NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE
S. B. No. 2478
i/;
r;"i
of ti;C ■ ft.'
23 NOV-8 P6:45
RECEIVED BY
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
PROVIDING FOR THE MAGNA CARTA OF WORKERS IN INFORMAL 
ECONOMY, INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION 
THEREOF AND FOR OTHER PURPOSES
EXPLANATORY NOTE
This bill intends to provide a holistic and comprehensive policy to help and 
empower the people in the marginalized sector and those workers whose employment 
are considered informal and in need of an opportunity to be included into the 
mainstream of the Philippine economy.
This is the output of a collaborative advocacy efforts which involves various 
informal workers groups, women groups, and other stakeholders who wish to be able 
to include them in the economic affairs of the country.
Majority of the informal workers do not benefit from any laws such as the Labor 
Code that could protect their benefits and other rights, which are being afforded to 
those who are employed in companies or institutions. Despite this, workers from the 
informal sector are the ones being exploited and abused by unscrupulous employers. 
Most often than not, they are being demanded to work for longer hours but with low 
wages and with no benefits.
With consideration of these things mentioned, it is necessary that a Magna 
Carta for informal workers be presented for deliberation and be approved so that we 
will be able to support our informal workers. With this proposed bill, our informal


workers will be recognized, protected and be given the rights and opportunities that 
are due to them.
In view of the foregoing, this representation humbly requests for the early 
passage of this measure.
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE
S. B. No. 2478
of til? S-. : ■! !
23 NOV-8 P6-45
RECEIVED BV;
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
PROVIDING FOR THE MAGNA CARTA OF WORKERS IN INFORMAL 
ECONOMY, INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION 
THEREOF AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled.
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TITLE I
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GENERAL PROVISIONS
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Chapter I
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Framework and Principles
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Section. 1. Short Tide. - This Act shall be known as the "Magna Carta of Workers
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in the Informal Economy."
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to:
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(a) Promote a just and dynamic social order that will ensure that the prosperity
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and independence of the nation and free the people from poverty through
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policies that provide adequate social services, promotes decent and fuli
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employment, a rising standard of living, and an improved quaiity of life for
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aii;
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(b) Protect, promote and fulfii the rights of every worker including the right to
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self-organization, just and humane conditions of work, access to sociai
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protection, access to justice, security of/in the workpiaces, and the right to
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represent their organizations in a continuing process of consultation, in the


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context of quadpartism towards maximizing the provision 
of a
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comprehensive package of reforms, interventions, and services in
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accordance with their articulated needs and interests;
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(c) Recognize the role and give proper value to the contributions of workers in
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the informai economy and informal economic units, and make them visibie
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in ail relevant national and local statistics;
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(d) Promote gender equity and equality by protecting women workers in the
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informai economy against gender-based discrimination, exploitation and
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abuse, advancing women's social, economic, political, and reproductive
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rights, and improving their access to social protection 
and
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participation/representation in decision-making bodies and processes;
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(e) Estabiish an integrated and coherent poiicy at ali ievels of government of
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formalization, inclusive deveiopment, and greater responsiveness to the
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needs of the workers and enterprises in the informal economy;
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(f) Protect vulnerable workers from among the "Basic Sectors," as defined
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under Republic Act No. 8425, and people living with HIV and AIDS, from
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discrimination, expioitation, abuse and harassment, as weil as from
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performing work hazardous to their occupational, physical, mental,
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emotional, reproductive and spiritual health;
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(g)Take measures that will ensure legal security of tenure of workers and the
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safety and security of their workplaces, taking into account and including
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the physical environment, services, processes and systems needed to
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enabie workers to productiveiy and safeiy perform their work; and
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(h) Update labor, employment and establishment statistics and align the
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segmentation of assets by further segmenting the micro-enterprises to give
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preferentiai treatment to total asset and capital of P150,000.00 pesos and
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below as defined under the Sociai Reform Agenda of 1997 (RA 8425) and
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conduct periodic review of them.
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Sec. 3. Framework and Principles. - Articie II, Section 9 of the 1987 Constitution
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declares, "The State shall promote a just and dynamic social order that will ensure the
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prosperity and independence of the nation and free the people from poverty through
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policies that provide adequate sociai services, promote fuii empioyment, a rising


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standard of living, and an improved quality of life for all." It shall give the highest
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priority to the enactment of measures that protect and enhance the rights of all people
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to human dignity; reduce social, economic and political inequalities; lessen
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vulnerabilities to risks including those brought about by environmental degradation
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and natural disasters, remove cultural inequities by redistributing wealth and political
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power for the common good; and to develop an enabling environment conducive to
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responsible citizenship. Towards this end, in the context of social dialogue, the
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government at all levels shall formulate and implement coherent and integrated
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strategies that are rights-based, participatory, gender-responsive and sustainable.
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These strategies shall also be in accordance with the most relevant and empowering
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provisions of International Labour Organization (ILO) Recommendation No. 204
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concerning the Transition from the Informal to the Formal:
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(a) Coherence of policies and programs established for the purpose of bringing
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vulnerable workers and economic units into the economic and social
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mainstream, and spur entrepreneurial or growth-oriented informal
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businesses to graduate to formal status;
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(b) Coordination across a broad range of policy areas in facilitating the
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transition to the formal economy including pre-employment macro-
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economic policies and labor market policies to help low-income households,
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unemployed persons and other disadvantaged persons escape poverty and
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access employment;
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(c) Structural reforms in all relevant levels of government by creating
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committees and special offices for the development and protection of
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workers in the informal economy and supporting their representational,
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entrepreneurial, and other rights, through their organizations, without being
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limited to tripartite structures and particular strategies;
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(d) Accessible, affordable and effective promotion of social security, including
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labor market interventions, occupational safety and 
health, and 
the
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extension of maternity protection to women in the informal economy, social
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welfare programs and safety nets, disaster risk reduction and management
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mechanisms, and adaptive measures to respond to climate change;


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(e) Regulated access for use of public spaces and regulated access to public 
naturai resources for subsistence livelihoods through poiicies, programs and 
interventions that will ensure the security of workpiaces of workers in the 
informal economic units, including, among others, the "relocation before 
demoiition" of vendors and smali transport terminals, towards a work 
environment that protects their rights and enables them to achieve greater 
productivity;
(f) Minimum and simplified regulations to encourage the deveiopment of 
ingenuity and entrepreneuriai spirit among workers in the informal economy 
including property rights;
(g) Preservation and expansion, during the transition to the formal economy, 
of the entrepreneurial potential, dynamism, skilis and innovative capacities 
of workers and economic units in the informai economy;
(h) A balanced approach combining incentives with compliance;
(i) The need to prevent deiiberate avoidance of, or exit from, the formai 
economy for the purpose of evading taxation or the application of social 
and labor laws and regulations;
(j) Tax reforms based on net income for informal economic units and 
application of tax laws or incentives for the informai economy workers 
currently enjoyed by the formal labor;
(k) Social Dialogue mechanisms whereby informal workers' organizations wiil 
participate and be in tripartite consuitation in designing, evaluating, and 
impiementing poiicies and programs of relevance to the Informal economy;
(l) Support system to expand market for products, access loans for additional 
capital requirement and simplify bureaucratic systems and procedures for 
the Micro, Small and Medium Enterprises (MSMEs);
(m) Reiaxation of the procurement procedures for the contracting micro 
entrepreneurs of the government;
(n) Review, amendment and efficient implementation of poiicies on sub­
contracting such as DOLE Department Order No. 5 on Industriai Homework 
and other relevant policies; and


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(o) A road map of development for both informal economy workers and 
economic units shall guide the government in all levels in the context of 
social dialogue.
(p) After formalization, all laws applicable to formal labor and economic units 
shall apply.
Sec. 4. Scope. - This Act shall apply to all workers and economic units - 
including enterprises, entrepreneurs and households - in the informal economy, in 
particular:
(a) those in the informal economy who own and operate economic units, 
including:
- own-account workers;
- employers; and
- members of cooperatives and of social and solidarity economy 
units
(b) contributing family workers, irrespective of whether they work in economic 
units in the formal or informal economy;
(c) employees holding informal jobs in or for formal enterprises, or in or for 
economic units in the informal economy, including but not limited to those 
in subcontracting and in supply chains, or as paid domestic workers 
employed by households; and
(d) workers in unrecognized or unregulated employment relationships.
Sec. 5. Definition of Terms. - As used in this Act, the following terms shail
mean:
(a) 
Basic sectors refer to the disadvantaged sectors of Philippine society, 
namely: farmer-peasant, artisanal fisher folk, workers in the formal sector 
and migrant workers, workers in the informal sector, indigenous peoples 
and cultural communities, women, differently-abled persons, senior 
citizens, victims of calamities and disasters, youth and students, children, 
and urban poor;
(b) Community Contracting refers to the process of concluding an agreement 
between a community and a contracting authority, whereby the


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community (or a section thereof) is responsible for the implementation of 
the work, and therefore, functions as a contractor;
(c) 
Daily Basis refers to the per day mode of paying a worker, as bilaterally 
agreed upon by the employer and worker;
(d) Hazardous Work Conditions refer to any activity or circumstance where a 
worker is exposed to any risk which constitutes imminent danger to his or 
her health or safety. This includes potential risks of disability, injury, illness 
or death due to the presence of biologic agents, radiation, chemicals, 
substances, hazardous materials; physical hazards in the work 
environment; or the nature of work, processes performed, or equipment 
used therein;
(e) Informal Economy - based on the ILO Recommendation No. 204 
concerning the Transition from the Informal to the Formal, adopted during 
the 104th International Labour Conference (ILC) in June, 2015 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";
(e-1) Economic Units in the informal economy include:
- units that employ hired labour;
- units that are owned by individuals working on their own 
account, either alone or with the help of contributing family 
workers; and, 18 -cooperatives and social and solidarity 
economy units;
- informal work that may be found across all sectors of the 
economy, in both public and private spaces
(f) 
Informal Economy Workers' Organization refers to a group or groups of 
informal sector workers, whether formally constituted or otherwise, that 
are organized with the primary objective of promoting the welfare of 
workers in informal economy;
(g) Monthly Basis refers to the per month mode of paying a worker as 
bilaterally agreed upon by the employer and worker;


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(h) Pakyaw Basis refers to the pre-contracted wholesale mode of paying a 
worker as bilaterally agreed upon by the employer and worker;
(i) 
Piece rate refers to payment of products or services by piece of work or 
by service rendered;
(j) 
Security of/in the Workpiace refers to the right of every worker and 
informai economic units to an enabling environment that guarantees and 
protects the spaces to undertake their work, inciuding the right to feei 
safe in one's own work space, iegal security of tenure and freedom from 
discrimination, risk, danger, doubt, anxiety, or fear of being removed, 
evicted or prevented from working;
(k) 
Sociai 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 vulnerabiiities throughout their iife cycie, iike 
protection against hazards and sudden loss of income; and realizing their 
rights as citizens through their fuli participation in decision-making 
affecting or may affect their access to and control over resources 
necessary to maintain and sustain a decent and secure life.
Social protection schemes shall include labor market interventions, 
sociai insurance, social welfare, safety nets, disaster risk reduction and 
management mechanisms, adaptive measures in the context of ciimate 
change, affordabie housing and other provisions necessary for vulnerabie 
groups to adequately address and manage risks;
(l) 
Working Hours refer 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; and
(m) Voiunteer workers of government instrumentaiities refer to workers in 
government instrumentalities receive aiiowances or honoraria. These 
inciude but are not limited to: barangay heaith workers (BHW), barangay 
tanod, barangay nutrition scholars (BNS), barangay daycare workers, 
enumerators, and among others.


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Chapter II
2 
Coverage, Registration and Annual Dues
3
4 
Sec. 6. Coverage. - This shall include all those defined in Section 4 of this Act,
5 
Informal Economy (IE) businesses and enterprises, and organizations of workers in
6 
informal economy.
7 
Sec. 7. Registration. -
8 
(a) Workers. - There shall be a simple and standard system of registration in
9 
accordance with the framework and principles of this Act. A one-time registration fee
10 
of not more than Fifty pesos (P50.00) per individual worker, shall be paid to the
11 
municipality or city where they reside.
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Any IE worker registered in the local government provided for in this Act shall
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be listed in the centralized database system, and shall be issued an identity card and
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8 a record book that shall list all services and benefits availed of. These signify
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eligibility to avail of development programs, provided, that the poorest and the most
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vulnerable workers shall be given priority.
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The concerned LGU shall review, revalidate and reassess such database as a
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tool for local planning and for other purpose every two (2) years from the date of last
19 
registration. Renewal of eligibility shall be in accordance with the merit and fitness
20 
principle, and with the conditions that no child labor shall be used and no activities
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harmful to the environment shall be implemented.
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(b) Informal Economic Unit- A comprehensive database of all economic units shall be
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developed and maintained. Such database shall take into account the different sub-
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classifications in terms of asset size, number of workers, social insurance provided,
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statutory benefits and wages, industry, geography, premises, sex, ethnicity,
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vulnerability, and roles and functions. The database shall also indicate informal
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economic units which may be categorized as livelihood enterprises and entrepreneurial
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or growth oriented informal businesses. Further, the database shall include
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information on payments collected from IE workers. Workers in the Informal Economy
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(WIE) organizations and economic units. The Barangay Micro Business Enterprise
31 
(BMBE) Registry, in general, shall Include these Informal economic units.
32 
The aforesaid comprehensive database shall form part of the bases of
33 
assessment and monitoring of the growth of informal economy.


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All local government units shall formulate a uniform and simple checklist of
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requirements for registration, and establish an IE One-Stop Shop Center which shall
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handle all transactions and processing of business permit applications within their
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respective jurisdiction and worker's registration. The Center shall ensure that
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processing of the business permit of the informal economic units shall be expedited
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within one day. The P150,000.00 asset size shall be given an affordable business
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registration (Mayor's Permit) of P500.00 renewable annually until three (3) years of
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operation after which, shall be subject to the regular business permit requirements of
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the local government. The BIR shall also exempt from sales tax for the same period
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of three (3) years the said asset size of economic unit renewable annually.
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(c) Informal Economy Organizations/Associations. - lEO/A shall register or accredit
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with the Department of Labor and Employment (DOLE).
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Sec. 8. Annual Dues. - IE workers and organizations shall pay annual dues to
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be determined by the Local Government Unit (LGU) concerned, in consultation with
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their respective Workers in Informal Economy Local Development Office (WIELDO)
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referred to in Title I, Chapter IX of this Act. In no case shall the annual dues to be
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paid by IE workers be more than 30% of the prescribed daily minimum wage as
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determined by the Regional Tripartite Wages and Productivity Board (RTWPB) in their
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respective regions or provinces.
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These annual dues shall accrue to the respective LGU where they are
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accredited. The accumulated funds from these dues shall be used for programs to
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benefit IE workers and organizations/associations, business activities, enterprises and
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organizations, as recommended by the WIELDO. Such programs and disbursement of
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funds shall be approved by the concerned LGU Council in consultation with the local
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informal economy constituents.
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Chapter III
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RIGHTS AND BENEFITS
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Sec. 9. Workers in the informal economy shall have the same basic rights
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accorded to all workers, as enshrined in the Philippine Constitution, the Labor Code,
32 
as amended, and relevant international human rights Instruments and labor
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Conventions. These include, but are not limited to the rights to:


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(a) Work, which includes the rights to: security of/in the workplace; make a 
living by work freely chosen or accepted; and avail of technical and 
vocational guidance and training programs;
(b) Enjoyment of just and favorable conditions of work;
(c) A living wage and equal remuneration for work of equal value without 
distinction of any kind, in particular for women who shall be guaranteed 
equal wages for work similar or equivalent to those done by men;
(d) Equal opportunity for promotion, subject to no other considerations than 
seniority and competence;
(e) Safe and healthy working conditions safeguarding general, occupational and 
reproductive health;
(f) Access to basic services including but not limited to affordable medical care, 
reproductive and other health services, low-cost housing, water, sanitation, 
electricity and transport;
(g) Rest, leisure and reasonable limitation of working hours, and periodic 
holidays with pay, as well as remuneration for public holidays whenever 
applicable;
(h) Maternity and paternity benefits, as provided for by law;
(i) Equal access to education, skills training, and economic resources to 
develop self-reliance, especially of children and young persons, without any 
discrimination;
(j) Self-organization to collectively negotiate with government and other 
entities in the promotion of their welfare and advancement of their interests, 
free from any political interference;
(k) An adequate standard of living for workers and their families, adequate 
food, clothing, and shelter, and the continuous improvement of such 
standard;
(l) Freedom from any form of discrimination, violence, exploitation including 
sexual exploitation, harassment, abuse, and any form of inhumane 
treatment which debases, degrades or demeans the intrinsic worth and 
dignity of the worker as a human being;
10


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(m)Accessible social protection, comprising mainly of, but not limited to labor
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market programs, social security, health care and insurance, and social
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welfare interventions;
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(n) Equal treatment before the law;
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(o) Substantial participation in policy and decision-making processes, including
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access to information and other resources relevant to the protection of their
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rights and welfare through organizations that truly represent the sector;
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(p) Equal access to justice though appropriate mechanisms, including, but not
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limited to, alternative dispute resolution processes; and
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(q) Access to public procurement including advice and reserving quotas for
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informal economic units.
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Sec. 10. Own-account workers as well as informal economic units, being the
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working poor's primary instruments to address and overcome poverty, shall be
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accorded the following preferential rights by the State:
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(a) Infrastructure support such as farm to market roads, common, affordable
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and secure workplaces and facilities, merchandising centers, farmers'
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markets or a Bagsakan with proper storage facilities, and inventory 
bulk-
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buying centers;
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(b) Policy support to promote and protect local and domestically-produced
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products and services;
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(c) Access to markets, including capacity-building to access E-marketing
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facilities;
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(d) Access to affordable, appropriate and adequate financial services, including,
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among others, collateral-free and gender-balanced credit at low interest;
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(e) Access to appropriate and adequate machinery, equipment, and other
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technologies, with the end in view of increasing productivity and growth;
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(f) Protection from unjust dislocation from places where economic activities are
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conducted with the "provision of relocation before demolition policies".
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(g) Measures against racketeering, extortion, and harassment, by both State
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and non-state elements;
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(h) Fiscal relief, including among others exemption from taxes, fees and other
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assessments, to be put into place by concerned national agencies and local
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government units sixty (60) days after the effectivity of this Act;
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(i) Common workplaces, common technology facilities, adequate and
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affordable marketing facilities such as economic freedom parks,
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merchandising centers, and inventory bulk-buying centers;
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(j) Freedom from deprivation of property without valid cause and due process
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of law; and,
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(k) Affordable and customized social security and insurance programs.
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Sec. 11. Organizations of workers in informal employment, including unions,
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cooperatives, social and solidarity economic units/organizations and mutual benefit
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associations, shall have the right to:
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a) Freely function and act as the representatives of their members in policy
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and decision-making processes, collective 
negotiations, and other similar
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bodies and processes in the context of tripartism and multi-sector;
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b) Establish national federations or confederations and to protect the right of
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the latter to form or join local 
unions and international trade-union
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organizations;
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c) Access information from concerned government institutions and other
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parties that are pertinent to the protection and promotion of the rights and
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welfare of their members;
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d) Own property, real or personal, for the use and benefit of their organizations
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and members;
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e) Sue and be sued under their registered names;
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f) Undertake all other activities, not contrary to law, designed to benefit their
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organizations and members; and
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g) Be accorded preferential option in the awarding of contracts for the
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undertaking of national and local projects funded by either the National or
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local government units including foreign-assisted projects. Guidelines for
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this shall be included in the Implementing Rules and Regulations of this Act.
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Notwithstanding any provision of a general or special law to the contrary, the
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income and properties of legitimate workers' organizations, including grants.
12


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endowments, gifts, donations and contributions they may receive from fraternal and
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similar organizations, local or foreign, which are actually, directly and exclusively used
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for their lawful purposes, shall be free from taxes, duties and other assessments. The
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exemptions provided herein may be withdrawn only by a special law expressly
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repealing this provision.
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Sec. 12. Organizing Workers in Informai Economy. - WIE shall be encouraged
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to organize themselves for their mutual benefit and protection, and for other legitimate
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purposes. Toward this end, the State shall encourage and assist these workers in the
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formation of their self-help organizations, associations, federations, and
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confederations.
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The State shall encourage the formation of cooperatives among marginalized
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farmers, fisher-folk, as well as manufacturing, transport, retail, services, and home-
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based workers to enable members to: purchase inputs at lower cost, obtain fair prices
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for their produce, avail of credit assistance and skills training, and share from collective
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ga i ns of the cooperatives.
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Attention will be given to organizing women and other vulnerable WIE.
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Sec. 13. Assistance to Organizations of Workers in the Informai Economy. - All
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concerned national government agencies, government financial institutions and local
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government units shall include in their plans, programs, projects and activities efforts
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that will support and address concerns of organizations of WIE.
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Sec. 14. Monitoring of Growth. - The local government units (LGUs) shall
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supervise the Workers in Informal Economy Local Development Office (WIELDO) as
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created by Chapter IX of this Act, and monitor the growth of informal employment
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business activities or enterprises, three (3) years after the enactment of this Act, and
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every three (3) years thereafter. The centralized database referred to in Section 7
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shall be the basis of this monitoring.
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Chapter IV
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Prohibited Acts Concerning Engagement of Workers
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in the Informal Economy
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Sec. 15. Prohibition Against Recruitment or Finders' Fees. - Regardless of
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whether the worker was sourced either through an employment agency or a third
13


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party, WIE shall neither be charged nor levied a recruitment fee or finders' fee by the
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aforementioned employment agency or third party.
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Sec. 16. Prohibition Against Hazardous Work and Conditions. - Workers shall
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not be engaged to do hazardous work, activity or undertaking, or be exposed to
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hazardous working conditions.
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For purposes of this Section, hazardous work or conditions shall include, but
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not be limited to the following:
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(a) Any work which requires workers to render services beyond eight (8) hours
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without commensurate compensation;
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(b)Any work or activity which exposes the worker to physical, emotional or
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sexual abuse or threat of such abuse;
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(c) Any work which involves manual handling or transport of heavy loads;
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(d) Any work in an unhealthy environment which exposes workers to hazardous
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substances, agents or processes, or to temperature, noise levels, or
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vibrations damaging or potentially damaging to their health;
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(e) Any work which requires workers to continuously render service during late
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nights;
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(f) Any and all forms of slavery or practices similar to slavery, such as the sale
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and trafficking of persons, forced or compulsory labor, debt bondage and
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serfdom;
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(g) Any use, procuring or offering of the worker for prostitution or pornography;
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(h)Any use, procuring or offering of the worker for the commission of any
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offense or crime, particularly for the production, trafficking, or sale of
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narcotic drugs and substances as defined in the Dangerous Drugs Act;
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(i) Any other type of work or activity which, by its nature or the circumstances
26 
in which it is carried out, is likely to jeopardize the health, safety, or morals
27 
of the workers; and
28 
(j) Any other type of work, activity, condition or undertaking that maybe
29 
hereinafter be defined as hazardous by the Department of Labor and
30 
Employment.
31 
Sec. 17. Prohibition Against Interference and Coercion. - Any person is
32 
prohibited from committing any of the following acts of interference and coercion:
14


1 
(a) Preventing any worker from upholding or exercising his/her rights;
2 
(b) Preventing any worker from joining or assisting organizations for purposes
3 
not contrary to law;
4 
(c) Preventing any worker from carrying out his/her duties or functions in an
5 
organization, or to penalize the same for any lawful action performed in that
6 
capacity;
7 
(d) Harassing, threatening, coercing or intimidating any worker that result in
8 
preventing him or her from performing his or her duties and functions;
9 
(e) Transferring, penalizing or terminating the services of a worker without valid
10 
or legal ground; and
11 
(f) Other acts calculated to diminish the independence and freedom of workers'
12 
organization to direct its own affairs.
13
14 
Chapter V
15 
SOCIAL PROTECTION
16
17 
Sec. 18. Labor Market Programs. -The State shall provide adequate resources
18 
to sustain labor market programs following decent work standards, including
19 
emergency and guaranteed employment schemes, to ensure livelihood security and
20 
prevent or mitigate the effects of sudden loss of income in the context of sustainable
21 
development and developing local economies in both rural and urban areas.
22 
The State shall ensure that these schemes are labor-intensive, developmental,
23 
sustainable, and engage women, men, the youth, and older people in building
24 
infrastructure, socialized housing, social forestry focusing on the planting of traditional
25 
trees, organic farming, and food production programs.
26 
LCDs shall encourage and provide incentives to constituents who want to
27 
engage or are engaged in sustainable and/or organic farming. All idle private or public
28 
lands within their jurisdiction shall be cultivated or planted with organic food crops like
29 
corn, root crops or vegetables. If applicable, LGUs must allocate a portion of their local
30 
funds for mangrove reforestation and prohibit conversion of any mangrove forest to
31 
residential, commercial or industrial use.
15


1 
In pursuit of decent work, the State in ali its labor market programs, shali adopt
2 
a comprehensive framework and plan on occupational safety and health that covers
3 
all workers, formal and informal, and implemented at both national and local levels.
4 
The State shall encourage entrepreneurship among the disadvantaged,
5 
especiaily women and young peopie in informai empioyment, through simple and
6 
efficient procedures and the provision of adequate and affordable marketing faciiities
7 
such as those provided for by Section 9 (i) of this Act.
8 
The State through LGUs shail promote community contracting to give preference to
9 
WIE and their organizations in accessing employment opportunities and related
10 
benefits.
11 
Sec. 19. Social Security. - In the interest of equity, the State shall endeavor to
12 
extend social security protection to ail workers and their beneficiaries against the
13 
hazards of disability, sickness, maternity, oid age, death, unempioyment, and other
14 
contingencies resulting in ioss of income or financiai burdens. The State also,
15 
recognizing the intermittent nature of job and income in the informal economy, shall
16 
subsidize the contributions of the workers in the informal economy.
17 
The Social Security System (SSS) shail ensure coverage for all workers,
18 
particularly the working poor beionging to the informai economy. The SSS, in
19 
consuitation with informai workers' organizations, shail customize products and
20 
services for them that are accessible and affordable. In the interest of equity,
21 
the State shali cover what should have been the employers' share for contributions
22 
of informal workers, had they been formally employed.
23 
The SSS shall develop schemes involving government subsidies and
24 
sponsorship programs to assist those who cannot afford to enroli and sustain their
25 
membership.
26 
To achieve universai coverage, the SSS shaii facilitate the accreditation of
27 
cooperatives, women's and peopie's organizations, trade unions and
28 
WIE associations, microfinance and micro-insurance institutions and similar groups
29 
as collecting agents of premiums and facilitators of claims with the ieast burdensome
30 
conditions and with appropriate incentives. It shail develop effective partnerships with
31 
these organizations.
16


1 
The SSS Commission, in the spirit of democracy, transparency, accountability,
2 
and equity, shall be required to conduct regular consultations with and provide
3 
information and reports to its membership. Both formal and informal workers shall be
4 
represented in the SSS Commission, where gender balance shall also be observed.
5 
The SSS in cooperation with other relevant national agencies and LCDs, shall
6 
support indigenous and community-based social protection schemes which
7 
complements other needs in times of risks such as damayan, tulungan, saranay, small
8 
mutual benefit associations, and micro-finance organizations initiated or participated
9 
in by WIE so that these can be sustained, systematized and up-scaled.
10 
An enabling environment for such organizations and schemes shall also be
11 
developed. Toward this end, the Insurance Commission (IC) and other relevant
12 
regulatory agencies are hereby mandated to review their policies and framework to
13 
make them more developmental and supportive of the alternative schemes
14 
outlined above.
15 
Sec. 20. Social Security for Volunteers of Government Instrumentalities. -
16 
Volunteer workers of government instrumentalities as defined of this Act, shall be
17 
covered by the Government Service Insurance System (GSIS) and be entitled to at
18 
least a minimum package of customized products, services and benefits to be designed
19 
with their participation and with adequate government subsidy.
20 
Sec. 21. Universal Health Care. -The Philippine Health Insurance Corporation
21 
(PhilHealth) shall ensure and substantiate universal, actual, active, and up to date
22 
coverage of workers in the informal economy, through the effective implementation
23 
of Republic Act No. 11223, or the Universal Healthcare Law, which mandates the
24 
coverage of every Filipino citizen to the National Health Insurance Program (NHIP).
25 
In compliance with Republic Act No. 11223, PhilHealth shall ensure the
26 
provision of a minimum benefit package which shall be periodically upgraded to meet
27 
the goal of universal coverage which is affordable, accessible and appropriate to the
28 
needs of all.
29 
Further, PhilHealth shall immediately extend its services to underserved
30 
areas by facilitating and accelerating accreditation of hospitals and clinics, and by
31 
ensuring that these service providers remain viable through immediate
32 
reimbursement.
17


1 
These shall include the provision of service by duly-accredited and adequately-
2 
furnished health facilities, with appropriately-educated and rationally-compensated
3 
health personnel, to underserved areas up to the barangay level.
4 
Sec. 22. The State shall encourage provision of and access to affordable quality
5 
childcare and other care services in order to promote gender equality
6 
in entrepreneurship and employment opportunities and to enable the transition to
7 
formal economy.
8 
Sec. 23. The State shall sustain, enhance, and institutionalize the Social
9 
Protection Floor initiative through convergence of the resources of various agencies
10 
so that it can provide continuous social security and health insurance subsidies to
11 
vulnerable and other informal workers as well as initiate programs for the unemployed,
12 
children, and older persons based on applicable and ever improving standards.
13
14 
CHAPTER VI
15 
Security in the Workplace of Workers in Informal Employment
16
17 
Sec. 24. Designation of Workpiaces. - The concerned Local Government Unit
18 
(LGU), in coordination with their respective WIELDO, and after consultation with WIE,
19 
affected communities, and other relevant groups, shall identify and designate viable
20 
workplaces for informal workers; routes, terminals, and specific lanes for small
21 
transport workers; and design a system of assigning these to accredited informal
22 
workers. These may include markets and vacant areas near markets, vacant public
23 
spaces and other spaces which may be designated as allowable workplaces for
24 
informal workers.
25 
Should concerned WIE prefer to conduct their economic activities within an
26 
identified private property, the LGU shall negotiate with the owner of the property for
27 
the possible use of such property as WIE's workplace. The LGU shall likewise
28 
encourage and assist the parties in forging a possible memorandum of agreement.
29 
The LGUs, within 60 days from the effectivity of this Act, shall conduct a survey
30 
to identify viable vacant areas suitable for routes, terminals, lanes, productivity and
31 
merchandizing centers and workplaces for use of WIE in their respective localities.
18


1 
The LGUs shall, within ninety (90) days after the survey and based on
2 
recommendations of WIELDO and consultations with concerned WIE, affected
3 
inhabitants and relevant sectors, pass an ordinance designating such workplaces.
4 
Sec. 25. Protection of Agricultural Lands and their Occupants. -The LGUs, in
5 
coordination with the Department of Agrarian Reform (DAR) shall protect all
6 
agricultural lands from conversion or reclassification to non-agricultural uses. Special
7 
Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not be allowed in
8 
irrigated and irrigable lands.
9 
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the
10 
agricultural lands as protected zones.
11 
The LGUs shall make an inventory of all agricultural lands under leasehold and
12 
shall enforce the security of tenure of tenants, right of redemption and right of first
13 
refusal on the subject land. The LGUs shall provide assistance and protection to
14 
tenants in agricuitural lands whose landowners violate the provisions of R.A. No. 3844
15 
or the Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral
16 
termination of the tenancy relationship by landowners, establish and create fisher-folk
17 
settlement areas on private or public lands, specifically those near the fishing grounds,
18 
for municipal fisher-folk with security of tenure.
19 
Sec. 26. Use of Municipal Waters, Beach Fronts, and Foreshore Areas. -
20 
Municipal waters shall be used exclusively by marginalized fisher-folk and allied
21 
workers. They shall be given priority in the granting of permits and licenses for the
22 
establishment of fish pens, fish corrals, fish traps, shellfish culture or similar structures
23 
for culture of marine products within the municipal waters.
24 
Beach fronts and foreshores are public domain and may be used by any person
25 
especially marginalized fisher-folk. LGUs shall ensure that no beach within their
26 
jurisdiction is exclusive for the use of resort guests or private persons.
27 
LGUs in coordination with the National Housing Authority (NHA), shall establish
28 
and create fisher-folk settlement areas on private or public lands, specifically those
29 
near the fishing grounds, for municipal fisher-folk with security of tenure.
30 
The consent of the affected fisher-folk shall be required before an area is
31 
declared a marine protected area or a fish sanctuary by the national or
32 
local government unit.
19


1 
Sec. 27. Policy on Eviction and Demolition. - WIE shall not be evicted from their
2 
homes and workplaces without legai ground as provided for R.A. No. 7279, otherwise
3 
known as the "Urban Deveiopment and Housing Act of 1992". In cases where eviction
4 
or demolition is warranted under Section 28 of R.A. No. 7279, the same shali be
5 
conducted upon compiiance of the following:
6 
(a) Notice upon the affected persons or entities at least thirty (30) days prior
7 
to the date of eviction or demolition;
8 
(b) Adequate consultations on the matter of resettlement with the duly
9 
designated representatives of the families to be resettled and the affected
10 
communities in the areas where they are to be relocated;
11 
(c) Presence of local government officials or their representatives during
12 
eviction or demolition;
13 
(d) Proper identification of all persons taking part in the demolition;
14 
(e) Execution of eviction or demolition only during regular office hours from
15 
Mondays to Fridays and during good weather, unless the affected families
16 
consent otherwise;
17 
(f) No violence or unreasonable force shall be committed against women,
18 
children, senior citizens, persons with disabilities and other identities
19 
similarly situated in the course of eviction or demolition.
20 
(g) Non-use of heavy equipment for demolition except for structures that are
21 
permanent and of concrete materials;
22 
(h) Proper uniforms for members of the Philippine National Police (PNP) who
23 
shall occupy the first line of law enforcement and observe proper
24 
disturbance control procedures; and
25 
(i) Adequate relocation, whether temporary or permanent; provided, however,
26 
that in cases of eviction and demolition pursuant to a court order involving
27 
underprivileged and homeless citizens, relocation shall be undertaken by
28 
the local government unit concerned and the National Housing Authority
29 
(NHA) with the assistance of other government agencies within forty-five
30 
(45) days from service of notice of final judgment by the court, after which
31 
period the said order shall be executed; provided, further, that should
32 
relocation not be possible within the said period, financial assistance in the
20


1 
amount equivalent to the prevailing minimum daily wage multiplied by sixty
2 
(60) days shall be extended to the affected families by the local government
3 
unit concerned.
4 
Sec. 28. Policy on Confiscation of Materials and Impounding of Vehicles. - In
5 
cases where demolition or eviction is warranted, the person who 20 conducts the same
6 
shall issue an itemized receipt of all products, goods, and other materials seized from
7 
the affected WIE.
8 
Tricycles, pedicabs, and other modes of transportation shall not be impounded
9 
for violations of license, registration, or traffic regulations unless the said vehicles were
10 
utilized in the conduct of criminal activities. In cases of mere violation of traffic
11 
regulations, a traffic violation ticket shall be issued to the erring driver without
12 
impounding his/her vehicle.
13 
Sec. 29. Policy on Relocation of Vending Sites. - Before any public market is
14 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to a
15 
temporary or new public market. Notice of the intention to close, sell, or demolish any
16 
public market shall be made to all concerned vendors at least sixty (60) days before
17 
the actual transfer or relocation to another market site. Within the sixty (60)-day
18 
period after issuance of notice, the LGU shall conduct consultations with affected
19 
vendors on the selection of the relocation site and implementation of the relocation.
20 
Pending the designation of viable vending areas, vendors occupying public
21 
places not previously designated as vending sites shall be provided with viable
22 
temporary sites by the LGU. Notice of temporary transfer shall be given to the vendors
23 
at least fifteen (15) days before the actual transfer. This shall likewise apply to vendors
24 
granted with permits but whose workplaces are withdrawn from the list of allowable
25 
vending sites. Any change in the list of allowable vending sites shall only be done after
26 
consultations with affected vendors.
27 
In the event that a new public market is constructed in place of an old one,
28 
market vendors with stalls displaced from their workplaces shall be given priority in the
29 
assignment of stalls in the new market.
30 
Sec. 30. Policy on Relocation of Terminals. - Designated terminals for tricycles
31 
and pedicabs shaW not be arbitrarily relocated without prior notice and consultation
32 
with small transport groups, affected community and other relevant sectors. Provided,
21


1 
that relocation of terminals can only be effected through an Ordinance, Provided
2 
further, that after the enactment of such ordinance, notice of intention to relocate
3 
terminals shall be made to all small transport groups and affected community at least
4 
sixty (60) days before the actual relocation.
5 
Chapter VII
6 
Special Allocations of Development Initiatives
7
8 
Sec. 31. Special Allocations for Development Initiatives. - The development
9 
initiatives for WIE shall form part of an integrated and convergent plan to address
10 
poverty and vulnerability. The national and local government units shall work together
11 
In support of such plan to maximize impact of meager resources.
12 
(a) At least ten percent (10%) of the annual national budget shall be
13 
appropriated for programs and services for WIE. These programs shall be
14 
implemented based on the principles of merit and equity by the Department
15 
of Labor and Employment (DOLE) at the national level and the WIELDO at
16 
the local level.
17 
(b) For purposes of program implementation, the DOLE shall manage 30%, and
18 
WIELDO, 70% of the funds from the annual General Appropriations Act
19 
(GAA) as provided for in the previous paragraph of this section.
20 
(c) The Implementing Rules and Regulations (IRR) of this Act shall determine
21 
additional guidelines on, among others, the use of such finances to ensure
22 
that programs and services truly benefit WIE.
23 
Sec. 32. Sourcing and Adopting Development Initiatives. - Other sources of
24 
funds to be used exclusively for initiatives addressing the needs and empowerment of
25 
WIE shall be identified in the IRR of this Act and may include the following:
26 
(a) Government financial institutions and mechanisms such as the Land Bank
27 
of the Philippines (LBP), Development Bank of the Philippines (DBP),
28 
National Livelihood Support Fund (NLSF), and Quedan Rural Credit and
29 
Guarantee Corporation shall set aside a specific percentage of their loan
30 
portfolio to informal economy enterprises and shall give priority to women-
31 
led Informal economy enterprises by providing loans at an interest of not
32 
more than twelve percent (12%) per annum consistent with the spirit of
33 
R.A. No. 7882;
22


1 
(b)The Department of Social Welfare and Development (DSWD) shall
2 
strengthen its Self-Employment Assistance Program (SEAK) to uplift and
3 
empower women in poverty, particularly those in the informal economy, by
4 
adopting an integrated, credit-plus approach to micro-finance;
5 
(c) The Small Business Guarantee and Finance Corporation (SBGFC) created
6 
under Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting
7 
of development initiatives for competitive enterprises in terms of finance,
8 
technology, production, management and business linkages. It shall also
9 
provide and promote, develop and widen in both scope and service reach
10 
various alternative modes of financing for informal economy business
11 
activities or enterprises, including but not limited to: direct and indirect
12 
project lending, venture capital, financial leasing, secondary mortgage
13 
and/or rediscounting of loan papers to 
such business activities or
14 
enterprises, and crop production financing. Further, the Corporation shall
15 
guarantee loans obtained by qualified worker or business activity or
16 
enterprise, under such terms and conditions adopted by its Board;
17 
(d)The Department of Trade and Industry (DTI) shall contribute to enable the
18 
development of a business environment that shall include initiatives such as
19 
supply chain and market outlets, and schemes to develop Special Credit
20 
Windows to upscale informal enterprises; and
21 
(e)The Department of Science and Technology (DOST) shall support
22 
technology- related initiatives of workers and enterprises in the informal
23 
economy.
24 
Sec. 33. Exclusivity of Government Programs. -The government shall ensure
25 
that programs of financing, grants and other similar incentives meant to benefit WIE
26 
shall be exclusively extended to accredited workers, business activities, enterprises or
27 
organizations in the informal economy.
28 
Sec. 34. Inciusivity of Benefits. - The exemptions and other benefits provided
29 
in this Act shall apply for a period of not exceeding ten (10) years from the date of
30 
accreditation of such IE worker, business activity, enterprise, or organization.
31
32
23


1 
Chapter VIII
2 
Informal Economy Development Council (lEDC)
3
4 
Sec. 35. Creation of the Informal Economy Development Council (lEDC). -There
5 
is hereby created an Informal Economy Development Council, hereinafter referred to
6 
as the lEDC, which shall be an agency within the Department of Labor and
7 
Employment (DOLE). The DOLE shall institute appropriate reforms within its structure,
8 
programming and other processes, including adjusting its human resource capabilities
9 
to ensure that WIE-focused programs are efficiently and adequately implemented to
10 
address the needs of these workers. Likewise, an inter- agency committee shall be
11 
formed to coordinate policies and programs of various government agencies towards
12 
the transition of informal economic units to formal.
13 
The lEDC shall be constituted within thirty (30) days after the approval of the IRR of
14 
this Act.
15 
Sec. 36. Mandate and Functions oflEDC. -The mandate and functions of lEDC
16 
shall include the following:
17 
(a) Develop and ensure implementation of a simple system of registration
18 
accreditation for the IE workers, enterprises, and organizations in
19 
accordance with the standards and provisions of this Act;
20 
(b) Provide guidelines for the implementation by LGUs of a fair and credible
21 
system of evaluation, accreditation, review and assessment, merit
22 
promotion, rendering of grant and incentive awards and other policies
23 
relative to the effective and efficient implementation of this Act;
24 
(c) Develop and ensure implementation of annual, long-term and medium term
25 
plans for the informal economy, the last of which should form part of the
26 
Medium Term Philippine Development Plans 
(MTPDP) towards
27 
institutionalizing comprehensive, rights-based, gender-responsive and
28 
child- friendly programs and policies for the IE;
29 
(d) Develop and ensure effective implementation of labor standards covering
30 
WIE as provided for by this Act;
31 
(e) Develop and ensure implementation of gender-based monitoring and
32 
evaluation mechanisms, efficient and effective programs and policies, and
24


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
gender-responsiveness of interventions toward harnessing the foil 
potentiais of women WIE;
(f) Coordinate with LGUs for the development and implementation of periodic 
evaluation of aii accredited IE members, enterprises and organizations - 
taking into account their accomplishments, capabiiities and potentiais. The 
results of such evaluation shaii be used as bases for accreditation, the grant 
of awards and incentives, training and retraining;
(g) Establish a performance appraisal system for all accredited workers, 
enterprises and organizations in the informai economy which shall be the 
basis for granting or renewal of incentives, rewards and recognition, training 
and deveiopment, inciuding adequate mechanisms to ensure their active 
participation and involvement;
(h) Ensure effective participation of WIE and their organizations through the 
establishment of reguiar consultative mechanisms and processes. Annual 
national, regional and provincial consultations among the organizations of 
WIE shaii be conducted to determine specific issues and problems affecting 
specific WIE sub-sectors, and monitor and evaiuate implementation of 
programs and policies;
(i) Establish and develop a centralized and sex-disaggregated database system 
to effectively guide poiicy formulation and implementation relative to the 
WIE. The databank shaii be avaiiabie for pubiic use and shaii include but 
not limited to the following: statisticai profiie of WIE based on age, iocation, 
type of work, average monthiy incomes, work hours, and other reievant 
statistical Information; data on informai enterprises, inciuding capitalization 
and sources of capital, number and status of workers, average incomes; List 
and contact information of government and non-government organizations 
(NGOs) that provide educationai, socio-economic, legai, and other services 
to WIE; Inventory of resolved and pending cases invoiving activities of WIE; 
Database on the needs and probiems of women and children in the informai 
economy nationwide aimed at strengthening policies and programs against 
chiid iabor; and Compilation of internationai instruments, existing laws and
25


1 
programs affecting the interest and welfare of WIE and information on how
2 
these workers may use or avail of such instruments, laws and programs;
3 
(j) Develop and ensure implementation of a communication plan including
4 
massive information dissemination activities targeting WIE, their enterprises
5 
and organizations, in the various regions towards a better understanding
6 
and appreciation of the benefits this Act may bring them;
7 
(k) Consistent with Section 2(h) of this Act, to develop and ensure
8 
implementation of a comprehensive plan to eliminate child labor;
9 
(I) Monitor and coordinate implementation of policies and programs through
10 
the Regional lEDC officers;
11 
(m) Coordinate and harmonize all informal economy-related policies,
12 
programs, projects and activities of various government agencies towards
13 
greater efficiency and effectiveness;
14 
(n) Monitor the LGU-generated incomes from informal employment through the
15 
LCDs' periodic report submitted to the Council;
16 
(o) After consultations with WIE organizations, develop and ensure
17 
implementation of policies and programs that will address specific needs
18 
and ensure rights of WIE subsectors;
19 
(p) Develop and ensure implementation of accessible and just conflict resolution
20 
and adjudication systems and mechanisms to promote dialogue,
21 
conciliation, mediation and redress of grievances to protect the rights of
22 
WIE; and
23 
(q) From time to time, call on the participation of any government agency or
24 
bureaucracy in its deliberations especially when such agency is directly or
25 
indirectly concerned with or affecting the growth and development of the
26 
IE.
27 
Sec. 37. Composition. - The Chair of the lEDC shall be the Secretary of
28 
Department of Labor and Employment. lEDC members may elect from among
29 
themselves a Vice-Chair to preside over meetings in the absence of the Chair. The
30 
members shall be the following:
31 
(a) Secretary of the Department of Trade and Industry (DTI)
26


1 
(b) Director General of the National Economic and Development
2 
Authority(NEDA);
3 
(c) Secretary of the Department of Agriculture (DA);
4 
(d) Secretary of the Department of Soda! Welfare and Development (DSWD);
5 
(e) Secretary of the Department of Interior and Local Government (DILG);
6 
(f) Chairperson of the Commission on Human Rights (CHR);
7 
(g) Lead Convener of the National Anti-Poverty Commission (NAPC);
8 
(h) Secretary of the Department of Transportation (DOTR);
9 
(i) Chairperson of the Social Security System (SSS);
10 
(j) Chairperson of Philippine Health Insurance Corporation (PhilHealth);
11 
(k) Chairperson of the Philippine Commission on Women (PCW);
12 
(I) Secretary of the Department of Public Works and Highways (DPWH);
13 
(m) One (1) representative from the private sector;
14 
(n)One (1) representative each from the League of Cities, League of
15 
Municipalities, League of Provinces and League of Councilors;
16 
(o)The incumbent NAPC Informal Sector Sectoral Representative;
17 
(p) At least 30% of total membership of lEDC shall come from organizations of
18 
workers in the informal economy accredited with DOLE and DA. Guidelines
19 
for the selection of non-government lEDC members, including processes
20 
and mechanics shall be determined by the IRR of this Act. Provided, further,
21 
That at least 40 percent of the 30 percent are women.
22 
Representatives from the Social Partners, private sector, NCOS and WIE
23 
organizations shall serve as lEDC members for a term of three (3) years without re-
24 
election and shall be subject to terms and conditions provided for by the IRR.
25 
The private sector, workers in informal economy and women's organizations'
26 
representatives to the lEDA shall be entitled to receive Per Diem of at least Two
27 
Thousand Five Hundred Pesos (P2,500.00) per meeting.
28 
Sec. 38. lEDC Meetings. -The lEDC shall meet once every two (2) months and
29 
may call for special meetings as the need arises; provided, that the frequency of such
30 
special meetings shall not exceed four (4) times annually.
27


1 
Sec. 39. Initial iEDC Funds. - Ten million pesos (PIO, 000,000.00) shall be
2 
allocated from the Presidential discretionary fund for the initial operating expenses of
3 
the IEDC.
4 
Sec. 40. Executive Committee of the iEDC. - An Executive Committee of nine
5 
(9) members shall be convened. Besides the Chair and Vice-Chair, the following shall
6 
be elected by the I EDA members from among themselves or their duly designated
7 
alternate representatives: four (4) representatives of WIE organizations, one (1) from
8 
the different leagues of local officials, one (1) from the private sector, and one (1)
9 
from a national government agency, provided, that at least three (3) members of the
10 
Executive Committee are women.
11 
The Executive Committee shall have the authority to act for and in behalf of
12 
IEDC during intervals of meetings, and only within the specific authority granted by
13 
the IEDC.
14 
Sec. 41. iEDC Secretariat - The following secretariat functions shall be
15 
integrated in the DOLE secretariat functions:
16 
(a) Prepare and recommend, in coordination with LCDs and other government
17 
agencies, annual, medium-term, and long-term Informal Economy
18 
Development Plans for approval of the IEDC;
19 
(b) Coordinate the preparation of position papers and background materials for
20 
discussion or approval during IEDC and its Executive Committee meetings;
21 
(c) Assist in coordinating and monitoring policies, programs and activities of all
22 
government agencies with respect to the implementation of this Act;
23 
(d) Prepare, collate, and integrate all Inputs to the lEDCs yearly report on the
24 
status of WIE, business activities or enterprises in the country, or other
25 
matters as directed by lEDA;
26 
(e) Submit periodic reports to IEDC on the progress and accomplishments of its
27 
work programs; and
28 
(f) Perform other secretariat and administrative functions as authorized by the
29 
IEDC or its Executive Committee.
30 
Sec. 42. Regional and Provincial iEDC Officers. - The DOLE Regional and
31 
Provincial offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers
32 
who shall be appointed by the IEDC and shall have functions that include: monitoring
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1 
and coordinating of lEDC initiatives in the regions and Provinces; evaluation of policies
2 
programs for workers in informal economy; providing technical assistance in the
3 
development of local plans and programs; as well as other administrative functions
4 
necessary for the success of lEDC initiatives in their jurisdiction.
5 
lEDC Regional Officers shall have automatic seats in aii Regional Development Councils
6 
(RDCs).
7 
Sec. 43. Rationalization of Programs. - lEDC shall conduct continuing review of
8 
government programs for the poorest of the poor and the WIE and submit to Congress
9 
and the President of the Philippines a report thereon together with its policy
10 
recommendations.
11 
Chapter IX
12 
Workers in Informal Employment Local Development Office (WIELDO)
13
14 
Sec. 44. Workers in Informal Employment Local Development Office. - The
15 
Workers in Informal Employment Local Development Office (WIELDO) shall be
16 
established in every city and municipality to perform functions that shall include but
17 
not limited to the following:
18 
(a) Prepare an overall development plan and work program that will address
19 
the needs of the WIEA prioritizing the poorest and most vulnerable, and
20 
incorporate them in their respective city, municipai, and barangay
21 
development plans;
22 
(b) In consultation with WIE organizations in the area, identify specific needs
23 
of various IE subsectors and recommend appropriate measures to be taken;
24 
(c) Ensure accreditation and registration of WIE, especially those with assets of
25 
P150,000 and below, to facilitate their immediate access to benefits and
26 
services;
27 
(d) Monitor, assess and evaluate implementation of the plans and programs as
28 
well as the performance of informal workers, their economic activities and
29 
their organizations in the areas;
30 
(e) Lead in the iocai impiementation of Chapter VI (Security in the Workplace
31 
of WIE) of this Act;
32 
(f) Coordinate with other local offices, private sector and other organizations
33 
with existing programs for WIE towards integration and convergence;
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1 
(g) Conduct education and training programs that will: raise their consciousness
2 
especially on but not limited to workers', women's and children's rights;
3 
provide new ideas especially to those with the least assets and formal
4 
education; and develop or upgrade technical, entrepreneurial and
5 
leadership skills WIE;
6 
(h) Provide technical support and facilitate access to credit, market, technology,
7 
social protection schemes, and training for WIE;
8 
(i) Train pools of community trainers in business counseling and awareness-
9 
raising on occupational safety and health hazards, risks and social
10 
protection;
11 
(j) Support organizing activities among WIE;
12 
(k) Establish sex-disaggregated databank on human resources and skills
13 
registry to be used as tools for LGU planning and budgeting;
14 
(I) Provide offices and other necessary resources to support organizing,
15 
advocacy, training and other activities of local organizations of WIE;
16 
(m) Conduct specialized training such as negotiation skills and conduct of
17 
time and motion studies to determine proper wages;
18 
(n) Provide services, which shall include but not be limited to counseling,
19 
conciliation, mediation, and legal assistance for the furtherance of this Act,
20 
prioritizing those with the least access to Justice; and
21 
(o) Ensure that the LGU is capacitated to undertake and implement rights-based
22 
and gender-responsive programs for WIE.
23 
The local government shall encourage organization of economic units and set
24 
respective rules and regulations towards smooth interventions to support MSME
25 
informal enterprise development towards transitioning to formality.
26 
In the performance of WIELDO's functions, the principle of preferential
27 
treatment to the poorest and most vulnerable shall be observed.
28 
Sec. 45. Composition. - The Local Chief Executives (LCEs) shall be the primary
29 
overseers of WIELDO's operations. The IRR of this Act shall provide for WIELDO's
30 
composition provided that, informal workers' representatives shall form at least fifty
31 
percent (50%) of WIELDO's membership. Provided further, that IE representatives
32 
shall not be less than five (5), and provided finally, that at least forty percent (40%)
30


1 
of all WIELDO's members are women. Other relevant guidelines on WIELDO's
2 
operations shail be inciuded in the IRR of this Act.
3 
Sec. 46. Local Government Unit Informal Economy Development Fund (LGU-
4 
lEDF). - An Informal Economy Development Fund shall be established by every
5 
municipaiity and city. Such fund wili be supervised and managed by the concerned
6 
LGU through the WIELDO but subject to audit by the Commission on Audit (COA).
7 
For the establishment and Initial operations of WIELDO, each LGU shali ailocate at
8 
ieast three per cent (3%) of their twenty percent (20%) Development Fund from their
9 
NTA.
10 
Thereafter, the LGU-IEDF shall be funded using:
11 
(a) Registration fees and annual dues paid by individual workers in the informal
12 
economy, their livelihood activities, and organizations and associations as
13 
provided for by Sections 6 and 7 of this Act;
14 
(b) Shares from the 70% of the at ieast 10% funds from the Annual General
15 
Appropriations Act as provided for by Chapter VII, Section 32(a) and (b) of
16 
this Act; and
17 
(c) Annual allocations from LGUs Development Fund the percentage of which
18 
shail be determined by LGUs.
19 
Foiiowing the principle of merit and equity, LGUs that fuifiii such ailocations
20 
may receive additional assistance from the nationai government as recommended by
21 
lEDC; provided, that they have formuiated their iocal development plan for WIE.
22 
Sec. 47. Additional Sources of Funds. - The following may tapped by LGUs as
23 
additionai sources of funds for WIELDO initiatives:
24 
(a) at least fifty percent (50%) of fees and annuai dues coilected from small
25 
transport - for programs for workers in the smali transport industry;
26 
(b) at least fifty percent (50%) of collected fees and annual dues from business
27 
estabiishments and entrepreneurs faiiing under the category of informai
28 
sector - for programs focusing on micro-entrepreneurs and their workers;
29 
(c) at ieast fifty percent (50%) of coliected fees and annuai dues from smail
30 
vendors - for programs focusing on vendors;
31 
(d)at least fifty percent (50%) of fees and annuai dues coilected from
32 
marginalized fisherfoiks - for programs focusing on fisherfoik; and
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(e)at least ten percent (10%) 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
Sec. 48. Minimum Standards. - All working arrangements entered into by WIE 
shall be in accordance with the minimum applicable labor and social standards as 
contained in Title II of this Act.
These standards shall be strictly enforced in informal economic enterprises 
supplying or doing outsourcing work for exporters, investors-locators in export 
processing zones or industrial parks licensed by the Export Processing Zone, and 
domestic formal sector manufacturers and retailers-distributors.
For workers engaged by independent informal economic enterprises, DOLE, in 
coordination with lEDA shall audit the capacity of these enterprises to comply with 
these standards. Those incapable of meeting the standards shall be assisted to 
upgrade their capacity to improve their businesses, as well as the capacity comply 
with relevant labor and social standards.
Sec. 49. Provisions of EmpioymentAgreement. -The employment contract shall 
be in written form. However, the absence of a written agreement does not mean the 
absence of an employment relationship. As a matter of right, WIE can insist on a 
written agreement based on minimum standards.
In cases wherein minors are contracted with, the said negotiated contract shall 
be signed on his/her behalf by either parent or legal guardian, with the expressed 
written consent of the said minor.
In cases wherein illiterate workers are contracted with, the said contract shall 
be explained to the worker concerned and attested to by a representative from the 
LGU or an elected Barangay official in the city or municipality where the worker is 
designated to work.
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1 
Each of the contracting parties shall be provided with a full set of the duly
2 
signed agreement which shall include the following basic provisions:
3 
(a) working arrangement/mode;
4 
(b) period/duration of employment;
5 
(c) compensation, which shall not be below the minimum standard, and mode
6 
of payment;
7 
(d) computation of contributions for social security and medical insurance
8 
including for those who fall under DOLE Department Order No. 5;
9 
(e) duties and responsibilities;
10 
(f) working hours and day-off schedules;
11 
(g) living quarters or sleeping arrangements (for live-in workers);
12 
(h) the date, term and mode of delivery or date of completion;
13 
(i) minimum of twenty percent (20%) down payment for labor cost and
14 
services and minimum of 50% for inventory of raw materials used in the
15 
production for homeworkers per DOLE Order No. 5.
16 
Minimum standard compensation referred to above shall be determined by the
17 
Regional Wage Boards per subsector of WIE. In the case of piece rates, this shall be
18 
based on the conduct of time and motion studies facilitated by the DOLE Bureau of
19 
Working Conditions. While there are no standardized rates for workers in informal
20 
economy jobs, the basis of computation shall not be below the applicable minimum
21 
wage of the region where they are covered.
22 
Enforcement of the standard compensation rates shall be in accordance with
23 
the capability to comply as explained in Section 40 of this Act.
24 
Sec. 50. Payment of Wages. - Payment derived from negotiated agreement
25 
shall be made directly to the workers. No deductions from such payments shall be
26 
made by the employer except those provided for by law. The expressed written
27 
consent of the worker shall be first secured before deductions are made.
28 
No parent, guardian, relative or any other person shall be allowed to take a loan
29 
against the compensation of his or her relative-worker without the express written
30 
consent of the concerned worker. Neither shall a worker of minor age be mandated
31 
to work in payment of loan or liability incurred by a parent, guardian, relative, or any
32 
other person.
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Chapter II
IE Workers of Minor Age
Sec. 51. Allowable Employment of Workers of Minor Age. -Children fifteen (15) 
years but below eighteen (18) years of age may be employed; provided, that parental 
or legal guardian consent is presented and attested to by any representative of the 
LGU or duly elected Barangay official where the work is to be done. In no instance 
however, shall children below fifteen (15) years old be engaged in whatever form of 
productive services.
Further, workers of minor age shall not be allowed to render work for more 
than four (4) hours, five (5) days a week, exclusive of one (1) hour break for breakfast 
or lunch whichever is applicable.
TITLE III
FINAL PROVISIONS
Sec. 52. Pena! Provision. -
a. Any person who shall willfully interfere with, restrain or coerce a worker 
in the exercise of his or her rights or shall in any manner commit any act 
in violation of any of the provisions of this Act shall, upon conviction, be 
punished by a fine of not less than Twenty Thousand Pesos (P20,000.00) 
or imprisonment of one (1) to six (6) years or both fine and imprisonment 
at the discretion of the Court.
b. If the offender is a public official or, 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 28 of this Act (Policy on Confiscation of 
Materials and Impounding of Vehicles) shall be liable. Nothing herein 
shall prohibit the aggrieved WIE from initiating a criminal or civil action 
against the responsible person or officer applicability,
d. Failure to implement Sections 30 and 31 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 No. 
7160 and other pertinent laws and criminally liable whenever applicable.
34


1 
e. In the case of a private institution/company found to be violating any
2 
provision of this Act, it shall be subject to additional penalty ranging from
3 
suspension or revocation of business license at the discretion of the
4 
Court.
5 
Sec. 53. Implementing Rules and Regulations.- The Implementing Rules and
6 
Regulations (IRR) of this Act shall be formulated by a drafting committee composed
7 
of representatives of offices that will be members of EDA and WIE organizations
8 
provided that, at least 30% of the drafting committee members shall come from the
9 
latter and provided further that at least 30% of committee members are women. Said
10 
committee will start work on the IRR within three (3) months after the effectivity of
11 
this Act and finish within six (6) months thereafter.
12 
Sec. 54. Separability Clause. - If any provision of this Act is declared
13 
unconstitutional or invalid, the provisions not affected shall continue to be in full force
14 
and effect.
15 
Sec. 55. Repealing Clause. - All laws, decrees, orders, rules and regulations or
16 
other issuances inconsistent with the provisions of this Act are hereby repealed,
17 
amended or modified accordingly.
18 
Sec. 56. Effectivity. - This Act shall take effect fifteen (15) days after its
19 
publication in the Official Gazette ox in any two (2) newspapers of general circulation
20 
in the Philippines.
Approved,
35