FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
8 
Wl! 10 
‘ 3  
Second Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 18 states: “The State affirms labor as a 
primary social economic force. It shall protect the rights of workers and promote their 
welfare.” 
The Constitution, Article 13, Section 1 provides that the Congress shall give 
highest priority to the enactment of measures that protect and enhance the right of all the 
people to human dignity, reduce social , economic, and political inequalities, and remove 
cultural inequities by equitably diffusing wealth and political power of the common good. 
According to the World Bank, the informal sector is a pervasive and persistent 
economic feature of most developing economies, contributing significantly lo 
employment creation, production, and income generation. Recent estimates of the size of 
the informal sector in developing countries in terms of its share of non-agricultural 
employment range roughly between one-fifth and four-fifths. In terms of its contribution 
to GDP, the informal sector accounts for between 25% and 40% of annual output in 
developing countries in Asia and Africa.’ 
Under National Statistical Coordination Board (NSCB) Resolution No. 15, Series 
of 2002*, informal sector consists of “units” engaged in the production of goods and 
services with the primary objective of generating employment and incomes to the persons 
concerned in order to earn a living. 
Ihttp: 
//web. 
worldbank.orgn?TBSITE/EXTERNAWTOPICS/EXTSOCIALPROTECTION/EXTLM/O,,contentM 
DK:20224904-menuPK:584866-pagePK 148956-piPK2 1661 8-theSitePK390615,OO.html. 
Iitt~:l/www.1~scb.~ov.uh/resolutions/2002/l5 
1 .asp. 
1 


The resolution states that these units typically operate at a low level of 
organization, with little or no division between labor and capital as factors of production. 
It consists of household unincorporated enterprises that are market and non-market 
producers of goods as well as market producers of services. 
Labor relations in this sector are supposedly based on casual employment, kinship 
or personal and social relations rather than formal or contractual arrangements. 
The NSCB, through its Statistical Survey Review and Clearance System 
(SSRCS), granted clearance for the conduct of the 2008 Informal Sector Survey (ISS) of 
the National Statistical Office (NSO). The ISS is a one-shot survey, conducted by the 
NSO in April 2008, aimed at: (a) improving the availability of reliable and sound data on 
informal employment and informal sector and (b) providing indicators that will 
. .  
contribute to evidence-based policy-making. The results of this survey can also be used 
for the estimation of Gross Value Added (GVA) of the informal ~ector.~ 
This bill seeks to address the development, rights and protection of the significant 
number of poor, marginalized, unprotected and underrepresented workers in the informal 
sector. 4 
’ 1i~u://www.nscb.gov.uh/uressreleases/2008~R~200805-PP 
1-03 NSO.as2. 
I1ttv://www.dsw~.or~.uh/contentlview/27/4 
11. 
2 


10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE INFORMAL 
ECONOMY, INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION 
Be it enacted by the Senate and the House of Representutives of the Philippines in 
Congress assembled: 
TITLE I 
GENERAL PROVISIONS 
Chapter I 
Framework and Principles 
SECTION 1. Shovt Title, - This Act shall be known as the “Magna Carta for 
Workers in the Informal Economy.” 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State: 
, .  
(a) To promote the total well-being of all workers in the informal economy; 
(b) To ensure their human dignity, economic advancement and access to justice 
by providing timely services including social, political, economic and legal; 
(c) To recognize, promote, protect and fulfill the rights of every worker in the 
informal sector including: the right to self-organization; the right to decent work, just and 
humane working conditions, access to social protection; the right to represent their 
organizations in a continuing process of consultation and dialogue towards maximizing 
the provision of a comprehensive package of reforms, inte,rventions, and services in 
accordance with their articulated needs and interests; 
1 


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 
(d) To recognize the roles and contributions of workers in the informal economy 
and make them visible in the national and local statistics; 
(e) To develop and enhance their entrepreneurial skills and capabilities so that 
they can become more productive and self-reliant citizens thereby ensuring participation 
in mainstream economic activities; 
(9 To promote gender equity and equality and protect women workers in the 
informal economy against gender-based discrimination, exploitation and abuse; to 
advance women’s social, economic, political, and reproductive rights; and improve their 
access to social protection and participation in decision-making bodies; 
(g) To protect vulnerable groups in the informal sector such as: children, 
differently-abled persons, and those from ethnic communities from discrimination, 
exploitation, abuse and harassment as well as from performing work hazardous to their 
occupational, physical, mental, emotional, reproductive and spiritual health; and 
. .  
(h) To progressively eliminate child labor in the informal sector through the 
creation of more quality jobs for adults, effective enforcement of laws against child labor, 
elimination of gender-based discrimination against girl child workers; improved access 
to universal education and social protection, and elimination of cultural factors that 
tolerate, even accept child labor. 
SECTION 3. Framework and Principles. - It is the State’s responsibility to 
provide an enabling environment at national and local levels to enable all workers to fully 
develop into productive, responsible and happy citizens. Towards this end, the 
government shall pursue a comprehensive, rights-based, participatory and gender- 
responsive framework for workers the informal economy that will include but not limited 
to: 
(a) Putting in place policies and programs that will bring marginalized workers 
and economic units into the economic and social mainstream, thereby reducing their 
28 
vulnerability and exclusion. 
2 


8 
9 
10 
11 
12 
13 
I4 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
(b) Pursuing structural reforms in all relevant levels of government by creating 
committees, special offices for development and protection of workers in the informal 
economy and supporting their representational rights through their legitimate 
organizations. 
(c) Extending coverage of accessible and affordable social security and health 
benefits to workers in the informal economy. 
(d) Implementing minimum and simplified regulation to encourage the 
development of ingenuity and entrepreneurial spirit among workers in the informal 
economy. 
(e) Hastening the growth and expansion of the various business activities or 
enterprises under the informal economy preferably with the cooperation and support of 
the private sector. 
SECTION 4. Defircitiofz of Terns -As used in this Act, the following terms shall 
mean: 
(a) Informal Economy - based on International Labor Conference (ILC) 2002a, 
refers to “all economic activities by workers and economic units that are - in law or in 
practice -not covered or insufficiently covered by formal arrangements”. 
(b) Workers in the Informal Economy - includes the following: 
b. 1. small farmers owning land not more than three (3) hectares; 
b.2. small fisherfolWoperators owning boats of three (3) gross tons or less 
, .  
and other fishing equipment; 
b.3. rural workers who are tenants or sharecroppers, laborers; 
b.4. fisherfolk who are without boats or fishing equipment but share in the 
first catch; 
b.5. home-based workers ‘who are independent producers of goods or 
services; 
b.6. industrial homeworkers - workers involved in a system of production 
under which work for an employer or contractor is carried out by a homeworker at 
3 


8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
hisiher home and where materials may or may not be furnished by the employer 
or contractor; 
b.7. self-employed who are engaged in sub-contracting arrangement with 
other enterprises; 
b.8. vendors, whether with stalls or without permanent workplace 
including street hawkers or those plying their goods and trades in the streets and 
those engaged in sari-sari stores with operating capitalization of not more than 
one million pesos (P1,000,000.00) excluding land and building; 
b.9. drivers of modes of transportation on land and sea whether motorized 
or not, including two (2) wheels such as habal-Izabal, calesa,; three (3) wheels 
such aspedicabs, tricycles; four (4) wheels such as jeepneys, buses; boats one (1) 
ton and below; including ‘barkers’, fare collectors, dispatchers and other workers 
who share income with self-employed or unincorporated operators; , . 
b.lO. operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or 
transportation whose capitalization is not more than one million pesos 
(Pl,OOO,OOO.OO) excluding land and building; 
b.11. “on-call” domestic workers which refer to persons who provide 
service to households such as maids, cooks, family drivers, gardeners and baby 
sitters on a live-out basis and “on-call” arrangement only; 
b. 12. non-corporate construction workers; 
b.13. small scale miners doing their own product processing; including 
those involved in small scale mining and quarrying with capitalization of below 
one million pesos (Pl,OOO,OOO.OO); 
b.14. workers of Barangay Micro Business Enterprises (BMBEs); 
b. 15. unorganized cargo handlers; 
b. 16. workers engaged in producing seasonal products; 
b.17. “on-call” workers in the entertainment, movie, and media such as bit 
players, stuntmen and women, crew, make-up artists, etc.; 
4 


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 
b.18. volunteer workers in government and non-government entities who 
only receive allowances or honoraria. These include but are not limited to: 
barangay health workers (BHW), barangay tanod, barangay nutrition scholars 
(BNS), barangay daycare workers, and volunteers in non-government or people's 
organizations; and 
. .  
b. 19. unpaid family members, 
or workers receiving allowances and 
seasonally hired workers who are engaged in micro-enterprises or assist 
unincorporated household enterprises. 
(c) Informal Sector, here referred to as IS, refers to units engaged in the 
production of goods and services with the primary objective of generating employment 
and incomes to the persons concerned. It consists of households unincorporated 
enterprises that are market and non-market producers of goods as well as market 
producers of services. 
These enterprises are operated by own-account workers, which may employ 
unpaid family workers as well as occasional, seasonally hired workers. 
These enterprises may also be owned and operated by employers which may 
employ less than ten (10) employees on a continuous basis. 
(d) Worker refers to a general term to mean either or 'both the self-employed or 
paid employee covered under the provisions of this Act. 
(e) Self-employed Worker refers to any person whether male or female, who has 
no employer and who works for himself/herself by producing goods or services for the 
market. 
(jj Worker ofminor age refers to children fifteen (15) to seventeen (17) years of 
age who are engaged in productive employment under a valid contract of employment. 
, .  
(g) Employer refers to a natural person or group or partnership of people for 
which a paid worker renders productive employment or service. 
27 
5 


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 
(h) Hazardous Work Condition refers to any activity or circumstance where a 
worker is exposed to any risk which constitutes imminent danger to hidher health and 
safety. 
(9 Working Hours refers to the period of time within which a worker is required 
lo be on call to perform any and all tasks that may be designated, regardless of whether 
there are actual tasks being undertaken. 
ci) Daily Basis refers to the per day mode of paying a private worker as 
bilaterally agreed upon by both the. employer and the worker. 
(k) Monthly Basis refers to the per month mode of paying a private worker as 
bilaterally agreed upon by both the employer and worker. 
(5, “Pakyaw” Basis refers to the pre-contracted wholesale mode of paying a 
worker as bilaterally agreed upon by both the employer and worker. 
(m) Social protection refers to policies and programs to reduce poverty and 
vulnerability to poverty by promoting efficient labor markets, diminishing exposure to 
risks, and enhancing capacity to protect against hazards or loss of income. Social 
protection includes the following schemes: 
j.1. labor market and safety nets; 
j.2. social assistance and welfare programs; 
j.3. social insurance; 
j.4. micro-finance and other area-based schemes; and 
j.5. child labor protection programs. 
(n) Social Risk Management (SRM) is a framework used to analyze the sources of 
vulnerability, how society manages risks and the relative costs and benefits of various 
public interventions on household welfare. As such, SRM addresses how vulnerable 
individuals and households can be helped to better manage risks and become less 
susceptible to damaging welfare losses. SRM also highlights the broad range of formal 
and informal, proactive and reactive risk management strategies used by individuals, 
communities, nations and communities of nations, including actions by the public, private 
6 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
and informal sectors. Such strategies include those that focus on prevention, coping and 
mitigating (World Bank). 
Chapter I1 
Coverage, Qualifications and Accreditation 
SECTION 5. Registration and Accreditation. There shall be a simple standard 
registration and accreditation system in accordance with the framework and principles of 
this Act. IS business activities or enterprises shall, upon registration, pay not less than 
Fifty pesos (P50.00) hut not more than One Hundred pesos (P100.00) to the municipality 
or city where they intend to be productively employed during their initial year of 
operation. The said fee shall cover the cost of the issuance of the license to operate. 
Any worker who meets such eligibility, qualification and other necessary 
requirements as provided for under this Act shall be accredited as eligible to avail of 
development programs for workers in the informal economy. 
Such accreditation shall be reviewed, revalidated and reassessed every two (2) 
years from the date of last accreditation by the LGUs where the worker operates. 
Renewal of eligibility shall be in accordance with the merit and fitness principle. 
SECTION 6. Annual Dues. -IS business activities or enterprises shall pay annual 
dues which shall accrue to the municipality or city and shall be exclusively used for IS 
development programs approved by the municipal or city council as recommended by the 
Workers in the Informal Economy Local Development Office (WIELDO) referred to in 
Chapter V of this Act. Such dues shall be paid to the municipal or city treasurer where 
they are registered and accredited, starting on their second year of operations, based on 
the following schedule: 
26 
7 


7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
SECTION 7. Coverage. - Workers in the informal economy as defined in Sec, 4 
of this Act are covered; provided, however, that the aforesaid workers qualify under the 
minimum requirements set forth in Sec. 10 of this Act. 
Chapter 111 
Special Allocations for Development Initiatives 
SECTION 8. Special Allocations for Development Initiatives. - The development 
initiatives for the informal sector shall form part of an integrated and convergent 
approach to address poverty and vulnerability to poverty. Such an approach requires 
“Social Risk Management” as defined in Sec. 4 of this Act to effectively and efficiently 
design programs to protect and empower workers iii the iiiformal economy. The national 
and local government units shall work shoulder to shoulder in support of this integrated 
and convergent approach to maximize meager resources. 
(a) At least five percent (5%) of the annual national budget shall be 
appropriated for programs and services for workers in the informal economy to be 
implemented by the Informal Economy Development Authority (IEDA) and Workers in 
the Informal Economy Local Development Office (WIELDO) as created by Chapters IV 
and V of this Act. Support to WIELDO shall be based on the principles of merit and 
equity. 
(b) For programs involving social services as defined in Sec. 4 of.this Act, an 
annual supplementary budget of at least One Hundred Million Pesos (PlOO,OOO,OOO.OO) 
shall be allocated by the Philippine Games and Amusement Corporation (PAGCOR) and 
the Philippine Charity Sweepstakes Office (PCSO) to be managed by IEDA. 
(c) 
The Implementing Rules and Regulations (IRR) of this Act shall determine 
additional guidelines on the use of such finances to ensure that programs and services 
truly benefit workers in the informal economy. 
SECTION 9. Sourcing and Adopting Development Initiatives. - Other sources of 
funds to be used exclusively for initiatives addressing the needs and empowerment of 
8 


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 
workers in the informal economy shall be identified in the Implementing Rules and 
Regulations (IRR) of this Act and may include the following: 
(a) Government financial institutions and mechanisms such as the Land Bank of 
the Philippines, Development Bank of the Philippines, National Livelihood Support 
Fund, Quedan Rural Credit and Guarantee Corporation shall set aside a specific 
percentage of their loan portfolio to informal economy enterprises and shall give priority 
to women-led informal economy enterprises by providing loans at an interest of not more 
than twelve percent (12%) per annum consistent with the spirit 0fR.A. No. 7882. 
(b) The Department of Social Welfare and Development (DSWD) shall 
strengthen its Self-Employment Assistance Program (SEAK) to uplift and empower 
women in poverty, particularly those in the informal economy, by adopting an integrated, 
credit-plus approach to micro-finance. 
. .  
(c) The Small Business Guarantee and Finance Corporation (SBGFC) created 
under R.A. No. 8289. SBGFC shall assist in the sourcing and adopting of development 
initiatives for competitive enterprises in terms of finance,, technology, production, 
management, and business linkages. It shall also provide and promote, develop and 
widen in both scope and service reach various alternative modes of financing for informal 
economy business activities or enterprises, including but not limited: to direct and 
indirect project lending, venture capital, financial leasing, secondary mortgage and/or 
rediscounting of loan papers to such business activities or enterprises, and crop 
production financing. 
The Corporation shall guarantee loans obtained by qualified worker or business 
activity or enterprise, under such terms and conditions adopted by its Board. 
(d) The Department of Trade and Industry (DTI) shall contribute to enable the 
development of business environment that shall include initiatives such as supply chain 
and market outlets, and schemes to develop Special Credit Window to upscale informal 
sector enterprises. 
(e) The Department of Science and Technology (DOST) shall support 
technology-related initiatives for workers in the informal economy. 
9 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
(f) Additional Sources of Funds for LGUs - The following shall be tapped by 
. .  
LGUs as additional sources of funds for focused development initiatives: 
f.1. Ten percent (10%) of amusement and sin taxes - for programs for 
workers in the entertainment and similar industries; 
f.2. Ten percent (10%) of income derived from fees collected from small 
transport - for programs for workers in the small transport industry; 
f.3. Ten percent (10%) of collected fees from business establishments and 
entrepreneurs - for programs focusing on micro-entrepreneurs and their workers; 
f.4. Ten percent (10%) of income from issuing health and sanitary permits 
- for programs for health volunteers and programs promoting safe workplaces for 
workers in the informal economy; and 
f.5. Ten percent (10%) of income from issuing hawkers’ permits - for 
programs for vendors. 
SECTION 10. Eligibility for Government Assistance. - The selection and 
appointment of beneficiaries under this Act shall be in accordance with the merit and 
fitness principle. To qualify for assistance, incentives and grants, a worker, business 
activity or enterprise shall be: 
(a) 
duly registered and accredited with the appropriate agency in the LGU 
where they are actively operating and paid the necessary fees for registration and 
accreditation from the concerned office of the municipal or city treasurer; 
(b) 
one hundred per cent (100%) owned and capitalized by Filipino citizens, be 
it single proprietorship or a partnership venture; and 
(c) 
covered by the definition of workers in the informal economy in Sec. 4 of 
this Act. 
SECTION 11. Exclusivity of Government Programs. - The government shall 
ensure that programs of financing, grants and other similar incentives shall be exclusively 
extended to an accredited worker or business activity or enterprise in the informal 
30 
economy. 
10 


1 
2 
SECTION 12. Tax Exemption. - A duly accredited IS worker or business activity 
or enterprise shall be exempted from all taxes, national or local, license and building 
' 3  
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
permit fees and other business taxes except real property and capital gains taxes, import 
duties and other taxes on imported articles. In addition, any and all income, receipts and 
proceeds derived from their business operations shall be excluded in the computation of 
gross income for purposes of computing the individual income tax of the members 
thereof. 
SECTION 13. Inclusivity of Benefits. - The exemptions and other benefits 
provided in this Act shall apply for a period of not exceeding ten (10) years from the date 
of registration of such IS worker or business activity or enterprise. 
Chapter IV 
Informal Economy Development Authority 
SECTION 14. Creation of the Informal Economy Development Authority (IEDA). 
- There is hereby created an Informal Economy Development Authority, herein 
otherwise referred to as the IEDA, which shall be attached to the office of the President 
and shall be constituted within thirty (30) days after the approval of this Act. 
, .  
The IEDA shall be the primary agency responsible for the promotion, growth 
development and empowerment of the workers in the informal economy in the country. 
It shall be a one-stop shop that will facilitate and closely coordinate national efforts to 
promote the sector's viability and growth, including the provision of an integrated 
program for skills enhancement, literacy and education, health services, social welfare 
and services and assistance in tapping of local as well as foreign funds. It shall also 
perform regulatory and quasi-judicial and other functions relative to the attainment of the 
objectives of this Act. 
SECTION 15. Composition. - The Chair of the IEDA shall be appointed by the 
President based on recommendations of IEDA members and shall have the rank of a 
11 


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 
Secretary. IEDA members may elect from among themselves a Vice-Chair to preside 
over meetings in the absence of the Chair. The members shall be the following: 
(a) Secretary of the Department of Trade and Industry (DTI) 
(b) Director General of the National Economic and Development Authority 
3 
(NEDA); 
(c) Secretary of Department of Agriculture (DA); 
(d) Secretary of Department of Agrarian Reform (DAR); 
(e) Secretary of Department of Labor and Employment (DOLE); 
(Q Secretary of Department of Social Welfare and Development (DSWD); 
(g) Secretary of Department of Health (DOH); 
(h) Secretary of Department of Transportation and Communication (DOTC); 
(i) Secretary of Department of Public Works and Highways (DPWH); 
(i) Secretary of the Department of Interior and Local Government (DILG); 
(k) Lead Convenor of the National Anti-Poverty Commission (NAPC); 
(1) Director General of Technical Education and Skills Development Authority 
(TESDA); 
(m)Director General of National Statistics Office (NSO); 
(n) President of Development Bank of the Philippines (DBP); 
(0) Chair of the Social Security System (SSS); 
@) Chair of PhilHealth; 
(9) Chair of the National Commission on the Role of Filipino Women (NCRFW); 
(r) Head of the Housing and Urban Development Coordinating Council 
(HUDCC); 
(s) Three (3) representatives from the private sector at large, all Filipino citizens 
. .  
to represent Luzon, Visayas and Mindanao; provided that at least one (1) is a woinaii; 
(t) One (1) representative each from the League of Cities, League of 
Municipalities, League of Provinces and League of Councilors; 
(u) Five (5) representatives from organizations of workers in the informal 
economy, provided that, three (3) shall come from the NAPC-Workers in the Informal 
12 


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 
Sector Council, and designated by the Nk’C Convenor, provided moreover that, the 
other two (2) shall come from organizations outside of NAPC and appointed by the 
President from among those recommended by these organizations ; and provided finally, 
that at least two (2) of the five (5) representatives are women; and 
(v) Two (2) representatives of womenls organizations actively involved in 
women’s and informal economy issues and appointed by the President from among those 
recommended by these organizations. 
The private sector, informal sector and women’s organizations’ representatives to 
the Council shall be entitled to receive per diem of at least Two Thousand Five Hundred 
Pesos (P2,500.00) per meeting. The Council shall meet once every two (2) months and it 
may call for special meetings as the need may arise; provided, that the frequency of such 
special meetings shall not exceed four (4) times annually. 
Ten million pesos (PI 0,000,000.00) shall be allocated from the Presidential 
discretionary fund for the initial operating expenses of the IEDA. 
SECTION 16. Executive Committee of the IEDA. - An Executive Committee of 
seven (7) members shall be convened. Besides the Chair and Vice-Chair, the following 
shall be elected by the IEDA members from among themselves or their duly designated 
alternate representatives: two (2) representatives of workers in the informal economy, one 
(1) from the different leagues of local officials, one (1) from the private sector, and one 
(I) from a national government agency, provided, that at least two (2) members of the 
Executive Committee are women. 
. .  
The Executive Committee shall have the authority to act for and in behalf of 
IEDA during intervals of meetings, and within the specific authority granted by the 
IEDA. 
SECTION 17. IEDA Secretariat. - The Executive Committee shall create a 
28 
secretariat that will have the following duties and functions: 
13 


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 
(a) Prepare, in coordination with LGUs and other government agencies, and 
recommend annual as well as medium-term Enterprise Development Plans for approval 
of the IEDA, 
(b) Coordinate the preparation of position papers and background materials for 
discussion or approval during IEDA meetings; 
(c) Assist in coordinating and monitoring policies, programs and activities of all 
government agencies with respect to the implementation of this Act; 
(d) Prepare, collate, integrate all inputs to the IEDA's yearly report 'on the status 
of informal economy business activities or enterprises in the country; 
(e) Submit periodic reports to EDA on the progress and accomplishments of its 
work programs; and 
(0 Perform ad hoc functions as authorized by the IEDA. 
SECTION 18. Mandate of IEDA. - The mandate and functions of IEDA shall 
include the following: 
(a) Develop a system of registration and accreditation for the IS in accordance 
with the standards and provisions of this Act; 
(b) Provide guidelines for the implementation of LGUs of a fair and credible 
system of evaluation, accreditation, review and assessment, merit promotion, rendering of 
grant and incentive awards and 'other policies relative to the effective and efficient 
implementation of this Act; 
(c) Further develop the existing Philippine Country Program for the development 
and protection of the workers in the informal economy 
towards institutionalizing 
comprehensive, rights-based, gender-responsive and child-friendly programs and policies 
for the IS; 
(d) Develop gender-based monitoring and evaluation mechanisms to ensure that 
programs and policies are implemented effectively and efficiently; and ensure gender- 
respoiisiveness of interventions toward harnessing full potentials of women workers in 
the informal economy; 
14 


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 
(e) Coordinate with LGUs for the development and implementation of periodic 
evaluation of all accredited IS members - taking into account their accomplishments, 
capabilities and potentials - the results of which shall be used as bases for evaluation, 
registration, accreditation, the grant of awards and incentives, training and retraining; 
(f) Establish a performance appraisal system for all accredited workers in the 
informal economy which shall be the basis for granting or renewal of incentives, rewards 
and recognition, training and development, including adequate mechanisms to ensue 
their active participation and involvement; 
(8) Ensure effective participation of the workers in the informal economy through 
the establishment of regular consultative mechanisms and processes. Annual national, 
regional and provincial consultations among the organizations of workers in the informal 
economy shall be conducted to determine specific issues and problems affecting their 
sector, and monitor and evaluate implementation of programs and policies. 
(h) Establish and develop a centralized and sex-disaggregated database system to 
effectively guide policy formulation relative to the workers in the informal economy. The 
databank shall be available for public use and shall include but not be limited to the 
following: 
h. 1. Sex-disaggregated statistical profile of various informal economy 
workers based on age, location, type of work, average monthly income, number 
of hours worked, and other statistical information; 
h.2. 
Sex-disaggregated data on informal 
enterprises, including 
capitalization and sources of capital, number and status of workers, average 
income, 
h.3. List and contact information of government and non-government 
organizations which provide educational, socio-economic and legal services to 
workers in the informal economy; 
h.4. Inventory of upheld and pending cases involving activities of workers 
in informal economy; 
15 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
h.5. Database on the needs and problems of women and children in the 
sector nationwide aimed at strengthening policies and programs against child 
labor; and 
h.6. Compilation o f  existing laws and programs ,affecting the interest and 
welfare of informal economy workers and information on how these workers may 
use or avail of such laws and programs. 
(i) Develop and implement a communication plan including massive information 
dissemination activities targeting workers in the informal economy in the various regions 
towards making them understand and appreciate the benefits this Act may bring them; 
and 
(i) Develop alternative conflict or dispute resolution systems and mechanisms. 
which shall aim to promote dialogue, conciliation and mediation while protecting the 
rights of workers in the informal economy. 
SEC. 19. Authority of the IEDA to Solicit Assistance from Various Agencies. - 
The IEDA may, from time to time, call upon the participation of any govermnent agency 
or bureaucracy in its deliberations especially when such agency is directly or indirectly 
concerned with and/or affecting the growth and development of the IS in any particular 
area or manner. 
SECTION 20. Regional IEDA Offices. - Regional IEDA offices shall be 
established and will have functions that include: monitoring and coordinating IEDA 
initiatives in the regions; evaluation of policies and programs for workers in the informal 
economy; providing technical assistance in the development of local plans and programs; 
as well as other administrative functions necessary for the success of IEDA initiatives in 
their jurisdiction. 
IEDA Regional Office shall have an automatic seat in all Regional Development 
Councils. 
29 
30 
31 
16 


S 
9 
10 
11 
12 
13 
14 
15 
16 
17 
1s 
19 
20 
21 
22 
23 
24 
25 
26 
27 
2s 
29 
Chapter V 
Workers in the Informal Economy Local Development Office (WIELDO) 
SECTION 21. Workers in the Informal Economy Local Development OfJice 
(WIELDO). - The Workers in the Informal Economy Local Development Office 
(WIELDO) shall be established in every province, city/municipality to perform functions 
that shall include but are not limited to the following: 
(a) Consistent with the Philippine Informal Sector Country Program, prepare an 
over-all development plan and work program that will address the needs of the workers in 
the informal sector and incorporate them in their respective provincial, regional, city, 
municipal and barangay development plans; 
(b) In consultation with organizations of workers in the informal economy in the 
area, identify specific needs of the sector and recommend appropriate measures to be 
taken; 
(c) Ensure registration and’accreditation of the workers in the iiifoiiiial economy; 
(d) Monitor, assess and evaluate implementation of the plans and programs as 
well as the performance of the sector in the areas; 
(e) Coordinate with other local offices, private sector and other organizations 
with existing programs for the workers in the informal economy towards integration and 
convergence; 
(f) Conduct training programs which will provide new ideas to the workers and 
upgrade the technical and entrepreneurial skills of others who are already in the field; 
(g) Implement consciousness-raising and capability building activities to include 
information on workers’, women’s and children’s rights and leadership training; 
(h) Provide technical support and access to credit, market, technology, social 
security schemes, and training for micro-entrepreneurs and those in service industry, 
small transport, non-corporate construction workers, etc.; 
(i) Train pools of community trainers in business counseling and awareness- 
raising on occupational safety and health hazards, risks and social security; 
(j) Support organizing activities among workers in the informal economy; 
17 


1 
2 
(k) Establish sex-disaggregated data banks on human resources and skills registry 
to be used as tools for LGU planning and budgeting; 
3 
4 
5 
6 
7 
8 
9 
IO 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
(1) Provide offices and other necessary resources to support organizing, 
advocacy, training and other activities of local organizations of workers in the informal 
economy; 
@)Train workers in the informal economy on negotiation skills and on the 
conduct of time and motion studies to determine proper wages; and 
(n) Provide services, to include but not limited to counseling and legal assistance 
for the furtherance of this Act. 
In addition to fund allocations specified in this Act, the LGUs shall annually 
allocate at least One Hundred Thousand Pesos (PlO0,OOO.OO) or at least 5% of the twenty 
percent (20%) Development Fund of their respective IRA whichever is higher for the 
operations and maintenance of WIELDO. 
Following the principle of merit and equity, LGUs that fulfill such allocations 
may receive additional assistance from the national government as recommended by 
IEDA; provided, that they have formulated their local development plan for workers in 
the informal economy. 
SECTION 22. Composition. - The local chief executives shall act as the primary 
overseers to the overall operation of WIELDO. Composition of WIELDO shall be 
determined by the Implementing Rules and Regulations (IRR) of this Act; provided that, 
workers in the informal economy shall be equitably represented; and provided further, 
that concerned LGUs maintain their right to include additional members as needed. 
Chapter VI 
Basic Rights 
SECTION 23. Basic Rights. - The rights of workers in the informal economy 
shall be actively protected, promoted and upheld. These include'the right to: 
(a) self-organization to collectively negotiate with other parties in the promotion 
of their welfare and advancement of their interests; 
18 


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 
(b) participate in decision-making processes relevant to the concerns of workers 
in the informal economy through their legitimate organizations; 
(c) equal treatment before the law; 
(d) safe conditions in the workplace that will safeguard their general and 
reproductive health; 
(e) accessible and affordable medical care; 
(0 accessible social protection and basic services including but not limited to 
health services and low-cost housing to enable IS members to have a humane quality of 
life; 
(8) equal access to education, skills training, and economic resources to develop 
their self-reliance; 
(h) information, especially on issues and concerns affecting the welfare and 
interests of their sector; 
(i) be free from any form of discrimination, violence, sexual exploitation, 
harassment and abuse; 
6) common workplaces, merchandising centers, and inventory bulk-buying 
centers; 
(k) common facilities and capacity building to access E-marketing; 
(1) alternative dispute resolution mechanisms and processes; and 
(m) equal access to justice through appropriate mechanisms. 
Chapter VI1 
SOCIAL SECURITY 
SECTION 24. MedicaNHealth Insurance. - As a matter of right and in the interest 
of social justice, an IS worker, regardless of age and compensation levels, shall be 
covered by medical/health insurance under the Philippine Health Insurance Corporation 
(PHILHEALTH), and be entitled to all benefits provided for under the law. Poverty shall 
not be an impediment for IS workers to enjoy full medical and/or health insurance, 
Towards this end, IS self-employed workers whose declared monthly earnings fall below 
19 


I 
2 
3 
4 
5 
6 
7 
8 
9 
IO 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
the existing minimum wages shall be covered for free based on rules formulated by 
Philhealth. Provided, however, that the worker is eligible to receive such benefit as 
prescribed under Sections 10 and 13 of this Act. 
For purposes of this section, the PHILHEALTH, shall, within ninety (90) days 
from the effectivity of this Act, promulgate guidelines to implement this provision 
including mechanisms of collecting contributions from concerned workers through their 
legitimate organizations. 
SECTION 25. Social Security Covemge. - As a matter of right and in the interest 
of social justice, a worker in the informal economy, regardless of age and compensation 
levels, shall be covered by social security and be entitled to all benefits provided for 
under R.A. No. 8282 or the Social Security Act of 1997. 
(a) Coverage and Contributions - Poverty shall not be an impediment for workers 
in the informal economy to enjoy full social security. Towards this end, concerned 
workers whose declared monthly earnings fall below the existing minimum wages shall 
be covered by the Social Security System for free. Provided, however, that the worker is 
eligible to receive such benefit as prescribed under Section 10 of this Act. 
. .  
Workers whose declared monthly income is more than the legally mandated 
minimum wages but below Thirty Thousand Pesos (P30,000.00), the SSS shall cover 
them with the government shouldering the employer’s contributions. 
(b) Government contribution to SSS - Government contributions to SSS budget 
shall include subsidy to workers in the informal economy as mandated by this section. 
For purposes of this section, the SSS, shall, within ninety (90) days from the 
effectivity of this Act, promulgate guidelines to implement this provision including the 
mechanism of collecting contributions from concerned IS workers. The SSS is hereby 
mandated to implement an outreach program that will facilitate the remittance of 
premiums by either the employer, or the worker, or the organization of IS workers by 
whatever means deemed feasible and efficient. 
20 


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 
SECTION 26. Social Security for Volunteers of Government Instrumentalities. - 
As a matter of right and in the interest of social justice, volunteer workers of government 
instrumentalities as defined in Sec. 4 of this Act, regardless of age and amount of 
allowances or honoraria received, shall be covered by the Government Service Insurance 
System (GSIS) and be entitled to all benefits provided for regular government workers. 
Poverty shall not be an impediment for government’s volunteer workers to enjoy 
full benefits from the GSIS. Towards this end, concerned volunteers who receive monthly 
allowances or honoraria below the existing lowest base pay among ’ government 
employees shall be covered by the GSIS for free. Provided, however, that the worker is 
eligible to receive such benefits as prescribed under Section 10 of this Act. 
Volunteer workers who receive monthly allowances or honoraria higher than the 
lowest base pay among government workers shall be covered by the GSlS following its 
regular policies. 
Necessary government subsidy to volunteer workers pursuant to this section shall 
be included in the General Appropriations Act (GAA). 
For purposes of this section, the GSIS, shall, within ninety (90) days from the 
effectivity of this Act, promulgate guidelines to implement this provision including the 
mechanism of collecting contributions from concerned volunteer workers. The GSIS is 
hereby mandated to implement an outreach program that will facilitate the remittance of 
premiums by either the volunteer, or their organizations by whatever means deemed 
feasible and efficient. 
SECTION 27. Alternative Schemes of Providing Social Security. - To further 
widen access to social security of workers in the informal economy especially in poor 
urban and rural areas, indigenous and alternative social protection schemes such as: 
“damayan”, “tulungan”, saranay, small mutual benefit associations, and micro-finance 
organizations as well as community-based micro-health insurance schemes initiated or 
28 
participated in by workers in the informal economy shall be supported and strengthened 
21 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
I4 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
by concerned national agencies and LGUs so that these can be sustained, systematized 
and upscaled. 
An enabling environment for such organizations and schemes shall be developed. 
Toward this end, the Insurance Commission (IC) is hereby mandated to review its 
policies to make them more supportive of alternative schemes of providing social 
security. 
Other mechanisms to support such schemes shall be outlined by the IRR of this 
Act. 
TITLE I1 
WORKERS IN THE INFORMAL ECONOMY ENTERING INTO 
CONTRACTED AGREEMENT 
Chapter I 
Requisites for Contracting Agreement 
SECTION 28. Employment Contract. - All working arrangements entered into by 
workers in the informal economy shall be covered by a written agreement, in a language 
or dialect understood by both employer and worker, duly signed by both the employer 
and worker. Under this Act, the employer and worker can agree on any of the following 
working arrangements: daily basis, monthly basis, pakyaw basis, per commission basis, 
boundary basis, piece rate, per job order and per service negotiated. 
In every contract entered into, each contracting party shall be provided with a full 
set of the duly signed agreement, the basic provisions of which shall include: 
(a) working arrangemenUmode; 
(b) periodduration of employment; 
(c) compensation and mode of payment; 
(d) computation of contributions for social security and medical insurance; 
(e) computation of contributions for social security and medical insurance €or 
those who fall under DOLE Department Order No. 5; 
(f) duties and responsibilities; 
22 


1 
(g) working hours and day-off schedules; 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
(h) living quarters or sleeping arrangements (for live-in workers); 
(i) the date, term and mode of delivery or date of completion; 
('j) minimum of twenty percent (20%) down payment for labor cost and services 
and minimnm of 50% for inventory of raw materials used in the production for 
homeworkers per DOLE Order No.5. 
Whenever an employer shall contract with a worker in the informal economy for 
the performance of the work, it shall be the duty of the employer to provide such contract 
and the worker shall be paid in accordance with the provisions stated in this Act. 
In cases wherein minors are contracted with, the said negotiated contract shall be 
signed on hidher 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. 
SECTION 29. Medical Certzjkate as Pre-Requisite for Employment. - A medical 
certificate attesting to the physical and mental fitness of an applicant for work must be 
secured from a licensed physician as a pre-requisite for employment, the cost of which 
shall be for the account of the employer. 
Chapter I1 
IS Workers of Minor Age 
SECTION 30. Allowable Employment of Workers of Minor Age. - Children 
fifteen (15) years up to seventeen (17) years of age may be employed; provided, that 
parental or legal guardian consent be presented and attested 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. 
23 


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 
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. 
Chapter 111 
Just Compensation Package 
SECTION 3 1. Standardized Wage’ Rate. - The Bureau of Working Conditions- 
DOLE shall develop and implement capacity building program on the conduct of time 
and motion studies as a basis of standardizing piece rates. Likewise, the Regional Wage 
Boards shall do the same to determine wages of workers of the IS employers. 
Moreover, the Regional Wage Board shall formulate just compensation for on call 
domestic workers who still fall under the informal economy. 
While there are no standardized rates for workers in informal economy jobs, the 
basis of computation shall not he below the applicable minimum wage of the region 
where they are covered. 
SECTION 32. Payment of Wages. - Payment derived from negotiated agreement 
shall he made directly to the workers according to the agreement. No deductions from 
such payments shall be made by the employer except those provided by law. The 
expressed written consent of the worker shall be first secured before the deduction is 
made. 
Chapter IV 
Prohibited Acts 
SECTION 33. Prohibition Against Forced Night Work. - It is unlawful to force, 
threaten, intimidate or otherwise harass workers in the informal economy to engage in 
night work. Moreover, workers of minor age shall not be allowed to render work between 
eight o’clock in the evening and six o’clock in the morning of the following day. 
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 
SECTION 34. Prohibition Against Work to be Undertaken. - Workers of minor 
age shall not be allowed to render work beyond their physical and mental capabilities. 
SECTION 35. Prohibition Against Bonded Labor. - A worker shall not be 
allowed to use hidher future services as collateral for any loan or advances made to or to 
be made by said worker with the employer. Likewise, no employer shall be allowed to 
bind the worker to hisher continued employ as a form of payment for any loan or 
advances which he/she may have made with the employer. Should there be an 
outstanding loan incurred and he/she decides to unilaterally terminate the contract of 
employment, said loan or advance shall be paid by hidher to the employer under terms 
and conditions specified in a duly executed promissory note between parties. 
SECTION 36. Prohibition Against Labor-Only Contracting. - In no instance shall 
the employer subcontract the services of a worker to any third party, unless such activity 
falls within the purview of an employment arrangement for which the necessary permits 
and licenses had been priory secured. 
Labor only contracting means that the contracting party does not provide any raw 
materials, inputs, or other forms of investment to the worker and merely uses hidher 
labor to make profit. 
SECTION 31. Prohibition Against Recruitment and Finders Fees. - Regardless 
whether the worker was sourced either through an employment agency or a third party, 
said worker shall neither be charged nor levied a share in the recruitment fees or finder’s 
fees by the aforementioned employment agency or third party. 
SECTION 38. Prohibition Against Hazardous Work and Conditions. - Any 
worker shall not be employed in any hazardous work, activity or undertaking, and neither 
shall he/she be exposed to hazardous working conditions. 
For purposes of this Section, hazardous work or conditions shall include, but not 
be limited to the following: 
(a) Any work which requires workers to render services beyond ten (10) hours; 
25 


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 
(b) Any work, employment or activity which exposes the worker to physical, 
emotional or sexual abuse; 
(c) Any work which involves manual handling or transport of heavy loads; 
(d) Any work in an unhealthy environment which exposes workers to hazardous 
substances, agents or processes, or to temperature, noise levels, or vibrations damaging to 
their health; 
(e) Any work which requires workers to continuously render service during late 
nights; 
(f) Any or all forms of slavery or practices similar to slavery, such as the sale and 
trafficking of persons, forced or compulsory labor, debt bondage and serfdom; 
(9) Any use, procuring or offering of the worker for prostitution or pornography; 
(h) Any use, procuring or offering of the worker for the commission of any 
offense or crime, particularly for the production and trafficking of narcotic drugs and 
substances as defined in the Comprehensive Dangerous Drugs Act; 
(i) Any other type of work or activity which, by its nature or the circumstances in 
which it is carried out, is likely to jeopardize the health, safety, or morals of the worker; 
and 
(i) Any other type of work, activity, condition or, undertaking that maybe 
hereinafter be defined as hazardous by the DOLE. 
SECTION 39. Prohibition Against Intevference and Coercion. - Any person is 
prohibited from committing any of the following acts of interference and coercion: 
(a) To prevent a worker from upholding or exercising hidher rights; 
(b) To prevent workers from joining or assisting organizations or unions for 
purposes not contrary to law, in order to protect and defend their mutual interests and to 
obtain redress of grievances through peaceful concerted efforts; 
(c) To prevent a worker from carrying out hisker duties or functions in an 
organization or union, or to penalize the same for any lawful action performed in that 
capacity; 
26 


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 
(d) To make calculated harassment and interference with the intention of 
intimidating or preventing the worker from performing hisher duties and functions; 
(e) To make calculated harassment against, or to transfer, penalize or terminate 
the services of a worker who is carrying out hidher function or role for and in behalf of 
hidher employer; and 
(0 To perform acts calculated to diminish the independence and freedom of 
workers’ union or organization to direct its own affairs. 
Chapter V 
Rights and Benefits of Employed Workers in Informal Economy 
SECTION 40. Rights to Wages Earned. - The employer shall pay directly to the 
workers on time based agreement, any and all wages, remuneration or Compensation 
earned by himher during the period of hisher employment. 
No parent, guardian, relative or any other person shall be allowed to borrow 
against the compensation of hidher relative -worker of minor age without the express 
written consent of the concerned relative-worker. Neither shall the worker of minor age 
be mandated to work in payment of loan or liability by a parent, guardian, relative, or any 
other person. 
SECTION 41. The Right to Privacy and Conjidentiality. - The employer shall 
respect the privacy of all workers during the course of the latter’s rest periods. This right 
to privacy shall extend to any and all forms of personal communication, including letters 
of correspondents issued or received. The worker shall be allowed communications 
coursed through the private telephone of the employer ; provided that any additional 
expense incurred in the course of communication shall be borne by the worker and shall 
be deducted after the employer’s due notice to the worker of the amount incurred due to 
specific reasods, from the receivable wage of the worker. 
The State, further guarantees the protection of the right of the worker to 
communicate with relatives and other persons and to receive visitors subject to 
27 


1 
2 
3 
A 
S 
6 
7 
8 
9 
10 
11 
12 
13 
14 
1s 
16 
17 
18 
19 
20 
21 
22 
23 
24 
2s 
26 
27 
28 
29 
30 
31 
reasonable limits prescribed in the employment contract agreed and entered into by both 
the employer and the worker. 
SECTION 42. Access to Education and Training. - A worker shall not be 
deprived of formal or non-formal education. In cases where he/she is productively 
employed, he/she shall be allowed to attend or pursue any kind of educational program 
during free time or any other time as agreed by the employer and the worker. 
The Department of Education (DEP ED), CHED and other appropriate agencies, 
whichever offices are applicable, shall extend its services of Study Now, Pay Later 
Program to the workers in the IS. 
SECTION 43. Access to Lawful Third Party Mediation. - The LGUs shall 
provide workers and their employers the names, addresses and telephone numbers of the 
designated liaison officers of the following: 
(a) DTI; 
(b) DOLE; 
(c) The Barangay office where he/she is productively working; and 
(d) Duly registered non government organizations accredited to mediate the 
disputes of their sector. 
(e) IEDA 
The employer guarantees the worker the access to all means of communication for 
the purpose of contacting any of the above-enumerated institutions. 
SECTION 44. Normal Hours of Work. - The normal hours of work shall be set at 
eight (8) hours per day, exclusive of one (1) hour breaks each for breakfast, lunch and 
dimer. The worker shall be allowed at least eight (8) hours of continuous rest per day. 
Otherwise, any work done by hidher beyond the normal hours of work per day shall be 
duly compensated. 
SECTION 45. Regular Working Days. - No worker shall render work for more 
than six (6) days per week. 
28 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
SECTION 46. Longevity Pay. - A longevity pay equivalent to five percent (5%) 
of hidher latest monthly basic pay shall be paid to a worker for every two (2) years of 
continuous and satisfactory service rendered. 
SECTION 47. Clothing and Personal or Protection Equipment Allowance. - A 
worker shall be entitled to a minimum of One Thousand (P1,OOO.OO) pesos clothing and 
personal or protection equipment (PPE) allowance mually. Provided, that the worker 
has rendered at least one (1) year of continuous service in the employment heishe is 
currently in. 
SECTION 48. Service Incentive Leave - A worker who has been employed for 
one (1) year shall be entitled to a five (5)-day service incentive leave with pay, in 
addition to the one (1) day per week designated as rest day. Said leave may only 
commence at the end of the first year of employment and shall not cumulate from year to 
year. 
SECTION 49. Maternity Benefits. - A female worker who has been employed for 
one (1) year shall be entitled to maternity benefits as provided for by law. 
SECTION 50. 13'" Month Pay. - A worker shall be entitled to 13'h month pay 
equivalent to one month's basic salary which shall be paid to the worker. Provided, that 
the worker has reached the required minimum residency. Otherwise, the worker shall be 
entitled to receive a 13'h month pay on a pro-rated basis as provided for in DOLE D.O. 
No. 5. 
SECTION 51. Allowing Subcontracting. - A worker may enter into sub 
contractual employment or may accept sub contractual jobs from any other enterprise or 
firm joining or may join productive employment through a cooperative consortium; 
provided, that the enterprise, firm, cooperative, or consortium shall be mandated to 
implement the specific provisions of this Act in regard to workers benefits. 
29 


1 
SECTION 52. Pre-Termination of Contract. - The employer may. At hidher own 
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 
discretion, terminate the services of the worker; provided however, that the said employer 
provides the worker with at least fifteen (15) day notice of termination, and termination 
pay equivalent to at least one half (%) month's salary. In lieu of the fifteen (15) day 
notice of termination, the employer may immediately terminate the services of the 
worker, provided that said employer provides the worker termination pay equivalent to 
one (1) month's salary. 
The employer may, for valid or just cause of loss of confidence, terminate the 
services of the worker prior to the expiration of the contract without indemnifying the 
latter with termination pay. 
Should the worker decide, on hidher own volition, to unilaterally leave the 
workplace prior to the expiration of the contract period, said worker shall forfeit any 
separation pay that may be due hidher. 
SECTION 53. Extent of Duty. - The employer shall not require a worker to 
perform any task or work outside what is stipulated in the agreement. 
SECTION 54. Deployment Expenses. - Deployment expenses of the worker, 
including transportation and agency fees, shall be shouldered by the employer. 
TITLE I11 
FINAL PROVISIONS 
SECTION 55. Penal Provision. - Any person who shall willfully interfere with, 
restrain or coerce a worker in the exercise of hidher 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,OOO.OO) or 
imprisonment of one (1) year to six (6) years or both fine and imprisonment at the 
discretion of the Court. 
If the offender is a public official, the Court, in addition to the penalties provided 
in the preceding paragraph, may impose the additional penalty of disqualification from 
public office. 
30 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
In the case of a private institutiodcompany found to be violating any provision of 
this Act, it shall be subject to a penalty ranging from suspension of license or revocation 
of such at the discretion of the Court. 
. .  
SECTION 56. Implementing Rules and Regulations (ZRR). - The Implementing 
Rules and Regulations of this Act shall be formulated by IEDA in consult&on with 
organizations of workers in the informal. economy within three (3) months after the 
effectivity of this Act. 
SECTION 57. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the provisions not affected shall continue to be in full force 
and effect. 
SECTION 58. Repealing Clause. - All laws, decrees, orders, rules and 
regulations or other issuances inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
SECTION 59. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation or the Official Gazette. 
21 
Approved. 
31