EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
•'(SXiiff at i!-a
S 
E N A T  Er 
S. B. No. 
328
•19 JULIO A10-.09
R F f P I '. / r  U 3 '-'
Introduced by Senator SONNY ANGARA
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 seeks to provide an integrated, holistic, comprehensive, rights-based, 
gender- responsive, culturally-sensitive, and democratically policy instrument to 
empower the poor, marginalized, unprotected and underrepresented workers in 
informal employment and bring them into the mainstream of the Philippine 
economy. It is the culmination of persistent advocacy efforts involving informal 
workers' associations, women's groups, human rights and other civil society 
organizations stretching for more than a decade.
The informal economy is comprised of a wide variety of activities, enterprises 
and workers, which include, among others, micro-entrepreneurs, home-based 
workers, vendors, small transport operators, small and landless farmers, artisanal 
fisherfolk, non-corporate construction workers, waste pickers and recyclers, petty 
retailers, barter traders, small-scale miners and quarry workers, entertainers, 
beauticians, laundry persons, hairdressers, on-call domestic helpers, barangay health 
workers and other volunteer workers, barkers and unorganized cargo handlers. Most 
of the working poor, or those who are working but cannot work their way out of 
poverty because of very low earnings and very high risks, are in the informal 
economy. Many such workers live in substandard conditions and do not have the 
means to meet their basic needs.
Moreover, majority of informal workers are not covered by the Labor Code 
and other legislation that could protect their rights, making them vulnerable to 
exploitation by unscrupulous employers who make them work long hours and at


vet7 low wages, without benefits and under very poor working conditions. They 
have limited access to productive resources, justice, social protection, and 
preventive programs for work-related diseases and risks. These are further 
aggravated by their apparent underrepresentation in policy-making bodies relevant 
to their issues.
In view thereof, it is imperative to legislate a Magna Carta for informal 
workers that will recognize, defend, protect, promote and fulfill their rights through a 
continuous process of capacity-building and empowerment. This is in consonance 
with the Constitutional provision on social justice and with the country's adherence 
to the Universal Declaration of Human Rights (UDHR), the International Covenant on 
Economic, Social and Cultural Rights (ICESCR), the United Nations (UN) Convention 
on the Elimination of Discrimination of Women (CEDAW), and various International 
Labour Organization (ILO) conventions upholding core labor standards and decent 
work.
This Magna Carta shall provide informal workers access to social protection 
and justice; make them visible in statistics; simplify their accreditation; 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. As embodied in the 2002 ILO 
document on the informal economy, government has the responsibility to bring 
informal workers into the economic and social mainstream, reduce their vulnerability 
and exclusion, ensure that they are covered by the legal and institutional framework, 
and support their representational rights through their legitimate, accessible, 
transparent and accountable membership-based organizations.
In view of the foregoing, early passage of this measure is earnestly sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E  
S. B. No. 
3
. • 
;< 
SJ; I ' m -
i - t '(Bfiltf Ol 
p i-
9 2 8
*19 JULIO AlO *09
RECEIVED B ,___
Introduced by Senator SONNY ANGARA
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
TITLE I
2 
GENERAL PROVISIONS
3 
Chapter I
4 
Framework and Principles
5 
Section. 1. Short Title. -  This Act shall be known as the "Magna Carta o f
6 
Workers in the Informal Economy."
7 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to:
8 
(a) Promote a just and dynamic social order that will ensure that the prosperity
9 
and independence of the nation and free the people from poverty through
10 
policies that provide adequate social services, promotes decent and full
11 
employment, a rising standard of living, and an improved quality of life for all;
12 
(b) Protect, promote and fulfil the rights of every worker including the right to
13 
self-organization, just and humane conditions of work, access to social
14 
protection, access to justice, security of/in the workplaces, and the right to
15 
represent their organizations in a continuing process of consultation, in the
16 
context of quadpartism towards maximizing the provision of a comprehensive


1 
package of reforms, interventions, and services in accordance with their
2 
articulated needs and interests;
3 
(c) Recognize the role and give proper value to the contributions of workers in
4 
the informal economy and informal economic units, and make them visible in
5 
all relevant national and local statistics;
6 
(d) Promote gender equity and equality by protecting women workers in the
7 
informal economy against gender-based discrimination, exploitation and
8 
abuse, advancing women's social, economic, political, and reproductive rights,
9 
and 
improving 
their 
access 
to 
social 
protection 
and
10 
participation/representation in decision-making bodies and processes;
11 
(e) Establish an integrated and coherent policy at all levels of government of
12 
formalization, inclusive development, and greater responsiveness to the
13 
needs of the workers and enterprises in the informal economy;
14 
(f) Protect vulnerable workers from among the "Basic Sectors," as defined under
15 
Republic Act No. 8425, and people living with HIV and AIDS, from
16 
discrimination, 
exploitation, 
abuse and 
harassment, 
as well 
as from
17 
performing work hazardous to their occupational, physical, mental, emotional,
18 
reproductive and spiritual health;
19 
(g)Take measures that will ensure legal security of tenure of workers and the
20 
safety and security of their workplaces, taking into account and including the
21 
physical environment, services, processes and systems needed to enable
22 
workers to productively and safely perform their work; and
23 
(h) Update labor, employment and establishment statistics and align the
24 
segmentation of assets by further segmenting the micro-enterprises to give
25 
preferential treatment to total asset and capital of P150,000.00 pesos and
26 
below as defined under the Social Reform Agenda of 1997 (RA 8425) and
27 
conduct periodic review of them.
28 
Sec. 3. Framework and Principles. -  Article II, Section 9 of the 1987
29 
Constitution declares, "The State shall promote a just and dynamic social order that
30 
will ensure the prosperity and independence of the nation and free the people from
31 
poverty through policies that provide adequate social services, promote full
32 
employment, a rising standard of living, and an improved quality of life for all." It


1 
shall give the highest priority to the enactment of measures that protect and
2 
enhance the rights of all people to human dignity; reduce social, economic and
3 
political inequalities; lessen vulnerabilities to risks including those brought about by
4 
environmental degradation and natural disasters, remove cultural inequities by
5 
redistributing wealth and political power for the common good; and to develop an
6 
enabling environment conducive to responsible citizenship. Towards this end, in the
7 
context of social dialogue, the government at all levels shall formulate and
8 
implement coherent and integrated strategies that are rights-based, participatory,
9 
gender-responsive and sustainable. These strategies shall also be in accordance with
10 
the most relevant and empowering provisions of International Labour Organization
11 
(ILO) Recommendation No. 204 concerning the Transition from the Informal to the
12 
Formal:
13 
(a) 
Coherence of policies and programs established for the purpose of bringing
14 
vulnerable workers and economic units into the economic and social
15 
mainstream, and spur entrepreneurial or growth-oriented informal businesses
16 
to graduate to formal status;
17 
(b) 
Coordination across a broad range of policy areas in facilitating the transition
18 
to the formal economy including pre-employment macro-economic policies
19 
and labor market policies to help low-income households, unemployed
20 
persons and other disadvantaged persons escape poverty and access
21 
employment;
22 
(c) 
Structural reforms in all relevant levels of government by creating committees
23 
and special offices for the development and protection of workers in the
24 
informal economy and supporting their representational, entrepreneurial, 
and
25 
other rights, through their organizations, without being limited to tripartite
26 
structures and particular strategies;
27 
(d) 
Accessible, affordable and effective promotion of social security, including
28 
labor market interventions, occupational safety and health, and the extension
29 
of maternity protection to women in the informal economy, social welfare
30 
programs and 
safety 
nets, 
disaster risk reduction and 
management
31 
mechanisms, and adaptive measures to respond to climate change;
32


1 
(e) 
Regulated access for use of public spaces and regulated access to public
2 
natural resources for subsistence livelihoods through policies, programs and
3 
interventions that will ensure the security of workplaces of workers in the
4 
informal economic units, including, among others, the "relocation before
5 
demolition" of vendors and small transport terminals, towards a work
6 
environment that protects their rights and enables them to achieve greater
7 
productivity.
8 
(f) 
Minimum and simplified regulations to encourage the development of
9 
ingenuity and entrepreneurial spirit among workers in the informal economy
10 
including property rights;
11 
(g) 
Preservation and expansion, during the transition to the formal economy, of
12 
the entrepreneurial potential, dynamism, skills and innovative capacities of
13 
workers and economic units in the informal economy;
14 
(h) A balanced approach combining incentives with compliance;
15 
(i) 
The need to prevent deliberate avoidance of, or exit from, the formal
16 
economy for the purpose of evading taxation or the application of social and
17 
labor laws and regulations;
18 
(j) 
Tax reforms based on net income for informal economic units and application
19 
of tax laws or incentives for the informal economy workers currently enjoyed
20 
by the formal labor;
21 
(k) 
Social Dialogue mechanisms whereby informal workers' organizations will
22 
participate and be in tripartite consultation in designing, evaluating, and
23 
implementing policies and programs of relevance to the informal economy;
24 
(I) 
Support system to expand market for products, access loans for additional
25 
capital requirement and simplify bureaucratic systems and procedures for the
26 
Micro, Small and Medium Enterprises (MSMEs);
27 
(m) Relaxation of the procurement procedures for the contracting micro-
28 
entrepreneurs of the government;
29 
(n) 
Review, amendment and efficient implementation of policies on sub-
30 
contracting such as DOLE Department Order No. 5 on Industrial Homework
31 
and other relevant policies; and
32


1 
(o) 
A road map of development for both informal economy workers and economic
2 
units shall guide the government in all levels in the context of social dialogue.
3 
(p) 
After formalization, all laws applicable to formal labor and economic units
4 
shall apply.
5 
Sec. 4. Scope. -  This Act shall apply to all workers and economic units -
6 
including enterprises, entrepreneurs and households -  in the informal economy, in
7 
particular:
8 
(a) 
those in the informal economy who own and operate economic units,
9 
including:
10 
-  own-account workers;
11 
-  
employers; and
12 
-  
members of cooperatives and of social and solidarity economy
13 
units;
14 
(b) 
contributing 
family 
workers, 
irrespective 
of 
whether 
they 
work 
in
15 
economic units in the formal or informal economy;
16 
(c) 
employees holding informal jobs in or for formal enterprises, or in or
17 
for economic units in the informal economy, including but not limited
18 
to those in subcontracting and in supply chains, or as paid domestic
19 
workers employed by households; and
20 
(d) workers in unrecognized or unregulated employment relationships.
21 
Sec. 5. Definition o f Terms. -  As used in this Act, the following terms shall
22 
mean:
23 
(a) 
Basic sectors refer to the disadvantaged sectors of Philippine society, namely:
24 
farmer-peasant, artisanal fisher folk, workers in the formal sector and migrant
25 
workers, workers in the informal sector, indigenous peoples and cultural
26 
communities, women, differently-abled persons, senior citizens, victims of
27 
calamities and disasters, youth and students, children, and urban poor;
28 
(b) 
Community Contracting refers to the process of concluding an agreement
29 
between a community and a contracting authority, whereby the community
30 
(or a section thereof) is responsible for the implementation of the work, and
31 
therefore, functions as a contractor;


1 
(c) 
Daily Basis refers to the per day mode of paying a worker, as bilaterally
2 
agreed upon by the employer and worker;
3 
(d) 
Hazardous Work Conditions refer to any activity or circumstance where a
4 
worker is exposed to any risk which constitutes imminent danger to his or her
5 
health or safety. This includes potential risks of disability, injury, illness or
6 
death due to the presence of biologic agents, radiation, 
chemicals,
7 
substances, hazardous materials; physical hazards in the work environment;
8 
or the nature of work, processes performed, or equipment used therein;
9 
(e) 
Informal Economy - based on the ILO Recommendation No. 204 concerning
10 
the Transition from the Informal to the Formal, adopted during the 104th
11 
International Labour Conference (ILC) in June, 2015 this refers to "all
12 
economic activities by workers and economic units that are -  in law or in
13 
practice -  not covered or insufficiently covered by formal arrangements";
14 
(e-1) Economic Units in the informal economy include:
15 
-  units that employ hired labour;
16 
-  units that are owned by individuals working on their own account,
17 
either alone or with the help of contributing family workers; and,
18 
-  cooperatives and social and solidarity economy units;
19 
-  informal work that may be found across all sectors of the economy,
20 
in both public and private spaces.
21 
(f) 
Informal Economy Workers' Organization refers to a group or groups of
22 
informal sector workers, whether formally constituted or otherwise, that are
23 
organized with the primary objective of promoting the welfare of workers in
24 
informal economy;
25 
(g) 
Monthly Basis refers to the per month mode of paying a worker as bilaterally
26 
agreed upon by the employer and worker;
27 
(h) 
Pakyaw Basis refers to the pre-contracted wholesale mode of paying a worker
28 
as bilaterally agreed upon by the employer and worker;
29 
(i) 
Piece rate refers to payment of products or services by piece of work or by
30 
service rendered;
31 
(j) 
Security of/in the Workplace refers to the right of every worker and informal
32 
economic units to an enabling environment that guarantees and protects the


1 
spaces to undertake their work, including the right to feel safe in one's own
2 
work space, legal security of tenure and freedom from discrimination, risk,
3 
danger, doubt, anxiety, or fear of being removed, evicted or prevented from
4 
working;
5 
(k) 
Social Protection refers to policies, programs, and all other interventions that
6 
support communities, households and individuals, both women and men, and
7 
aimed at: reducing poverty through the promotion and sustenance of
8 
livelihood and employment; preventing, managing and overcoming risks and
9 
vulnerabilities throughout their life cycle, like protection against hazards and
10 
sudden loss of income; and realizing their rights as citizens through their full
11 
participation in decision-making affecting or may affect their access to and
12 
control over resources necessary to maintain and sustain a decent and secure
13 
life.
14 
Social protection schemes shall include labor market interventions,
15 
social insurance, social welfare, safety nets, disaster risk reduction and
16 
management mechanisms, adaptive measures in the context of climate
17 
change, affordable housing and other provisions necessary for vulnerable
18 
groups to adequately address and manage risks.
19 
(I) 
Working Hours refer to the period of time within which a worker is required to
20 
be on call to perform any and all tasks that may be designated, regardless of
21 
whether there are actual tasks being undertaken; and
22 
(m) Volunteer workers o f government instrumentalities refer to workers in
23 
government instrumentalities receive allowances 
or honoraria. 
These include
24 
but are not limited to: barangay health 
workers 
(BHW), barangay 
tanod,
25 
barangay nutrition scholars (BNS), barangay daycare workers, enumerators,
26 
and among others.
27 
Chapter I I
28 
Coverage, Registration and Annual Dues
29 
Sec. 6. Coverage. -  This shall include all those defined in Section 4 of this
30 
Act, Informal Economy (IE) businesses and enterprises, and organizations of
31 
workers in informal economy.


1 
Sec. 7. Registration. -
2 
(a) 
Workers. -  There shall be a simple and standard system of registration in
3 
accordance with the framework and principles of this Act. A one-time registration fee
4 
of not more than Fifty pesos (P50.00) per individual worker, shall be paid to the
5 
municipality or city where they reside.
6 
Any IE worker registered in the local government provided for in this Act shall
7 
be listed in the centralized database system, and shall be issued an identity card and
8 
a record book that shall list all services and benefits availed of. These signify
9 
eligibility to avail of development programs, provided, that the poorest and the most
10 
vulnerable workers shall be given priority.
11 
The concerned LGU shall review, revalidate and reassess such database as a
12 
tool for local planning and for other purpose every two (2) years from the date of
13 
last registration. Renewal of eligibility shall be in accordance with the merit and
14 
fitness principle, and with the conditions that no child labor shall be used and no
15 
activities harmful to the environment shall be implemented.
16 
(b) 
Informal Economic Unit. -  A comprehensive database of all economic units
17 
shall be developed and maintained. Such database shall take into account the
18 
different sub-classifications in terms of asset size, number of workers, social
19 
insurance provided, statutory benefits and wages, industry, geography, premises,
20 
sex, ethnicity, vulnerability, and roles and functions. The database shall also indicate
21 
informal economic units which may be categorized as livelihood enterprises and
22 
entrepreneurial or growth oriented informal businesses. Further, the database shall
23 
include information on payments collected from IE workers. Workers in the Informal
24 
Economy (WIE) organizations and economic units. The Barangay Micro Business
25 
Enterprise (BMBE) Registry, in general, shall include these informal economic units.
26 
The aforesaid comprehensive database shall form part of the bases of
27 
assessment and monitoring of the growth of informal economy.
28 
All local government units shall formulate a uniform and simple checklist of
29 
requirements for registration, and establish an IE One-Stop Shop Center which shall
30 
handle all transactions and processing of business permit applications within their
31 
respective jurisdiction and worker's registration. The Center shall ensure that
32 
processing of the business permit of the informal economic units shall be expedited
8


1 
within one day. The P150,000.00 asset size shall be given an affordable business
2 
registration (Mayor's Permit) of P500.00 renewable annually until two (3) years of
3 
operation after which, shall be subject to the regular business permit requirements
4 
of the local government. 
The BIR shall also exempt from sales tax for the same
5 
period of three (3) years the said asset size of economic unit renewable annually.
6 
(c) 
Informal Economy Organizations/Associations. -  lEO/A shall register or
7 
accredit with the Department of Labor and Employment (DOLE).
8 
Sec. 8. Annual Dues. -  IE workers and organizations shall pay annual dues to
9 
be determined by the Local Government Unit (LGU) concerned, in consultation with
10 
their respective Workers in Informal Economy Local Development Office (WIELDO)
11 
referred to in Title I, Chapter IX of this Act. In no case shall the annual dues to be
12 
paid by IE workers be more than 30% of the prescribed daily minimum wage as
13 
determined by the Regional Tripartite Wages and Productivity Board (RTWPB) in
14 
their respective regions or provinces.
15 
These annual dues shall accrue to the respective LGU where they are
16 
accredited. The accumulated funds from these dues shall be used for programs to
17 
benefit IE workers and organizations/associations, business activities, enterprises
18 
and organizations, as recommended 
by the WIELDO. 
Such programs and
19 
disbursement of funds shall be approved by the concerned LGU Council in
20 
consultation with the local informal economy constituents.
21 
Chapter I I I
22 
RIGHTS AND BENEFITS
23 
Sec. 9. Workers in the informal economy shall have the same basic rights
24 
accorded to all workers, as enshrined in the Philippine Constitution, the Labor Code,
25 
as amended, and relevant international human rights instruments and labor
26 
Conventions. These include, but are not limited to the rights to:
27 
(a) 
Work, which includes the rights to: security of/in the workplace; make a living
28 
by work freely chosen or accepted; and avail of technical and vocational
29 
guidance and training programs;
30 
(b) 
Enjoyment of just and favorable conditions of work;


1 
(c) 
A living wage and equal remuneration for work of equal value without
2 
distinction of any kind, in particular for women who shall be guaranteed equal
3 
wages for work similar or equivalent to those done by men;
4 
(d) 
Equal opportunity for promotion, subject to no other considerations than
5 
seniority and competence;
6 
(e) 
Safe and healthy working conditions safeguarding general, occupational and
7 
reproductive health;
8 
(f) 
Access to basic services including but not limited to affordable medical
9 
care, reproductive and other health services, low-cost housing, water,
10 
sanitation, electricity and transport;
11 
(g) 
Rest, leisure and reasonable limitation of working hours, and periodic holidays
12 
with pay, as well as remuneration for public holidays whenever applicable;
13 
(h) 
Maternity and paternity benefits, as provided for by law;
14 
(i) 
Equal access to education, skills training, and economic resources to develop
15 
self-reliance, 
especially of children 
and 
young 
persons, 
without any
16 
discrimination;
17 
(j) 
Self-organization to collectively negotiate with government and other entities
18 
in the promotion of their welfare and advancement of their interests, free
19 
from any political interference;
20 
(k) 
An adequate standard of living for workers and their families, adequate food,
21 
clothing, and shelter, and the continuous improvement of such standard;
22 
(I) 
Freedom from any form of discrimination, violence, exploitation including
23 
sexual exploitation, harassment, abuse, and any form of inhumane treatment
24 
which debases, degrades or demeans the intrinsic worth and dignity of the
25 
worker as a human being;
26 
(m) Accessible social protection, comprising mainly of, but not limited to labor
27 
market programs, social security, health care and insurance, and social
28 
welfare interventions;
29 
(n) 
Equal treatment before the law;
30 
(o) 
Substantial participation in policy and decision-making processes, including
31 
access to information and other resources relevant to the promotion and
10


1 
protection of their rights and welfare through organizations that truly
2 
represent the sector;
3 
(p) 
Equal access to justice though appropriate mechanisms, including, but not
4 
limited to, alternative dispute resolution processes; and
5 
(q) 
Access to public procurement including advice and reserving quotas for
6 
informal economic units.
7 
Sec. 10. Own-account workers as well as informal economic units, being the
8 
working poor's primary instruments to address and overcome poverty, shall be
9 
accorded the following preferential rights by the State:
10 
(a) Infrastructure support such as farm to market roads, common, affordable and
11 
secure workplaces and facilities, merchandising centers, farmers' markets or
12 
a Bagsakan with proper storage facilities, and inventory bulk-buying centers;
13 
(b) Policy support to promote and protect local and domestically-produced
14 
products and services;
15 
(c) Access to markets, including capacity-building to access E-marketing facilities;
16 
(d) Access to affordable, appropriate and adequate financial services, including,
17 
among others, collateral-free and gender-balanced credit at low interest;
18 
(e) Access to appropriate and adequate machinery, equipment, and other
19 
technologies, with the end in view of increasing productivity and growth;
20 
(f) 
Protection from unjust dislocation from places where economic activities
21 
are conducted with the "provision of relocation before demolition policies".
22 
(g) Measures against racketeering, extortion, and harassment, by both State and
23 
non-state elements;
24 
(h) Fiscal relief, including among others exemption from taxes, fees and other
25 
assessments, to be put into place by concerned national agencies and local
26 
government units sixty (60) days after the effectivity of this Act;
27 
(i) 
Common workplaces, common technology facilities, adequate and affordable
28 
marketing facilities such as economic freedom parks, merchandising centers,
29 
and inventory bulk-buying centers;
30 
0) 
Freedom from deprivation of property without valid cause and due process of
31 
law; and,
32 
(k) 
Affordable and customized social security and insurance programs.
11


1 
Sec. 11. Organizations of workers in informal employment, including unions,
2 
cooperatives, social and solidarity economic units/organizations and mutual benefit
3 
associations, shall have the right to:
4 
(a) 
Freely function and act as the representatives of their members in policy and
5 
decision-making processes, collective negotiations, and other similar bodies
6 
and processes in the context of tripartism and multi-sector;
7 
(b) 
Establish national federations or confederations and to protect the right of the
8 
latter to form or join local unions and international trade-union organizations;
9 
(c) 
Access information from concerned government institutions and other parties
10 
that are pertinent to the protection and promotion of the rights and welfare of
11 
their members;
12 
(d) 
Own property, real or personal, for the use and benefit of their organizations
13 
and members;
14 
(e) 
Sue and be sued under their registered names;
15 
(f) 
Undertake all other activities, not contrary to law, designed to benefit their
16 
organizations and members; and
17 
(g) 
Be accorded preferential option in the awarding of contracts for the
18 
undertaking of national and local projects funded by either the National or
19 
local government units including foreign-assisted projects. Guidelines for this
20 
shall be included in the Implementing Rules and Regulations of this Act.
21 
Notwithstanding any provision of a general or special law to the contrary, the
22 
income and properties of legitimate workers' organizations, including grants,
23 
endowments, gifts, donations and contributions they may receive from fraternal and
24 
similar organizations, local or foreign, which are actually, directly and exclusively
25 
used for their lawful purposes, shall be free from taxes, duties and other
26 
assessments. The exemptions provided herein may be withdrawn only by a special
27 
law expressly repealing this provision.
28 
Sec. 12. Organizing Workers in Informal Economy. -  WIE shall be encouraged
29 
to organize themselves for their mutual benefit and protection, and for other
30 
legitimate purposes. Toward this end, the State shall encourage and assist these
31 
workers in the formation of their self-help organizations, associations, federations,
32 
and confederations.
12


1 
The State shall encourage the formation of cooperatives among marginalized
2 
farmers, fisher-folk, as well as manufacturing, transport, retail, services, and home-
3 
based workers to enable members to: purchase inputs at lower cost, obtain fair
4 
prices for their produce, avail of credit assistance and skills training, and share from
5 
collective gains of the cooperatives.
6 
Attention will be given to organizing women and other vulnerable WIE.
7 
Sec. 13. Assistance to Organizations o f Workers in the Informal Economy. -
8 
All concerned national government agencies, government financial institutions and
9 
local government units shall include in their plans, programs, projects and activities
10 
efforts that will support and address concerns of organizations of WIE.
11 
Sec. 14. Monitoring o f Growth. -  The local government units (LGUs) shall
12 
supervise the Workers in Informal Economy Local Development Office (WIELDO) as
13 
created by Chapter IX of this Act, and monitor the growth of informal employment
14 
business activities or enterprises, three (3) years after the enactment of this Act,
15 
and every three (3) years thereafter. The centralized database referred to in Section
16 
7 shall be the basis of this monitoring.
17 
Chapter IV
18 
Prohibited Acts Concerning Engagement o f W orkers in the Inform al
19 
Economy
20 
Sec. 15. Prohibition Against Recruitment or Finders' Fees. -  Regardless of
21 
whether the worker was sourced either through an employment agency or a third
22 
party, WIE shall neither be charged nor levied a recruitment fee or finders' fee by
23 
the aforementioned employment agency or third party.
24 
Sec. 16. Prohibition Against Hazardous Work and Conditions. -  Workers shall
25 
not be engaged to do hazardous work, activity or undertaking, or be exposed to
26 
hazardous working conditions.
27 
For purposes of this Section, hazardous work or conditions shall include, but
28 
not be limited to the following:
29 
(a) 
Any work which requires workers to render services beyond eight (8) hours
30 
without commensurate compensation;
31
13


1 
(b) Any work or activity which exposes the worker to physical, emotional or
2 
sexual abuse or threat of such abuse;
3 
(c) Any work which involves manual handling or transport of heavy loads;
4 
(d) Any work in an unhealthy environment which exposes workers to hazardous
5 
substances, agents or processes, or to temperature, noise levels, or vibrations
6 
damaging or potentially damaging to their health;
7 
(e) Any work which requires workers to continuously render service during late
8 
nights;
9 
(f) Any and all forms of slavery or practices similar to slavery, such as the sale
10 
and trafficking of persons, forced or compulsory labor, debt bondage and
11 
serfdom;
12 
(g) Any use, procuring or offering of the worker for prostitution or pornography;
13 
(h) Any use, procuring or offering of the worker for the commission of any
14 
offense or crime, particularly for the production, trafficking, or sale of narcotic
15 
drugs and substances as defined in the Dangerous Drugs Act;
16 
(i) Any other type of work or activity which, by its nature or the circumstances in
17 
which it is carried out, is likely to jeopardize the health, safety, or morals of
18 
the workers; and
19 
0) Any other type of work, activity, condition or undertaking that maybe
20 
hereinafter be defined as hazardous by the Department of Labor and
21 
Employment.
22 
Sec. 17. Prohibition Against Interference and Coercion. -  Any person is
23 
prohibited from committing any of the following acts of interference and coercion:
24 
(a) Preventing any worker from upholding or exercising his/her rights;
25 
(b) Preventing any worker from joining or assisting organizations for purposes
26 
not contrary to law;
27 
(c) Preventing any worker from carrying out his/her duties or functions in an
28 
organization, or to penalize the same for any lawful action performed in that
29 
capacity;
30 
(d) Harassing, threatening, coercing or intimidating any worker that result in
31 
preventing him or her from performing his or her duties and functions;
32
14


1 
(e) 
Transferring, penalizing or terminating the services of a worker without valid
2 
or legal ground; and
3 
(f) 
Other acts calculated to diminish the independence and freedom of workers'
4 
organization to direct its own affairs.
5 
Chapter V
6 
SOCIAL PROTECTION
7 
Social protection as defined in Section 5 of this Act shall have the components
8 
enumerated and discussed in this chapter.
9 
Sec. 18. Labor Market Programs. -  The State shall provide adequate
10 
resources to sustain labor market programs following decent work standards,
11 
including emergency and guaranteed employment schemes, to ensure livelihood
12 
security and prevent or mitigate the effects of sudden loss of income in the context
13 
of sustainable development and developing local economies in both rural and urban
14 
areas.
15 
The 
State 
shall 
ensure 
that 
these 
schemes 
are 
labor-intensive,
16 
developmental, sustainable, and engage women, men, the youth, and older people
17 
in building infrastructure, socialized housing, social forestry focusing on the planting
18 
of traditional trees, organic farming, and food production programs.
19 
LGUs shall encourage and provide incentives to constituents who want to
20 
engage or are engaged in sustainable and/or organic farming. 
All idle private or
21 
public lands within their jurisdiction shall be cultivated or planted with organic food
22 
crops like corn, root crops or vegetables. If applicable, LGUs must allocate a portion
23 
of their local funds for mangrove reforestation and prohibit conversion of any
24 
mangrove forest to residential, commercial or industrial use.
25 
In pursuit of decent work, the State in all its labor market programs, shall
26 
adopt a comprehensive framework and plan on occupational safety and health that
27 
covers all workers, formal and informal, and implemented at both national and local
28 
levels.
29 
The State shall encourage entrepreneurship among the disadvantaged,
30 
especially women and young people in informal employment, through simple and
31 
efficient procedures and the provision of adequate and affordable marketing facilities
32 
such as those provided for by Section 9 (i) of this Act.
15


1 
The State through LGUs shall promote community contracting to give
2 
preference to WIE and their organizations in accessing employment opportunities
3 
and related benefits.
4 
Sec. 19. Social Security. -  In the interest of equity, the State shall endeavor
5 
to extend social security protection to all workers and their beneficiaries against the
6 
hazards of disability, sickness, maternity, old age, death, unemployment, and other
7 
contingencies resulting in loss of income or financial burdens. The State also,
8 
recognizing the intermittent nature of job and income in the informal economy, shall
9 
subsidize the contributions of the workers in the informal economy.
10 
The Social Security System (SSS) shall ensure coverage for all workers,
11 
particularly the working poor belonging to the informal economy. The SSS, in
12 
consultation with informal workers' organizations, shall customize products and
13 
services for them that are accessible and affordable. In the interest of equity, the
14 
State shall cover what should have been the employers' share for contributions of
15 
informal workers, had they been formally employed.
16 
The SSS shall develop schemes involving government subsidies and
17 
sponsorship programs to assist those who cannot afford to enroll and sustain their
18 
membership.
19 
To achieve universal coverage, the SSS shall facilitate the accreditation of
20 
cooperatives, 
women's 
and 
people's 
organizations, 
trade 
unions 
and 
WIE
21 
associations, microfinance and micro-insurance institutions and similar groups as
22 
collecting agents of premiums and facilitators of claims with the least burdensome
23 
conditions and with appropriate incentives. It shall develop effective partnerships
24 
with these organizations.
25 
The SSS Commission, in the spirit of democracy, transparency, accountability,
26 
and equity, shall be required to conduct regular consultations with and provide
27 
information and reports to its membership. Both formal and informal workers shall
28 
be represented in the SSS Commission, where gender balance shall also be
29 
observed.
30 
The SSS in cooperation with other relevant national agencies and LGUs, shall
31 
support indigenous 
and 
community-based 
social 
protection 
schemes 
which
32 
complements other needs in times of risks such as damayan, tulungan, saranay,
16


1 
small mutual benefit associations, and micro-finance organizations initiated or
2 
participated in by WIE so that these can be sustained, systematized and up-scaled.
3 
An enabling environment for such organizations and schemes shall also be
4 
developed. Toward this end, the Insurance Commission (IC) and other relevant
5 
regulatory agencies are hereby mandated to review their policies and framework to
6 
make them more developmental and supportive of the alternative schemes outlined
7 
above.
8 
Sec. 20. 
Social Security for Volunteers o f Government Instrumentalities. -
9 
Volunteer workers of government instrumentalities as defined in Sec. 5 of this Act,
10 
shall be covered by the Government Service Insurance System (GSIS) and be
11 
entitled to at least a minimum package of customized products, services and
12 
benefits to be designed with their participation and with adequate government
13 
subsidy.
14 
Sec. 21. Universal Health Care. -The Philippine Health Insurance Corporation
15 
(PhilHealth) shall ensure and substantiate universal, actual, active, and up to date
16 
coverage of workers in the informal economy, through the effective implementation
17 
of Republic Act No. 11223, or the Universal Healthcare Law, which mandates the
18 
coverage of every Filipino citizen to the National Health Insurance Program (NHIP).
19 
In compliance with Republic Act 
No. 11223, PhilHealth shall ensure the
20 
provision of a minimum benefit package which shall be periodically upgraded to
21 
meet the goal of universal coverage which is affordable, accessible and appropriate
22 
to the needs of all.
23 
Further, PhilHealth shall immediately extend its services to underserved areas
24 
by facilitating and accelerating accreditation of hospitals and clinics, and by ensuring
25 
that these service providers remain viable through immediate reimbursement.
26 
These shall 
include the provision of service by duly-accredited and
27 
adequately-furnished health facilities, with appropriately-educated and rationally-
28 
compensated health personnel, to underserved areas up to the barangay level.
29 
Sec. 22. The State shall encourage provision of and access to affordable
30 
quality childcare and other care services 
in order to promote gender equality in
31 
entrepreneurship and employment opportunities and 
to enable the transition to
32 
formal economy.
17


1 
Sec. 23. The State shall sustain, enhance, and institutionalize the Social
2 
Protection Floor initiative through convergence of the resources of various agencies
3 
so that it can provide continuous social security and health insurance subsidies to
4 
vulnerable and other informal workers as well as initiate programs for the
5 
unemployed, children, and older persons based on applicable and ever improving
6 
standards.
7 
CHAPTER VI
8 
Security in the W orkplace o f W orkers in Inform al Employment
9 
Security in the workplace as defined in Section 5 of this Act shall involve the
10 
following:
11 
Sec. 24. Designation o f Workplaces. -  The concerned Local Government Unit
12 
(LGU), in coordination with their respective WIELDO, and after consultation with
13 
WIE, affected communities, and other relevant groups, shall identify and designate
14 
viable workplaces for informal workers; routes, terminals, and specific lanes for
15 
small transport workers; and design a system of assigning these to accredited
16 
informal workers. These may include markets and vacant areas near markets,
17 
vacant public spaces and other spaces which may be designated as allowable
18 
workplaces for informal workers.
19 
Should concerned WIE prefer to conduct their economic activities within an
20 
identified private property, the LGU shall negotiate with the owner of the property
21 
for the possible use of such property as WIE's workplace. The LGU shall likewise
22 
encourage and assist the parties in forging a possible memorandum of agreement.
23 
The LGUs, within 60 days from the effectivity of this Act, shall conduct a
24 
survey to identify viable vacant areas suitable for routes, terminals, lanes,
25 
productivity and merchandizing centers and workplaces for use of WIE in their
26 
respective localities.
27 
The LGUs shall, within ninety (90) days after the survey and based on
28 
recommendations of WIELDO and consultations with concerned WIE, affected
29 
inhabitants and relevant sectors, pass an ordinance designating such workplaces.
30 
Sec. 25. Protection o f Agricultural Lands and their Occupants. -  The LGUs, in
31 
coordination with the Department of Agrarian Reform (DAR) shall protect all
32 
agricultural lands from conversion or reclassification to non-agricultural uses. Special
18


1 
Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not be allowed
2 
in irrigated and irrigable lands.
3 
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the
4 
agricultural lands as protected zones.
5 
The LGUs shall make an inventory of all agricultural lands under leasehold
6 
and shall enforce the security of tenure of tenants, right of redemption and right of
7 
first refusal on the subject land. The LGUs shall provide assistance and protection to
8 
tenants in agricultural lands whose landowners violate the provisions of R.A. No.
9 
3844 or the Agricultural Land Reform Code. Tenants shall not be evicted based on
10 
unilateral termination of the tenancy relationship by landowners.
11 
Sec. 26. Use o f Municipal Waters, Beach Fronts, and Foreshore Areas. -
12 
Municipal waters shall be used exclusively by marginalized fisher-folk and allied
13 
workers. They shall be given priority in the granting of permits and licenses for the
14 
establishment of fish pens, fish corrals, fish traps, shellfish culture or similar
15 
structures for culture of marine products within the municipal waters.
16 
Beach fronts and foreshores are public domain and may be used by any
17 
person especially marginalized fisher-folk. LGUs shall ensure that no beach within
18 
their jurisdiction is exclusive for the use of resort guests or private persons.
19 
LGUs in coordination with the National Housing Authority (NHA), shall
20 
establish and create fisher-folk settlement areas on private or public lands,
21 
specifically those near the fishing grounds, for municipal fisher-folk with security of
22 
tenure.
23 
The consent of the affected fisher-folk shall be required before an area is
24 
declared a marine protected area or a fish sanctuary by the national or local
25 
government unit.
26 
Sec. 27. Policy on Eviction and Demolition. -  WIE shall not be evicted from
27 
their homes and workplaces without legal ground as provided for R.A. No. 7279,
28 
otherwise known as the "Urban Development and Housing Act of 1992". In cases
29 
where eviction or demolition is warranted under Section 28 of R.A. No. 7279, the
30 
same shall be conducted upon compliance of the following:
31 
(a) 
Notice upon the affected persons or entities at least thirty (30) days prior to
32 
the date of eviction or demolition;
19


1 
(b) 
Adequate consultations on the matter of resettlement with the duly
2 
designated representatives of the families to be resettled and the affected
3 
communities in the areas where they are to be relocated;
4 
(c) 
Presence of local government officials or their representatives during eviction
5 
or demolition;
6 
(d) 
Proper identification of all persons taking part in the demolition;
7 
(e) 
Execution of eviction or demolition only during regular office hours from
8 
Mondays to Fridays and during good weather, unless the affected families
9 
consent otherwise;
10 
(f) 
No violence or unreasonable force shall be committed against women,
11 
children, senior citizens, persons with disabilities and other identities similarly
12 
situated in the course of eviction or demolition.
13 
(g) 
Non-use of heavy equipment for demolition except for structures that are
14 
permanent and of concrete materials;
15 
(h) 
Proper uniforms for members of the Philippine National Police (PNP) who shall
16 
occupy the first line of law enforcement and observe proper disturbance
17 
control procedures; and
18 
(i) 
Adequate relocation, whether temporary or permanent; provided, however,
19 
that in cases of eviction and demolition pursuant to a court order involving
20 
underprivileged and homeless citizens, relocation shall be undertaken by the
21 
local government unit concerned and the National Housing Authority (NHA)
22 
with the assistance of other government agencies within forty-five (45) days
23 
from service of notice of final judgment by the court, after which period the
24 
said order shall be executed; provided, further, that should relocation not be
25 
possible within the said period, financial assistance in the amount equivalent
26 
to the prevailing minimum daily wage multiplied by sixty (60) days shall be
27 
extended to the affected families by the local government unit concerned.
28 
Sec. 28. Policy on Confiscation o f Materials and Impounding o f Vehicles. -  In
29 
cases where demolition or eviction is warranted, the person who conducts the same
30 
shall issue an itemized receipt of all products, goods, and other materials seized
31 
from the affected WIE.
20


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


1 
Chapter V II
2 
Special Allocations o f Development In itia tive s
3 
Sec. 31. Special Allocations for Development Initiatives. -  The development
4 
initiatives for WIE shall form part of an integrated and convergent plan to address
5 
poverty and vulnerability. The national and local government units shall work
6 
together in support of such plan to maximize impact of meager resources.
7 
(a) 
At least ten percent (10%) of the annual national budget shall be
8 
appropriated for programs and services for WIE. These programs shall 
be
9 
implemented based on the principles of merit and equity by the Department
10 
of Labor and Employment (DOLE) at the national level and the WIELDO at the
11 
local level.
12 
(b) 
For purposes of program implementation, the DOLE shall manage 30%, and
13 
WIELDO, 70% of the funds from the annual General Appropriations Act (GAA)
14 
as provided for in the previous paragraph of this section.
15 
(c) 
The Implementing Rules and Regulations (IRR) of this Act shall determine
16 
additional guidelines on, among others, the use of such finances to ensure
17 
that programs and services truly benefit WIE.
18 
Sec. 32. Sourcing and Adopting Development Initiatives. -  Other sources of
19 
funds to be used exclusively for initiatives addressing the needs and empowerment
20 
of WIE shall be identified in the IRR of this Act and may include the following:
21 
(a) Government financial institutions and mechanisms such as the Land Bank of
22 
the Philippines (LBP), Development Bank of the Philippines (DBP), National
23 
Livelihood Support Fund (NLSF), and Quedan Rural Credit and Guarantee
24 
Corporation shall set aside a specific percentage of their loan portfolio to
25 
informal economy enterprises and shall give priority to women-led informal
26 
economy enterprises by providing loans at an interest of not more than
27 
twelve percent (12%) per annum consistent with the spirit of R.A. No. 7882;
28 
(b)The Department of Social Welfare and Development (DSWD) shall strengthen
29 
its Self-Employment Assistance Program (SEAK) to uplift and empower
30 
women in poverty, particularly those in the informal economy, by adopting an
31 
integrated, credit-plus approach to micro-finance;
22


1 
(c)The Small Business Guarantee and Finance Corporation (SBGFC) created
2 
under Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting
3 
of development initiatives for competitive enterprises in terms of finance,
4 
technology, production, management and business linkages. It shall also
5 
provide and promote, develop and widen in both scope and service reach
6 
various alternative modes of financing for informal economy business
7 
activities or enterprises, including but not limited to: direct and indirect
8 
project lending, venture capital, financial leasing, secondary mortgage and/or
9 
rediscounting of loan papers to such business activities or enterprises, and
10 
crop production financing. Further, the Corporation shall guarantee loans
11 
obtained by qualified worker or business activity or enterprise, under such
12 
terms and conditions adopted by its Board;
13 
(d)The Department of Trade and Industry (DTI) shall contribute to enable the
14 
development of a business environment that shall include initiatives such as
15 
supply chain and market outlets, and schemes to develop Special Credit
16 
Windows to upscale informal enterprises; and
17 
(e) The Department of Science and Technology (DOST) shall support technology-
18 
related initiatives of workers and enterprises in the informal economy.
19 
Sec. 33. Exclusivity o f Government Programs. -  The government shall ensure
20 
that programs of financing, grants and other similar incentives meant to benefit WIE
21 
shall be exclusively extended to accredited workers, business activities, enterprises
22 
or organizations in the informal economy.
23 
Sec. 34. Inclusivity o f Benefits. -  The exemptions and other benefits provided
24 
in this Act shall apply for a period of not exceeding ten (10) years from the date of
25 
accreditation of such IE worker, business activity, enterprise, or organization.
26 
Chapter V III
27 
Inform al Economy Development Council (lEDC)
28 
Sec. 35. Creation o f the Informal Economy Development Council (lEDC). -
29 
There is hereby created an Informal Economy Development Council, hereinafter
30 
referred to as the lEDC, which shall be an agency within the Department of Labor
31 
and Employment (DOLE). The DOLE shall institute appropriate reforms within its
32 
structure, programming and other processes, including adjusting its human resource
23


1 
capabilities to ensure that WIE-focused programs are efficiently and adequately
2 
implemented to address the needs of these workers. Likewise, an inter-agency
3 
committee shall be formed to coordinate policies and programs of various
4 
government agencies towards the transition of informal economic units to formal.
5 
The lEDC shall be constituted within thirty (30) days after the approval of the
6 
IRR of this Act.
7 
Sec. 36. 
Mandate and Functions o f lEDC. -  The mandate and functions of
8 
lEDC shall include the following:
9 
(a) 
Develop and ensure implementation of a simple system of registration
10 
accreditation for the IE workers, enterprises, and organizations in accordance
11 
with the standards and provisions of this Act;
12 
(b) 
Provide guidelines for the implementation by LCDs of a fair and credible
13 
system of evaluation, accreditation, review and assessment, merit promotion,
14 
rendering of grant and incentive awards and other policies relative to the
15 
effective and efficient implementation of this Act;
16 
(c) 
Develop and ensure implementation of annual, long-term and medium term
17 
plans for the informal economy, the last of which should form part of the
18 
Medium 
Term 
Philippine 
Development 
Plans 
(MTPDP) 
towards
19 
institutionalizing comprehensive, rights-based, gender-responsive and child-
20 
friendly programs and policies for the IE;
21 
(d) 
Develop and ensure effective implementation of labor standards covering WIE
22 
as provided for by this Act;
23 
(e) 
Develop and 
ensure implementation of gender-based 
monitoring 
and
24 
evaluation mechanisms, efficient and effective programs and policies, and
25 
gender-responsiveness of interventions toward harnessing the full potentials
26 
of women WIE;
27 
(f) 
Coordinate with LGUs for the development and implementation of periodic
28 
evaluation of all accredited IE members, enterprises and organizations -
29 
taking into account their accomplishments, capabilities and potentials. The
30 
results of such evaluation shall be used as bases for accreditation, the grant
31 
of awards and incentives, training and retraining;
24


1 
(g) 
Establish a performance appraisal system for all accredited workers,
2 
enterprises and organizations in the informal economy which shall be the
3 
basis for granting or renewal of incentives, rewards and recognition, training
4 
and development, including adequate mechanisms to ensure their active
5 
participation and involvement;
6 
(h) 
Ensure effective participation of WIE and their organizations through the
7 
establishment of regular consultative mechanisms and processes. Annual
8 
national, regional and provincial consultations among the organizations of
9 
WIE shall be conducted to determine specific issues and problems affecting
10 
specific WIE sub-sectors, and monitor and evaluate implementation of
11 
programs and policies;
12 
(i) 
Establish and develop a centralized and sex-disaggregated database system
13 
to effectively guide policy formulation and implementation relative to the WIE.
14 
The databank shall be available for public use and shall include but not
15 
limited to the following: statistical profile of WIE based on age, location, type
16 
of work, average monthly incomes, work hours, and other relevant statistical
17 
information; data on informal enterprises, including capitalization and sources
18 
of capital, number and status of workers, average incomes; List and contact
19 
information of government and non-government organizations (NGOs) that
20 
provide educational, socio-economic, legal, and other services to WIE;
21 
Inventory of resolved and pending cases involving activities of WIE; Database
22 
on the needs and problems of women and children in the informal economy
23 
nationwide aimed at strengthening policies and programs against child labor;
24 
and Compilation of international instruments, existing laws and programs
25 
affecting the interest and welfare of WIE and information on how these
26 
workers may use or avail of such instruments, laws and programs;
27 
(j) 
Develop and ensure implementation of a communication plan including
28 
massive information dissemination activities targeting WIE, their enterprises
29 
and organizations, in the various regions towards a better understanding and
30 
appreciation of the benefits this Act may bring them;
31
25


1 
(k) 
Consistent with Section 
2 (h) of this Act, 
to develop and 
ensure
2 
implementation of a comprehensive plan to eliminate child labor;
3 
(I) 
Monitor and coordinate implementation of policies and programs through the
4 
Regional lEDC officers;
5 
(m) Coordinate and harmonize all informal economy-related policies, programs,
6 
projects and activities of various government agencies towards greater
7 
efficiency and effectiveness;
8 
(n) 
Monitor the LGU-generated incomes from informal employment through the
9 
LGUs' periodic report submitted to the Council;
10 
(o) 
After 
consultations 
with 
WIE 
organizations, 
develop 
and 
ensure
11 
implementation of policies and programs that will address specific needs and
12 
ensure rights of WIE subsectors;
13 
(p) 
Develop and ensure implementation of accessible and just conflict resolution
14 
and adjudication systems and mechanisms to promote dialogue, conciliation,
15 
mediation and redress of grievances to protect the rights of WIE; and
16 
(q) 
From time to time, call on the participation of any government agency or
17 
bureaucracy in its deliberations especially when such agency is directly or
18 
indirectly concerned with or affecting the growth and development of the IE.
19 
Sec. 37. Composition. -  The Chair of the lEDC shall be the Secretary of
20 
Department of Labor and Employment. lEDC members may elect from among
21 
themselves a Vice-Chair to preside over meetings in the absence of the Chair. The
22 
members shall be the following:
23 
(a) 
Secretary of the Department of Trade and Industry (DTI)
24 
(b) 
Director General of the National Economic and Development Authority
25 
(NEDA);
26 
(c) 
Secretary of the Department of Agriculture (DA);
27 
(d) Secretary of the Department of Social Welfare and Development (DSWD);
28 
(e) Secretary of the Department of Interior and Local Government (DILG);
29 
(f) 
Chairperson of the Commission on Human Rights (CHR);
30 
(g) 
Lead Convener of the National Anti-Poverty Commission (NAPC);
31 
(h) 
Secretary of the Department of Transportation (DOTR);
32 
(i) 
Chairperson of the Social Security System (SSS);
26


1 
(j) Chairperson of Philippine Health Insurance Corporation (PhilHealth);
2 
(k) Chairperson of the Philippine Commission on Women (PCW);
3 
(I) Secretary of the Department of Public Works and Highways (DPWH);
4 
(m) One (1) representative from the private sector;
5 
(n) One (1) representative each from the League of Cities, 
League of
6 
Municipalities, League of Provinces and League of Councilors;
7 
(o) The incumbent NAPC Informal Sector Sectoral Representative;
8 
(p) 
At least 30% of total membership of lEDC shall come from organizations of
9 
workers in the informal economy accredited with DOLE and DA. Guidelines for
10 
the selection of non-government lEDC members, including processes and
11 
mechanics shall be determined by the IRR of this Act. Provided, further, That
12 
at least 40 percent of the 30 percent are women.
13 
Representatives from the Social Partners, private sector, NCOS and WIE
14 
organizations shall serve as lEDC members for a term of three (3) years without re-
15 
election and shall be subject to terms and conditions provided for by the IRR.
16 
The private sector, workers in informal economy and women's organizations'
17 
representatives to the lEDA shall be entitled to receive Per Diem of at least Two
18 
Thousand Five Hundred Pesos (P2, 500.00) per meeting.
19 
Sec. 38. lEDC Meetings. -  The lEDC shall meet once every two (2) months
20 
and may call for special meetings as the need arises; provided, that the frequency of
21 
such special meetings shall not exceed four (4) times annually.
22 
Sec. 39. Initial lEDC Funds. -  Ten million pesos (PIO, 000,000.00) shall be
23 
allocated from the Presidential discretionary fund for the initial operating expenses
24 
of the lEDC.
25 
Sec. 40. Executive Committee o f the lEDC. -  An Executive Committee of nine
26 
(9) members shall be convened. Besides the Chair and Vice-Chair, the following shall
27 
be elected by the lEDA members from among themselves or their duly designated
28 
alternate representatives: four (4) representatives of WIE organizations, one (1)
29 
from the different leagues of local officials, one (1) from the private sector, and one
30 
(1) from a national government agency, provided, that at least three (3) members of
31 
the Executive Committee are women.
27


1 
The Executive Committee shall have the authority to act for and in behalf of
2 
lEDC during intervals of meetings, and only within the specific authority granted by
3 
the lEDC.
4 
Sec. 41. lEDC Secretariat. -  The following secretariat functions shall be
5 
integrated in the DOLE secretariat functions:
6 
(a) 
Prepare and recommend, in coordination with LGUs and other government
7 
agencies, 
annual, 
medium-term, 
and 
long-term 
Informal 
Economy
8 
Development Plans for approval of the lEDC;
9 
(b) 
Coordinate the preparation of position papers and background materials for
10 
discussion or approval during lEDC and its Executive Committee meetings;
11 
(c) 
Assist in coordinating and monitoring policies, programs and activities of all
12 
government agencies with respect to the implementation of this Act;
13 
(d) 
Prepare, collate, and integrate all inputs to the lEDC's yearly report on the
14 
status of WIE, business activities or enterprises in the country, or other
15 
matters as directed by lEDA;
16 
(e) 
Submit periodic reports to lEDC on the progress and accomplishments of its
17 
work programs; and
18 
(f) 
Perform other secretariat and administrative functions as authorized by the
19 
lEDC or its Executive Committee.
20 
Sec. 42. Regional and Provincial lEDC Officers. -  The DOLE Regional and
21 
Provincial offices (NEDA Resolution) shall have Regional and Provincial lEDC Officers
22 
who shall be appointed by the lEDC and shall have functions that include:
23 
monitoring and coordinating of lEDC initiatives in the regions and Provinces;
24 
evaluation of policies programs for workers in informal economy; providing technical
25 
assistance in the development of local plans and programs; as well as other
26 
administrative functions necessary for the success of lEDC initiatives in their
27 
jurisdiction.
28 
lEDC Regional Officers shall have automatic seats in all Regional Development
29 
Councils (RDCs).
30 
Sec. 43. Rationalization o f Programs. -  lEDC shall conduct continuing review
31 
of government programs for the poorest of the poor and the WIE and submit to
28


1 
Congress and the President of the Philippines a report thereon together with its
2 
policy recommendations.
3 
Chapter IX
4 
W orkers in Inform al Employment Local Development Office (WIELDO)
5 
Sec. 44. Workers in Informal Employment Local Development Office. -  The
6 
Workers in Informal Employment Local Development Office (WIELDO) shall be
7 
established in every city and municipality to perform functions that shall include but
8 
not limited to the following:
9 
(a) 
Prepare an overall development plan and work program that will address the
10 
needs of the WIE, prioritizing the poorest and most vulnerable, and
11 
incorporate 
them 
in 
their 
respective 
city, 
municipal, 
and 
barangay
12 
development plans;
13 
(b) 
In consultation with WIE organizations in the area, identify specific needs of
14 
various IE subsectors and recommend appropriate measures to be taken;
15 
(c) 
Ensure accreditation and registration of WIE, especially those with assets of
16 
P150,000 and below, to facilitate their immediate access to benefits and
17 
services;
18 
(d) 
Monitor, assess and evaluate implementation of the plans and programs as
19 
well as the performance of informal workers, their economic activities and
20 
their organizations in the areas;
21 
(e) 
Lead in the local implementation of Chapter VI (Security in the Workplace of
22 
WIE) of this Act;
23 
(f) 
Coordinate with other local offices, private sector and other organizations with
24 
existing programs for WIE towards integration and convergence;
25 
(g) 
Conduct education and training programs that will: raise their consciousness
26 
especially on but not limited to workers', women's and children's 
rights;
27 
provide new ideas especially to those with the least assets 
and formal
28 
education; and develop or upgrade technical, entrepreneurial and leadership
29 
skills WIE;
30 
(h) 
Provide technical support and facilitate access to credit, market, technology,
31 
social protection schemes, and training for WIE;
29


1 
(i) 
Train pools of community trainers in business counseling and awareness-
2 
raising on occupational safety and health hazards, risks and social protection;
3 
O') 
Support organizing activities among WIE;
4 
(k) Establish sex-disaggregated databank on human resources and skills registry
5 
to be used as tools for LGU planning and budgeting;
6 
(I) 
Provide offices and other necessary resources to support organizing,
7 
advocacy, training and other activities of local organizations of WIE;
8 
(m) Conduct specialized training such as negotiation skills and conduct of time
9 
and motion studies to determine proper wages;
10 
(n) Provide services, which shall include but not be limited to counseling,
11 
conciliation, mediation, and legal assistance for the furtherance of this Act,
12 
prioritizing those with the least access to justice; and
13 
(o) Ensure that the LGU is capacitated to undertake and implement rights-based
14 
and gender-responsive programs for WIE.
15 
The local government shall encourage organization of economic units and set
16 
respective rules and regulations towards smooth interventions to support MSME
17 
informal enterprise development towards transitioning to formality.
18 
In the performance of WIELDO's functions, the principle of preferential
19 
treatment to the poorest and most vulnerable shall be observed.
20 
Sec. 45. Composition. -  The Local Chief Executives (LCEs) shall be the
21 
primary overseers of WIELDO's operations. The IRR of this Act shall provide for
22 
WIELDO's composition provided that, informal workers' representatives shall form at
23 
least fifty percent (50%) of WIELDO's membership. Provided further, that IE
24 
representatives shall not be less than five (5), and provided finally, that at least forty
25 
percent (40%) of all WIELDO's members are women. Other relevant guidelines on
26 
WIELDO's operations shall be included in the IRR of this Act.
27 
Sec. 46. Local Government Unit Informal Economy Development Fund (LGU-
28 
lEDF). -  An Informal Economy Development Fund shall be established by every
29 
municipality and city. Such fund will be supervised and managed by the concerned
30 
LGU through the WIELDO but subject to audit by the Commission on Audit (COA).
30


1 
For the establishment and initial operations of WIELDO, each LGU shall
2 
allocate at least three per cent (3%) of their twenty percent (20%) Development
3 
Fund from their IRA.
4 
Thereafter, the LGU-IEDF shall be funded using:
5 
(a) 
Registration fees and annual dues paid by individual workers in the informal
6 
economy, their livelihood activities, and organizations and associations as
7 
provided for by Sections 6 and 7 of this Act;
8 
(b) 
Shares from the 70% of the at least 10% funds from the Annual General
9 
Appropriations Act as provided for by Chapter VII, Section 32 (a) and (b) of
10 
this Act; and
11 
(c) 
Annual allocations from LGUs Development Fund the percentage of which
12 
shall be determined by LGUs.
13 
Following the principle of merit and equity, LGUs that fulfill such allocations
14 
may receive additional assistance from the national government as recommended by
15 
lEDC; provided, that they have formulated their local development plan for WIE.
16 
Sec. 47. Additional Sources o f Funds. -  The following may tapped by LGUs as
17 
additional sources of funds for WIELDO initiatives:
18 
(a) 
at least fifty percent (50%) of fees and annual dues collected from small
19 
transport -  for programs for workers in the small transport industry;
20 
(b) 
at least fifty percent (50%) of collected fees and annual dues from business
21 
establishments and entrepreneurs falling under the category of informal
22 
sector -  for programs focusing on micro-entrepreneurs and their workers;
23 
(c) 
at least fifty percent (50%) of collected fees and annual dues from small
24 
vendors -  for programs focusing on vendors;
25 
(d) 
at least fifty percent (50%) of fees and annual dues collected from
26 
marginalized fisherfolks -  for programs focusing on fisherfolk; and
27 
(e) 
at least ten percent (10%) of funds from the Philippine Amusement and
28 
Gaming Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office
29 
(PCSO)
31


1 
TITLE I I
2 
EMPLOYMENT OF WORKERS IN  INFORMAL ECONOMY
3 
Chapter I
4 
Requisites fo r Employment Agreem ent
5 
Sec. 48. Minimum Standards. -  All working arrangements entered into by WIE
6 
shall be in accordance with the minimum applicable labor and social standards as
7 
contained in Title II of this Act.
8 
These standards shall be strictly enforced in informal economic enterprises
9 
supplying or doing outsourcing work for exporters, investors-locators in export
10 
processing zones or industrial parks licensed by the Export Processing Zone, and
11 
domestic formal sector manufacturers and retailers-distributors.
12 
For workers engaged by independent informal economic enterprises, DOLE, in
13 
coordination with lEDA shall audit the capacity of these enterprises to comply with
14 
these standards. 
Those incapable of meeting the standards shall be assisted to
15 
upgrade their capacity to improve their businesses, as well as the capacity comply
16 
with relevant labor and social standards.
17 
Sec. 49. Provisions o f Empioyment Agreement. -  The employment contract
18 
shall be in written form. 
However, the absence of a written agreement does not
19 
mean the absence of an employment relationship. As a matter of right, WIE can
20 
insist on a written agreement based on minimum standards.
21 
In cases wherein minors are contracted with, the said negotiated contract
22 
shall be signed on his/her behalf by either parent or legal guardian, with the
23 
expressed written consent of the said minor.
24 
In cases wherein illiterate workers are contracted with, the said contract shall
25 
be explained to the worker concerned and attested to by a representative from the
26 
LGU or an elected Barangay official in the city or municipality where the worker is
27 
designated to work.
28 
Each of the contracting parties shall be provided with a full set of the duly
29 
signed agreement which shall include the following basic provisions:
30 
(a) 
working arrangement/mode;
31 
(b) 
period/duration of employment;
32


1 
(c) 
compensation, which shall not be below the minimum standard, and mode of
2 
payment;
3 
(d) 
computation of contributions for social security and medical insurance
4 
including for those who fall under DOLE Department Order No. 5;
5 
(e) duties and responsibilities;
6 
(f) working hours and day-off schedules;
7 
(g) living quarters or sleeping arrangements (for live-in workers);
8 
(h) the date, term and mode of delivery or date of completion;
9 
(i) 
minimum of twenty percent (20%) down payment for labor cost and services
10 
and minimum of 50% for inventory of raw materials used in the production
11 
for homeworkers per DOLE Order No.5.
12 
Minimum standard compensation referred to above shall be determined by
13 
the Regional Wage Boards per subsector of WIE. In the case of piece rates, this
14 
shall be based on the conduct of time and motion studies facilitated by the DOLE
15 
Bureau of Working Conditions. While there are no standardized rates for workers in
16 
informal economy jobs, the basis of computation shall not be below the applicable
17 
minimum wage of the region where they are covered.
18 
Enforcement of the standard compensation rates shall be in accordance with
19 
the capability to comply as explained in Section 40 of this Act.
20 
Sec. 50. Payment o f Wages. -  Payment derived from negotiated agreement
21 
shall be made directly to the workers. No deductions from such payments shall be
22 
made by the employer except those provided for by law. The expressed written
23 
consent of the worker shall be first secured before deductions are made.
24 
No parent, guardian, relative or any other person shall be allowed to take a
25 
loan against the compensation of his or her relative-worker without the express
26 
written consent of the concerned worker. Neither shall a worker of minor age be
27 
mandated to work in payment of loan or liability incurred by a parent, guardian,
28 
relative, or any other person.
33


1 
Chapter I I
2 
IE W orkers o f M inor Age
3 
Sec. 51. Allowable Employment o f Workers o f Minor Age. -  Children fifteen
4 
(15) years but below eighteen (18) years of age may be employed; provided, that
5 
parental or legal 
guardian consent is presented and attested 
to by any
6 
representative of the LGU or duly elected Barangay official where the work is to be
7 
done. In no instance however, shall children below fifteen (15) years old be engaged
8 
in whatever form of productive services.
9 
Further, workers of minor age shall not be allowed to render work for more
10 
than four (4) hours, five (5) days a week, exclusive of one (1) hour break for
11 
breakfast or lunch whichever is applicable.
12 
TITLE I I I
13 
FINAL PROVISIONS
14 
Sec. 52. Pena! Provision. -
15 
(a) 
Any person who shall willfully interfere with, restrain or coerce a worker in the
16 
exercise of his or her rights or shall in any manner commit any act in violation of any
17 
of the provisions of this Act shall, upon conviction, be punished by a fine of not less
18 
than Twenty Thousand Pesos (P20,000.00) or imprisonment of one (1) to six (6)
19 
years or both fine and imprisonment at the discretion of the Court.
20 
(b) 
If the offender is a public official or, the Court, in addition to the penalties
21 
provided 
in the preceding paragraph, may impose the additional penalty of
22 
disqualification from public office.
23 
(c) 
Any person who violates Section 28 of this Act (Policy on Confiscation of
24 
Materials and Impounding of Vehicles) shall be liable. Nothing herein shall prohibit
25 
the aggrieved WIE from initiating a criminal or civil action against the responsible
26 
person or officer applicability.
27 
(d) 
Failure to implement Sections 30 and 31 of this Act (Policy on Relocation of
28 
Vending Sites and Policy on Relocation of Terminals) shall render the responsible
29 
official/s administratively liable pursuant to Republic Act No. 7160 and other
30 
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 suspension
3 
or revocation of business license at the discretion of the Court.
4 
Sec. 53. Implementing Rules and Regulations. -  The Implementing Rules and
5 
Regulations (IRR) of this Act shall be formulated by a drafting committee composed
6 
of representatives of offices that will be members of lEDA and WIE organizations
7 
provided that, at least 30% of the drafting committee members shall come from the
8 
latter and provided further that at least 30% of committee members are women.
9 
Said committee will start work on the IRR within three (3) months after the
10 
effectivity of this Act and finish within six (6) months thereafter.
11 
Sec. 54. Separability Clause. -  If any provision of this Act is declared
12 
unconstitutional or invalid, the provisions not affected shall continue to be in full
13 
force and effect.
14 
Sec. 55. Repealing Clause. -  All laws, decrees, orders, rules and regulations
15 
or other issuances inconsistent with the provisions of this Act are hereby repealed,
16 
amended or modified accordingly.
17 
Sec. 56. 
Effectivity. -  This Act shall take effect fifteen (15) days after its
18 
publication in the Official Gazette or in any two (2) newspapers of general circulation
19 
in the Philippines.
Approved,
35