Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES, 
AND ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO THE 
FORMAL ECONOMY 
EXPLANATORY NOTE 
The informal economy, which consists of independent, self-employed, small-scale 
producers and distributors of goods and services, plays a significant and crucial role in 
job and income generation, particularly in situations where there is high unemployment, 
inequality, and poverty. It generally serves as a refuge for individuals who would 
otherwise be unemployed or without a livelihood. The 2008 Informal Sector Survey (2008 
ISS) of the Philippines reported an estimated 10.5 million individuals employed in the 
informal sector.  
While the informal economy provides reasonable economic opportunities to some, most 
workers in the informal economy are exposed to unsafe working conditions; are not 
provided adequate skill training; do not have the security of tenure; have lower and 
irregular incomes, and lack collective bargaining and representation rights. It is then upon 
the State to legislate a Magna Carta for these workers which will recognize, defend, 
protect, promote and fulfill their rights through a continuous process of capacity-building 
and empowerment. 
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
November 7, 2022
8:10 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES, 
AND ORGANIZATIONS IN THE INFORMAL ECONOMY AND PROVIDING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO THE 
FORMAL ECONOMY 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. – This Act shall be known as the “Magna Carta of Workers in the 
Informal Economy.” 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State: 
a) To develop a just and dynamic social order by creating and implementing policies
that promote full employment and equality of employment opportunities for all;
b) To recognize the vital role and contribution of workers in the informal sector in the
country's economy;
c) To promote the total well-being of all workers in the informal economy, provided,
that focus will be on the poorest and most vulnerable of these workers;
d) To ensure their human dignity, economic advancement and access to justice by
providing timely services, including social, political, economic and legal.
e) To recognize, promote, protect, fulfill and ensure the civic and constitutional rights
of workers in the informal economy, including the rights to self -organization, just
and humane working conditions, access to social protection, security of
workplaces; peaceful concerted activities; represent their organizations, and
participate in policy and decision making processes affecting their rights and
benefits and towards the provision of a comprehensive package or reforms,
interventions, and services in accordance with their articulated needs and
interests;
f)
To recognize the roles, give proper value to the contributions of workers in the
informal economy and make them visible in the national and local statistics;
5791


g) To provide venues for dialogue and consultation with informal economy workers
so that their concerns and needs are effectively addressed by lasting and workable
reforms in enforcement of labor standards, advancement of labor relations;
h) To develop and enhance their technical, special, entrepreneurial and other skills
and capabilities necessary towards their empowerment and enjoyment of benefits
and entitlement associated with the formal economy, and becoming more
productive and self -reliant citizens, thereby ensuring participation in mainstream
economic activities based on their own pace and self-determination;
i)
To progressively eliminate child labor through the creation of more quality jobs for
adults, effective enforcement of laws against child labor, elimination of gender-
based discrimination against girl child workers, improved access to universal
education and social protection, and elimination of cultural factors that directly or
indirectly tolerate, and even accept child labor;
j)
To promote gender equity and equality by protecting women workers in the
informal economy against gender-based discrimination, exploitation and abuse,
advancing women's social, economic, political, and reproductive rights, and
improving their access to social protection and participation in decision-making
bodies and processes;
k) To develop the local economy through maximization of the potential and
contribution of informal economy business activities and enterprises;
l)
To encourage and support workers in the informal economy to form self-help
groups, mutual benefit associations, unions, cooperatives, and other forms of self-
organization for their mutual aid, benefit, protection and for other legitimate
purposes;
m) To include the concerns of workers in the informal economy in the policies, plans,
programs, projects and activities of relevant national government agencies,
government financial institutions, and local government units;
n) To advance the autonomy and empowerment of local government units and their
capability to be more responsive to the needs of the workers in informal economy
among their constituents;
o) To protect vulnerable groups in the informal economy such as children, older
persons, differently-abled persons, indigenous peoples, and people living with HIV
and AIDS from discrimination, exploitation, abuse and harassment, as well as from
performing work hazardous to their occupational, physical, mental, emotional,
reproductive and spiritual health; and
p) To integrate ethnicity as a factor in the formulation of programs and mechanisms
to promote and protect rights of workers in the informal economy.
SEC. 3. Framework and Principles. – Article II Section 9 of Philippine Constitution 
declares that “The State shall promote a just and dynamic social order that will ensure 
the prosperity and independence of the nation and free the people from poverty through 
policies that provide adequate social services, promote full employment, a rising standard 
of living, and an improved quality of life for all.” 


 
Therefore, 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; lessen vulnerabilities to risks including those 
brought about by the environmental degradation and natural disasters, remove cultural 
inequalities by redistributing wealth and political power for the common good; and to 
develop an enabling environment conductive to responsible citizenship. Towards this end 
the government shall pursue and implement a comprehensive, rights based, participatory, 
sustainable and gender responsive framework for workers in the informal economy that 
includes but not limited to: 
 
a) Policies and programs that will bring marginalized workers and economic units into 
the economic and social mainstream; and spur entrepreneurial or growth oriented 
informal business to graduate to formal status based on their own pace and self-
determination thereby reducing their vulnerability and exclusion; 
b) Structural reforms in all relevant levels of government by creating committees, 
special offices for development and protection of workers in the informal economy 
and supporting their representational, entrepreneurial and other rights through 
their organizations; 
c) Accessible and affordable social protection, including labor market interventions, 
social insurance coverage, basic health care, occupational safety and health, 
reproductive health services, social welfare programs and safety nets; 
d) Policies, programs, and interventions that will ensure security of workplaces or 
workers in the informal economy towards a work environment that protects their 
rights and enables them to become more productive; 
e) Minimum and simplified regulations to encourage the development and 
entrepreneurial spirit among workers in informal economy; 
f) Mechanisms for the growth and expansion of the various business activities or 
enterprises in the informal economy preferably with the cooperation and support 
of the private sector; 
g) Organization, establishment, strengthening, and expansion of the various 
business activities or enterprises in the informal economy at the barangay level, 
preferably to be unified under municipality-, provincial-, regional- and national- 
level federations or associations; 
h) Applicable Labor standards; 
i) Recourse mechanisms to address violations of informal workers' rights; 
j) Mechanisms and processes that prioritize the provision of services to the poorest 
and the most vulnerable workers; and 
k) Exacting responsibility on the part of the workers in the informal economy to 
comply with their obligations, provided that the State shall put in place responsive, 
transparent and accountable mechanisms and systems that ensure recognition, 
protection, promotion and realization of their rights. 
 
SECTION 4. Definition of Terms. – As used in this Act, the following terms shall mean: 


 
a) Informal Economy – Based on the International Labor Conference (ILC) 2002a, 
this refers to "all economic activities by workers and economic units that are - in 
law or in practices not covered or insufficiently covered by formal arrangements." 
 
The Informal Economy includes a wide variety of activities, enterprises and 
workers. Self - employment consists of employers of informal enterprises who hire 
other workers and own-account workers. Wage-employment includes informal 
employees of both formal and informal firms, subcontracted workers, wage 
workers for households or domestic workers, and wage workers with no fixed 
employer or casual day workers. The working conditions, opportunities and risks 
faced by these different categories of informal workers are very diverse. 
 
Informal workers often experience poor working conditions such as long working 
hours, high level of health hazards, lack of social security, poor earnings, low 
productivity, and lack of legal protection. To a large extent, women and 
disadvantaged groups such as youth, persons living with HIV and AIDS, persons 
with disabilities, indigenous peoples and migrant workers are very diverse. 
 
b) Informal Sectors – as defined by the National Statistics Coordination Board 
(NSCB) Resolution No.15, series of 2002, refers to units engaged in the production 
of goods and services with the primary objective of generating employment and 
incomes to the persons concerned. It consists of households and unincorporated 
enterprises that are market and nonmarket producers of goods, as well as market 
producers of services. 
 
These enterprises are operated by own-account workers, which may employ 
unpaid family workers as well as occasional or seasonally-hired workers. These 
enterprises may also be owned and operated by employers which may employ 
less ten (10) employees on a continuous basis. 
 
c) Workers in the Informal Economy – are hereinafter referred to as WIE include 
but are not limited to the following: 
 
1) 
Small farmers owning land not more than three (3) hectares; 
2) 
Rural and agricultural workers who are tenants, sharecroppers, or laborers; 
3) 
Small fisherfolk/operators owning boat of three (3) gross tons or less and 
other fishing equipment; 
4) 
Fisherfolk who are without fishing equipment and who market their catch; 
5) 
On-call fish workers, porters and batillo; 
6) 
Home-based workers who are independent producers of goods or services; 
7) 
Industrial homeworkers who are workers involved in a system of production 
under which work is carried out at their homes and where materials mayor 
may not be furnished by the employer or contractor. 


8) 
Self-employed who are engaged by other enterprises through subcontracting 
arrangements. 
9) 
Ambulant vendors or peddlers refer to vendors who ply their trades in search 
of buyers; 
10) Street vendors refer to vendor who sell their merchandise on streets and 
sidewalks 
11) Vendors with stalls in public or private markets and those engaged in sari-
sari stores with operating capitalization of not more than one million pesos (P 
1,000,000.00) excluding land and building; 
12) Drivers and workers of modes of transportations on land and sea whether 
motorized or not, including: two (2) wheels such as calesa; three (3) wheels 
such as pedicabs, tricycles; four (4) wheels such as jeepneys and buses; and 
boats one (1) ton and below; 'barkers'; fare collectors; dispatchers; and other 
workers who share income with self-employed or unincorporated operators; 
13) Operators of jeepneys, tricycles, pedicabs, taxi, and other vehicles or 
transportation whose capitalization is not more than one million pesos (P 
1,000,000.00) excluding land and rebuilding; 
14) All unregistered and unprotected domestic workers who are generally not all 
covered by social protection such as maids, cooks, family drivers, gardeners 
and baby-sitters; 
15) Non-corporate construction workers; 
16) Small scale miners doing their own product processing; including those 
involved in small scale mining and quarrying with capitalization of below one 
million pesos (P 1,000,000.00); 
17) Workers of Barangay Micro Business Enterprises (BMBEs); 
18) Non-corporate cargo handlers and allied workers; 
19) Waste pickers and recyclers; 
20) Workers engaged in producing seasonal products; 
21) Own account workers including but not limited to those engaged in the 
maintenance and repair of equipment and appliances, clothing and footwear, 
as well as those providing services such as beauticians, barbers, masseuses; 
22) "On-call" workers in the entertainment, movie, and media industries such as 
but not limited to bit players, stuntmen and women, crew, make-up artists, 
etch.; 
23) Volunteer workers in government and non-government entities who only 
receive allowances or honoraria, including but not limited to barangay health 
workers (BHW), barangay nutrition scholars (BNS), barangay daycare 
workers, and volunteers in non-government or people's organizations. 
24) Unpaid family members, or workers receiving allowances and seasonally 
hired workers who are engaged in micro-enterprises or assists 
unincorporated household enterprises; and 
25) Other similar economic activities that are not illegal, criminal or life 
threatening in nature. 


 
d) Worker – is a general term that refers to both self-employed and paid employee 
covered under the provisions of this Act. 
 
e) Self-employed Worker – refers to any person who has no employer and who 
works for himself/herself by producing goods or services for the market. 
 
f) Worker of Minor Age – refers to a child fifteen (15) to seventeen (17) years of 
age who is engaged in productive employment under a valid contract of 
employment. 
 
g) Employer - refers to a natural person or group or partnership of people or a 
corporation for whom a paid worker renders productive employment or service. 
 
h) Security in the Workplace – refers to the right of every worker to an enabling 
environment that guarantees and protects the spaces for WIE to undertake their 
work, including the right to feel safe in one's own work space, legal security of 
tenure and freedom from discrimination, risk, danger, doubt, anxiety, or fear of 
being removed, evicted or prevented to work. Towards this end, the State shall 
take measures that will ensure legal security of tenure of workplaces, taking into 
account and including the physical environment, services, processes and systems 
needed to enable workers to productively and safety perform their work: 
 
i) Hazardous Work Condition – refers to any activity or circumstance where a 
worker is exposed to any risk which constitutes imminent danger to his or her 
health or safety. This includes potential risks of disability, injury, illness or death 
due to the presence of biologic agents, radiation, chemicals, substances, 
hazardous materials; physical hazards in the work environment; or the nature of 
work, processes performed, or equipment used therein.  
 
j) Working Hours – refers to the period of time within which a worker is required to 
be on call to perform any and all tasks that may be designated, regardless of 
whether there are actual tasks being undertaken. 
 
k) Daily Basis – refers to the per day mode of paying a worker as bilaterally agreed 
upon by the employer and worker. 
 
l) Monthly Basis – refers to the per month mode of paying a worker as bilaterally 
agreed upon by the employer and worker 
 
m) Pakyaw – basis refers to the pre-contracted wholesale mode of paying a worker 
as bilaterally agreed upon by the employer and worker. 
 


n) Social Protection – refers to policies, programs, and all other interventions that 
support communities, households and individuals, both women and men, and 
aimed at: reducing poverty through the promotion and sustenance of livelihood and 
employment; preventing, managing and overcoming risks and vulnerabilities 
throughout their life cycle like protection against hazards and sudden loss of 
income; and realizing their rights as citizens through their full participation in 
decision-making affecting or may affect their access to and control over resources 
necessary to maintain and sustain a decent and secure life. 
 
o) Social protection schemes – refers include labor market interventions, social 
insurance, basic health care, social welfare and safety nets. 
 
p) Community Contracting – refers to the process of concluding an agreement 
between a community and a contracting authority, where by the community (or a 
section thereof) is responsible for the implementation of the work, and therefore, 
functions as contraction. 
 
q) Non-government Organization (NGO) – as defined in R.A. 8425, refers to a duly 
registered nonstock, nonprofit organization focusing on the upliftment of the basic 
or disadvantaged sectors of society by among other, providing advocacy, training, 
community organizing, research, access to resources, and other similar activities. 
 
r) People's Organization (PO) – consistent with R.A. 8425 refers to a self-help 
group belonging to the basic sectors or disadvantaged groups composed of 
members having a common bond of interest who voluntarily join together to 
achieve lawful common goals. 
 
s) Informal Economy Workers' Organization – refers to a group or groups of 
informal sector workers, whether formally constituted or otherwise, that are 
organized with the primary objective of promoting the welfare of workers in informal 
economy. 
 
Chapter II 
Coverage, Qualifications, and Accreditation 
 
SECTION 5. Coverage. – This shall include individuals WIE, as defined in Section 4 of 
this Act. IE business and enterprises, and organization of workers in informal economy.  
 
SECTION 6. Accreditation. – There shall be a simple and standard system of 
accreditation in accordance with the framework and principles of this Act. A one-time 
accreditation fee of not more than Fifty pesos (P50.00) per individual worker and not less 
than One Hundred pesos (P100.00) per IE business activity, enterprise, or organizations 
shall be paid to the municipality or city where they operate or intend to operate.  
 


Any IE worker meeting the necessary accreditation requirements provided for in this Act 
shall be listed in the centralized database system. And shall be issued an identity card 
and a record book that shall list all services and benefits availed of by the WIE. These 
signify eligibility to avail of development programs. Provided, that the poorest and the 
most vulnerable workers shall be given priority.  
 
Qualified IE business activity or enterprise, or organization of WIE. Shall be issued a 
certificate of accreditation, which shall be released within thirty-six (36) hours upon 
submission of complete requirements and payment of accreditation fees.  
 
The concerned LGU shall review, revalidate and reassess such accreditation every two 
(2) years from the date of last accreditation. Renewal of eligibility shall be in accordance 
with the merit and fitness principle, and with the conditions that no child labor shall be 
used and no activities harmful to the environment shall be implemented. A comprehensive 
database of accredited IE business activities and enterprises shall be developed and 
maintained. Such database shall take into account the different sub-classifications in 
terms of geography, premises, sex, ethnicity, vulnerability, occupation, nature of 
employment, and roles and functions. The database shall also indicate informal growth 
oriented informal businesses. Further, the database shall include information on 
payments collected from IE workers, business activities or enterprises and organizations.  
 
The aforesaid comprehensive database shall form part of the bases of assessment and 
monitoring of the growth informal economy. All local government units shall formulate a 
uniform and simple checklist of requirements for registration and establish an IE One-
Stop Shop Center which shall handle all transactions and processing of business permit 
applications within their respective jurisdiction. The Center shall ensure that processing 
of the business permit of the informal sector business activities or enterprises shall be 
expedite within one day.  
 
SECTION 7. Annual Dues. – IE workers and organizations shall pay annual dues to be 
determined by the Local Government Unit (LGU) concerned, in consultation with their 
respective Workers in Informal Economy Local Development Office (WIELDO) referred 
to in Title I, Chapter IX of this Act. In no case shall the annual dues to be paid by IE 
workers be more than Two Hundred Percent (200%) of the prescribed daily minimum 
wage as determined by the Regional Tripartite Wages and Productivity Board (RTWPB) 
in their respective LGU where they are accredited. The accumulated funds from these 
dues shall be used for programs to benefit IE workers, business activities. Enterprises, 
and organizations, as recommended by the WIELDO. Such programs and disbursement 
of funds shall be approved by the concerned LGU Council. 
 
Chapter III 
Rights and Benefits 
 
SECTION 8. Workers in informal economy have the same basic rights accorded to all 
workers as enshrined in the Philippine Constitution, the Labor Code as amended, and 


relevant international human rights instruments and labor Conventions. These include, 
but are limited to the rights to: 
 
a) work, which includes the right to: security at the workplace; make a living by work 
freely chosen or accepted; and avail of technical and vocational guidance and 
training programs; 
b) the enjoyment of just and favorable conditions of work; 
c) a living wage and equal remuneration for work of equal value without distinction of 
any kind, in particular for women who shall be guaranteed equal wages for work 
similar or equivalent to those done by men; 
d) equal opportunity for promotion, subject to no other considerations than seniority 
and competence; 
e) safe and healthy working conditions safeguarding general, occupational and 
reproductive and transport; 
f) access to basic services including but not limited to affordable medical care, 
reproductive and other health services, low-cost housing, water, sanitation, 
electricity and transport; 
g) rest, leisure and reasonable limitation of working hours, and periodic holidays with 
pay, as well as remuneration for public holidays whenever applicable; 
h) maternity and paternity benefits, as provided for by law; 
i) equal access to education, skills training, and economic resources to develop self-
reliance, especially of children and young persons, without any discrimination; 
j) self-organization to collectively negotiate with government and other entities in the 
promotion of their welfare and advancement of their interests free from any political 
interference; 
k) an adequate standard of living for workers and their families, sufficient food, 
clothing and shelter, and the continuous improvement of such standard; 
l) freedom from any form of discrimination, violence, exploitation including sexual 
exploitation, harassment, abuse, and any intrinsic worth and dignity of the worker 
as a human being; 
m) accessible social protection, comprising mainly of, but not limited to labor market 
programs, social security, health care and insurance, and social welfare 
interventions; 
n) equal treatment before the law; 
o) substantial participation in policy and decision-making processes, including access 
to information and other resources relevant to the promotion and protection of their 
rights and welfare through organization that truly represent the sector; 
p) equal access to justice through appropriate mechanisms, including, but not limited 
to alternative dispute resolution processes. 
 
SECTION 10. Organization of workers in informal employment, including unions, 
cooperatives, mutual benefit associations, etc. shall have right to: 
 


a) freely function and act as the representatives of their members in policy and 
decision-making processes, collective negotiations, and other similar bodies and 
processes; 
b) establish national federations or confederations and the right of the latter to form 
or joint international trade-union organization; 
c) access information from concerned government institutions and other parties that 
are pertinent to the protection and promotion of the rights and welfare of their 
members; 
d) own property, real or personal, for the use and benefit of their organization and 
members; 
e) sue and be sued under their registered names; 
f) undertaken all other activities, not contrary to law, designed to benefit their 
organizations and members; and 
g) be accorded preferential option in the awarding of contracts for the undertaking of 
national and local projects funded by either the National or local government units 
including foreign assisted projects. Guidelines for the implementation of this Act 
shall be provided for in the Implementing Rules and Regulations of this Act. 
h) notwithstanding any provision of a general or special law to the contrary, the 
income and properties of legitimate workers' organizations, including grants, 
endowments, gifts, donations and contributions they may receive from fraternal 
and similar organizations, local or foreign, which are actually, directly and 
exclusively used for their lawful purposes, shall be free from taxes, duties and a 
special law expressly repealing this provision. 
 
SECTION 11. Organizing Workers in Informal Economy. – WIE shall be encouraged 
to organize themselves for their mutual benefit and protection, and for other legitimate 
purpose. Towards this end, the government shall encourage and assist these workers in 
the formation of their self-help organizations, associations, federations and 
confederations. Government shall encourage the formation of cooperatives among 
marginalized farmers, fisher folk, manufacturing, transport, retail, services, and home-
based workers to enable members to: purchase inputs at lower cost, obtain fair prices for 
their produce, avail of credit assistance and skills training, and share from collective gains 
of the cooperatives. Attention will be given to organizing women and other vulnerable 
WIE. 
 
SECTION 12. Assistance to Organization of Workers in the Informal Economy. – All 
concerned national government units shall include in their plans, programs, projects and 
activities efforts that will support and address concerns of organizations of WIE. 
 
SECTION 13. Monitoring of Growth. – The local government units (LGUs) which will 
supervise the Workers in Informal Economy Local Development Office (WIELDO) as 
created by Chapter IX of this Act, shall monitor the growth of informal employment 
business activities or enterprises three (3) years after the enactment of this Act and every 
three (3) years thereafter. The centralized database referred to in Section 6 shall be the 
bas is of this monitoring. 


 
Chapter IV 
Prohibited Acts Concerning Engagement of Workers in the Informal Economy 
 
SECTION 14. Prohibition against Recruitment of Finders' Fees. – Regardless of 
whether the workers were sourced either through an employment agency or a third party, 
said workers shall neither be charged nor levied a recruitment fee or finders' fee by the 
aforementioned employment agency or third party. 
 
SECTION 15. Prohibition against Hazardous Work and Conditions. - Workers shall 
not be engaged to do any hazardous work. Activity or undertaking or be exposed to 
hazardous working conditions. 
 
For purposes of this Section, hazardous work or conditions shall include, but shall 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, or threats of such abuse; 
c) Any work which involves manual handling or transport of heavy loads; 
d) Any work in an unhealthy environment which exposes workers to hazardous 
substances, agents or processes, or to temperature, noise levels, or vibrations 
damaging or potentially damaging to their health; 
e) Any work which requires workers to continuously render service during late nights; 
f) any and 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 production, trafficking, or sale of offense or 
crime, particularly for the production, trafficking, or sale of narcotic drugs and 
substance as defined in the Dangerous Drugs Act; 
i) Any other type of work or activity which, by its nature or the circumstances in which 
if carried out, is likely to jeopardize the health, safety, or morals of the workers; 
and 
j) Any other type of work, activity, condition or undertaking that maybe hereinafter be 
defined as hazardous be defined as hazardous by the Department of Labor and 
Employment. 
 
SECTION 16. Prohibition Against Interference and Coercion. – Any person is 
prohibited from committing any of the following acts of interference and coercion: 
 
a) Preventing any worker from upholding or exercising his/her rights; 
b) Preventing any worker from joining or assisting organizations for purposes not 
contrary to law; 


c) preventing any 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) harassing, threatening, coercing or intimidating any worker that result in preventing 
him or her from performing his or her duties and functions; 
e) transferring, penalizing or terminating the services of a wor½er without valid or 
legal ground; and 
 
Chapter V 
Social Protection 
 
Social protection as defined in Section 4 of this Act shall have the following components:  
 
SECTION 17. Labor Market Programs. - The State shall provide adequate resources to 
sustain labor market programs following decent work standards, including emergency and 
guaranteed employment schemes, to ensure livelihood security and prevent or mitigate 
the effects of sudden loss of income, in the context of sustainable development and 
developing local economies in both rural and urban areas. 
 
a) The State shall ensure that these schemes shall be labor-intensive, 
developmental, sustainable, and engaging both women and men, youth and older 
people in building infrastructure, socialized housing, social forestry focusing on the 
planting of traditional trees, organic farming, and food production programs. 
b) LGUs shall encourage and provide incentives to constitutions who want to engage 
or are engaged 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. Relevant LGUs must allocate their local funds 
for mangrove reforestation and prohibit conversion of any mangrove forest to 
residential, commercial or industrial use. 
c) In pursuit of decent work, the State in all its labor market programs shall adopt a 
comprehensive framework and plan on occupational safety and health that covers 
all workers, formal and informal, and implemented at both national and local levels. 
d) The State encourage entrepreneurship among the disadvantaged, especially 
women and young people in informal employment, through simple and efficient 
procedures and the provision of adequate and affordable marketing facilities such 
as those provided for by Section 9 (i) of this Act. 
e) The State through LGUs shall promote community contracting to give preference 
to WIE and their organizations in accessing employment opportunities and related 
benefits. 
 
SECTION 18. Social Security. – In the spirit of promoting social justice the State shall 
endeavor to extend social security protection to all workers and their beneficiaries against 
the hazards of disability, sickness maternity, old age, death, unemployment, and other 
contingencies resulting in loss of income of financial burden. 


 
a) The Social Security System (SSS) shall cover all workers, particularly the working 
poor who mostly belong to the informal economy. The SSS, in consultation with 
informal workers' organization, shall customize products and service for them that 
are accessible and affordable. In the interest of equity, the State shall cover what 
should have been the employer's share for contribution of informal workers had 
they been formally employed. 
b) The SSS shall also develop schemes involving government subsidies and 
sponsorship programs to enable those who cannot afford to enroll and sustain their 
membership. 
c) To achieve universal coverage, the SSS shall facilitate the accreditation of 
cooperatives, women's and people's organizations, trade unions and WIE 
associations, microfinance and micro-insurance institutions and similar groups as 
collecting agents of premiums facilitators of claims with the least burdensome 
conditions and with appropriate incentives. It shall develop effective partnerships 
with these organizations. 
d) The SSS Commission, in the spirit of democracy, transparency, accountability, and 
equity, shall require conducting regular consultations with and provide information 
and reports to its membership. Both formal and informal workers shall be 
represented in the SSS Commission, where gender balance shall also be 
observed. 
e) The SSS in cooperation with other relevant national agencies and LGU's, shall 
support indigenous and community-based social protection schemes such as 
'damayan', 'tulungan', 'saranay', small mutual benefit associations, and micro-
finance organizations initiated or participated in by WIE so that these can be 
sustained, systematized and updated. 
f) An enabling environment for such organizations and schemes shall be developed. 
Toward this end, the Insurance Commission (IC) and other relevant regulatory 
agencies are hereby mandated to review its policies a framework to make them 
more development and supportive of the alternative schemes outlined above. 
 
SECTION 19. Social Security for Volunteers of Government Instrumentalities. – 
Volunteer workers of government instrumentalities as defined in Sec. 4. of this Act, shall 
be covered by the Government Service Insurance System (GSIS) and be entitled to at 
least minimum package of customized products, services and benefits to be designed 
with their participation and with adequate government subsidy. 
 
SECTION 20. Health Care System and Financing. – The State shall establish a 
comprehensive and integrated health care system that guarantees provision of service 
by duly accredited and adequately furnished health facilities, and appropriately educated 
and rationally compensated health personnel to underserved areas all the way down to 
the barangay level.  
 


Provided that, such healthcare system shall include reproductive health services, and 
provided finally, that priority in the delivery of such services shall be the poor and 
marginalized.  
 
The State shall ensure adequate resources to finance healthcare for all, by, among 
others, progressively increasing the budget for health care until it meets the World Health 
Organization recommendation of at least four percent (4%) of the Gross Domestic 
Product.  
 
SECTION 21. Universal Health Insurances. – All citizens of the Philippines shall be 
covered by the National Health Insurance Program as provided for in R.A No. 10606. 
Participation of all stakeholders shall critically review its current operations. It shall 
upgrade to meet the goal of universal coverage, which is affordable, accessible and 
appropriate to the needs of all. 
a) Government subsidies for Phil Health sponsorship programs shall be expanded to 
cover not only the ultra-poor but also the working poor, what should have been 
contributed by employers if they enrolled as formally employed shall be covered 
by government subsidies in the interest of equity. 
 
PhilHealth programs for indigents and the working poor shall be expanded and 
improved in order to develop effective partnerships with organized groups, 
especially those composed and led by informal workers, women. Senior citizens, 
persons with disabilities, person with HIV zed groups with at least 500 members 
shall be allowed to be collecting agents of premiums with incentives. 
 
b) PhilHealth shall immediately extend its services to underserved areas by 
facilitating and accelerating accreditation of hospitals and clinics, and by ensuring 
that theses service providers remain viable through immediate reimbursement. 
 
c) PhilHealth, in accordance with its guiding principles, shall promote maximum 
community in participation and shall recognize the roles and strengths of the Public 
and private sectors healthcare, including people's organization and community-
based health organizations. PhilHealth shall extend appropriate recognition, 
technical assistance, and other forms of material and non-material support to 
mutual benefit associations, microfinance organizations, community-based health 
insurance and other indigenous schemes initiated and participated in by WIE. 
 
d) PhilHealth, with maximum participation of all stakeholders, shall review its benefits 
package in order to cover WIE, senior citizens, indigenous peoples, persons, with 
disabilities persons with HIV and AIDS and other marginalized groups sustainably; 
emphasize preventive measures such as annual physical and medical checkups 
and other outpatient services; coverage of workplace related injuries and illness 
affecting both formal and informal workers, treatment of chronic ailments such as 
hypertension and diabetes; and inclusion of hospital-based reproductive health 
services, commodities, and supplies. 


 
CHAPTER VI 
Security in the Workplace of Workers in Informal Employment 
 
Security in the workplace as defined in Sec. 4 of this Act shall involve the following;  
 
SECTION 22. Designation of Workplaces. – The concerned Local Government Unit 
(LGU), in coordination with their respective WIELDO, and after consultation with WIE, 
affected communities, and other relevant groups, shall identify, and designated viable 
workplaces for informal workers; routes terminals, and specific lanes for small transport 
workers; and design a system of assigning these to accredited informal workers, These 
may include markets and vacant areas near markets, vacant public spaces and other 
spaces which may be designated as allowable workplaces for informal workers.  
 
In the event the concerned WIE prefer to conduct their economic activities within an 
identified private property, the LGU shall negotiate with the owner of the property for the 
possible use of such property as WIE's workplace. The LGU shall likewise encourage and 
assist the parties in forging a possible memorandum of agreement.  
 
The LGU's, within 60 days from the effectivity of this Act, shall conduct a survey to identify 
viable vacant areas suitable for routes, terminals, lanes, productivity and merchandising 
centers workplaces for use of WIE, affected inhabitants’ localities.  
 
The LGU's shall, within 90 days after survey and based on recommendations of WIELDO 
and consultations with concerned WIE, affected inhabitations and relevant sectors, pass 
an ordinance designating such workplaces.  
 
SECTION 23. Protection of Agricultural Lands and their Occupants. – The LGU's, in 
coordination with the Department of Agrarian Reform (DAR) shall protect all agricultural 
lands from conversion or reclassification to non-agricultural uses. Special Economic 
Zones sites, Tourists Sites or Socialized Housing Sites shall not be allowed in irrigated 
and irrigable lands.  
 
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the agricultural 
land as protected zones, The LGU s shall make an inventory of all agricultural lands under 
leasehold and shall enforce the security of tenure or tenants, right if redemption and right 
of first refusal on the subject land. The LGUs shall provide assistance and protection to 
tenants in agricultural lands whose landowners violate the provisions of R.A. No. 3844 or 
the Agricultural Land Reform Code. Tenants shall not be evicted based on unilateral 
termination of the tenancy relationship by landowners. 
 
SECTION 24. Use of Municipal Waters, Beach Fronts, and Foreshores. – Municipal 
water shall be used exclusively for marginalized fisherfolk and allied workers. They shall 
be given priority in the granting of permits and licenses for the establishment of fish pens, 
fish corrals, fish traps, shellfish culture or similar structures for culture of marine products 
within the municipal waters.  


Beach fronts and foreshores are public domain and may be used by any person especially 
marginalized fisherfolk. LGUs shall ensure that no beach within their jurisdiction is 
exclusive for the use of resort guests or private persons.  
 
LGUs, in coordination with the National Housing Authority (NHA), shall establish and 
create fisherfolk settlement areas on private or public lands, especially those near the 
fishing grounds, for municipal fisherfolk with security of tenure.  
 
The consent of the affected fisherfolk shall be required before an area is declared marine 
protected area or a fish sanctuary by the national or local government unit.  
 
SECTION 25. Policy on Eviction and Demolition. – WIE shall not be evicted from their 
homes and workplace without legal ground as provided for in Republic Act 7279 or the 
Urban development and Housing Act 1992. In cases where eviction or demolition is 
warranted under Section 28 of RA 7279, the same shall be conducted upon 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 duty 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; 
d) Proper identification of all persons taking part in demolition; 
e) Execution of eviction or demolition only during regular office hours from Mondays 
to Fridays and during good weather, unless the affected families consent 
otherwise;  
f) 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) Non-use 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  
i) Adequate relocation, whether temporary or permanent providing, however, that in 
cases in 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. 
 
SECTION 26. Policy on Confiscation Materials of Impounding of Vehicles. – In cases 
where demolition or eviction is warranted, the person who conducts the same shall issue 
and itemized receipt of all products, goods, and other materials seized from the affected 
WIE.  
 
Tricycles, pedicabs, and other modes of transportation shall not be impounded for 
violations of license, registration or traffic regulations unless the said vehicles were 
utilized in the conduct of criminal activities. In cases of mere violation of traffic regulations, 
a traffic violation ticket shall be issued to the erring driver without impounding his/her 
vehicle.  
 
SECTION 27. Policy on Relocation of Vending Sites. – Before any public market is 
closed, sold or demolished, all market vendors shall first be relocated by the LGU 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) clays before the 
actual transfer or relocation to another market site. Within the sixty (60) pay period after 
issuance of notice the LGU shall conduct consultations with affected vendors on the 
selection of the relocation site and implementation of the relocation.  
 
Pending the designation of viable vending areas, vendors occupying public places not 
previously designated as vending sites shall be given to the vendors at least fifteen (15) 
clays before the actual transfer. This shall likewise apply to vendors 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 affected 
vendors.  
 
In the event that a new public market is constructed in place of an old one, market vendors 
with stalls displaced from their workplaces shall be given priority in the assignment of 
stalls in the new market.  
 
SECTION 28. Policy on Relocation of Terminals. – Designated terminals for tricycles 
and pedicabs shall not be arbitrarily relocated without prior notice and consultation with 
small transport groups, affected community and other relevant sectors. Provided, that 
relocation of terminals can only be affected through an Ordinance. Provide further, that 
after the enactment of such ordinance, notice of intention to relocate terminals shall be 
made to all small transport groups and affected community at least sixty (60) days before 
the actual relocation. 
  
CHAPTER VII 
Special Allocations of Development Initiatives 
 
SECTION 29. Special Allocations for Development Initiatives. – The development 
initiatives for WIE shall form part of an integrated and convergent plan to address poverty 


and vulnerability. The national and local government units shall work together in support 
of such plan to maximize impact of meager resources. 
 
a) At least ten percent (10%) of the annual national budget shall be appropriated for 
programs and services for WIE. These programs shall be implemented based on 
the principles of merit and equity by the Department of Labor and Employment 
(DOLE) at the national level and the WIELDO at the local level. 
b) For purposes of programs implementation, the DOLE shall manage 30% and 
WIELDO, 70%, of the funds from the annual General Appropriations Act (GAA) as 
provided for in the previous paragraph of this section. 
c) The Implementing Rules and Regulations (IRR) of this Act shall determine 
additional guidelines on, among others, the use of such finances to ensure that 
programs and services truly benefit WIE. 
 
SECTION 30. Sourcing and Adopting Development Initiatives. – Other sources of 
funds to be used exclusively for initiatives addressing the needs and empowerment of 
WIE shall be identified in the 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), and Quedan Rural Credit and Guarantee Corporation shall 
set aside a specific percentage of their loan portfolio to informal economy 
enterprises by providing loans at an interest of not more than twelve percent (12%) 
per annum consistent with the spirit of R.A. 7882, An Act Providing Assistance to 
Women Engaging in Micro and Cottage Enterprises.  
b) The Department of Social Welfare and Development (DSWD) shall strengthen its 
Self-Employment Assistance Program (SEAK) to uplift and empower women in 
poverty, particularly those in the informal economy, by adopting an integrated, 
credit-plus approach to micro-finance. 
c) The Small Business Guarantee and Finance Corporation (SBGFC) created under 
Republic Act (R.A) No. 8289 shall assist in the sourcing and adopting of 
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. Further, 
the Corporation shall guarantee loans obtained by qualified worker or business 
activity or enterprise, under such terms and conditions adopted by its Board. 
d) The Department of Trade and Industry (DTI) shall contribute to enable the 
development of a business environment that shall include initiatives such as supply 
chain and market outlets, and schemes to develop Special Credit Windows to 
upscale informal enterprises. 


e) The Department of Science and Technology (DOST) shall support technology 
related initiatives of workers and enterprises in the informal economy. 
 
SECTION 31. Exclusivity of Government Programs. – The government shall ensure 
that programs of financing, grants and other similar incentives meant to benefit WIE shall 
be exclusively extended to accredited workers, business activities, such as supply chain 
and market outlets, and schemes to develop Special Credit Windows to upscale informal 
enterprises. 
 
SECTION 32. Inclusivity of Benefits. – The exemptions and other benefits provided in 
this Act shall apply for a period of not exceeding ten (10) years from the date of 
accreditation of such IE worker, business activity, enterprise, or organization. 
 
CHAPTER VII 
Informal Economy Development COUNCIL (IEDC) 
 
SECTION 33. Creation of the Informal Economy Development Council (IEDC). – 
There is hereby created an Informal Economy Development Council, here in after referred 
to as the IEDC, which shall be an agency within its structure, programming and other 
processes, including adjusting its human resource capabilities to ensure that WIE focused 
programs will be efficiently and adequately implemented to address the needs of these 
workers. The IEDC shall be constituted within thirty (30) days after the approval of the 
IRR of this Act.  
 
SECTION 34. Mandate and Functions of IEDC. – The mandate and functions of IEDC 
shall include the following: 
 
a) Develop and ensure implementation of a simple system of accreditation for the 
WIE workers, enterprises, and organizations in accordance with the standards and 
provisions of this Act; 
b) Provide guidelines for the implementation of a by LGUs of a fair and credible 
system of evaluation, accreditation, review, and assessment, merit promotion, 
rendering of grant and incentive awards and other policies relative to the effective 
and efficient implementation of this Act; 
c) Develop and ensure implementation of annual, long-term by medium term plans 
for the informal economy, the last of which should form part of the Philippine 
Development Plan towards institutionalizing comprehensive, rights-based, gender 
responsive and child-friendly programs and policies for the IE; 
d) Develop and ensure effective implementation of labor standards covering WIE as 
provided for by this Act; 
e) Develop and ensure implementation of gender-based monitoring and evaluation 
mechanisms, efficient, and effective programs and policies, and gender-
responsiveness of interventions toward harnessing the full potentials of women 
WIE; 


f) Coordinate with LGUs for the Development of Implementation of periodic 
evaluation of al accredited IE members, enterprises and organizations taking into 
account their accomplishments, capabilities and potentials. The results of such 
evaluation shall be uses as basis for accreditation, the grant of awards and 
incentives, training and retraining. 
g) Establish a performance appraisal system for all accredited workers, enterprise 
and organizations in the informal economy which shall be the basis for granting or 
renewal of incentives, rewards and recognition, training and development, 
including adequate mechanisms ensure their active participation and involvement; 
h) Ensure effective participation of WIE and their organizations through the 
establishment of regular consultative mechanisms and processes. Annual 
national, regional and provincial consultations among the organizations of WIE 
shall be conducted to determine specific issues and problems affecting specific 
WIE sub-sectors, and monitor and evaluate implementation of programs and 
policies. 
i) Establish and develop a centralized and sex-disaggregated database system to 
effectively guide policy formulation and implementation relative to the WIE. The 
databank shall be available for public use and shall include but not limited to the 
following: 
 
i. 
Sex-disaggregated statistical profile of WIE based on age, location, type, of 
work, average monthly incomes, work hours, and other relevant statistical 
information; 
ii. 
Sex-disaggregated data on informal enterprises, including capitalization 
and sources of capital, number and status of workers, average incomes; 
iii. 
List and contact information of government and non-government 
organizations (NGOs) that provide educational, socio-economic, legal, and 
other services to WIE; 
iv. 
Inventory of resolved and pending cases involving activities of WIE; 
v. 
Database on the needs and problems of women and children in the informal 
economy nationwide aimed at strengthening policies and programs against 
child labor; and 
vi. 
Compilation of international instruments, existing laws and programs 
affecting the interest and welfare of WIE and information on how these 
workers may use or avail of such instrument's laws and programs. 
 
j) Develop and ensure implementation of a communication plan including massive 
information dissemination activities targeting WIE, their enterprises and 
organizations, in the various regions towards a better understanding and 
appreciation of the benefits this Act may bring them;  
k) Consistent with Section 2 (h) of his Act, to develop and ensure implementation, of 
a comprehensive plan to eliminate child labor; 


l) Monitor and coordinate implementation of policies and programs through the 
Regional IEDC officers; 
m) Coordinate and harmonize all informal economy-related policies, programs, 
projects and activities effectiveness; 
n) Monitor the LGU-genera ted incomes from informal employment through the LGUs' 
periodic report submitted to the Council; 
o) After consultations with WIE organizations, develop and ens4re implementation of 
Policies and programs that will address specific needs and ensure rights of WIE 
subsectors; 
p) Develop and ensure implementation of accessible and just conflict resolution and 
adjudication system and mechanisms to promote dialogue, conciliation, mediation 
and redress of grievances to protect the rights of WIE; and 
q) From time to time, call on the participation of any government agency or 
bureaucracy in its deliberations especially when such agency is directly or 
indirectly concerned with or affecting the growth and development of the IE. 
 
SECTION 35. Composition. – The Chair of the IEDC shall be the Secretary of 
Department of labor and Employment. IEDC members may elect from among themselves 
a Vice-Chair to preside over meetings in the absence of the Chair. The members shall be 
the following: 
 
a) Secretary of the Department of Trade and Industry (DTI) 
b) Director General of the National Economic and Development Authority (NEDA); 
c) Secretary of Department of Agriculture (DA) 
d) Secretary of Department of Social Welfare and Development (DSWD); 
e) Secretary of the Department of Interior and Local Government (DILG); 
f) Chair of the Commission on Human Right (CHR); 
g) Lead Convenor of the National Anti-poverty Commission (NAPC); 
h) Secretary of Department of Transportation and. Communication (DOTC); 
i) Chair of the Social Security System (SSS); 
j) Chair of the Philippine Health Insurance Corporation (PhilHealth); 
k) Chair of the Philippine Commission on Women (PCW); 
l) Secretary of the Department of Public Works and Highways (DPWH) 
m) One (1) representative from the private sector at large, a Filipino citizen proven to 
have been active in assisting informal economy workers; 
n) One (1) representative each from the League of Cities, League of Municipalities, 
League of Provinces and League of Councilors; 
o) The incumbent NAPC Informal Sector Sectoral Representative; 
p) At least 30% of total membership of IEDC shall come from organization of workers 
in the informal economy, as well as People's Organization (POs), NGOs. And 
women's organizations actively working with and for the rights of WIE, provided 
that regional and sub sectoral representation shall be ensured. Provided further, 
that at least 40% of the 30% are women. Guidelines for the selection of 


nongovernment IEDC members, including processes and mechanics shall be 
determined by the IRR of this Act. 
Representative from the private sector, NGOs and WIE organizations shall serve 
as IEDC members for a term of three (3) years without re-election re-election and 
shall be subject to terms and conditions provided for in the IRR.  
 
The private sector, workers in informal economy and women's organizations 
representative to the IEDC shall be entitled to receive per diem of at least Two 
Thousand Five Hundred Pesos (P 2,500.00) per meeting. 
 
SECTION 36. IEDC Meetings – The IEDC shall meeting once every two (2) months and 
may call for special meetings as the need arises; provided, that the frequency of such 
special meeting shall not exceed four (4) times annually.  
 
SECTION 37. Initial IEDC Funds – Ten million pesos (P 10,000,000.00) shall be 
allocated from the Presidential discretionary fund for the initial operation expenses of the 
IEDC.  
 
SECTION 38. Executive Committee of the IEDC – An Executive Committee of nine 
members shall be convened. Besides the Chair and Vice-Chair, the following shall be 
elected by the IEDC members from among themselves or their duty designated alternate 
representatives: four (4) representatives of WIE organizations, one (1) from the different 
leagues of local officials, one (1) from the private sector, and one (1) from a national 
government agency, provided that at least three (3) members of the Executive Committee 
are women. 
 
The Executive Committee shall have the authority to act for and in behalf of IEDC during 
intervals of meetings, and only within the specific authority granted by the IEDC. 
 
SECTION 39. IEDC Secretariat. The following secretariat functions shall be integrated 
in the DOLE secretariat functions: 
 
a) Prepare and recommend, in coordination with LGUs and other government 
agencies, annual, medium-term, and long-term Informal Economy Development 
Plans for approval of the IEDC; 
b) Coordinate the preparation of position papers and background materials for 
discussion or approval during IEDS and its Executive Committee meetings; Assist 
in coordinating and monitoring policies, programs and activities of all government 
c) Agencies with respect to the implementation of this Act; 
d) Prepare, collate, and integrate all inputs to the IEDC's yearly report on the status 
of WIE, business activities or enterprises in the country, or other matters as 
directed by IEDC; 
e) Submit periodic reports to IEDC on the progress and accomplishments of its work 
programs: and 


f) Perform other secretariat and administrative functions as authorized by the IEDC 
or its Executive Committee. 
 
SECTION 40. Regional and Provincial IEDC Officers. – The DOLE Regional and 
Provincial offices (NEDA Resolution) shall have Regional and Provincial IEDC Officers 
who shall be appointed by the IEDC and shall functions that include: monitoring and 
coordinating of IEDC initiatives in the regions and Provinces; evaluation of policies 
programs for workers on informal economy; providing technical assistance in the 
development of local plans and programs; as well as other administrative functions 
necessary for the success of IEDC initiatives in their jurisdiction. 
 
IEDC Regional Officers shall have automatic seats in all Regional Development Councils 
(RDCs).  
 
SECTION 41. Rationalization of Programs. IEDC shall conduct continuing review of 
government programs for the poorest of the poorest of the poor and the WIE and submit 
to Congress and the President of the Philippines a report thereon together with its policy 
recommendations. 
 
Chapter IX 
Workers in Informal Employment Local Development Office 
(WIELDO) 
 
SECTION 42. Workers in Informal Employment Local Development Office 
(WIELDO). – The Workers in Informal Employment Local Development Office (WIELDO) 
shall be established on every city and municipality to perform functions that shall include 
but not limited to the following: 
 
a) Prepare an overall development plan and work program that will address the needs 
of the WIE, prioritizing the poorest and most vulnerable, and incorporate them in 
their respective city, municipal, and barangay development plains; 
b) In consultation with WIE organization in the area, identify specific needs of various 
IE sub sectors and recommend appropriate measures to be taken; 
c) Ensure accreditation of WIE, especially those with assets of PlS0,000 and below, 
to facilitate their immediate access to benefits and services; 
d) Monitor, assess and evaluate implementation of the plans and programs as well 
as the performance of informal workers, their economic activities and their 
organization in the areas; 
e) Lead in the local implementation of Chapter VI (Security in the Workplace of WIE) 
of this Act; 
f) Coordinate with other local offices, private sector and other organization with 
existing programs for VIE towards integration and convergence; 
g) Conduct education and training programs that will: raise their consciousness 
especially on but not limited to workers', women's and children's rights; provide 


new ideas especially to those with the least assets and formal education; and 
develop or upgrade technical, entrepreneurial and leadership skills of WIE; 
h) Provide technical support and facilitate access to credit, market, technology, social 
protection schemes, and training for WIE; 
i) Train pools of community trainers in business counseling and awareness-raising 
on occupational safety and health hazards, risks and social protection; 
j) Support organizing activities among WIE; 
k) Establish sex-disaggregated databank on human resource and skills registry to be 
used as tools for LGU planning and budgeting; 
l) Provide officers and other necessary to support organizing, advocacy, training, and 
other activities of local organizations of WIE; 
m) Conduct specialized training such as negotiation skills and conduct of time and 
motion studies to determine proper wages; 
n) Provide services, which shall include but not be limited to counseling, conciliation, 
mediation, and legal assistance for the furtherance of this Act, prioritizing those 
with the least access to justice; and 
o) Ensure that the LGU is capacitated to undertake and implement rights-based and 
gender-responsive programs for WIE. 
 
In the performance of WIELDO's functions, the principle of preferential treatment to the 
poorest and most vulnerable shall be observed. 
 
SECTION 43. Composition. – The Local Chief Executives (LCEs) shall be the primary 
overseers of WIELDO's operations. The IRR of this Act shall provide for WIELDO's 
composition provided that, informal workers' representatives shall form at least fifty 
percent (50%) of WIELDO's decision-making body: Provided further, that IE 
representative shall not be less than five (5), and provided finally, that at least forty 
percent (40%) of the members of WIELDO's decision-making body are women. Other 
relevant guidelines on WIELDO's operation shall be included in the IRR of this Act.  
 
SECTION 44. Local Government Unit Informal Economy Development Fund (LGU-
IEDF). – An Informal Economy Development fund shall be established by every 
municipality and city. Such fund will be supervised and managed by the concerned LGU 
through the WIELDO but subject to audit by the Commission on Audit (COA). 
 
For the establishment and initial operations of WIELDO, each LGU shall allocate at least 
three percent (3%) of their twenty percent (20%) Development Fund from their IRA. 
Thereafter, the LGU-IEDF shall be funded using: 
 
a) Accreditation and registration fees and annual dues paid by individual workers in 
the informal economy, their livelihood activities, and organizations and 
associations as provided for by Sections 6 and 7 of this Act; 
b) Shares from the 70% of the at least 10% funds from the Annual General 
Appropriations Act as provided for by Chapter VII, Section 29 (a) and (b) of this 
Act; and 


c) Annual allocations from LGUs Development Fund the percentage of which shall 
be determined by LGUs. 
 
Following the principle of merit and equity, LGUs that fulfill such allocations may receive 
additional assistance from the national government as recommended by IEDC; provided 
that they have formulated their local development plan for WIE. 
 
SECTION 45. Additional Sources of Funds -The following may be tapped by LGUs as 
additional sources of funds for WIELDO initiatives; 
 
a) At least fifty percent (50%) of fees and annual dues collected from small transport 
- for programs for workers in the small transport industry; 
b) At least fifty percent (50%) 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; 
c) At least fifty percent (50%) of collected fees and annual dues from small vendors 
for programs focusing on vendors; 
d) At least fifty percent (50%) of fees and annual dues collected from marginalized 
fisher folks - for programs focusing on fisher folk; 
e) At least fifty percent (50%) of funds from the Philippine Amusement and Gaming 
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO). 
 
TITLE II 
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY 
 
Chapter I 
Requisites for Employment Agreement 
 
SECTION 46. Minimum Standard. – All working arrangements entered into by WIE shall 
be in accordance with the minimum applicable labor and social standards as contained 
in Title II of this Act.  
 
These standards shall be strictly enforced in informal economic enterprises supplying or 
doing outsourcing work for exporters, investors-locators in export processing zones or 
industrial parks licensed by the Export Processing Zone, and domestic formal sector 
manufacturers and retailers-distributors.  
 
For workers engaged by independent informal economic enterprises, DOLE, in 
coordination with IEDC shall audit the capacity of these enterprises to comply with these 
standards. Those incapable of meeting the standards shall be assisted to upgrade their 
capacity to improve their businesses, as well as the capacity comply with relevant labor 
and social standards.  
 
SECTION 47. Provisions of Employment Agreement. – The employment contract shall 
be in written form. However, the absence of a written agreement does not mean the 


absence of an employment relationship. As a matter of right, WIE can insist on a written 
agreement based on minimum standards.  
 
In case wherein minors are contracted with, the said negotiated contract spall be signed 
on his/her behalf by either parent or legal guardian, with the expressed written consent of 
the said minor.  
 
In cases wherein illiterate workers are contracted with, the said contact shall be explained 
to the worker concerned and attested to by a representative from the LGU or an elected 
Barangay official in the city or municipality where the worker is designated to work. 
 
Each of the contracting parties shall be provided with a full set of the duly signed 
agreement which shall include the following basic provisions: 
a) Working arrangement mode; 
b) Period/ duration of employment; 
c) Compensation, which shall not be below the minimum standard, and mode of 
payment; 
d) Computation of contributions for social security and medical insurance including or 
those who fall under DOLE Department Order No.5; 
e) Duties and responsibility; 
f) Working hours and day-off schedules; 
g) Living quarters or sleeping arrangements (for live-in workers); 
h) The date, term and mode of delivery or date of completion; 
i) Minimum of twenty percent (20%) down payment for labor cost and services and 
minimum of 50% for inventory of raw materials used in the production for 
homeworkers per DOLE Order NO.5. 
 
Minimum standard compensative referred to above shall be determined by the Regional 
Wage Board per subsector of WIE. In the case of piece rates, this shall be based on the 
conduct of time and motion studies facilitated by the DOLE Bureau of Working Conditions. 
While there are no standardized rates for workers in informal economy jobs, the basis of 
computation shall not be below the below the applicable minimum wage of the region 
where they are covered.  
 
Enforcement of the standard compensation rates shall be in accordance with the 
capability to comply as explained in Section 40 of this Act.  
 
SECTION 48. Payment of Wages. – Payment derived from negotiated agreement shall 
be made directly to the workers. No deductions from such payments shall be made by 
the employer except those provided for by law. The expressed written consent of the 
worker shall be first secured before deduction are made.  
 
No parent, guardian relative or any other person shall be allowed to take a loan against 
the compensation of his or her relative-worker without the express written consent of the 


concerned worker. Neither shall a worker of minor age be mandated to work in payment 
of loan or liability incurred by a parent, guardian, relative, or any other person. 
 
Chapter II 
Workers of Minor Age 
 
SECTION 49. Allowable Employment of Workers of Minor Age. – Children fifteen (15) 
1284 years up to seventeen (17) years of age may be employed; provided, that parental 
or legal guardian consent is presented and attested to by any representative of the LGU 
or duty elected Barangay 1286 official where the work is to be done. In no instance, 
however, shall children below fifteen (15) years old be engaged in whatever form of 
productive services.  
 
Further, workers of minor age shall not be allowed to render work for more than four (4) 
hours, five (5) days a week, exclusive of one (1) hour break for breakfast or lunch 
whichever is applicable. 
 
TITLE III 
FINAL PROVISIONS 
 
SECTION 50. Penal Provisions. –  
a) Any person who shall willfully interfere with, restrain or coerce a worker in the 
exercise of his or her or her rights or shall in any manner commit any act in violation 
of any of the provisions of this Act shall, upon conviction, be punished by a fine of 
not less than Twenty Thousand Pesos (P 20,000.00) or imprisonment of one (1) 
to six (6) years or both fine and imprisonment at the discretion of the Court. 
b) If the offender is a public official or employee, the Court, in addition to the penalties 
provided in the preceding paragraph, may impose the additional penalty of 
disqualification from public office. 
c) Any person who violates Section 26 of this Act (Policy on Confiscation of Materials 
and Impounding of Vehicles) shall be liable. Nothing here in shall prohibit the 
aggrieved WIE from initiating a criminal or civil action against the responsible 
person or officer applicability. 
d) Failure to implement Sections 27 and 28 of this Act (Policy on Relocation of 
Vending Sites and Policy on Relocation of Terminals) shall render the responsible 
officials administratively liable pursuant to Republic Act No. 7160 and other 
pertinent laws and criminally liable whenever applicable. 
e) In the case of a private institution/company found to be violating any provision of 
this Act, it shall be subject to additional penalty ranging from suspension or 
revocation of business license at the discretion of the Court. 
 
SECTION 51. Implementing Rules and Regulations (IRR). – The implementing Rules 
and Regulations (IRR) of this Act shall be formulated by a drafting committee composed 
of representatives of offices that will be members of IEDC and WIE organizations 
provided that, at least 30% of the drafting committee members shall come from the latter 


and provided further that at least 30% of committee members are women. Said committee 
shall start work on IRR within three (3) months after the effectivity of this Act and finish 
within six (6) months thereafter. 
 
SECTION 52. Separability Clause. – If any provision of this Act is declared 
unconstitutional or invalid, the provisions not affected shall continue to be in full force and 
effect.  
 
SECTION 53. Repealing Clause. – All laws, decrees, orders, rules and regulations, or 
other issuances inconsistent with the provisions of this Act are hereby repealed, 
amended, or modified accordingly.  
 
SECTION 54. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in at least two (2) newspaper of general circulation. 
 
Approved,