SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 441 
Introduced by Senator FRANCIS G. ESCUDERO. 
EXPLANATORY NOTE 
'-of \' 
This bill is the product of rigorous consultations with informal sector groups and leaders 
from the five informal sub-sectors in Luzon, Visayas and Mindanao in 2008 to seek a way 
forward for the social protection and empowerment of the poor. 
There is an urgent need to provide access to social protection benefits to almost 15 
million members of the informal sector and to provide appropriate regulation, due representation 
in local govermnent agencies and meaningful planning that will harness their full potentials to 
Become effective economic actors. 
This proposed Magna Carta of Members of the Informal Sector is one significant 
contribution toward fulfilling the Constitutional mandate of social justice and human rights for 
the informal poor. Both civil society and govermnent are giving their best efforts to make life a 
little better for the poor. There is a need for the latter to redefine and scale up not only its 
priorities, political will but more fundamentally, its genuine care for the poor. 
The best entities to design culturally sensitive and appropriate social protection and 
delivery mechanisms are the local govermnent units (LGUs) and their constituencies. Ensuring. 
wider and deepened grassroots participation in improving access to social protection will reduce 
urban poverty in the Philippines. It is in this regard that several provisions deal with the 
participation of the local govermnent units as well as the crucial role of the National Economic 
Development Authority (NEDA), 
Aside from the rights, the bill also contains provisions that tackle responsibilities of the 
members of the sector. Further, this bill also provides for specific recourse mechanisms to the 
basic sectors so that their grievance can be better redressed and their welfare be given attention, 
The 2008 Informal Sector Survey (2008 ISS) conducted by the National Statistics Office 
(NSO) yielded that there were about 10,5 million informal operators identified. Some sectors 
however assert that the informal sector is estimated to reach 15 million, or almost fifty (50 
percent) ofthe country's labor force. 
Contrary to the usual notion, the informal sector is quite productive. They provide array 
of services to the public and are engaged in legitimate undertakings. According to the National 


Statistical Coordination Board (NSCB), forty three (43 percent) of the country's Gross Domestic 
Product (GDP in 2006 came from the informal sector. 
Sadly, this contribution of the informal sector to the economy is insufficiently 
recognized. This is proven by the inadequate legal and social protection accorded to this sector. 
What is worse is that members of informal sector groups have been a source of not only oflocal 
revenues such as market taxes; they are also vulnerable to kotong. 
I 
Based from 2003 figures of the National Statistical Office (NSO) and the National 
Statistical Coordination Board (NSCB), at least three out of every ten Filipinos are poor. Using 
self-rated methods, more than half of the almost 78 million Filipinos view themselves as kabus, 
pobre, or mahirap (the Visayan and Tagalog word for poor). 
Abject situation of the members of the informal sector violates the international laws and 
the provisions ofthe Constitution on Social Justice and Human Rights. 
Ratified by the Philippine government in 1974, Article 9 ofthe International Covenant on 
Economic , Social and Cultural Rights states "The State Parties to the present Covenant 
recognize the right of everyone to social security, including social insurance". 
The 1987 Constitution also directs the State to provide social justice and human rights to 
poor and marginalized sectors such as the informal sector. 
It is in this direction that this bill is proposed. 
-
FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'13 
,iUL -4 ;\:3:! 7 
__________ 
S._B_. N_o._4_4_l _____ 
II
:_,:_' ___ i_'Y:--f! 
Introduced by Senator FRANCIS G. ESCUDERQ 
AN ACT 
PROVIDING FOR A MAGNA CARTA OF WORKERS IN THE INFORMAL 
SECTOR, 
INSTITUTIONALIZING 
MECHANISMS 
FOR 
IMPLEMENTATION THEREOF AND AMENDING FOR THE PURPOSE 
CERTAIN PROVISIONS OF REPUBLIC ACT NOS. 7160 AND 8282. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
Title I 
2 
GENERAL PROVISIONS 
3 
4 
Chapter I 
5 
Framework and Principles 
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71 
SEC.l. Short Title. 
This Act shall be known as the "Magna Carta of 
8 
Workers in the Informal Sector." 
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SEC. 2. Declaration of Policy. It is hereby declared the policy of the State: 
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(a) to promote and improve the total well-being of the poorest of the poor 
13 
and the marginalized low level income earners who engage in 
14 
economic activities under the informal sector; 
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(b) to nurture and protect the interests of the informal sector by providing 
17 
them with adequate and timely social, economic and legal services, as 
18 
well as mechanisms that shall protect their rights and promote benefits 
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that ensure their dignified existence and economic advancement; 
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(c) to recognize, promote, protect and fulfill the rights of every worker in 
22 
the informal sector including the right to self-organization, the right to 
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decent work, just and humane working conditions, access to social 
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protection, and the right to represent their organizations in a 
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continuing process of consultation and dialogue towards maximizing 
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the provision of a comprehensive package of reforms, interventions, 
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and services in accordance with their articulated needs and interests, 
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with focus on the vulnerable groups; 
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, 
(d) to recognize the roles and contributions of workers in the informal 
sector 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 based on 
their own pace and self-determination; 
9 
(f) to promote gender equity and equality through elimination of gender 
10 
stereotypes attached to certain enterprise or occupation in the informal 
11 
sector and redefining household as not merely male headed but also 
12 I 
female headed; 
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(g) to protect women workers in the informal sector against gender-based 
15 
discrimination, exploitation, violence and abuse; 
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(h) to advance the women workers' social, political and reproductive 
18 
rights and provide access to social protection and participation in 
19 
decision-making bodies; 
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(i) to recognize ethnicity in the formulation of programs and mechanisms 
22 
to promote and protect informal sector's rights; 
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G) to protect vulnerable groups in the informal sector such as children, 
25 
elderly, differently-abled persons and indigenous people from 
26 
discrimination, exploitation, abuse and harassment; 
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(k) to progressively eliminate child labor in the informal sector through 
29 
the creation of more quality jobs for adults, effective enforcement of 
30 
laws against child labor, improved access to universal education and 
31 
elimination of cultural factors that tolerate child labor; 
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33 
(1) to develop the local economy through maximization of the potential 
34 
and contribution of the informal sector business activities and 
35 
enterprises. 
36 
37 
SEC. 3. Framework and Principles. It is the State's responsibility to give the 
38 
highest priority to the enactment of measures that protect and enhance the 
39 
rights of all people to human dignity, reduce social, economic and political 
40 
inequalities and remove cultural inequities by diffusing wealth and political 
41 
power for the common good and to provide environments at national and local 
42 
levels that enable all workers to fully develop into productive and responsible 
43 
citizens. Towards this end, the government shall pursue and implement a 
44 
comprehensive, rights-based, participatory and gender responsive framework 
45 
for workers in the informal sector that includes but is not limited to: 
46 
47 
(a) putting in place policies and programs that will bring marginalized 
48, 
workers and economic units into.the economic and social mainstream 
49 
and spur entrepreneurial or growth-oriented informal businesses to 
50 
graduate to formal status based on their own pace and self-
51 
determination; 
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(b) pursuing structural reforms in all relevant levels of government by 
creating committees, special offices for development and protection of 
workers in the informal sector and supporting their representational 
rights through their organizations; 
(c) extending coverage of accessible and affordable social security and 
health care benefits to workers in the informal sector; 
(d) implementing minimum and simplified regulation to encourage the 
development of ingenuity and entrepreneurial spirit among workers in 
the informal sector; 
(e) encouraging the organization, establishment, strengthening and 
expansion of the various business activities or enterprises under the 
informal sector in the barangay level preferably unified under a 
municipality, provincial, regional and national federation/ association; 
19 
(f) exacting responsibility on the part of the informal sector workers 
20 
provided that the state shall recognize their rights and put in place 
21 
responsive, transparent and accountable mechanisms to ensure 
22 
protection, promotion and realization of those rights. 
23 
24 
SEC. 4. Definition of Terms. As used in this Act, the following terms shall 
25 
mean: 
26 
27 
(a) hazardous work or condition refers to any activity or circumstance where 
28 
a worker is exposed to any risk which constitutes an imminent danger 
29 
to his/her health and safety. 
30 
31 
(b) ambulant vendors or peddlers refer to vendors who ply their trades in 
32 
search of buyers. 
33' 
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(c) street vendors refer to vendors who sell their merchandise on streets 
35 
and sidewalk. 
36 
37 
(d) informal sector 
38 
(1) For purposes of identification and coverage of the law, the informal 
39 
sector otherwise known as IS consists of "units", whether 
40 
individual or group, own-account/ self-employed or micro-
41 
entrepreneur or livelihood enterprises regularly employing family 
42 
members, engaged in the production of goods and services with the 
43 
primary objective of generating employment and incomes to the 
44 
units concerned in order to earn a living. These units typically 
45 
operate at a low level of organization, with little or no division 
46 
between labor and capital as factors of production. It consists of 
47 
household enterprises that are market and non-market producers 
48 
of services. 
49 
(2) The category of individuals or organization of people involved in 
50 
any business activity or enterprise whose total assets, inclusive of 
51 
the capital investments, must not value more than the amount of: 
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i. One hundred fifty thousand pesos (P150,OOO.OO) for small 
transport; 
ii. One 
hundred 
fifty 
thousand 
pesos 
(P150,OOO.OO) 
for 
marginalized farmers; 
iii. One 
hundred 
fifty 
thousand 
pesos 
(P150,OOO.OO) 
for 
marginalized fisherfolks; 
iv. Fifty thousand pesos (P50,OOO.OO) for home-based workers; 
v. One hundred fifty thousand pesos (P150,OOO.OO) for small 
vendors with designated stalls; 
vi. Fifteen thousand pesos (P15,OOO.OO) for ambulant and street 
vendors. 
The aforestated amount shall be adjusted every five years by the 
Informal Sector Development Council (ISDC), which is created 
under this Act. Adjustment 'of the aforestated amount shall be 
based on prevailing poverty threshold and other established 
standards in determining subsistence level of living. 
For purposes of exclusion, corporations, quasi-corporations, units 
with ten or more employees, corporate farms, commercial 
livestock raising and commercial fishing are excluded from this 
definition of informal sector. 
(e) worker refers to a general term to mean either or both the micro-
entrepreneur . or own-account! self-employed covered under the 
prOVision of this Act as defined in the preceding paragraph. 
(f) pakyaw basis refers to the pre-contracted wholesale mode of paying an 
informal sector worker as bilaterally agreed by the contracting parties. 
34 
(g) entrepreneurial or growth oriented informal business refers to those which 
35 
show potential in increasing productivity, in hiring workers from 
36 
outside the household, in developing new competencies in areas of 
37 
production and operations. 
38 
39 
(h) informal sector sub-groups- for purposes of this Act, refer to vendors, 
40 
small farmers, marginalized fisherfolks, small transport, home-based 
41 
workers and non-corporate construction workers and micro-informals 
42 
and self! own account. 
43 
44 
(i)small transport refers to non-corporate operators of small marine boat or 
45 
vessel for transport, tricycle, pedicab, habal-habal, calesa, ku/iglig, balsa or 
46 
"trolley" and or community-based mode of transportation 
47 
48 
49 
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51 
(i) small farmer refers to an individual engaged in subsistence farming 
including the sale, barter, exchange of agricultural products or 
processing of agricultural and other by-products produced by 
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him/herself and his/her immediate family, or rural workers who are 
tenants or sharecroppers or contracted laborers provided they do not 
fall under the category of agricultural workers under the Labor Code. 
5 
G) marginalized fisherfolks refer to individuals engaged in subsistence 
6 
fishing such as but not limited to the use of fishing boats less than 
7 
three (3) tons, use of fishing gear which do not require boats, those 
8 
who are without fishing boat or gear but share in the first catch of 
9 
individuals having fishing boats, those engaged in subsistence 
10 
aquaculture, or those engaged in the processing of marine and other 
11 
by products in subsistence level. This also includes immediate family 
12 
members, especially women, who engage in the preparation of fishing 
13 
gears and other needs before fishing activity and who engage in the 
14 
sale, barter or exchange of marine products produced. Also included 
15 
in this category are fishport workers, porters and batillo. 
16 
17 
(k) non-government organizations (NGO) refers to any aggrupation of 
18 
individuals, not subsidized by government funds or organized for 
19 
religious purposes or partisan politics, and whose primary ends are 
20 
advocacy of issues or the realizations of specific developmental 
21 
objectives for the community or a sector thereof. 
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(1) people's organization (PO) refers to any cooperative, union, business 
group or any aggrupation of at least twenty-five (25) individuals 
belonging to the same sector or sharing a common interest, not 
subsidized by government funds or organized for religious purposes 
or partisan politics, and whose primary concern is the advocacy of 
sectoral issues; and/ or the realization of specific developmental 
objectives for their sector or the promotion of their common interest. 
31 
(m) 
Informal Sector One-Stop Shop Center refers to the office at the local 
32 
government units (LGUs) where all transactions needed in the 
33 
processing of business permits and other business requirements of the 
34 
Informal Sector workers shall be conducted. 
35 
36 
(n) Workers of minor age refer to children fifteen (15) to seventeen (17) years 
37 
of age who are engaged in productive employment. 
38' 
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Chapter II 
41 
Coverage, Qualifications and Accreditation 
42 
43 
SEC. 5. Coverage. This Act shall cover members of the informal sector who 
44 
are operating, employed or working either as micro-entrepreneur or self-
, 
45 
employed/ own account as defined herein. Provided, however, that the 
46 
aforesaid micro-entrepreneur, self-employed, qualifies in the minimum 
47 
requirements set forth in this Act. 
48 
49 
For purposes of this Act, the term "informal sector" shall cover the 
50 
following: 
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(a) micro-entrepreneurs and self-employed: 
i. vendors, whether with stalls or without including ambulant 
vendors, street vendors or those plying their goods and trades in 
streets and those engaged in sari-sari stores which conform with the 
total asset value requirements as mentioned in Section 4 (d) of this Act; 
ii. small farmers; 
iii. marginalized fisherfolks; 
iv. home-based workers who are independent producers of goods or 
services and whose total asset value conforms with that mentioned in 
Section 4 (d) of this Act; 
v. small transport such as but not limited to non-corporate operators 
of small marine boat or vessel for transport, tricycle, pedicab, habal-
habal, calesa, kuliglig, balsa or "trolley" whose total asset value conform 
with the requirement as mentioned in Section 4 (d) of this Act. 
16 
(b) own-account/self-employed: 
17 
i. on call domestic and service workers such as live-out cleaners, 
18 
laundry men and women and plantsadora; 
19 
ii. barbers, manicurists, pedicurists 
20 
iii. drivers of tricycle, pedicab, habal-habal, kalesa, kuliglig, "trolley" or 
21 
small marine vessel/boat; 
22 
iv. "barkers", fare collectors, dispatchers and other workers who share 
23 I 
in the income of the non-corporate operators; 
24 
v. welders and mechanics; 
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vi. non-corporate constructions workers such as but not limited to 
26 
carpenters, plumbers, electrician, mason or house painters; 
27 
vii. appliance technicians including but not limited to television, radio, 
28 
air conditioner, computer and refrigeration technicians; 
29 
viii. scavengers 
30 
31 
SEC. 6. Registration. 
There shall be a simple standard of registration 
32 
system in accordance with the framework and principles of this Act. Informal 
33 
sector business activities or enterprises shall, upon registration, pay one hundred 
34 
pesos (PIOO.OO) to the municipality or city where they intend to operate during 
35 
their initial year of operation. The said fee shall cover the cost of the issuance of 
36 
the license to operate. No other fees shall be exacted from the informal sector 
37 
business activities or enterprise other than the registration fee as mentioned 
38 
above. 
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Informal sector business activities or enterprises which are in operation 
41 
and registered, pursuant to applicable laws or local ordinance, prior to the 
42 
enactment of this Act shall be recognized as having complied with the 
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registration requirement of this Act and shall no longer be required to pay the 
44 
registration fee as mentioned in the preceding paragraph. 
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The registration shall entitle the informal sector business activities or 
47 
enterprise to development programs and benefits under this Act. 
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All local government units shall establish an Informal Sector One-Stop 
50 
Shop Center which shall handle all transactions and processing of the business 
51 
permit applications within their respective jurisdiction. The Center shall ensure 
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that the processing of the business permit of informal sector business activities or 
2 
enterprises shall be done on the day of their application and the registration shall 
3 
be released within thirty six (36) hours upon submission of the complete 
4 
requirements based on its checklist. 
To facilitate efficient and expeditious 
5 
registration of informal sector business activities or enterprise, the local 
6 
government units shall formulate a uniform and simple checklist of requirements 
7 \ for registration such us valid proof of identity (barangay clearance, certificate of 
8 
residency, etc.) and flowchart of the procedure of registration. 
The local 
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government must ensure the recognition and registration of women workers in 
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the informal sector through appropriate activities. The local government unit 
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shall be responsible in translating the checklist of requirements and flowchart of 
12 
procedure of registration in their own local dialect. The local government unit 
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shall cause the posting of the checklist and flowchart of procedure of registration 
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in at least three (3) conspicuous areas, preferably public areas, in the community 
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and cause the publication of the same in the local newspaper if there be any. 
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Further, the Center shall maintain a comprehensive database of informal 
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sector business activities and enterprises which have been issued licenses to 
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operate. The database shall take into account the different sub-classifications of 
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inforn:ml sector in terms of geography (urban or rural based), premises (home-
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based or non home-based), gender (male or female), ethnicity (ethno-linguistic 
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group or indigenous community), vulnerability (children, elderly or person with 
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disability), industry (industrial, commercial, services or agricultural), occupation 
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(fisherfolks, farmers, construction, drivers, vendors, laborers or sales personnel), 
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nature of employment (casual, contractual, seasonal, permanent/regular or 
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pakyaw/commission basis/boundary system) and roles/functions (own-
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account/ self-employed or subsistence/ marginal employment). 
The database 
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shall also indicate those informal businesses which may be categorized as 
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livelihood enterprises and those entrepreneurial or growth oriented informal 
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business. 
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The aforesaid comprehensive database of the informal sector shall be a 
33 
basis of the assessment and monitoring of the growth of the informal sector. 
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3S 
SEC. 7. Annual dues. Informal sector business activities or enterprises shall 
36 
pay annual dues to the Informal Sector One-Stop Shop Center or Treasurer of the 
37 
municipality or city where they are registered and accredited, starting on their 
38 
second year of operations, based on the following schedule: 
39 
(a) those with net worth amounting to less than P 25,000.00 
P 250.00 
(b) those with net worth amounting to P 25,000.00 but less P 500.00 
than 
P 50,000.00 
(c) those with net worth amounting to P 50,000.00 
P 750.00 
but less than P 75,000.00 
(d) those with net worth amounting to P 75,000.00 
P 1,000.00 
but less than P 100,000.00 
(e) those with net worth amounting to P 100,000.00 but less P1,250.00 
than P125,000.00 
(f) those with net income amounting to P 125,000.00 but less P 1,500.00 
than P150,000.00 
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A financial statement as proof of the net worth must be provided. 
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The collected fee shall accrue exclusively to the municipality or city and 
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shall be used for informal sector development programs approved by the 
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municipal or city council. 
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Additional Sources of Funds for LGUs - The following shall be tapped 
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by LGUs as additional sources of funds for informal sector focused development 
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initiatives: 
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(a) ninety percent (90%) of fees and annual dues collected from small 
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transport - for programs for workers in the small transport industry; 
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(b) ninety percent (90%) of collected fees and annual dues from business 
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establishments and entrepreneurs falling under the category of 
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informal sector - for programs focusing on micro-entrepreneurs and 
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their workers; 
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(c) ninety percent (90%) of ·collected fees and annual dues from small 
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vendors - for programs focusing on vendors; 
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(d) ninety percent (90%) of fees and annual dues collected from small 
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farmers - for programs focusing on small farmers; 
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(e) ninety percent (90%) of fees and annual dues collected from 
28 I 
marginalized fisherfolks - for programs focusing on marginalized 
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fisherfolks. 
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(e) ninety percent (90%) of fees and annual dues collected from the 
Philippine Amusement and Gaming Corporation (P AGCOR) and 
Philippine Charity and Sweepstakes Office (PCSO). 
36 
An Informal Sector Development Fund shall be established in every 
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municipality and city for their supervision and management subject to 
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accounting and auditing procedures by the Commission on Audit (COA). 
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SEC. 8. Monitoring of growth. The local government unit in cooperation 
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with the Informal Sector Local Development Office shall monitor the growth of 
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the informal sector business activities or enterprises three (3) years after the 
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enactment of this Act and every three (3) years thereafter. 
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48 
Title II 
49 
RIGHTS AND BENEFITS OF WORKERS IN THE INFORMAL SECTOR 
50 
51 
Chapter I 
8 


1 
2 
General Rights 
3 
SEC. 9. Basic Rights. The rights of Informal Sector workers shall be actively 
4 
protected, promoted and upheld. These include the right to: 
5 
6 
(a) self-organization to collectively negotiate with the government and 
7 
other entities in the promotion of their welfare and advancement of 
8 
their interests free from any political interference or favor; 
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10 
(b) informed participation in decision-making processes relevant to the 
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concerns of Informal Sector workers through their legitimate 
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organizations; 
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(c) equal treatment before the law; 
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(d) safe conditions in the workplace that will safeguard their general and 
reproductive health; 
(e) accessible and affordable medical care and reproductive health 
services; 
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(f) accessible social protection and basic services including but not limited 
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to health services and low-cost housing to enable Informal Sector 
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members to have a humane quality of life; 
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(g) equal access to education, skills training, and economic resources to 
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develop their self-reliance; 
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(h) equal access to information technology, especially those affecting their 
30 
welfare and interests; 
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(i) freedom from any form of discrimination, violence, sexual exploitation, 
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harassment and abuse; 
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0) common workplaces, merchandising centers, and inventory bulk-
buying centers; 
(k) freedom from deprivation of property without valid cause and due 
process of the law; 
(1) alternative dispute resolution mechanisms and processes; and 
(m) equal access to justice through appropriate mechanisms. 
46 
SEC. 10. Rights to Medical Care and Humane Treatment. Every worker has a 
47 
right to good quality health care, without any discrimination and within the 
48, 
limits of the resources available for health and medical care. Attention must be 
49 
given to women's health. In the course of such care, the human dignity, culture, 
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convictions and integrity of the informal sector workers shall be respected. 
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Any person who engages informal sector workers shall, at all times, treat 
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the latter in a just and humane manner. In no instance shall abusive language, 
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physical violence or any act which debases, degrades or demeans the intrinsic 
4 
worth and dignity of the worker as a human being be used upon the latter. 
5 
6 
SEC. 11. Progressive Land Tax. LCUs shall impose a progressive land tax to 
7 
landholdings above three (3) hectares. The collected progressive land tax shall be 
8 
allocated for the local agriculture support services. Public agricultural lands 
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within the territory of the LCU and/ or all the LCU-owned agricultural lands 
10 
beyond five (5) hectares shall be distributed to small landless farmers in their 
11 
territory. 
12 
13 
SEC. 12. Local Fisheries Support Services. The Municipality/City shall 
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provide capacity building training, access to collateral-free and gender-balanced 
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credit, marketing assistance and infrastructure development for marginalized 
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fisherfolks within their jurisdiction. LCUs are mandated to establish a fishers' 
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market or a Bagsakan where the marginalized fisherfolks can directly sell their 
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products to the public. 
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Chapter II 
21 
Empowerment of Informal Sector Workers 
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SEC.13. Informal Sector Workers' Organization. Informal Sector workers 
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shall be encouraged to organize themselves for their mutual aid, benefit and 
25 
protection and for other legitimate purposes. Towards this end, the government 
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shall encourage and assist the Informal Sector workers in the formation of their 
27 
self-help organizations, associations, federations and confederations. 
The 
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gm'ernment shall encourage the formation of cooperatives among marginalized 
29 
farmers, marginalized fisherfolks and home-based workers, with attention to the 
30 
organization and formation of women and other vulnerable identities, in order to 
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enable members to purchase inputs at lower cost and obtain fair prices for their 
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produce. 
33, 
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Informal Sector workers engaged in farming, fishing, manufacturing, 
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transport, retail and services are encouraged to form cooperatives in every 
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municipality and city to enable members to avail of credit assistance and skills 
37 
training which will help improve their quality of life. 
38 
39 
SEC. 14. Assistance to Informal Sector Workers' Organization. All concerned 
40 
national government agencies, government financial institutions and local 
41 
government units shall include in their plans, programs, projects and activities 
42 
efforts that are supportive of the concerns of Informal Sector workers' 
43 
organizations. 
44 
45 
SEC. 15. Representation in Policy Making Bodies. It shall be the responsibility 
46 
of the local government units to ensure the participation of Informal Sector 
47 
workers in public decision-making processes. Informal Sector workers have the 
48 
right to participate at all levels of decision-making. 
49 
10 


1 
The State shall therefore ensure that Informal Sector workers shall be 
2 
given mandatory representation in policy-making bodies and other legislative 
3 
councils. 
4 
5 
For this purpose, Sections 446, 457 and 467 of the Republic 7160 is hereby 
6 
amended to read as follows: 
7 
8 
"SEC. 446. Composition. 
9 
(a) The sangguniang bayan, the legislative body of the municipality, shall 
lObe composed of the municipal vice mayor as the presiding officer, the 
11 
regular sanggunian members, the president of the municipal chapter of 
12 
the Jiga ng mga barangay, the president of the pambayang pederasyon ng 
13 
mga sangguniang kabataan, and the sectoral representatives, as members. 
14 
(b) In addition thereto, there shall be three (3) sectoral representatives: 
15 
one (1) from the women; and, as shall be determined by the sanggunian 
16 
concerned within ninety (90) days prior to the holding of local elections, 
17 
one (1) from the agricultural or industrial workers or INFORMAL 
18 I 
SECTOR WORKERS; and one (1) from the other sectors, including the 
19 
urban poor, indigenous cultural communities, or disabled persons. 
20 
(c) The regular members of the sangguniang bayan and the sectoral 
21 
representatives shall be elected in the manner as may be provided for by 
22 
law." 
23 
24 
xxx 
25 
26 
"SEC. 457. Composition. 
27 
(a) The sanggunian panglungsod, the legislative body of the city, shall be 
28 
composed of the city vice mayor as presiding officer, the regular 
29 
sanggunian members, the president of the city chapter of the liga ng mga 
30 
barangay, the president of the panlungsod na pederasyon ng mga 
31 
sangguniang kabataan, and the sectoral representatives, as members. 
32 
(b) In addition thereto, there shall be three (3) sectoral representatives: 
33 
one (1) from the women; and, as shall be determined by the sanggunian 
34 
concerned within ninety (90) days prior to the holding of local elections, 
35 
one (1) from the agricultural or industrial workers or INFORMAL 
36 
SECTOR WORKERS; and one (1) from the other sectors, including the 
37 
urban poor, indigenous cultural communities, or disabled persons. 
38 
(c) The regular members of the sangguniang panlungsod and the sectoral 
39 
representatives shall be elected in the manner as may be provided for by 
40 
law." 
41 
42 
xxx 
43 
44 
"SEC. 467. Composition. 
45 
(a) The sangguniang panlalawigan, the legislative body of the province, 
46 
shall be composed of the provincial vice-governor as presiding officer, the 
47 
regular sanggunian members, the president of the provincial chapter of 
48 
the liga ng mga barangay, the president of the panlalawigang pederasyon 
49 
ng mga sangguniang kabataan, the president of the provincial federation 
50 
of sanggunian members of municipalities and component cities, and the 
51 
sectoral representatives, as members. 
11 


(b) In addition thereto, there shall be three (3) sectoral representatives: 
2 , 
one (1) from the women; and, as shall be determined by the sanggunian 
3 
concerned within ninety (90) days prior to the holding of local elections, 
4 
one (1) from the agricultural or industrial workers or INFORMAL 
5 
SECTOR WORKERS; and one (1) from the other sectors, including the 
6 
urban poor, indigenous cultural communities, or disabled persons. 
7 
(c) The regular members of the sangguniang panlalawigan and the 
8 
sectoral representatives shall be elected in the manner as may be provided 
9 
for by law." 
10 
11 
SEC. 16. Enactment of ordinance. The Local Government units shall enact 
12 
an ordinance implementing Section 14 of this Act within three (3) years from the 
13 
effectivity thereof. 
14 
15 
16 
17 
Chapter III 
18 
Social Protection 
19 
20 
SEC. 17. Medical/Health Insurance. An accredited Informal Sector worker, 
21 
regardless of age and compensation level, shall be covered by 50 percent of the 
22 
lowest rate of medical/health insurance under the Philippine Health Insurance 
23 
Corporation (PHILHEALTH), and be entitled to all the benefits provided for 
24 
under the law. The free medical/health insurance coverage shall also extend to 
25 
Informal Sector workers who are contracted/ self-employed, as defined herein, 
26 
and who are earning below the minimum wage. 
27 
28 
SEC. 18. Social Security Coverage. An accredited Informal Sector worker, 
29 
regardless of age and compensation levels, shall be covered by social security 
30 
and be entitled to all the benefits provided under Republic Act No. 8282; 
31 
provided, that the corresponding monthly contributions of small farmers shall be 
32 
remitted every six months scheduled every post harvest of farm produce. For 
33 
this purpose, Section 22-A of Republic Act 8282 is hereby amended to read as 
34 
follows: 
35 
36 
"SEC. 22-A. Remittance of Contributions of Self-employed Member. Self-
37 
employed members shall remit their monthly contributions quarterly on 
38, 
such dates alld schedules as the Commission may specify through rules 
39 
and regulations. 
HOWEVER, FARMERS ENROLLED AS SELF-
40 
EMPLOYED 
MEMBERS 
SHALL 
REMIT 
THEIR 
MONTHLY 
41 
CONTRIBUTIONS EVERY SIX MONTHS SCHEDULED EVERY POST 
42 
HARVEST OF FARM PRODUCE; provided, that no retroactive payment 
43 
of contributions shall be allowed, except as provided in this Section. 
44 
45 
For purposes of this Section, the Social Security System shall, within 
46 
ninety (90) days from the effectivity of this Act, promulgate guidelines for 
47 
the mechanism of collecting the aforesaid premiums." 
48 
49 
SEC. 19. Alternative Schemes of Providing Social Security. To further widen 
50 
access to social security of Informal Sector workers especially in poor urban and 
51 
rural areas, indigenous and alternative social protection schemes such as: 
12 


1 
"damayan', "tulungan", "saranay", small mutual benefit associations, and micro-
2 
finance organizations as well as community-based micro-health insurance 
3 
schemes initiated or participated by informal sector workers shall be supported 
4 
and strengthened by concerned national agencies and LGUs so that these can be 
5 
sustained, systematized and upscaled. 
6 
7 
An enabling environment for such organizations and schemes shall be 
8 
developed. Toward this end, the Insurance Commission (IC) is hereby mandated 
9 
to review its policies to make them more supportive of alternative schemes of 
10 
providing social security. 
11 
12 
Other mechanisms to support such schemes shall be outlined by the 
13 
Implementing Rules and Regulation of this Act. 
14 
15 
16 
Chapter IV 
17 
Prohibited Acts Concerning Engagement of Informal Sector Workers 
18 
19 
SEC 20. Prohibition Against Night Work. Worker of minor age shall not be 
20 
allowed to render work between ten o'clock in the evening and six 0' clock in the 
21 
morning of the following day. 
22 
23 \ 
SEC 21. Prohibition Against Work to be Undertaken. Worker of minor age 
24 
shall not be allowed to render work beyond their mental and phYSical 
25 
capabilities. 
26 
27 
SEC 22. Prohibition Against Bonded Labor. A worker shall not be allowed to 
28 
use his/her future services as collateral for any loan or advances made or to be 
29 
made by said worker with the person who contracted his/her services. Likewise, 
30 
no person shall be allowed to bind the worker to his/her continued employ as a 
31 
form of payment for any loan or advances which he/ she may have made with 
32 
the former. Should there be an outstanding loan incurred and he/ she decides to 
33 
unilaterally terminate engagement, said loan or advance shall be paid by 
34 
him/her to the person who contracted his/her services under the terms or 
35 
conditions of their agreement. 
36 
37 
SEC 23. Prohibition Against Labor Sub-Contracting. In no instance shall the 
38 
person who engaged the services of an informal sector worker sub-contract the. 
39 
services of the latter to any third party. 
40 
41 
SEC 24. Prohibition Against Recruitment or Finders' Fees. 
Regardless of 
42 
whether the worker was sourced either through an employment agency or a 
43 
third party, said worker shall neither be charged nor levied a recruitment fee or 
44 
finder's fee by the aforementioned employment agency or third party. 
45 
46 
SEC 25. Prohibition Against Hazardous Work and Conditions. Any worker 
47 
shall not be engaged to work in any hazardous work, activity or undertaking, 
48 
and neither shall he/ she be exposed to hazardous working conditions. 
49 
50 
For purposes of this Section, hazardous work or conditions shall include, 
51 
but not be limited to the following: 
l3 


1 
2 
(a) any work which requires workers to render services beyond eight (8) 
3 
hours without commensurate compensation; 
4 
5 
(b) any work or activity which exposes the worker to physical, emotional 
6 
or sexual abuse; 
7, 
8 
(c) any work which involves manual handling or transport of heavy loads; 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
(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; 
(g) 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 Dangerous Drugs Act; 
28 
(i) 
any other type of work or activity which, by its nature or the 
29 
circumstances in which it is carried out, is likely to jeopardize the 
30 
health, safety, or morals of the worker; and 
31 
32 
0) any other type of work, activity, condition or undertaking that maybe 
33 
hereinafter be defined as hazardous by the Department of Labor and 
34 
Employment. 
35 
36 
SEC. 26. Prohibition Against Interference and Coercion. Any person is 
37 
prohibited from committing any' of the following acts of interference and 
38 
coercion: 
39 
40 
(a) to prevent a worker from upholding or exercising his/her rights; 
41 
42 
(b) to prevent workers from joining or assisting organizations for 
43, 
purposes not contrary to law, in order to protect and defend their 
44 
mutual interests and to obtain redress of grievances through peaceful 
45 
concerted efforts; 
46 
47 
(c) to prevent a worker from carrying out his/her duties or functions in an 
48 
organization, or to penalize the same for any lawful action performed 
49 
in that capacity; 
50 
14 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
(d) to make calculated, serious and pre-meditated harassment and 
interference with the intention of intimidating or preventing the 
worker from performing his/her duties and functions; 
(e) to make calculated, serious and pre-meditated harassment against, or 
to transfer, penalize or terminate the services of a worker without valid 
or legal ground; and 
(f) to perform acts calculated to diminish the independence and freedom 
of workers' organization to direct its own affairs. 
Chapter V 
Security in the Workplace of Vendors 
17 
SEC 27. 
Designation of Workplaces. 
The Municipality or City, in 
18 
coordination with their respective Informal Sector Local Development Office, 
19 
after consultation with the vendors, the affected community, and other sectors or 
20 
groups, shall identify and designate viable workplaces, and design a system of 
21 
assigning spaces to registered vendors. 
In case the vendors shall prefer to 
22 
conduct their business or enterprise within an identified private property, the 
23 
local government unit shall negotiate with the owner of the identified private 
24 
property for possible vending site and assist the parties in forging a 
25 
memorandum of agreement in case they reach such agreement. 
26 
27 
Workplaces include markets, vacant areas within the vicinity of markets 
28 I 
and other vacant pUblic spaces which may be designated as allowable vending 
29 
sites. 
30 
31 
The Municipal or City, within 60 days from the effectivity of this Act, shall 
32 
cause the conduct of a survey to identify vacant area(s) for vending in their 
33 
respective locality. 
34 
35 
The Sanggunian Panglungsod or Bayan shall, within 90 days after the 
36 
survey and pursuant to the recommendation of the Informal Sector Local 
37 
Development Office, pass an ordinance designating the workplace or 
38 
workplaces. No workplace for vending purposes, however, shall be designated 
39 
as such without prior consultation with the vendors, the affected inhabitants and 
40 
other sectors. 
41 
42 
Local Government Units which have already established or designated 
43 
viable workplaces for vendors prior to this Act is deemed to have complied with 
44 
this provision of the Act provided that the aforesaid establishment or designation 
45 
of the viable workplace have been undertaken after consultation with the 
46 
vendors, the affected community and other sectors or groups. 
47 
48 
SEC 28. Policy on Eviction and Demolition. Registered vendors who have no 
49 
permanent or temporary vending site shall not be arbitrarily deprived of their 
50 
livelihood by being unjustly ejected from their workplaces nor their stalls 
51 
demolished without prior notice and consultation and provision of relocation to 
15 


1 
another viable workplace. The local government units, government agencies and 
2 
instrumentalities shall not conduct demolition or eviction of the registered 
3 
vendors without prior designation of their viable workplace. In case demolition 
4 
or eviction is conducted without compliance with the requirements under this 
5 
Section, the responsible person or officer who conducted or ordered the conduct 
6 
of the same shall be held administratively liable under this Act. Any responsible 
7 
person or officer who caused or ordered the destruction of any goods or 
8 
products during the demolition or eviction shall also be administratively liable 
9 
under this Act. In case demolition or eviction is warranted, the person or officer 
10 
who conducts the same shall issue receipt of the itemized products, goods and 
11 
other materials seized from the affected registered vendor. Any person or officer 
12 I 
who fails to issue receipt shall be administratively liable under this Act. No 
13 
violence or unreasonable force shall be committed against women, children, 
14 
senior citizens, persons with disabilities and other identities similarly situated in 
15 
the course of eviction or demolition. Nothing herein shall deprive the aggrieved 
16 
vendor the right to file criminal or civil action, whenever applicable, against the 
17 
responsible person or officer. 
18 
19 
SEC 29. Relocation of Vendors. Before any public market is closed, sold or 
20 
demolished, all market vendors with stalls and market vendors without stalls 
21 
shall first be relocated by the city government or municipal government to a 
22 
temporary or new public market. Notice of the intention to close, sell, or 
23 
demolish any public market shall be made to all concerned vendors at least sixty 
24 
(60) days before the actual transfer or relocation to another market site. Within 
25 
the sixty (60)-day period, the city government or municipal government shall 
26 
conduct consultations with the affected vendors on the selection of the relocation 
27 
site and the implementation of the relocation. 
28 
29 
SEC 30. Temporary Vending Site. 
Pending the designation of a viable 
30 
vending area or areas, vendors occupying a public place or places not previously 
31 
designated as vending site or sites shall be provided with a viable temporary site 
32 
or sites by the city government or municipal government. Notice of temporary 
33 
transfer shall be given to the vendors at least fifteen (15) days before the actual 
34 
transfer. This shall likewise cover and apply to vendors who are granted with 
35 
permits but whose workplaces are withdrawn from the list of allowable vending 
36 
sites. Any change in the list of allowable vending sites shall only be done after 
37 
consultations with the affected vendors. 
38 
39 
SEC 31. Priority in the Assignment of Stalls. In the event that a new public 
40 
market is constructed in place of an old market that is closed, sold, or 
41 
demolished, market vendors with stalls displaced from their workplaces shall be 
42 
given priority in the assignment of stalls in the new market. 
43 
44 
SEC. 32. Penalty for Non-compliance. Failure to implement the foregoing 
45 
requirements and provisions of Sections 25, 26, 27, 28 and 29 shall render the 
46 
responsible official administratively liable pursuant to Republic Act 7160 and 
47 
other pertinent laws and criminally liable whenever applicable. 
48 I 
49 
50 
51 
Chapter VI 
16 


1 
2 
Security in the Workplace of Small Transport 
3 
SEC 33. 
Designation of Workplaces. 
The Municipality or City, in 
4 
coordination with their respective Informal Sector Local Development Office, 
5 
after consultation with the small transport groups, the affected community, and 
6 
other sectors or groups, shall identify and designate viable routes and terminal of 
7 
tricycle and pedicab within the municipality or city. Municipalities where habal 
8 
habal is the only mode of transportation shall also designate viable routes and 
9 
terminal for the same. 
10 
11 
Viable terminal shall be in proximity to public buildings, public markets, 
12 
private markets, commercial districts or commercial establishments and other 
13 
places which the public frequently visits. 
14 
15 
The Municipal or City shall, within 60 days from the effectivity of this Act 
16 
shall cause the conduct of a survey to identify vacant area(s) for terminals in their 
17 
respective locality. , 
18 
For access and safety, specific lanes within the road and routes will be 
19 
designated for use by tricycle, pedicabs and padyak. 
20 
21 
The Sanggunian Panglungsod or Bayan shall, within 90 days after the 
22 
survey and pursuant to the recommendation of the Informal Sector Local 
23 
Development Office, pass an ordinance designating the viable terminal of 
24 
tricycle, pedicab, habal-habal and other members of the small transport as 
25 
specified in Section 7 (a) (v) of this Act. However, no designation of terminal 
26 
shall be conducted without prior c(msultation with the small transport groups, 
27 
the affected inhabitants and other sectors. 
28 
29 
Local Government Units which have already established or designated 
30 
routes and terminals of tricycle and pedicab prior to this Act is deemed to have 
31 
complied with this provision of the Act provided that the aforesaid 
32 
establishment or designation of terminals have been undertaken after 
331 
consultation with the small transport groups, the affected community and other 
34 
sectors or groups. 
35 
36 
SEC 34. Relocation of Terminals. Designated terminals for tricycle and 
37 
pedicab shall not be arbitrarily relocated without prior notice and consultation 
38 
with the small transport groups, the affected community and other sectors or 
39 
groups. Aside from the aforementioned requirements, relocation of terminals 
40 
shall only be effective if the same is done through an ordinance. After the 
41 
enactment of the ordinance relocating terminals for tricycle and pedicab, notice 
42 
of intention to relocate terminals shall be made to all small transport groups and 
43 
the affected community at least sixty (60) days before the actual relocation. 
44 
45 
SEC 35. Policy on Impounding of Vehicle. The tricycle, pedicab, habal-habal 
46 
and other similar mode of transportation shall not be impounded for mere 
47 
violation of license or registration or traffic rules and regulations unless the said 
48 
vehicle was utilized to perpetuate or in the conduct of criminal activity/ies. In 
49 
case of mere violation of traffic rules and regulations, a traffic violation ticket 
50 
shall be issued to the erring driver without impounding the said vehicle. The 
51 
responsible person or officer who violated this Section shall be administratively 
17 


1 
liable under this Act. Nothing herein shall prohibit the aggrieved member of the 
2 
informal sector from initiating a criminal or civil action against the responsible 
3 
person or officer whenever such action is applicable. 
4 
5 
SEC. 36. Penalty for Non-compliance. Failure to implement the foregoing 
6 
requirements and provisions of Sections 61 and 62 shall render the responsible 
7 
official administratively liable pursuant to Republic Act 7160 and other pertinent 
8 
laws and criminally liable whenever applicable. 
9 
10 
11 
Chapter VII 
12 
13 
14 
Security in the Workplace of Home-Based Workers 
15 
SEC 37. Policy on Eviction and Demolition. A home-based worker shall not 
16 
be evicted from his/her home, which is his/her workpl<fce, without valid or 
17 
legal ground as provided in Republic Act 7279. However, in case eviction or 
18' 
demolition is warranted under Section 28 of Republic Act 7279, the same shall be 
19 
conducted after compliance of the following: 
20 
(a) notice upon the affected persons or entities at least thirty (30) days 
21 
prior to the date of eviction or demolition; 
22 
(b) adequate consultations on the matter of resettlement with the duly 
23 
designated representatives of the families to be resettled and the 
24 
affected communities in the areas where they are to be relocated; 
25 
(c) presence of local government officials or their representatives during 
26 
eviction or demolition; 
27 
(d) proper identification of all persons taking part in the demolition; 
28 
(e) execution of eviction or demolition only during regular office hours 
29 
from Mondays to Fridays and during good weather, unless the 
30 
affected families consent otherwise; 
31 
(f) no violence or unreasonable force shall be committed against women, 
32 
children, senior citizens, persons with disabilities and other identities 
33 
similarly situated in the course of eviction or demolition. 
34 
(g) no use of heavy equipment for demolition except for structures that are 
35 
permanent and of concrete materials; 
36 
(h) proper uniforms for members of the Philippine National Police (PNP) 
37 
who shall occupy the first line of law enforcement and observe proper 
38 
disturbance control procedures; and 
39 
(i) adequate relocation, whether temporary or permanent; provided, 
40 
however, that in cases of eviction and demolition pursuant to a court 
41 
order involving underprivileged and homeless citizens, relocation 
42 
shall be undertaken by the local government unit concerned and the 
43 
National Housing Authority (NHA) with the assistance of other 
44 
government agencies within forty-five (45) days from service of notice 
45 
of final judgment by the court, after which period the said order shall 
46 
be executed; provided, further, that should relocation not be possible 
47 
within the said period, financial assistance in the amount equivalent to 
48 
the prevailing minimum daily wage multiplied by sixty (60) days shall 
49 
be extended to the affected families by the local government unit 
50 
concerned. 
51 
18 


SEC. 38. Penalty for Non-compliance. Failure to implement the foregoing 
2, requirements and provision of Section 34 shall render the responsible official 
3 
administratively liable pursuant to Republic Act 7160 and other pertinent laws 
4 
and criminally liable whenever applicable. 
5 
6 
7 
8 
Chapter VIII 
9 
Rights and Benefits of Non-Corporate Construction Workers, Own Account or 
10 
Self-employed Informal Sector Workers 
11 
12 
SEC. 39. Right to Fees Earned. While there is no standard rate for the fees of 
13 
informal sector workers, the fees, in whatever mode it is made, shall not be 
14 
below the applicable minimum wage of the region where they are covered. 
15 
Payment of fees shall be made directly to the Informal Sector worker. 
No 
16 
deductions from said fees shall be made by the person who contracted the 
17 
informal sector worker except those specifically authorized by the latter. The 
18 
expressed written consent of the informal sector worker shall first be secured 
19 
before any deduction is made. 
20 
21 
For non-corporate construction workers, security in the workplace 
22 
primarily refers to the principle of First-Priority Hiring by the Municipal and 
23 
City government for infrastructure and construction activities and projects. 
24 
25 
SEC. 40. Fees Rate. The Bureau of Working Conditions-DOLE shall 
26 
develop and implement capacity building program on the conduct of time and 
27 
motion studies as a basis of standardizing rates of fees. Likewise, the Regional 
28 
Wage Boards shall do the same to determine fees of workers of the informal 
29 
sector micro-entrepreneurs. 
30 
31 
SEC. 41. Access to Education and Training. An Informal Sector worker shall 
32 
not be deprived of formal or non-formal education during day-off or any other 
33 
time mutually agreed by the parties. 
34 
35 
The Department of Education (DepEd) or Commission on Higher 
36 
Education (CHED) shall extend its services of Study-Now, Pay-Later Program to 
37 
the Informal Sector worker and his/her dependents. 
38, 
39 
40 
Chapter IX 
41 
Security in the Workplace of Small Farmers 
42 
43 
SEC. 42. Protection of Agricultural Lands. The Municipality/City in 
44 
coordination with the Department of Agrarian Reform shall protect all 
45 
agricultural lands from conversion or reclassification to non-agricultural uses. 
46 
Special Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not 
47 
be allowed in irrigated and irrigable lands. The Municipality/city shall include 
48 
in their Comprehensive Land Use Plan (CLUP) all the agricultural lands as 
49 
protected zones. 
50 
19 


I 
SEC 43. Local Agriculture Support Services. The Municipality/City shall 
. 2 
provide capacity building training, access to collateral-free and gender-balanced 
3 
credit, marketing assistance and infrastructure development for small farmers 
4 
and agrarian reform beneficiaries within their jurisdiction. LGUs are mandated 
5 
to establish a farmers market or a Bagsakan where the local farmers can directly 
6 
sell their productd to the public. 
7 
8 
SEC 44. Protection for Tenants. The LGUs shall provide assistance and 
9 
protection to tenants in agricultural lands whose landowners are not following 
10 
the provision in RA 3844. There should be no eviction of tenants from the farm if 
11 
the landowner unilaterally denies or terminates the tenancy relationship. The 
12 
LGUs shall make an inventory of all agricultural lands under leasehold. LGUs 
13 
shall enforce the security of tenure of tenants, right of redemption and right of 
14 
first refusal on the subject land. 
IS 
16 
SECA5. Promotion of Sustainable Agriculture. LGUs shall encourage and 
17 
provide incentives to their constituents who want to engage or is engaging in 
18 
sustainable and/or organic farming. All idle private or public lands within their 
19 
jurisdiction shall be cultivated or planted with organic food crops like corn, root 
20 
crops or vegetables. 
21 
22 
23' 
24 
Chapter X 
25 
Security in the Workplace of Marginalized Fisherfolks 
26 
27 
SEC46. Establishment of Fisherfolk Settlement Areas. LGUs in coordination 
28 
with NHA, shall establish and create fisherfolk settlement areas on private or 
29 
public lands, specifically near the fishing grounds, for municipal fisherfolk with 
30 
security of tenure. 
31 
32 
SEC.47. Preference to Marginalized Fisherfolk. The use of the municipal 
33 
waters shall be exclusive for marginalized fisherfolks. Marginalized fisherfolks 
34 
shall be given priority in the application of permits and licenses for the 
35 
establishment of fish pens, fish corrals, fish traps, shellfish culture or similar 
36 
structure for culture of marine products within the municipal waters. There 
37 
should be no demolition of the abovementioned structures owned by 
38 
marginalized fisherfolk without providing advance notice and an alternative 
39 
source of income. 
40 
41 
SEC 48. Requirement for Establishment of Marine Protected Area. Consent 
42 
from the affected fisherfolks shall be required before an area be declared a 
43 
marine protected area or a fish sanctuary by the national or local government 
44 
unit. 
45 
46 
SEC 49. Protection of Mangrove Forest. Conversion of any mangrove forest 
47 
to residential, commercial or industrial use shall be prohibited. LGUs must 
48 
allocate their local funds for mangrove reforestation. 
49 
50 
SEC 50. Regulation of Beach Fronts. LGUs shall ensure that no beach within 
51 
their jurisdiction is exclusive for the use of resort guests or private persons only. 
20 


1 
Beach fronts and foreshores are public domain and may be accessed and used by 
2 
any person especially marginalized fisherfolks. 
3 
4 
5 
6 
Title III 
7 \ 
INSTITUTIONAL MECHANISM 
8 
9 
Chapter I 
10 
Special Allocations for Development Initiatives 
11 
12 
SEC. 51. Special Allocations for Development Initiatives. The national 
13 
government shall allocate at least ten (10%) percent of its annual national budget 
14 
to be appropriated proportionately in accordance with the corresponding 
15 
internal revenue allocation (IRA) of respective local government units. The 
16 
additional ten percent (10%) allocation is separate from the annual and current 
17 
IRA of LGUs. 
18 
19 
The additional ten percent (10%) allocation shall be utilized by the LGUs 
20 
for the implementation of livelihood programs and other social services 
21 
specifically for the informal sector pursuant to the provisions of this Act. Priority 
22 
shall be given to income generating programs for the poorest of the poor. The 
23 
program shall focus on the mobilization of the informal sector with no assets to 
24 
engage in self-employment and income generating activities. 
25 
26 
SEC. 52. Sourcing and Adopting Development Initiatives. Other sources of 
27 
funds to be used exclusively for initiatives addressing the needs and 
28 
empowerment of workers in the informal sector shall be identified in the 
29 
Implementing Rules and Regulations (IRR) of this Act and may include the 
30 
following: 
31 
32 
(a) Government financial institutions and mechanisms such as the Land 
33 
Bank of the Philippines (LBP), Development Bank of the Philippines 
34 
(DBP), National Livelihood Support Fund (NLSF), Quedan Rural 
35 
Credit and Guarantee Corporation (QCGC) shall set aside a specific 
36 
percentage of their loan portfolio to informal sector enterprises and 
37 
shall give priority to women-led informal sector enterprises by 
38 
providing loans at an interest of not more than twelve percent (12%) 
39 
per annum consistent with the spirit of Republic Act 7882. 
The 
40 
aforementioned government financial institutions shall formulate 
. 41 
guidelines within ninety (90) days from the effectivity of this Act to 
42 
facilitate the application of informal sector business or enterprises of 
43 
the aforesaid loan portfolio. 
The guidelines shall provide simple 
\ 
44 
procedure and requirements in the application of informal sector 
45 
business or enterprises in accordance with the framework and 
46 
principles of this Act. 
47 
48 
49 
50 
(b) The Department of Social Welfare and Development (DSWD) shall 
strengthen its Self-Employment Assistance Program (SEAP) to uplift 
and empower women in poverty, particularly those in the informal 
21 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
economy, by adopting an integrated, credit-plus approach to micro-
finance. 
(c) The Small Business Guarantee and Finance Corporation (SBGFC) 
created under Republic Act (RA.) No. 8289 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 the qualified 
worker or business activity or enterprise, under such terms and 
conditions adopted by its Board. 
18 
(d) The Department of Agriculture, through the Agricultural Credit Policy 
19 
Council (ACPC), created pursuant to Republic Act 7607, shall give 
20 
subsidies for the education and training of small farmers on credit 
21 
awareness, loan acquisition and loan repayment. 
Pursuant to 
22 
aforesaid law, a portion of all loanable agricultural funds shall be 
23 
utilized for direct lending to small farmers for their prodUction, 
24 
processing, post harvest and marketing requirements. 
25 
26 
(e) The Department of Trade and Industry (DIl) shall contribute to 
27 
enable the development of business environment that shall include 
28 I 
initiatives such as supply chain and market outlets, and schemes to 
29 
develop SpeCial Credit Window / s to upscale informal sector 
30 
enterprises. 
31 
32 
(f) The Department of Science and Technology (DOST) shall support 
33 
technology-related initiatives for workers in the informal economy. 
34 
35 
SEC. 53. Eligibility for Government Assistance. To qualify for assistance, 
36 
incentives and grants, a worker or business activity or enterprise should be: 
37 
38 
(a) duly registered with the appropriate agency in the LGU where they 
39 
are actively operating and has paid the necessary fees for registration 
40 
and accreditation from the office of the municipal or city treasurer 
41 
concerned; 
42 
43 
(b) one hundred percent (100%) owned and capitalized by Filipino 
44 
citizens, be it single proprietorship or a partnership venture; and 
45 
46 
(c) fall under the above-mentioned sub-categories of Informal Sector; 
47 
48 
SEC. 54. Exclusivity of Government Programs. The government shall ensure 
49 
that programs of financing, grants and other similar incentives shall be 
50 
exclusively extended to an accredited Informal Sector worker and business 
51 
activity or enterprise. 
22 


1 
2 
SEC. 55. Entitlement of Government Procurements. The government shall 
3 
work for a mechanism to ensure that duly accredited Informal Sector worker or 
4 
business activity or enterprise is entitled to a share of at least ten percent (10%) of 
5 
the total value of procurement of goods and services supplied to the government, 
6 
its bureaus, offices and agencies annually: provided, that prices and quality of 
7 
goods offered by the above-mentioned accredited Informal Sector worker or 
8 
business activity or enterprise are competitive. 
9 
10 
SEC. 56. Coordination with LGUs. Pursuant to the provisions of Republic 
11 
Act No. 7160, the local chief executives in coordination with Informal Sector 
12 
representatives and appropriate agencies shall formulate specific plans that will 
13' address the socio-economic needs of the informal sector and incorporate them in 
14 
their respective provincial, city and municipal development plans. 
15 
16 
NGOs whose primary ends are advocacy of issues or realizations of 
17 
specific developmental objectives for the informal sector workers shall be 
18 
accredited as such by the local sanggunian of the LGU where they operate. Such 
19 
accreditation shall afford the aforementioned NGO the right to participate in the 
20 
election of non-government organizations' representative in the local 
21 
development councils of the barangay, municipality, city and province pursuant 
22 
to Section lOS of Republic Act 7160. 
23 
24 
The local development councils shall recognize workers in the informal 
25 
sector as one of the sectors that they may call or form as a sectoral committee to 
26 
assist them in the performance of their functions pursuant to Section 112 of 
27 
Republic Act 7160. 
28 
29 
SEC. 57. Tax Exemption. A duly registered Informal Sector worker or 
30 
business activity or enterprise shall be exempted from all taxes, national or local, 
31 
including all imposts, fees, licenses and permits (including building permits) 
32 
except real property taxes and capital gains from sale of real property (and 
33 
shares of stocks), and duties and taxes on importations. 
34 
35 
36 
37 
38 
39 
Chapter II 
40 
Informal Sector Development Council 
41 
42 
SEC. 5S. Creation of an Informal Sector Development Council. There is hereby 
43 
created an Informal Sector Development Council (ISDC), herein otherwise 
44 
referred to as the Council, which shall be attached to the National Economic 
45 
Development Authority (NEDA) and shall be constituted within sixty (60) days 
46 
after the approval of this Act. 
47 
48 
The Council shall be the primary agency responsible for the promotion, 
49' 
growth and development of the Informal Sector in the country by way of 
50 
facilitating and coordinating national efforts to promote the sector's viability and 
51 
growth, including the provisions of an integrated program for skills 
23 


1 
enhancement, literacy and education, health services, social welfare and services, 
2 
assistance in the tapping of local as well as foreign funds, and other functions 
3 
relative to the attainment of the objectives and policy of this Act. 
4 
5 
The Council shall be separate and distinct from the National Fisheries and 
6 
Aquatic Resources Management Council (NFARMC) created under Republic Act 
7 
8550. 
8 
9 
SEC. 59. Composition. The Council shall be headed by the Director General 
10 
of the National Economic Development Authority (NEDA) as Chairperson, and 
II 
elect from among themselves a Vice-Chairperson to preside over the Council 
12 
meetings in the absence of the Chairperson. The members shall be the following: 
13 
14 
Ex Officio members: 
IS 
16 
(a) Secretary of Department of Trade and Industry (DTI); 
17 
(b) Secretary of Department of Agriculture (DA); 
18 
(c) Secretary of Department of Labor and Employment (DOLE); 
19 
(d) Secretary of Department of Social Welfare and Development (DSWD); 
20 
(e) Secretary of the Department of Interior and Local Government (DILG); 
21 
(f) Secretary of Department of Science and Technology (DOST); 
22 
(g) Lead Convenor of the National Anti-Poverty Commission (NAPC); 
23 
(h) Director General of the Technical Education and Skills Development 
24 
Authority (TESDA); 
25 
(i) Director of the Bureau of Fisheries and Aquatic Resources (BF AR); 
26 
0) Director General of National Statistics Office (NSO); 
27 
(k) Chairperson of the Social Security System (555); 
28 
(1) Chairperson of PhilHealth; 
29 
(m) 
Chairperson of the National Commission on the Role of Filipino 
30 
Women (NCRFW); 
31 
(n) Chairperson of the National Commission on Indigenous People 
32 
(NCIP); 
331 
(0) Chairperson of the Philippine Commission on the Urban Poor (PCUP); 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
Regular members: 
(p) Fifteen (15) representatives from People's Organizations (POs) of 
workers in the informal sector, five (5) each to represent Luzon, 
Visayas and Mindanao with representation of the informal sector 
subgroups of vendors, small transport, marginalized farmers, 
marginalized fisherfolks and home-based worker or non-corporate 
construction workers to be elected in a National Assembly of informal 
sector organizations duly called for that purpose; provided that at 
least fifty percent (50%) of the fifteen (15) representatives are women; 
(q) Six (6) representatives from non-government organizations (NGOs) 
working with Informal Sector, two (2) each to represent Luzon, 
Visayas and Mindanao to be appointed by the Chairperson from 
among those recommended by members of the informal sector; 
24 


1 
provided that at least fifty percent (50%) of the six (6) representatives 
2 
are women; and 
3 
(r) One representative from the private sector at large who has a proven 
4 
track record in catering to the needs of the informal sectors and to be 
5 
appointed by the Chairperson from among those recommended by 
6 
members of the informal sector. 
7 
8 
An ex officio member of the council who possesses a cabinet rank shall 
9 
designate an undersecretary or assistant secretary as his/her permanent alternate 
10 
representative in case he/she fails to attend meetings in the exigency of his/her 
11 
official function in the department. 
12 
13 
The ex officio members of the council shall not have voting rights in any 
14 
matter or issue subjected to voting of the council as this is a right reserved only 
15 
to regular members of the council to ensure that decisions shall reflect the 
16 
sentiments of the informal sector themselves. However, the Chairperson or Vice-
17 
Chairperson, in the absence of the former, shall have the right to vote in case of 
18 I 
tie. 
19 
20 
The regular members of the council may conduct a meeting excluding the 
21 
ex officio members for purposes of voting on matters concerning the informal 
22 
sector. 
23 
24 
Elected 
representatives 
of 
the 
private 
sector, 
non-government 
25 
organizations and informal sector organizations shall serve as regular members 
26 
of the council for a term of three (3) years without re-election. In case of vacancy 
27 
for whatever cause or reason, the Chairperson shall appoint a representative to 
28 
fill the vacancy from among those recommended by members of the informal 
29 
sector. Appointment to any vacancy shall be only for the unexpired term of the 
30 
predecessor. Appointment for the unexpired term shall not bar the appointee 
31 
from running during the next regular election. 
32 
33 
The 
representatives 
from 
the 
private 
sector, 
non-government 
34 
organizations and informal sector organizations' shall be entitled to receive a per 
35 ,diem of two thousand pesos (P2,000.00) per meeting exclusive of expenses for 
36 
transportation and accommodation. The Council shall meet once every two 
37 
months or it may call for special meetings as the need may arise; provided, that 
38 
the frequency of such special meetings shall not exceed four (4) times annually. 
39 
40 
The NEDA shall allocate five million pesos (P5,000,000) out of its savings 
41 
for the initial operating expenses of the Council, after which the Council's budget 
42 
shall be included in the department's annual appropriation. 
43 
44 
The initial election of representatives of the informal sector shall be 
45 
conducted within six (6) months from the effectivity of this Act. 
The 
46 
implementing rules and regulations (IRR) of this Act shall contain the guidelines 
47 
for the formation of members of the council, the election process, the nomination 
48 
process, recall procedures and such other mechanisms to ensure accountability of 
49 
the representatives. 
50 
51 
25 


1 
2 
SEC. 60. Mandate of the Council. The Council shall have the following 
\ 
3 
mandates: 
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 
32 
33 
34 
35 
36 
37 
(a) develop a system of registration and accreditation of members of the 
Informal Sector, with attention to women workers, in accordance with 
the standards and provisions of this Act; 
(b) provide guidelines for the LGUs' implementation 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 Informal Sector workers towards 
institutionalizing comprehensive, rights-based, gender-responsive and 
child friendly programs and policies for the Informal Sector. Towards 
this end, the Council must ensure government capacity to undertake 
and implement this program for the Informal Sector; 
(d) develop rights and gender-based monitoring and evaluation 
mechanisms to ensure that programs and policies are implemented 
effectively and efficiently; and ensure gender-responsiveness of 
interventions toward harnessing full potentials of women Informal 
Sector workers; 
(e) coordinate with LGUs for the development and implementation of 
periodic evaluation of all accredited Informal Sector workers, taking 
into account their accomplishments, capabilities and potentials, the 
results of which shall be used as bases for evaluation, registration, 
accreditation for the grant of awards and incentives, training and 
retraining; 
(f) monitor the income of the LGUs generated from the members of the 
informal sector through the LGUs' periodic report submitted to the 
Council; 
38 \ 
(g) establish a perfonnance appraisal system for all accredited Informal 
39 
Sector workers which shall be the basis for granting or renewal of 
40 
incentives, rewards and recognition, training and development, 
41 
including adequate mechanisms to ensure their active participation 
42 
and involvement; 
43 
44 
(h) ensure effective participation of the Informal Sector workers through 
45 
the establishment of regular consultations at the national, regional and 
46 
provincial level among the organizations of Informal Sector workers to 
47 
determine specific issues and problems affecting their sector and 
48 
monitor/ evaluate implementation of programs and policies. 
49 
50 
(i) establish and develop a centralized and sex-disaggregated database 
51 
system to effectively guide policy formulation relative to the Informal 
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 
Sector workers. The databank shall be available for public use and 
shall include but not be limited to the following: 
i.I. masterlist of workers in the informal sector classified according to 
geography (urban or rural based), premises (home based or non 
home based), gender (male, female), vulnerability (children, 
elderly 
or 
person 
with 
disability), 
industry 
(industrial, 
commercial, services or agricultural), occupation (fisherfolks, 
farmers, 
construction, drivers, vendors, laborers or sales 
personnel), nature of employment (casual, contractual, seasonal, 
permanent/ regular 
or 
pakyaw / commission basis/boundary 
system) and roles/functions (own-account/self-employed or 
subsistence/marginal employment). 
i.2. list of government and non-governmental organizations which 
provide educational, socio-economic and legal services to the 
Informal Sector; 
i.3. sex-disaggregated statistical profile of various Informal Sector 
workers based on age, location, type of work, average monthly 
income, number of hours worked, and other statistical 
information; 
i.4. statistical data on informal enterprises, including capitalization 
and sources of capital, number and status of workers, average 
income; 
i.5. database of the needs and problems of the informal sector in 
general and database of particular needs of women and children in 
the Informal Sector; and 
i.6. compilation of existing laws and programs affecting the interest 
and welfare of the Informal Sector. 
30 
0) develop and implement a communication plan including massive 
31 
information dissemination activities targeting Informal Sector workers 
32 
in various regions towards making them understand and appreciate 
33 
the benefits this Act may bring them; 
34 
35 
(k) make necessary adjustment of the applicable amount of total asset 
36 
value as provided under Section 4 (d) after five (5) years from the 
37 
enactment of this Act and five (5) years thereafter, based on prevailing 
38 
poverty threshold and other established standards in determining 
39 
subsistence level of living; 
40 
41 
(1) formulate, implement, coordinate and monitor all non-financial 
42 
government programs, including fee-based services, to support and 
43 
promote entrepreneurial spirit among the poorest of the poor; and 
44 
45 
(m) 
develop alternative conflict or dispute resolution systems and 
46 
mechanisms, which shall aim to promote dialogue, conciliation and 
47 
mediation while protecting the rights of Informal Sector workers. 
48 
49 
50 
27 


I 
SEC. 61. Authority of the Council to Solicit Assistance form Various Agencies. 
2 
The Council may, from time to time, call upon the participation of any 
3 
government agency or bureaucracy in its deliberations especially when such 
4 
agency is directly or indirectly concerned with and! or affecting the growth and 
5 
development of the Informal Sector in any manner. 
6 
7 , 
SEC. 62. Council Secretariat. The Council, through the Chairperson, shall 
8 
designate, in his capacity as the Director of the NED A, any division or bureau 
9 
within the NEDA to act as the Council Secretariat and shall have the following 
10 
duties and functions: 
11 
12 
(a) to prepare in coordination with LGUs and other local government 
13 
agencies, and recommend annual as well as medium-term Informal 
14 
Sector Enterprise Development Plans for the approval of the Council; 
15 
16 
(b) to coordinate the preparation of position papers and background 
17 
materials for discussion or approval during Council meetings; 
18 
19 
(c) to assist the Council in coordinating and monitoring the policies, 
20 
programs and activities of all government agencies with respect to the 
21 
implementation of this Act; 
22 
23 
(d) to prepare, collate, integrate all inputs to the Council's yearly report on 
24 
the status of the Informal Sector business activities or enterprises in the 
25 
country; 
26 
27 
28 
29 
30 
31 
(e) to submit periodic reports to the Council on the progress and 
accomplishment of its work programs; and 
(f) to perform ad hoc functions as authorized by the Council. 
32 
SEC. 63. Rationalization of Programs. The Council shall conduct continuing 
33 
review of government programs for the poorest of the poor and the Informal 
34 
Sector and submit to Congress and the President a report thereon together with 
35 
its policy recommendations. 
36 
37 
38 
39 
40 
41 
Chapter III 
Informal Sector Local Development Office 
42 
SEC. 64. Informal Sector Local Development Office. The Informal Sector Local 
43, 
Development Office (ISLDO) shall be established in every province, municipality 
44 
and city to enhance the Informal Sector access to assistance and support. 
45 
46 
For this purpose, the DTI, Technical Education and Skills Development 
47 
Authority (TESDA) and Technology and Livelihood and Resource Center (TLRC) 
48 
shall develop livelihood programs that will harness the skills of the Informal 
49 
Sector workers. 
50 
28 


1 
The aforesaid agencies shall conduct human resource development 
2 
program and management in the following areas: 
3 
4 
(a) adequate facilities and resources to render quality social service; 
5 
6 
(b) opportunities for Informal Sector workers to grow and develop their 
7 
potentials and experience a sense of worth and dignity in their work; 
8 
9 
(c) mechanisms for democratic consultations; 
10 
11 
(d) upgrading of working conditions; and 
12 
13 
(e) allocation of funds for the participation of Informal Sector workers in 
14 
skills training and workshops and other similar activities as part of 
15 
their continuing advancement. 
16 
17 
SEC. 65. Functions of Informal Sector Local Development Office. The Informal 
18 
Sector Local Development Office shall have the follOWing functions: 
19 
20 
(a) prepare an over-all development plan and work program that will 
21 
address the needs, rights and capacities of the Informal Sector workers 
22 
and incorporate them in their respective provincial, municipal and city 
23 
development plans; 
24 
25 
(b) in consultation with organizations of Informal Sector workers in the 
26 
area, identify specific needs of the sector and recommend appropriate 
27 
measures to be taken; 
28, 
29 
(c) ensure registration and accreditation of the Informal Sector workers, 
30 
especially women; 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
(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 Informal Sector workers 
for integration and convergence; 
(f) conduct training programs which will provide new ideas to the 
Informal 
Sector 
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, small 
transport, small farmers, marginalized fisherfolks, non-corporate 
construction workers and other skilled workers; 
29 


2 
3 
4 
5 
6 
(i) train pools of community trainers in business counselling and 
awareness-raising on occupational safety and health hazards, risks and 
social security; 
G) support organizing activities among Informal Sector workers; 
7 
(k) establish databanks on human resources and skills registry to be used 
8 
as tools for LGU planning and budgeting; 
9 
10 
(1) provide offices and other necessary resources to support organizing, 
11 
advocacy, training and other activities of local organizations of 
12 
Informal Sector workers; 
13 ' 
14 
(m) 
train Informal Sector workers on negotiation skills and on the 
15 
conduct of time and motion studies to determine proper wages; and 
16 
17 
(n) prOVide services, to include but not limited to counselling and legal 
18 
assistance for the furtherance of this Act, 
19 
20 
(0) ensure that the LGU is capacitated to undertake and implement rights-
21 
based and gender-responsive programs for the Informal Sector. 
22 
23 
The Local Government Units shall annually allocate at least two hundred 
24 
fifty thousand pesos ( P250,000.00) or at least five percent (5%) of the twenty 
25 
percent (20%) Development Fund of their Internal Revenue Allotment or 
26 
whichever is higher for the operations and maintenance of the ISLDO. 
27 
28 
The LGUs shall submit to the ISDC the annual report of disbursement of 
29 
the fund allocations for Informal Sector as specified in this section and section 40 
30 
paragraph (g) of this Act. In case of failure on the part of the LGU to submit the 
31 
annual report to the ISDC, the local chief executive and other officers of the LGU 
32 
shall be held administratively liable. 
33 
34 
SEC. 66. Composition. The local chief executives shall act as the primary 
35 
overseers to the overall operations of ISLDO, while Informal Sector workers shall 
36 
be represented by at least five (5) representatives from POs of IS workers; 
37 
provided that each sub-group (vendor, small transport, small farmers, 
38 
marginalized fishersfolks and home-based workers! non-corporate construction 
39 
workers) shall have one (1) representative each in the ISLDO, whenever 
40 
applicable. However, in case of highly urbanized cities, there shall be ten (10) 
41 
representatives of informal sector in the ISLDO, with two (2) representatives 
42 
coming from each sub-group. 
43 
44 
The representatives shall be elected in a general assembly of each sub-
45 
group duly called for the purpose of election of a representative! s to the ISLDO. 
46 
The elected representatives shall serve as such for a term of three (3) years 
47 
without re-election. In case of vacancy for whatever cause or reason, the local 
48, 
chief executive shall appoint a representative to fill the vacancy from among 
49 
those recommended by members of the informal sector. Appointment to any 
50 
vacancy shall be only for the unexpired term of the predecessor. 
51 
30 


1 
2 
3 
Chapter IV 
4 
Informal Sector Comprehensive and Integrated Plan 
5 
And Inter-Agency Networking 
6 
7 
SEC 67. Comprehensive Plan. The Informal Sector Development Councilor 
8 
ISDC shall be tasked to formulate a Ten-Year Comprehensive and Integrated 
9 
Plan on the impact of globalization to the informal sector. It shall determine and 
10 
recommend the necessary safety nets needed by the informal sector to prepare 
11 
them for the possible effects of globalization. 
12 
13 
SEC 68. Inter-Agency Networking. The NEDA shall provide for and lead 
14 
the inter-agency networking system among the different departments and 
15 
instrumentalities of government, should the same be required in the continuing 
16 
efforts to protect the interests, rights and privileges of Informal Sector workers. 
17 
18 
The Council in cooperation with the DepEd and CHED, shall design a 
19 
comprehensive and integrated program for Informal Sector workers to give them 
20 
opportunity to pursue free education. 
21 
22 
The cooperatives, through the help of the Department of Trade and 
23 
Industry (DTI), TESDA and TLRC shall inform Informal Sector workers of 
24 
opportunities for market and technology access and the availability of livelihood 
25 
training seminars to respond to Informal Sector needs and potentials. 
26 
27 
The DSWD shall, within a period of one (1) year from the date of 
28 
effectivity of this Act, institute a program designed specifically to provide 
29 
emergency services specifically to women and the minor Informal Sector worker 
,30 
who are in need of custody, shelter, counseling, or medical, psychological, legal 
31 
and rehabilitative services. 
32 
33, 
The DSWD shall, upon the recommendation of the DOLE, effect the 
34 
repatriation of minor-aged Informal Sector workers who voluntarily seek 
35 
government protection against abuse and exploitation or upon report or 
36 
discovery of the same. The cost of such repatriation shall be borne by the DSWD. 
37 
The DSWD and DOLE shall formulate the rules and regulations governing the 
38 
emergency repatriation of the same. 
39 
40 
For this purpose, a Repatriation Fund is hereby created and established 
41 
under the administration and control of the DSWD in the amount of five million 
42 
pesos (P5,OOO,OOO) to be taken from the President's Social Fund. 
43 
44 
45 
SEC 69. Consultations with Informal Sector Organizations. The Informal 
46 
Sector Development Councilor ISDC, in coordination with other concerned 
47 
agencies and LGUs through the Informal Sector Local Development Office, shall 
48 
conduct annual national, regional and provincial consultations among the 
49 
Informal Sector organizations to determine the specific issues and problems 
50 
affecting their sector. The Council shall channel Informal Sector concerns to the 
31 


1 
appropriate agencies and provide the necessary recommendations to the 
2 
executive and legislative departments. 
3 
4 
SEC. 70. Establishment of Informal Sector Database. The Council, in 
5 
coordination with the National Statistical Coordination Board or NSCB, shall 
6 
establish and develop a centralized database system to effectively work on policy 
7 
formulation and policy concerns relative to the Informal Sector. The NSCB shall 
8 
regularly update the said centralized database system. The database shall include 
9 
but is not limited to the following: 
10 
11 
(a) masterlist of workers in' the informal sector classified according to 
12 
geography (urban or rural based), 
premises (home-based or non 
13 
home-based), gender (male, female), ethnicity (etcho-linguistic group 
14 
or indigenous community) vulnerability (children, elderly or person 
15 
with disability), industry (industrial, commercial, services 
or 
16 
agricultural), occupation (fisherfolks, farmers, construction, drivers, 
17 
vendors, laborers or sales personnel), nature of employment (casual, 
18 I 
contractual, seasonal, permanent/ regular or pakyaw / commission 
19 
basis/boundary system) and roles/functions (own-account/self-
20 
employed or subsistence/ marginal employment). 
21 
22 
(b) List of government and non-governmental organizations which 
23 
provide educational, socio-economic and legal services to the Informal 
24 
Sector; 
25 
26 
(c) Sex-disaggregated statistical profile of various Informal Sector workers 
27 
based on age, location, type of work, average monthly income, number 
28 
of hours worked, and other statistical information; 
29 
30 
(d) Statistical data on informal enterprises, including capitalization and 
31 
sources of capital, number and status of workers, average income; 
32 
33 
(e) Database of the needs and problems of women and children in the 
34 
Informal Sector nationwide; and 
35 
36 
(f) Compilation of existing laws and programs affecting the interest and 
37 
welfare of the Informal Sector. 
38 
39 
The public shall be allowed to have access to the said data provided that 
40 
they shall abide with the regulations that will be set by the Council. 
41 
42 
SEC. 71. Establishment of a Shared Government Information System for Informal 
43 
Sector. An inter-agency committee, composed of the Department of Agriculture 
44 
(DA), Department of Interior and Local Government (DlLG), the Department of 
45 
Labor and Employment DOLE), the National Statistics Office (NSO), the 
46 
Informal Sector Development Council, the Informal Sector Local Development 
47 
Office, shall be established to implement a shared government information 
48 
system for the informal sector. The inter-agency committee shall initially make 
49 
available to itself the information contained in existing data bases/ files. The 
50 
second phase shall involve linkaging of computer facilities in order to allow free 
51 
flow of data exchanges and sharing among concerned agencies. 
32 


I 
2, 
3 
4 
Title IV 
5 
MISCELLANEOUS AND FINAL PROVISIONS 
6 
7 
SEC. 72. Violation of Prohibited Acts. Any person who commits the 
8 
prohibited acts mentioned in Sections 18, 19, 21, 22, 23 and 24 shall be punished 
9 
by a fine of two hundred thousand (P 200,000) pesos or by imprisonment for six 
10 
(6) years, or both in the discretion of the court. 
11 
12 
Violations of the prohibited act mentioned in Section 20 shall be punished 
13 
pursuant to Republic Act 9208. 
14 
IS 
SEC. 73. Implementing Rules and Regulations. The departments and agencies 
16 
charged with carrying out the provisions of this Act shall, within ninety (90) days 
17 
after the effectivity of this Act, formulate the necessary rules and regulations for 
18 
its effective implementation. 
19 
20 
21 
SEC. 74. Repealing clause. All laws, decrees, executive orders, rules and 
22 
regulations, or parts thereof inconsistent with the provisions of this Act are 
23 
hereby repealed or modified accordingly. 
24 
25 
SEC. 75. 
Separability of provisions. If, for any reason, any section or 
26 
provision of this Act is held unconstitutional or invalid, the other sections or 
27 
provisions hereof shall not be affected thereby. 
28 
29 
SEC. 76. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
30 
from its publication in the Official Gazette or in at least two (2) national 
31 
newspapers of general circulation whichever comes earlier. 
32 
33 
Approved, 
33