 
in written form. However, the absence of a written agreement does not mean the absence of an 
employment relationship. As a matter of right, WIE can insist on a written agreement based on 
minimum standards.  
 
In case wherein minors are contracted with, the said negotiated contract spall be signed on 
his/her behalf by either parent or legal guardian, with the expressed written consent of the said 
minor.  
 
In cases wherein illiterate workers are contracted with, the said contact 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) Period/ duration of employment; 


c) Compensation, which shall not be below the minimum standard, and mode of payment; 
d) Computation of contributions for social security and medical insurance including or those 
who fall under DOLE Department Order No.5; 
e) Duties and responsibility; 
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 compensative referred to above shall be determined by the Regional Wage 
Board per subsector of WIE. In the case of piece rates, this shall be based on the conduct of time 
and motion studies facilitated by the DOLE Bureau of Working Conditions. While there are no 
standardized rates for workers in informal economy jobs, the basis of computation shall not be 
below the 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 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 deduction are made.  
 
No parent, guardian relative or any other person shall be allowed to take a loan against the 
compensation of his or her relative-worker without the express written consent of the concerned 
worker. Neither shall a worker of minor age be mandated to work in payment of loan or liability 
incurred by a parent, guardian, relative, or any other person. 
 
Chapter II 
Workers of Minor Age 
 
SECTION 49. Allowable Employment of Workers of Minor Age. – Children fifteen ( 15) 
1284 years up to seventeen (17) years of age may be employed; provided, that parental or legal 
guardian consent is presented and attested to by any representative of the LGU or duty elected 
Barangay 1286 official where the work is to be done. In no instance, however, shall children 
below fifteen (15) years old be engaged in whatever form of productive services.  
 
Further, workers of minor age shall not be allowed to render work for more than four (4) hours, 
five (5) days a week, exclusive of one (1) hour break for breakfast or lunch whichever is 
applicable. 
 
TITLE III 
FINAL PROVISIONS 
 
SECTION 50. Penal Provisions. –  


a) Any person who shall willfully interfere with, restrain or coerce a worker in the exercise of 
his or her 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 (P 20,000.00) 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 employee, 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 here in shall prohibit the aggrieved WIE 
from initiating a criminal or civil action against the responsible person or officer 
applicability. 
d) Failure to implement Sections 27 and 28 of this Act (Policy on Relocation of Vending Sites 
and Policy on Relocation of Terminals) shall render the responsible officials 
administratively liable pursuant to Republic Act No. 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 Regulations (IRR). – The implementing Rules and 
Regulations (IRR) of this Act shall be formulated by a drafting committee composed of 
representatives of offices that will be members of IEDC and WIE organizations provided that, at 
least 30% of the drafting committee members shall come from the latter and provided further 
that at least 30% of committee members are women. Said committee shall start work on 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) newspaper of general circulation. 
 
Approved,