Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
16" CONGRESS i J4 JUL 2013
First Regular Session 2:44 FH

HOUSE BILL NO. 1110

Introduced by REP. EVELINA G. ESCUDERO.

EXPLANATORY NOTE

It is the State’s responsibility to give the highest priority to the enactment of
‘measures that protect and enhance the rights of all people to human dignity, reduce
social, economic and political inequalities and remove cultural inequities by diffusing
wealth and political power for the common good and to provide environments at
national and local levels that enable all workers to fully develop into productive and
responsible citizens.

This bill seeks a way forward for the social protection and empowerment of
almost 15 million members of the informal sector by providing access to social
protection benefits and to provide appropriate regulation, due representation in local
‘government 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 government 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 government 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 government
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 (30 percent) of the 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 of local revenues such as market
taxes; they are also vulnerable to kotong.

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 of the Constitution on Social Justice and
Human Rights.

Ratified by the Philippine government in 1974, Article 9 of the
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.

EVELINA G. ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

16” CONGRESS.
First Regular Session

House BiLLNo._ 1410

Introduced by REP. EVELINA G. ESCUDERO

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:

Title I
GENERAL PROVISIONS

Chapter I
Framework and Principles

SEC.1. Short Title. This Act shall be known as the “Magna Carta of Workers in
the Informal Sector.”

SEC. 2. Declaration of Policy. It is hereby declared the policy of the State:

(a) to promote and improve the total well-being of the poorest of the poor
and the marginalized low level income earners who engage in
economic activities under the informal sector;

(b) to nurture and protect the interests of the informal sector by providing
them with adequate and timely social, economic and legal services, as
well as mechanisms that shall protect their rights and promote benefits
that ensure their dignified existence and economic advancement;

(0) to recognize, promote, protect and fulfill the rights of every worker in
the informal sector including the right to self-organization, the right to
decent work, just and humane working conditions, access to social
protection, and the right to represent their organizations in a
continuing process of consultation and dialogue towards maximizing
the provision of a comprehensive package of reforms, interventions,
and services in accordance with their articulated needs and interests,
with focus on the vulnerable groups;

(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;

(f) to promote gender equity and equality through elimination of gender
stereotypes attached to certain enterprise or occupation in the informal
sector and redefining household as not merely male headed but also
female headed;

(g) to protect women workers in the informal sector against gender-based
discrimination, exploitation, violence and abuse;

(h) to advance the women workers’ social, political and reproductive
rights and provide access to social protection and participation in
decision-making bodies;

(i) to recognize ethnicity in the formulation of programs and mechanisms
to promote and protect informal sector's rights;

) to protect vulnerable groups in the informal sector such as children,
elderly, differently-abled persons and indigenous people from
discrimination, exploitation, abuse and harassment;

(&) to progressively eliminate child labor in the informal sector through
the creation of more quality jobs for adults, effective enforcement of
laws against child labor, improved access to universal education and
elimination of cultural factors that tolerate child labor;

(I) to develop the local economy through maximization of the potential
and contribution of the informal sector business activities and
enterprises.

SEC. 3. Framework and Principles. It is the State's responsibility to give the
highest priority to the enactment of measures that protect and enhance the
rights of all people to human dignity, reduce social, economic and political
inequalities and remove cultural inequities by diffusing wealth and political
power for the common good and to provide environments at national and local
levels that enable all workers to fully develop into productive and responsible
citizens. Towards this end, the government shall pursue and implement a
comprehensive, rights-based, participatory and gender responsive framework
for workers in the informal sector that includes but is not limited to:

(a) putting in place policies and programs that will bring marginalized
workers and economic units into the economic and social mainstream
and spur entrepreneurial or growth-oriented informal businesses to
graduate to formal status based on their own pace and self-
determination;

(b) pursuing structural reforms in all relevant levels of government by
creatine committees. special offices for development and protection of


workers in the informal sector and supporting their representational
rights through their organizations;

(0) 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;

(f) exacting responsibility on the part of the informal sector workers
provided that the state shall recognize their rights and put in place
responsive, transparent and accountable mechanisms to ensure
protection, promotion and realization of those rights.

SEC. 4. Definition of Terms. As used in this Act, the following terms shall mean:

(a) hazardous work or condition refers to any activity or circumstance where
a worker is exposed to any risk which constitutes an imminent danger
to his/her health and safety.

(b) ambulant vendors or peddlers refer to vendors who ply their trades in
search of buyers.

(0) street vendors refer to vendors who sell their merchandise on streets
and sidewalk.

(d) informal sector
(1) For purposes of identification and coverage of the law, the informal
sector otherwise known as IS consists of “units”, whether
individual or group, own-account/self-employed or micro-
entrepreneur or livelihood enterprises regularly employing family
members, engaged in the production of goods and services with the
primary objective of generating employment and incomes to the
units concerned in order to earn a living. These units typically
operate at a low level of organization, with little or no division
between labor and capital as factors of production. It consists of
household enterprises that are market and non-market producers
of services.
(2) The category of individuals or organization of people involved in
any business activity or enterprise whose total assets, inclusive of
the capital investments, must not value more than the amount of:

i. One hundred fifty thousand pesos (P150,000.00) for small
transport;


ii, One hundred fifty thousand pesos (P150,000.00) for
marginalized farmers;

iii, One hundred fifty thousand pesos (150,000.00) for
marginalized fisherfolks;

iv. Fifty thousand pesos (P50,000.00) for home-based workers;

v. One hundred fifty thousand pesos (P150,000.00) for small
vendors with designated stalls;

Fifteen thousand pesos (P15,000.00) for ambulant and street

vendors.

vi.

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.

(©) 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.

(g) entrepreneurial or growth oriented informal business refers to those which
show potential in increasing productivity, in hiring workers from
outside the household, in developing new competencies in areas of
production and operations.

(h) informal sector sub-groups- for purposes of this Act, refer to vendors,
small farmers, marginalized fisherfolks, small transport, home-based.
workers and non-corporate construction workers and micro-informals
and self/own account.

(i)small transport refers to non-corporate operators of small marine boat or
vessel for transport, tricycle, pedicab, habal-habal, calesa, kuliglig, balsa or
“trolley” and or community-based mode of transportation

(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
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.

()) marginalized fisherfolks refer to individuals engaged in subsistence
fishing such as but not limited to the use of fishing boats less than


three (3) tons, use of fishing gear which do not require boats, those
who are without fishing boat or gear but share in the first catch of
individuals having fishing boats, those engaged in subsistence
aquaculture, or those engaged in the processing of marine and other
by products in subsistence level. This also includes immediate family
members, especially women, who engage in the preparation of fishing
gears and other needs before fishing activity and who engage in the
sale, barter or exchange of marine products produced. Also included
in this category are fishport workers, porters and batillo.

(k) non-government organizations (NGO) refers to any aggrupation of
individuals, not subsidized by government funds or organized for
religious purposes or partisan politics, and whose primary ends are
advocacy of issues or the realizations of specific developmental
objectives for the community or a sector thereof.

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.

(m) Informal Sector One-Stop Shop Center refers to the office at the local
government units (LGUs) where all transactions needed in the
processing of business permits and other business requirements of the
Informal Sector workers shall be conducted.

(n) Workers of minor age refer to children fifteen (15) to seventeen (17) years

of age who are engaged in productive employment.

Chapter II
Coverage, Qualifications and Accreditation

SEC. 5. Coverage. This Act shall cover members of the informal sector who are
operating, employed or working either as micro-entrepreneur or self-
employed/own account as defined herein. Provided, however, that the
aforesaid micro-entrepreneur, self-employed, qualifies in the minimum
requirements set forth in this Act.

For purposes of this Act, the term “informal sector” shall cover the following:

(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.

(b) own-account/ self-employed:
i. on call domestic and service workers such as live-out cleaners,
laundry men and women and plantsadora;
ii, barbers, manicurists, pedicurists
iii, drivers of tricycle, pedicab, habal-habal, kalesa, kuliglig, “trolley” or
small marine vessel/ boat;
iv. “barkers”, fare collectors, dispatchers and other workers who share
in the income of the non-corporate operators;
v. welders and mechanics;
vi. non-corporate constructions workers such as but not limited to
carpenters, plumbers, electrician, mason or house painters;
vii.appliance technicians including but not limited to television, radio,
air conditioner, computer and refrigeration technicians;
viii. scavengers

SEC. 6. Registration. There shall be a simple standard of registration system in
accordance with the framework and principles of this Act. Informal sector
business activities or enterprises shall, upon registration, pay one hundred pesos
(P100.00) to the municipality or city where they intend to operate during their
initial year of operation. The said fee shall cover the cost of the issuance of the
license to operate. No other fees shall be exacted from the informal sector
business activities or enterprise other than the registration fee as mentioned
above.

Informal sector business activities or enterprises which are in operation and
registered, pursuant to applicable laws or local ordinance, prior to the enactment
of this Act shall be recognized as having complied with the registration
requirement of this Act and shall no longer be required to pay the registration fee
as mentioned in the preceding paragraph.

The registration shall entitle the informal sector business activities or enterprise
to development programs and benefits under this Act.

All local government units shall establish an Informal Sector One-Stop Shop
Center which shall handle all transactions and processing of the business permit
applications within their respective jurisdiction. The Center shall ensure that the
processing of the business permit of informal sector business activities or
enterprises shall be done on the day of their application and the registration shall
be released within thirty six (36) hours upon submission of the complete
requirements based on its checklist. To facilitate efficient and expeditious
registration of informal sector business activities or enterprise, the local
government units shall formulate a uniform and simple checklist of requirements
for registration such us valid proof of identity (barangay clearance, certificate of
residency. etc) and flowchart of the procedure of registration. The local


government must ensure the recognition and registration of women workers in
the informal sector through appropriate activities. The local government unit
shall be responsible in translating the checklist of requirements and flowchart of
procedure of registration in their own local dialect. The local government unit
shall cause the posting of the checklist and flowchart of procedure of registration
in at least three (3) conspicuous areas, preferably public areas, in the community
and cause the publication of the same in the local newspaper if there be any.

Further, the Center shall maintain a comprehensive database of informal sector
business activities and enterprises which have been issued licenses to operate.
The database shall take into account the different sub-classifications of informal
sector in terms of geography (urban or rural based), premises (home-based or
non home-based), gender (male or female), ethnicity (ethno-linguistic group or
indigenous community), 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). The database
shall also indicate those informal businesses which may be categorized as
livelihood enterprises and those entrepreneurial or growth oriented informal
business.

The aforesaid comprehensive database of the informal sector shall be a basis of
the assessment and monitoring of the growth of the informal sector.

SEC. 7. Annual dues. Informal sector business activities or enterprises shall pay
annual dues to the Informal Sector One-Stop Shop Center or Treasurer of the
municipality or city where they are registered and accredited, starting on their
second year of operations, based on the following schedule:

(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
P50,000.00
(0) 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

(€) those with net worth amounting to P 100,000.00 but less 1,250.00
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

A financial statement as proof of the net worth must be provided.
The collected fee shall accrue exclusively to the municipality or city and shall be

used for informal sector development programs approved by the municipal or
city council


Additional Sources of Funds for LGUs - The following shall be tapped by LGUs
as additional sources of funds for informal sector focused development
initiatives:

(a) ninety percent (90%) of fees and annual dues collected from small
transport - for programs for workers in the small transport industry;

(b) ninety percent (90%) of collected fees and annual dues from business
establishments and entrepreneurs falling under the category of
informal sector - for programs focusing on micro-entrepreneurs and
their workers;

(©) ninety percent (90%) of collected fees and annual dues from small
vendors - for programs focusing on vendors;

(d) ninety percent (90%) of fees and annual dues collected from small
farmers - for programs focusing on small farmers;

(e) ninety percent (90%) of fees and annual dues collected from
marginalized fisherfolks - for programs focusing on marginalized
fisherfolks.

(©) ninety percent (90%) of fees and annual dues collected from the
Philippine Amusement and Gaming Corporation (PAGCOR) and
Philippine Charity and Sweepstakes Office (PCSO).

An Informal Sector Development Fund shall be established in every municipality
and city for their supervision and management subject to accounting and
auditing procedures by the Commission on Audit (COA).

SEC. 8. Monitoring of growth. The local government unit in cooperation with the
Informal Sector Local Development Office shall monitor the growth of the
informal sector business activities or enterprises three (3) years after the
enactment of this Act and every three (3) years thereafter.

Title IL
RIGHTS AND BENEFITS OF WORKERS IN THE INFORMAL SECTOR

Chapter I
General Rights

SEC. 9. Basic Rights. The rights of Informal Sector workers shall be actively
protected, promoted and upheld. These include the right to:

(a) self-organization to collectively negotiate with the government and
other entities in the promotion of their welfare and advancement of
their interests free from any political interference or favor;


(b) informed participation in decision-making processes relevant to the
concerns of Informal Sector workers through their legitimate
organizations;

(©) equal treatment before the law;

(d) safe conditions in the workplace that will safeguard their general and
reproductive health;

(e) accessible and affordable medical care and reproductive health
services;

(f) accessible social protection and basic services including but not limited
to health services and low-cost housing to enable Informal Sector
members to have a humane quality of life;

(g) equal access to education, skills training, and economic resources to
develop their self-reliance;

(h) equal access to information technology, especially those affecting their
welfare and interests;

(i) freedom from any form of discrimination, violence, sexual exploitation,
harassment and abuse;

() common workplaces, merchandising centers, and inventory bulk-
buying centers;

(k) freedom from deprivation of property without valid cause and due
process of the law;

(I alternative dispute resolution mechanisms and processes; and

(m) equal access to justice through appropriate mechanisms.

SEC. 10. Rights to Medical Care and Humane Treatment. Every worker has a right to
good quality health care, without any discrimination and within the limits of the
resources available for health and medical care. Attention must be given to
women's health. In the course of such care, the human dignity, culture,
convictions and integrity of the informal sector workers shall be respected.

Any person who engages informal sector workers shall, at all times, treat the
latter in a just and humane manner. In no instance shall abusive language,
physical violence or any act which debases, degrades or demeans the intrinsic
worth and dignity of the worker as a human being be used upon the latter.

SEC.11. Progressive Land Tax. LGUs shall impose a progressive land tax to
landholdings above three (3) hectares. The collected progressive land tax shall be
allocated for the local agriculture support services. Public agricultural lands
within the territory of the LGU and/or all the LGU-owned agricultural lands


beyond five (5) hectares shall be distributed to small landless farmers in their
territory.

SEC. 12. Local Fisheries Support Services. The Municipality/City shall provide
capacity building training, access to collateral-free and gender-balanced credit,
marketing assistance and infrastructure development for marginalized
fisherfolks within their jurisdiction. LGUs are mandated to establish a fishers’
market or a Bagsakan where the marginalized fisherfolks can directly sell their
products to the public.

Chapter II
Empowerment of Informal Sector Workers

SEC.13. Informal Sector Workers’ Organization. Informal Sector workers shall be
encouraged to organize themselves for their mutual aid, benefit and protection
and for other legitimate purposes. Towards this end, the government shall
encourage and assist the Informal Sector workers in the formation of their self-
help organizations, associations, federations and confederations. The
government shall encourage the formation of cooperatives among marginalized
farmers, marginalized fisherfolks and home-based workers, with attention to the
organization and formation of women and other vulnerable identities, in order to
enable members to purchase inputs at lower cost and obtain fair prices for their
produce.

Informal Sector workers engaged in farming, fishing, manufacturing, transport,
retail and services are encouraged to form cooperatives in every municipality
and city to enable members to avail of credit assistance and skills training which
will help improve their quality of life.

SEC. 14. Assistance to Informal Sector Workers’ Organization. All concerned
national government agencies, government financial institutions and local
government units shall include in their plans, programs, projects and activities
efforts that are supportive of the concerns of Informal Sector workers’
organizations.

SEC. 15. Representation in Policy Making Bodies. It shall be the responsibility of the
local government units to ensure the participation of Informal Sector workers in
public decision-making processes. Informal Sector workers have the right to
participate at all levels of decision-making.

The State shall therefore ensure that Informal Sector workers shall be given
mandatory representation in policy-making bodies and other legislative councils.

For this purpose, Sections 446, 457 and 467 of the Republic 7160 is hereby
amended to read as follows:

SEC. 446. Composition.

(a) The sangguniang bayan, the legislative body of the municipality, shall
be composed of the municipal vice mayor as the presiding officer, the
regular sanggunian members, the president of the municipal chapter of
the liga ng mga barangay, the president of the pambayang pederasyon ng
RRS Ps Eee By oe en erp SE he tram oe


(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and, as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of local elections,
one (1) from the agricultural or industrial workers or INFORMAL
SECTOR WORKERS; and one (1) from the other sectors, including the
urban poor, indigenous cultural communities, or disabled persons.

(©) The regular members of the sangguniang bayan and the sectoral
representatives shall be elected in the manner as may be provided for by
law.

XXX

SEC. 457. Composition.

(a) The sanggunian panglungsod, the legislative body of the city, shall be
composed of the city vice mayor as presiding officer, the regular
sanggunian members, the president of the city chapter of the liga ng mga
barangay, the president of the panlungsod na pederasyon ng mga
sangguniang kabataan, and the sectoral representatives, as members.

(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and, as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of local elections,
one (1) from the agricultural or industrial workers or INFORMAL
SECTOR WORKERS; and one (1) from the other sectors, including the
urban poor, indigenous cultural communities, or disabled persons.

(0) The regular members of the sangguniang panlungsod and the sectoral
representatives shall be elected in the manner as may be provided for by
law.

Xxx

SEC. 467. Composition.

(a) The sangguniang panlalawigan, the legislative body of the province,
shall be composed of the provincial vice-governor as presiding officer, the
regular sanggunian members, the president of the provincial chapter of
the liga ng mga barangay, the president of the panlalawigang pederasyon
ng mga sangguniang Kabataan, the president of the provincial federation
of sanggunian members of municipalities and component cities, and the
sectoral representatives, as members.

(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and, as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of local elections,
one (1) from the agricultural or industrial workers or INFORMAL
SECTOR WORKERS; and one (1) from the other sectors, including the
urban poor, indigenous cultural communities, or disabled persons.

(©) The regular members of the sangguniang panlalawigan and the
sectoral representatives shall be elected in the manner as may be provided
for by law.

SEC. 16. Enactment of ordinance. The Local Government units shall enact an
ordinance implementing Section 14 of this Act within three (3) years from the
effectivity thereof.


Chapter III
Social Protection

SEC. 17. Medical/Health Insurance. An accredited Informal Sector worker,
regardless of age and compensation level, shall be covered by 50 percent of the
lowest rate of medical/health insurance under the Philippine Health Insurance
Corporation (PHILHEALTH), and be entitled to all the benefits provided for
under the law. The free medical/health insurance coverage shall also extend to
Informal Sector workers who are contracted/self-employed, as defined herein,
and who are earning below the minimum wage.

SEC. 18. Social Security Coverage. An accredited Informal Sector worker,
regardless of age and compensation levels, shall be covered by social security
and be entitled to all the benefits provided under Republic Act No. 8282;
provided, that the corresponding monthly contributions of small farmers shall be
remitted every six months scheduled every post harvest of farm produce. For
this purpose, Section 22-A of Republic Act 8282 is hereby amended to read as
follows:

SEC. 22-A. Remittance of Contributions of Self-employed Member. Self-
employed members shall remit their monthly contributions quarterly on
such dates and schedules as the Commission may specify through rules
and regulations. _ HOWEVER, FARMERS ENROLLED AS SELF-
EMPLOYED MEMBERS SHALL REMIT THEIR MONTHLY
CONTRIBUTIONS EVERY SIX MONTHS SCHEDULED EVERY POST
HARVEST OF FARM PRODUCE; provided, that no retroactive payment
of contributions shall be allowed, except as provided in this Section.

For purposes of this Section, the Social Security System shall, within
ninety (90) days from the effectivity of this Act, promulgate guidelines for
the mechanism of collecting the aforesaid premiums.

SEC. 19. Alternative Schemes of Providing Social Security. To further widen access to
social security of Informal Sector workers especially in poor urban and rural
areas, indigenous and alternative social protection schemes such as: "damayan',
"tulungan", “saranay”, small mutual benefit associations, and micro-finance
organizations as well as community-based micro-health insurance schemes
initiated or participated by informal sector workers shall be supported and
strengthened by concerned national agencies and LGUs so that these can be
sustained, systematized and upscaled.

An enabling environment for such organizations and schemes shall be
developed. Toward this end, the Insurance Commission (IC) is hereby mandated
to review its policies to make them more supportive of alternative schemes of
providing social security.

Other mechanisms to support such schemes shall be outlined by the
Implementing Rules and Regulation of this Act.


Chapter IV
Prohibited Acts Concerning Engagement of Informal Sector Workers

SEC. 20. Prohibition Against Night Work. Worker of minor age shall not be
allowed to render work between ten o'clock in the evening and six 0’ clock in the
morning of the following day.

SEC. 21. Prohibition Against Work to be Undertaken. Worker of minor age shall not
be allowed to render work beyond their mental and physical capabilities.

SEC, 22. Prohibition Against Bonded Labor. A worker shall not be allowed to use
his/her future services as collateral for any loan or advances made or to be made
by said worker with the person who contracted his/her services. Likewise, no
person shall be allowed to bind the worker to his/her continued employ as a
form of payment for any loan or advances which he/she may have made with
the former. Should there be an outstanding loan incurred and he/she decides to
unilaterally terminate engagement, said loan or advance shall be paid by
him/her to the person who contracted his/her services under the terms or
conditions of their agreement.

SEC. 23. Prohibition Against Labor Sub-Contracting. In no instance shall the person
who engaged the services of an informal sector worker sub-contract the services
of the latter to any third party.

SEC. 24. Prohibition Against Recruitment or Finders’ Fees, Regardless of whether
the worker was sourced either through an employment agency or a third party,
said worker shall neither be charged nor levied a recruitment fee or finder’s fee
by the aforementioned employment agency or third party.

SEC. 25. Prohibition Against Hazardous Work and Conditions. Any worker shall not
be engaged to work in any hazardous work, activity or undertaking, and neither
shall he/she be exposed to hazardous working conditions

For purposes of this Section, hazardous work or conditions shall include, but not
be limited to the following:

(a) any work which requires workers to render services beyond eight (8)
hours without commensurate compensation;

(b) any work or activity which exposes the worker to physical, emotional
or sexual abuse;

(0) any work which involves manual handling or transport of heavy loads;
(a) 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;

(c) any work which requires workers to continuously render service
during late nights;


(6 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;

(i) any other type of work or activity which, by its nature or the
circumstances in which it is carried out, is likely to jeopardize the
health, safety, or morals of the worker; and

(j) any other type of work, activity, condition or undertaking that maybe
hereinafter be defined as hazardous by the Department of Labor and
Employment.

SEC. 26. Prohibition Against Interference and Coercion. Any person is prohibited
from committing any of the following acts of interference and coercion:

(a) to prevent a worker from upholding or exercising his/her rights;

(b) to prevent workers from joining or assisting organizations for
purposes not contrary to law, in order to protect and defend their
mutual interests and to obtain redress of grievances through peaceful
concerted efforts;

(0) to prevent a worker from carrying out his/her duties or functions in an
organization, or to penalize the same for any lawful action performed
in that capacity;

(d) 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

SEC 27. Designation of Workplaces. The Municipality or City, in coordination with
their respective Informal Sector Local Development Office, after consultation
with the vendors. the affected community. and other sectors or groups, shall


identify and designate viable workplaces, and design a system of assigning
spaces to registered vendors. In case the vendors shall prefer to conduct their
business or enterprise within an identified private property, the local
government unit shall negotiate with the owner of the identified private property
for possible vending site and assist the parties in forging a memorandum of
agreement in case they reach such agreement.

Workplaces include markets, vacant areas within the vicinity of markets and
other vacant public spaces which may be designated as allowable vending sites.

The Municipal or City, within 60 days from the effectivity of this Act, shall cause
the conduct of a survey to identify vacant area(s) for vending in their respective
locality.

‘The Sanggunian Panglungsod or Bayan shall, within 90 days after the survey and
pursuant to the recommendation of the Informal Sector Local Development
Office, pass an ordinance designating the workplace or workplaces. No
workplace for vending purposes, however, shall be designated as such without
prior consultation with the vendors, the affected inhabitants and other sectors.

Local Government Units which have already established or designated viable
workplaces for vendors prior to this Act is deemed to have complied with this
provision of the Act provided that the aforesaid establishment or designation of
the viable workplace have been undertaken after consultation with the vendors,
the affected community and other sectors or groups.

SEC 28. Policy on Eviction and Demolition. Registered vendors who have no
permanent or temporary vending site shall not be arbitrarily deprived of their
livelihood by being unjustly ejected from their workplaces nor their stalls
demolished without prior notice and consultation and provision of relocation to
another viable workplace. The local government units, government agencies and
instrumentalities shall not conduct demolition or eviction of the registered
vendors without prior designation of their viable workplace. In case demolition
or eviction is conducted without compliance with the requirements under this
Section, the responsible person or officer who conducted or ordered the conduct
of the same shall be held administratively liable under this Act. Any responsible
person or officer who caused or ordered the destruction of any goods or
products during the demolition or eviction shall also be administratively liable
under this Act. In case demolition or eviction is warranted, the person or officer
who conducts the same shall issue receipt of the itemized products, goods and
other materials seized from the affected registered vendor. Any person or officer
who fails to issue receipt shall be administratively liable under this Act. No
violence or unreasonable force shall be committed against women, children,
senior citizens, persons with disabilities and other identities similarly situated in
the course of eviction or demolition. Nothing herein shall deprive the aggrieved
vendor the right to file criminal or civil action, whenever applicable, against the
responsible person or officer.

SEC 29. Relocation of Vendors. Before any public market is closed, sold or
demolished, all market vendors with stalls and market vendors without stalls
shall first be relocated by the city government or municipal government to a
temporary or new public market. Notice of the intention to close, sell, or


demolish any public market shall be made to all concerned vendors at least sixty
(60) days before the actual transfer or relocation to another market site. Within
the sixty (60)-day period, the city government or municipal government shall
conduct consultations with the affected vendors on the selection of the relocation
site and the implementation of the relocation.

SEC 30. Temporary Vending Site. Pending the designation of a viable vending area
or areas, vendors occupying a public place or places not previously designated as
vending site or sites shall be provided with a viable temporary site or sites by the
city government or municipal government. Notice of temporary transfer shall be
given to the vendors at least fifteen (15) days before the actual transfer. This shall
likewise cover and apply to vendors who are granted with permits but whose
workplaces are withdrawn from the list of allowable vending sites. Any change
in the list of allowable vending sites shall only be done after consultations with
the affected vendors.

SEC 31. Priority in the Assignment of Stalls. In the event that a new public market
is constructed in place of an old market that is closed, sold, or demolished,
market vendors with stalls displaced from their workplaces shall be given
priority in the assignment of stalls in the new market.

SEC. 32. Penalty for Non-compliance. Failure to implement the foregoing
requirements and provisions of Sections 25, 26, 27, 28 and 29 shall render the
responsible official administratively liable pursuant to Republic Act 7160 and
other pertinent laws and criminally liable whenever applicable.

Chapter VI
Security in the Workplace of Small Transport

SEC 33. Designation of Workplaces. The Municipality or City, in coordination with
their respective Informal Sector Local Development Office, after consultation
with the small transport groups, the affected community, and other sectors or
groups, shall identify and designate viable routes and terminal of tricycle and
pedicab within the municipality or city. Municipalities where habal habal is the
only mode of transportation shall also designate viable routes and terminal for
the same.

Viable terminal shall be in proximity to public buildings, public markets, private
markets, commercial districts or commercial establishments and other places
which the public frequently visits.

‘The Municipal or City shall, within 60 days from the effectivity of this Act shall
cause the conduct of a survey to identify vacant area(s) for terminals in their
respective locality.

For access and safety, specific lanes within the road and routes will be
designated for use by tricycle, pedicabs and padyak.

‘The Sanggunian Panglungsod or Bayan shall, within 90 days after the survey and
pursuant to the recommendation of the Informal Sector Local Development
Office, pass an ordinance designating the viable terminal of tricycle, pedicab,


habal-habal and other members of the small transport as specified in Section 7 (a)
(v) of this Act. However, no designation of terminal shall be conducted without
prior consultation with the small transport groups, the affected inhabitants and
other sectors.

Local Government Units which have already established or designated routes
and terminals of tricycle and pedicab prior to this Act is deemed to have
complied with this provision of the Act provided that the aforesaid
establishment or designation of terminals have been undertaken after
consultation with the small transport groups, the affected community and other
sectors or groups.

SEC 34. Relocation of Terminals. Designated terminals for tricycle and pedicab
shall not be arbitrarily relocated without prior notice and consultation with the
small transport groups, the affected community and other sectors or groups.
Aside from the aforementioned requirements, relocation of terminals shall only
be effective if the same is done through an ordinance. After the enactment of the
ordinance relocating terminals for tricycle and pedicab, notice of intention to
relocate terminals shall be made to all small transport groups and the affected
community at least sixty (60) days before the actual relocation.

SEC 35. Policy on Impounding of Vehicle. The tricycle, pedicab, habal-habal and
other similar mode of transportation shall not be impounded for mere violation
of license or registration or traffic rules and regulations unless the said vehicle
was utilized to perpetuate or in the conduct of criminal activity/ies. In case of
mere violation of traffic rules and regulations, a traffic violation ticket shall be
issued to the erring driver without impounding the said vehicle. The responsible
person or officer who violated this Section shall be administratively liable under
this Act. Nothing herein shall prohibit the aggrieved member of the informal
sector from initiating a criminal or civil action against the responsible person or
officer whenever such action is applicable.

SEC. 36. Penalty for Non-compliance. Failure to implement the foregoing
requirements and provisions of Sections 61 and 62 shall render the responsible
official administratively liable pursuant to Republic Act 7160 and other pertinent
laws and criminally liable whenever applicable.

Chapter VII
Security in the Workplace of Home-Based Workers

SEC 37. Policy on Eviction and Demolition. A home-based worker shall not be
evicted from his/her home, which is his/her workplace, without valid or legal
ground as provided in Republic Act 7279. However, in case eviction or
demolition is warranted under Section 28 of Republic Act 7279, the same shall be
conducted after compliance of the following:
(a) notice upon the affected persons or entities at least thirty (30) days
prior to the date of eviction or demolition;
(b) adequate consultations on the matter of resettlement with the duly
designated representatives of the families to be resettled and the
affected communities in the areas where they are to be relocated;


(c) presence of local government officials or their representatives during
eviction or demolition;

(a) proper identification of all persons taking part in the demolition;

(©) execution of eviction or demolition only during regular office hours
from Mondays to Fridays and during good weather, unless the
affected families consent otherwise;

(8) no violence or unreasonable force shall be committed against women,
children, senior citizens, persons with disabilities and other identities
similarly situated in the course of eviction or demolition.

(g) no use of heavy equipment for demolition except for structures that are
permanent and of concrete materials;

(h) proper uniforms for members of the Philippine National Police (PNP)
who shall occupy the first line of law enforcement and observe proper
disturbance control procedures; and
adequate relocation, whether temporary or permanent; provided,
however, that in cases of eviction and demolition pursuant to a court
order involving underprivileged and homeless citizens, relocation
shall be undertaken by the local government unit concerned and the
National Housing Authority (NHA) with the assistance of other
government agencies within forty-five (45) days from service of notice
of final judgment by the court, after which period the said order shall
be executed; provided, further, that should relocation not be possible
within the said period, financial assistance in the amount equivalent to
the prevailing minimum daily wage multiplied by sixty (60) days shall
be extended to the affected families by the local government unit
concerned.

(

SEC. 38. Penalty for Non-compliance. Failure to implement the foregoing
requirements and provision of Section 34 shall render the responsible official
administratively liable pursuant to Republic Act 7160 and other pertinent laws
and criminally liable whenever applicable.

Chapter VIII
Rights and Benefits of Non-Corporate Construction Workers, Own Account or
Self-employed Informal Sector Workers

SEC. 39. Right to Fees Earned. While there is no standard rate for the fees of
informal sector workers, the fees, in whatever mode it is made, shall not be
below the applicable minimum wage of the region where they are covered
Payment of fees shall be made directly to the Informal Sector worker. No
deductions from said fees shall be made by the person who contracted the
informal sector worker except those specifically authorized by the latter. The
expressed written consent of the informal sector worker shall first be secured
before any deduction is made.

For non-corporate construction workers, security in the workplace primarily
refers to the principle of First-Priority Hiring by the Municipal and City
government for infrastructure and construction activities and projects.


SEC. 40. Fees Rate. The Bureau of Working Conditions-DOLE shall develop and
implement capacity building program on the conduct of time and motion studies
as a basis of standardizing rates of fees. Likewise, the Regional Wage Boards
shall do the same to determine fees of workers of the informal sector micro-
entrepreneurs.

SEC. 41. Access to Education and Training. An Informal Sector worker shall not be
deprived of formal or non-formal education during day-off or any other time
mutually agreed by the parties.

The Department of Education (DepEd) or Commission on Higher Education
(CHED) shall extend its services of Study-Now, Pay-Later Program to the
Informal Sector worker and his/her dependents.

Chapter IX
Security in the Workplace of Small Farmers

SEC. 42. Protection of Agricultural Lands. The Municipality /City in coordination
with the Department of Agrarian Reform shall protect all agricultural lands from
conversion or reclassification to non-agricultural uses. Special Economic Zones
Sites, Tourist Sites or Socialized Housing Sites shall not be allowed in irrigated
and irrigable lands. The Municipality /city shall include in their Comprehensive
Land Use Plan (CLUP) all the agricultural lands as protected zones.

SEC. 43. Local Agriculture Support Services. The Municipality/City shall provide
capacity building training, access to collateral-free and gender-balanced credit,
marketing assistance and infrastructure development for small farmers and
agrarian reform beneficiaries within their jurisdiction. LGUs are mandated to
establish a farmers market or a Bagsakan where the local farmers can directly sell
their products to the public.

SEC. 44. Protection for Tenants. The LGUs shall provide assistance and protection
to tenants in agricultural lands whose landowners are not following the
provision in RA 3844. There should be no eviction of tenants from the farm if the
landowner unilaterally denies or terminates the tenancy relationship. The LGUs
shall make an inventory of all agricultural lands under leasehold. LGUs shall
enforce the security of tenure of tenants, right of redemption and right of first
refusal on the subject land.

SEC.45. Promotion of Sustainable Agriculture. LGUs shall encourage and provide
incentives to their constituents who want to engage or is engaging in sustainable
and/or organic farming. All idle private or public lands within their jurisdiction
shall be cultivated or planted with organic food crops like corn, root crops or
vegetables.

Chapter X
Security in the Workplace of Marginalized Fisherfolks


SEC.46, Establishment of Fisherfolk Settlement Areas. LGUs in coordination with
NHA, shall establish and create fisherfolk settlement areas on private or public
lands, specifically near the fishing grounds, for municipal fisherfolk with
security of tenure.

SEC.A7. Preference to Marginalized Fisherfolk. The use of the municipal waters shall
be exclusive for marginalized fisherfolks. Marginalized fisherfolks shall be given
priority in the application of permits and licenses for the establishment of fish
pens, fish corrals, fish traps, shellfish culture or similar structure for culture of
marine products within the municipal waters. There should be no demolition of
the abovementioned structures owned by marginalized fisherfolk without
providing advance notice and an alternative source of income.

SEC. 48. Requirement for Establishment of Marine Protected Area. Consent from the
affected fisherfolks shall be required before an area be declared a marine
protected area or a fish sanctuary by the national or local government unit.

SEC. 49. Protection of Mangrove Forest. Conversion of any mangrove forest to
residential, commercial or industrial use shall be prohibited. LGUs must allocate
their local funds for mangrove reforestation.

SEC. 50. Regulation of Beach Fronts. LGUs shall ensure that no beach within their
jurisdiction is exclusive for the use of resort guests or private persons only. Beach
fronts and foreshores are public domain and may be accessed and used by any
person especially marginalized fisherfolks.

Title II
INSTITUTIONAL MECHANISM

Chapter I
Special Allocations for Development Initiatives

SEC. 51. Special Allocations for Development Initiatives. The national government
shall allocate at least ten (10%) percent of its annual national budget to be
appropriated proportionately in accordance with the corresponding internal
revenue allocation (IRA) of respective local government units. The additional ten
percent (10%) allocation is separate from the annual and current IRA of LGUs.

The additional ten percent (10%) allocation shall be utilized by the LGUs for the
implementation of livelihood programs and other social services specifically for
the informal sector pursuant to the provisions of this Act. Priority shall be given
to income generating programs for the poorest of the poor. The program shall
focus on the mobilization of the informal sector with no assets to engage in self-
employment and income generating activities.

SEC. 52. Sourcing and Adopting Development Initiatives. Other sources of funds to
be used exclusively for initiatives addressing the needs and empowerment of
workers in the informal sector shall be identified in the Implementing Rules and
Regulations (IRR) of this Act and may include the following:


(a) Government financial institutions and mechanisms such as the Land
Bank of the Philippines (LBP), Development Bank of the Philippines
(DBP), National Livelihood Support Fund (NLSF), Quedan Rural
Credit and Guarantee Corporation (QCGC) shall set aside a specific
percentage of their loan portfolio to informal sector enterprises and
shall give priority to women-led informal sector enterprises by
providing loans at an interest of not more than twelve percent (12%)
per annum consistent with the spirit of Republic Act 7882, The
aforementioned government financial institutions shall formulate
guidelines within ninety (90) days from the effectivity of this Act to
facilitate the application of informal sector business or enterprises of
the aforesaid loan portfolio. The guidelines shall provide simple
procedure and requirements in the application of informal sector
business or enterprises in accordance with the framework and
principles of this Act.

(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
economy, by adopting an integrated, credit-plus approach to micro-
finance.

(©) The Small Business Guarantee and Finance Corporation (SBGFC)
created under Republic Act (R.A.) 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.

(d) The Department of Agriculture, through the Agricultural Credit Policy
Council (ACPC), created pursuant to Republic Act 7607, shall give
subsidies for the education and training of small farmers on credit
awareness, loan acquisition and loan repayment. Pursuant. to
aforesaid law, a portion of all loanable agricultural funds shall be
utilized for direct lending to small farmers for their production,
processing, post harvest and marketing requirements.

(e) The Department of Trade and Industry (DTI) shall contribute to
enable the development of business environment that shall include
initiatives such as supply chain and market outlets, and schemes to
develop Special Credit Window/s to upscale informal sector
enterprises.

(The Department of Science and Technology (DOST) shall support
technology-related initiati =



SEC. 53. Eligibility for Government Assistance. To qualify for assistance, incentives
and grants, a worker or business activity or enterprise should be:

(a) duly registered with the appropriate agency in the LGU where they
are actively operating and has paid the necessary fees for registration
and accreditation from the office of the municipal or city treasurer
concerned;

(b) one hundred percent (100%) owned and capitalized by Filipino
citizens, be it single proprietorship or a partnership venture; and

(c) fall under the above-mentioned sub-categories of Informal Sector;

SEC. 54. Exclusivity of Government Programs. The government shall ensure that
programs of financing, grants and other similar incentives shall be exclusively
extended to an accredited Informal Sector worker and business activity or
enterprise.

SEC. 55. Entitlement of Government Procurements. The government shall work for a
mechanism to ensure that duly accredited Informal Sector worker or business
activity or enterprise is entitled to a share of at least ten percent (10%) of the total
value of procurement of goods and services supplied to the government, its
bureaus, offices and agencies annually: provided, that prices and quality of
goods offered by the above-mentioned accredited Informal Sector worker or
business activity or enterprise are competitive.

SEC. 56. Coordination with LGUs. Pursuant to the provisions of Republic Act No.
7160, the local chief executives in coordination with Informal Sector
representatives and appropriate agencies shall formulate specific plans that will
address the socio-economic needs of the informal sector and incorporate them in
their respective provincial, city and municipal development plans.

NGOs whose primary ends are advocacy of issues or realizations of specific
developmental objectives for the informal sector workers shall be accredited as
such by the local sanggunian of the LGU where they operate. Such accreditation
shall afford the aforementioned NGO the right to participate in the election of
non-government organizations’ representative in the local development councils
of the barangay, municipality, city and province pursuant to Section 108 of
Republic Act 7160.

The local development councils shall recognize workers in the informal sector as
one of the sectors that they may call or form as a sectoral committee to assist
them in the performance of their functions pursuant to Section 112 of Republic
Act 7160.

SEC. 57. Tax Exemption. A duly registered Informal Sector worker or business
activity or enterprise shall be exempted from all taxes, national or local,
including all imposts, fees, licenses and permits (including building permits)
except real property taxes and capital gains from sale of real property (and
shares of stocks), and duties and taxes on importations.


Chapter II
Informal Sector Development Council

SEC. 58. Creation of an Informal Sector Development Council. There is hereby
created an Informal Sector Development Council (ISDC), herein otherwise
referred to as the Council, which shall be attached to the National Economic
Development Authority (NEDA) and shall be constituted within sixty (60) days
after the approval of this Act.

The Council shall be the primary agency responsible for the promotion, growth
and development of the Informal Sector in the country by way of facilitating and
coordinating national efforts to promote the sector's viability and growth,
including the provisions of an integrated program for skills enhancement,
literacy and education, health services, social welfare and services, ince in.
the tapping of local as well as foreign funds, and other functions relative to the
attainment of the objectives and policy of this Act.

The Council shall be separate and distinct from the National Fisheries and
Aquatic Resources Management Council (NFARMC) created under Republic Act
8550.

SEC. 59. Composition. The Council shall be headed by the Director General of the
National Economic Development Authority (NEDA) as Chairperson, and elect
from among themselves a Vice-Chairperson to preside over the Council meetings
in the absence of the Chairperson. The members shall be the following:

Ex Officio members:

(a) Secretary of Department of Trade and Industry (DTI);

(b) Secretary of Department of Agriculture (DA);

(0) Secretary of Department of Labor and Employment (DOLE);

(d) Secretary of Department of Social Welfare and Development (DSWD);

(e) Secretary of the Department of Interior and Local Government (DILG);

(f) Secretary of Department of Science and Technology (DOST);

(g) Lead Convenor of the National Anti-Poverty Commission (NAPC);

(h) Director General of the Technical Education and Skills Development
Authority (TESDA);

(i) Director of the Bureau of Fisheries and Aquatic Resources (BFAR);

() Director General of National Statistics Office (NSO);

(k) Chairperson of the Social Security System (SSS);

(1) Chairperson of PhilHealth;

(m) Chairperson of the National Commission on the Role of Filipino
Women (NCREW);

(n) Chairperson of the National Commission on Indigenous People
(NCIP);

(0) Chairperson of the Philippine Commission on the Urban Poor (PCUP);


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;
provided that at least fifty percent (50%) of the six (6) representatives
are women; and

(x) One representative from the private sector at large who has a proven
track record in catering to the needs of the informal sectors and to be
appointed by the Chairperson from among those recommended by
members of the informal sector.

An ex officio member of the council who possesses a cabinet rank shall designate
an undersecretary or assistant secretary as his/her permanent alternate
representative in case he/she fails to attend meetings in the exigency of his/her
official function in the department.

The ex officio members of the council shall not have voting rights in any matter or
issue subjected to voting of the council as this is a right reserved only to regular
members of the council to ensure that decisions shall reflect the sentiments of the
informal sector themselves. However, the Chairperson or Vice-Chairperson, in
the absence of the former, shall have the right to vote in case of tie.

The regular members of the council may conduct a meeting excluding the ex
officio members for purposes of voting on matters concerning the informal sector.

Elected representatives of the private sector, non-government organizations and
informal sector organizations shall serve as regular members of the council for a
term of three (3) years without re-election. In case of vacancy for whatever cause
or reason, the Chairperson shall appoint a representative to fill the vacancy from
among those recommended by members of the informal sector. Appointment to
any vacancy shall be only for the unexpired term of the predecessor.
Appointment for the unexpired term shall not bar the appointee from running
during the next regular election.

The representatives from the private sector, non-government organizations and
informal sector organizations’ shall be entitled to receive a per diem of two
thousand pesos (P2,000.00) per meeting exclusive of expenses for transportation
and accommodation. The Council shall meet once every two months or it may
call for special meetings as the need may arise; provided, that the frequency of
such special meetings shall not exceed four (4) times annually.


The NEDA shall allocate five million pesos (P5,000,000) out of its savings for the
initial operating expenses of the Council, after which the Council's budget shall
be included in the department's annual appropriation.

The initial election of representatives of the informal sector shall be conducted
within six (6) months from the effectivity of this Act. The implementing rules
and regulations (IRR) of this Act shall contain the guidelines for the formation of
members of the council, the election process, the nomination process, recall
procedures and such other mechanisms to ensure accountability of the
representatives.

SEC. 60. Mandate of the Council. The Council shall have the following mandates:

(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;

(0) 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;

() monitor the income of the LGUs generated from the members of the
informal sector through the LGUs’ periodic report submitted to the
Council;

(g) establish a performance appraisal system for all accredited Informal
Sector workers which shall be the basis for granting or renewal of
incentives, rewards and recognition, training and development,


including adequate mechanisms to ensure their active participation
and involvement;

(h) ensure effective participation of the Informal Sector workers through
the establishment of regular consultations at the national, regional and
provincial level among the organizations of Informal Sector workers to
determine specific issues and problems affecting their sector and
monitor/evaluate implementation of programs and policies.

establish and develop a centralized and sex-disaggregated database
system to effectively guide policy formulation relative to the Informal
Sector workers. The databank shall be available for public use and
shall include but not be limited to the following:

i,1. 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).

i2. list of government and non-governmental organizations which
provide educational, socio-economic and legal services to the
Informal Sector;

i3. 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;

i4, statistical data on informal enterprises, including, capitalization
and sources of capital, number and status of workers, average
income;

i5. 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.

@

develop and implement a communication plan including massive
information dissemination activities targeting Informal Sector workers
in various regions towards making them understand and appreciate
the benefits this Act may bring them;

(k) make necessary adjustment of the applicable amount of total asset
value as provided under Section 4 (d) after five (5) years from the
enactment of this Act and five (5) years thereafter, based on prevailing
poverty threshold and other established standards in determining
subsistence level of living;


()) formulate, implement, coordinate and monitor all non-financial
government programs, including fee-based services, to support and
promote entrepreneurial spirit among the poorest of the poor; and

(m) develop alternative conflict or dispute resolution systems and
mechanisms, which shall aim to promote dialogue, conciliation and
mediation while protecting the rights of Informal Sector workers.

SEC. 61. Authority of the Council to Solicit Assistance form Various Agencies. The
Council may, from time to time, call upon the participation of any government
agency or bureaucracy in its deliberations especially when such agency is
directly or indirectly concerned with and/or affecting the growth and
development of the Informal Sector in any manner.

SEC. 62. Council Secretariat. The Council, through the Chairperson, shall
designate, in his capacity as the Director of the NEDA, any division or bureau
within the NEDA to act as the Council Secretariat and shall have the following
duties and functions:

(a) to prepare in coordination with LGUs and other local government
agencies, and recommend annual as well as medium-term Informal
Sector Enterprise Development Plans for the approval of the Council;

(b) to coordinate the preparation of position papers and background
materials for discussion or approval during Council meetings;

(0) to assist the Council in coordinating and monitoring the policies,
programs and activities of all government agencies with respect to the
implementation of this Act;

(d) to prepare, collate, integrate all inputs to the Council's yearly report on
the status of the Informal Sector business activities or enterprises in the
country;

(e) to submit periodic reports to the Council on the progress and
accomplishment of its work programs; and

(6) to perform ad hoc functions as authorized by the Council.

SEC. 63. Rationalization of Programs. The Council shall conduct continuing review
of government programs for the poorest of the poor and the Informal Sector and
submit to Congress and the President a report thereon together with its policy
recommendations.

Chapter IIL
Informal Sector Local Development Office


SEC. 64. Informal Sector Local Development Office. The Informal Sector Local
Development Office (ISLDO) shall be established in every province, municipality
and city to enhance the Informal Sector access to assistance and support.

For this purpose, the DTI, Technical Education and Skills Development
Authority (TESDA) and Technology and Livelihood and Resource Center (TLRC)
shall develop livelihood programs that will harness the skills of the Informal
Sector workers.

The aforesaid agencies shall conduct human resource development program and
management in the following areas:

(a) adequate facilities and resources to render quality social service;

(b) opportunities for Informal Sector workers to grow and develop their
potentials and experience a sense of worth and dignity in their work;

(c) mechanisms for democratic consultations;
(d) upgrading of working conditions; and

(6) allocation of funds for the participation of Informal Sector workers in
skills training and workshops and other similar activities as part of
their continuing advancement.

SEC. 65. Functions of Informal Sector Local Development Office. The Informal Sector
Local Development Office shall have the following functions:

(a) prepare an over-all development plan and work program that will
address the needs, rights and capacities of the Informal Sector workers
and incorporate them in their respective provincial, municipal and city
development plans;

(b) in consultation with organizations of Informal Sector workers in the
area, identify specific needs of the sector and recommend appropriate
measures to be taken;

(o) ensure registration and accreditation of the Informal Sector workers,
especially women;

(d) monitor, assess and evaluate implementation of the plans and
programs as well as the performance of the sector in the areas;

(c) coordinate with other local offices, private sector and other
organizations with existing programs for the Informal Sector workers
for integration and convergence;

(8 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;

(i) train pools of community trainers in business counselling and
awareness-raising on occupational safety and health hazards, risks and
social security;

(j) support organizing activities among Informal Sector workers;

(k) establish databanks on human resources and skills registry to be used
as tools for LGU planning and budgeting;

() provide offices and other necessary resources to support organizing,
advocacy, training and other activities of local organizations of
Informal Sector workers;

(m) train Informal Sector workers on negotiation skills and on the
conduct of time and motion studies to determine proper wages; and

(n) provide services, to include but not limited to counselling and legal
assistance for the furtherance of this Act,

(0) ensure that the LGU is capacitated to undertake and implement rights-
based and gender-responsive programs for the Informal Sector.

The Local Government Units shall annually allocate at least two hundred fifty
thousand pesos ( P250,000.00) or at least five percent (5%) of the twenty percent
(20%) Development Fund of their Internal Revenue Allotment or whichever is
higher for the operations and maintenance of the ISLDO.

The LGUs shall submit to the ISDC the annual report of disbursement of the
fund allocations for Informal Sector as specified in this section and section 40
paragraph (g) of this Act. In case of failure on the part of the LGU to submit the
annual report to the ISDC, the local chief executive and other officers of the LGU
shall be held administratively liable.

SEC. 66. Composition. The local chief executives shall act as the primary overseers
to the overall operations of ISLDO, while Informal Sector workers shall be
represented by at least five (5) representatives from POs of IS workers; provided
that each sub-group (vendor, small transport, small farmers, marginalized
fishersfolks and home-based workers/ non-corporate construction workers) shall
have one (1) representative each in the ISLDO, whenever applicable. However,
in case of highly urbanized cities, there shall be ten (10) representatives of
informal sector in the ISLDO, with two (2) representatives coming from each
sub-group.


The representatives shall be elected in a general assembly of each sub-group duly
called for the purpose of election of a representative/s to the ISLDO. The elected
representatives shall serve as such for a term of three (3) years without re-
election. In case of vacancy for whatever cause or reason, the local chief
executive shall appoint a representative to fill the vacancy from among those
recommended by members of the informal sector. Appointment to any vacancy
shall be only for the unexpired term of the predecessor.

Chapter IV
Informal Sector Comprehensive and Integrated Plan
And Inter-Agency Networking

SEC. 67. Comprehensive Plan. The Informal Sector Development Council or ISDC
shall be tasked to formulate a Ten-Year Comprehensive and Integrated Plan on
the impact of globalization to the informal sector. It shall determine and
recommend the necessary safety nets needed by the informal sector to prepare
them for the possible effects of globalization.

SEC. 68. Inter-Agency Networking. The NEDA shall provide for and lead the inter-
agency networking system among the different departments and
instrumentalities of government, should the same be required in the continuing
efforts to protect the interests, rights and privileges of Informal Sector workers.

The Council in cooperation with the DepEd and CHED, shall design a
comprehensive and integrated program for Informal Sector workers to give them
opportunity to pursue free education.

The cooperatives, through the help of the Department of Trade and Industry
(DTI), TESDA and TLRC shall inform Informal Sector workers of opportunities
for market and technology access and the availability of livelihood training
seminars to respond to Informal Sector needs and potentials.

The DSWD shall, within a period of one (1) year from the date of effectivity of
this Act, institute a program designed specifically to provide emergency services
specifically to women and the minor Informal Sector worker who are in need of
custody, shelter, counseling, or medical, psychological, legal and rehabilitative
services.

The DSWD shall, upon the recommendation of the DOLE, effect the repatriation
of minor-aged Informal Sector workers who voluntarily seek government
protection against abuse and exploitation or upon report or discovery of the
same. The cost of such repatriation shall be borne by the DSWD. The DSWD and
DOLE shall formulate the rules and regulations governing the emergency
repatriation of the same.

For this purpose, a Repatriation Fund is hereby created and established under
the administration and control of the DSWD in the amount of five million pesos
(5,000,000) to be taken from the President's Social Fund.


SEC. 69. Consultations with Informal Sector Organizations. The Informal Sector
Development Council or ISDC, in coordination with other concerned agencies
and LGUs through the Informal Sector Local Development Office, shall conduct
annual national, regional and provincial consultations among the Informal Sector
organizations to determine the specific issues and problems affecting their sector.
The Council shall channel Informal Sector concerns to the appropriate agencies
and provide the necessary recommendations to the executive and legislative
departments.

SEC. 70. Establishment of Informal Sector Database. The Council, in coordination
with the National Statistical Coordination Board or NSCB, shall establish and
develop a centralized database system to effectively work on policy formulation
and policy concerns relative to the Informal Sector. The NSCB shall regularly
update the said centralized database system. The database shall include but is
not limited to the following:

(a) 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), ethnicity (etcho-linguistic group
or indigenous community) 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).

(b) List of government and non-governmental organizations which
provide educational, socio-economic and legal services to the Informal
Sector;

(0) 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;

(d) Statistical data on informal enterprises, including capitalization and
sources of capital, number and status of workers, average income;

(c) Database of the needs and problems of women and children in the
Informal Sector nationwide; and

(8), Compilation of existing laws and programs affecting the interest and
welfare of the Informal Sector.

The public shall be allowed to have access to the said data provided that they
shall abide with the regulations that will be set by the Council.

SEC. 71. Establishment of a Shared Government Information System for Informal Sector.
An inter-agency committee, composed of the Department of Agriculture (DA),
Department of Interior and Local Government (DILG), the Department of Labor
and Employment DOLE), the National Statistics Office (NSO), the Informal
Sector Development Council, the Informal Sector Local Development Office,


shall be established to implement a shared government information system for
the informal sector. The inter-agency committee shall initially make available to
itself the information contained in existing data bases/files. The second phase
shall involve linkaging of computer facilities in order to allow free flow of data
exchanges and sharing among concerned agencies.

Title IV
MISCELLANEOUS AND FINAL PROVISIONS

SEC. 72. Violation of Prohibited Acts. Any person who commits the prohibited acts
mentioned in Sections 18, 19, 21, 22, 23 and 24 shall be punished by a fine of two
hundred thousand (P 200,000) pesos or by imprisonment for six (6) years, or both
in the discretion of the court.

Violations of the prohibited act mentioned in Section 20 shall be punished
pursuant to Republic Act 9208.

SEC. 73. Implementing Rules and Regulations. The departments and agencies
charged with carrying out the provisions of this Act shall, within ninety (90) days
after the effectivity of this Act, formulate the necessary rules and regulations for
its effective implementation.

SEC. 74. Repealing clause, All laws, decrees, executive orders, rules and
regulations, or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 75. Separability of provisions. If, for any reason, any section or provision of
this Act is held unconstitutional or invalid, the other sections or provisions
hereof shall not be affected thereby.

SEC. 76. Effectivity Clause. - This Act shall take effect after fifteen (15) days from
its publication in the Official Gazette or in at least two (2) national newspapers of

general circulation whichever comes earlier.

Approved.