NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  9736 
EXPLANATORY NOTE 
According to the Bureau of Workers with Special Concerns (BWSC), the Philippines is 
currently among the last two member-countries of the Association of Southeast Asian Nations 
(Asean) without any formal statistical indicator for informal sector workers. 
As evidence of this, the Philippine Statistics Authority (PSA) was able to conduct an Informal 
Sector Survey (ISS) in 2008 specifically to measure the number of informal sector workers. 
And there have been no survey ever since. However, the PSA would usually estimate the 
number of informal sector workers in the country using data of self-employed workers and 
unpaid family workers from its regular Labor Force Survey. 
Data from the PSA would show that as of 2017, the estimated number of self-employed 
workers nationwide is around 14.3 million, or around 35.1 percent of the 40.83 million work 
force for that period. 
This shows how neglected the informal sector is. 
According to the International Labor Organization (ILO), the informal economy consists of 
independent, self-employed small-scale producers and distributors of goods and services. 
Workers in this sector are for the most part not covered by the country’s labor laws and 
regulations.  Proxy measurement and related indicators for the informal economy include the 
vulnerable employment rate, defined as the share of own-account and contributing family 
workers in total employment. 
Despite this, the contribution of the informal sector workers to our economy cannot be 
overstated.  
In view of the foregoing, immediate passage of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
December 12, 2023
2:37 pm


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  9736 
AN ACT 
PROVIDING FOR A MAGNA CARTA OF WORKERS IN INFORMAL ECONOMY, 
INSTITUTIONALIZING MECHANISMS FOR IMPLEMENTATION THEREOF AND FOR 
OTHER PURPOSES 
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 
Economy". 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State: 
(a) To promote the total well-being of all workers in the informal economy, provided, that focus
will be on the poorest and most vulnerable of these workers;
(b)To ensure their human dignity, economic advancement and access to justice by providing
timely services, including social, political, economic, and legal;
(c) To recognize, promote, protect, 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 of reforms, interventions, and services in accordance with their articulated needs and
interests;
(d) 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;
(e) 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;
(f) To develop and enhance their technical, special, entrepreneurial and other skills and
capabilities necessary towards their empowerment and enjoyment of benefits and
entitlements 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;


 
 (g) 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; 
 
(h) 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. 
 
(i) To develop the local economy through maximization of the potential and contribution of 
informal economy business activities and enterprises; 
 
(j) 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; 
 
(k) 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; 
 
(l) 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; 
 
(m) 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 
 
(n) 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 the 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 al " 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; redL1ce social, economic and political inequalities; lessen vulnerabilities to 
risks including those brought about by environmental degradation and natural disasters, 
remove cultural inequities by redistributing wealth and political power for the common good; 
and to develop an enabling environment conducive 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 of 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 of ingenuity and 
entrepreneurial spirit among workers in informal economy; 
 
(f) Mechanisms for the growth and expansion of the various business act1v1ties 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, 
 
(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 
 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall mean: 
 
Informal Economy - Based on the International Labor Conference (ILC) 2002, this refers to "all 
economic activities by workers and economic units that are - in law or in practice - not covered 
or insufficiently covered by formal arrangements• 
 
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 
overrepresented in the informal economy. 
 


Informal Sector, as defined by the National Statistical 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 non-market 
producers of goods, as well as market producers of services. 
 
These enterprises are operated by own-account workers, which may employ unpaid family 
workers as well as occasional or seasonally-hired workers. 
 
These enterprises may also be owned and operated by employers which may employ less 
than ten (10) employees on a continuous basis. 
 
Workers in the Informal Economy - 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 boats 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 - workers involved in a system of production under which work is 
carried out at their homes and where materials may or 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 vendors who sell their merchandise on streets and sidewalks; 
11. vendors with stalls in public and private markets and those engaged in sari-sari stores with 
operating capitalization of not more than one million pesos (P1,000,000 00) excluding land 
and building; 
12. drivers and workers of modes of transportation 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 (P1,000,000.00) excluding land and  building; 
14. all unregistered and unprotected domestic workers who are generally not 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 (P1,000,000.00); 
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, etc.; 
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 tanod, barangay nutrition scholars (SNS), 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 assist unincorporated household enterprises; and 
25. other similar economic activities that are not illegal, criminal or life-threatening in nature. 
 
Worker is a general term that refers to both self-employed and paid employees covered under 
the provisions of this Act. 
 
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. 
 
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. 
 
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. 
 
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 safely perform their work. 
 
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. 
 
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. 
 
Daily Basis refers to the per day mode of paying a worker as bilaterally agreed upon by the 
employer and worker. 
 
Monthly Basis refers to the per month mode of paying a worker as bilaterally agreed upon by 
the employer and worker 
 
"Pakyaw" Basis refers to the pre-contracted wholesale mode of paying a worker as bilaterally 
agreed upon by the employer and worker. 
 
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. 
 
Social protection schemes shall include labor market interventions, social insurance, basic 
health care, social welfare and safety nets. 


 
Community Contracting refers to the process of concluding an agreement between a 
community and a contracting authority, whereby the community (or a section thereof) is 
responsible for the implementation of the work, and therefore, functions as contractor. 
 
Non-Government Organization (NGO), as defined in R.A. No. 8425, refers to a duly registered 
non-stock, nonprofit organization focusing on the upliftment of the basic or disadvantaged 
sectors of society by among others, providing advocacy, training, community organizing, 
research, access to resources, and other similar activities. 
 
People's Organization (PO), consistent with R.A. No. 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. 
 
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 
 
SEC. 5. Coverage. This shall include individual WIE, as defined in Section 4 of this Act, IE 
businesses and enterprises, and organizations of workers in informal economy 
 
SEC. 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 businesses 
which may be categorized as livelihood enterprises, and entrepreneurial or 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 growtt1 of 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 expedited within one day. 


 
SEC. 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 regions or provinces. 
These annual dues shall accrue to the 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 Ill RIGHTS AND BENEFITS 
 
SEC. 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 not 
limited to the rights to: 
 
(a) work, which includes the rights 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 health; 
(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 form of inhumane treatment which debases, 
degrades or demeans the 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, healthcare 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 organizations that truly represent the sector; 
(p) equal access to justice though appropriate mechanisms, including, but not limited to, 
alternative dispute resolution processes. 
 


SEC. 9. Own account workers as well as marginal economic enterprises in the informal 
economy, being the working poor's primary instruments to address and overcome poverty, 
shall be accorded by the State the following rights: 
(a) infrastructure support such as farm to market roads, common, affordable and secure 
workplaces and facilities, merchandising centers, farmers' markets or a Bagsakan with 
proper storage facilities, and inventory bulk-buying centers; 
(b) policy support to promote and protect locally/domestically produced products; 
(c) access to markets, including capacity building to access E-marketing facilities; 
(d) access to affordable, appropriate and adequate financial services, including, among 
others, collateral-free and gender-balanced credit at low interest; 
(e) access to appropriate and adequate machinery, equipment, and other technologies, 
with the end in view of increasing productivity and growth; 
(f) protection from unjust dislocation from places where economic activities are 
conducted; 
(g) measures against racketeering, extortion, and harassment. by both State and non-
State elements; and 
(h) fiscal relief, including among others exemption from taxes, fees and other 
assessments, to be put into place by concerned national agencies and local 
government units 60 days after the effectivity of this Act; 
(i) common workplaces, adequate and affordable marketing facilities  such  as  economic 
freedom parks, merchandising centers, and inventory bulk-buying centers; 
(j) freedom from deprivation of property without valid cause and due process of law. 
 
SEC.  10. Organizations of workers in informal employment, including unions, cooperatives, 
mutual benefit associations, etc. shall have the rights 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 join 
international trade-union organizations; 
 
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 organizations and members; 
 
e. sue and be sued under their registered names; 
 
f. undertake all other activities, not contrary to law, designed to benefit their organizations 
and members; 
 
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 this shall be developed by 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 other assessments. The exemptions provided herein 
may be withdrawn only by a special law expressly repealing this provision. 
 


SEC. 11. Organizing Workers in Informal Economy. WIE shall be encouraged to organize 
themselves for their mutual benefit and protection, and for other legitimate purposes. Toward 
this end, the government shall encourage and assist these workers 1n the formation of their 
self-help organizations, associations, federations and confederations 
Government shall encourage the formation of cooperatives among marginalized 
farmers, fisherfolk, manufacturing, transport, retail, services, and home-based workers to 
enable members to: purchase inputs at 1ower 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. 
 
SEC. 12. Assistance to Organizations of Workers in the Informal Economy. All concerned 
national government agencies, government financial institutions and local government units 
shall include in their plans, programs, projects and activities efforts that will support and 
address concerns of organizations of WIE. 
 
SEC. 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 basis of this monitoring. 
 
Chapter IV 
Prohibited Acts Concerning Engagement of Workers in the Informal Economy 
 
SEC. 14. Prohibition Against Recruitment or 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: 
 
SEC. 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: 
 
1. any work which requires workers to render services beyond eight (8) hours without 
commensurate compensation; 
 
2. any work or activity which eposes the worker to physical, emotional or sexual abuse, or 
threats of such abuse: 
 
3. any work which involves manual handling or transport of heavy loads; 
 
4. any work in an unhealthy environment. which exposes workers to hazardous substances, 
gents or processes, or to temperature, noise levels, or vibrations damaging or potentially 
damaging to their health; 
 
5. any work which requires workers to continuously render service during late nights; 
 
6. 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; 
 
7. any use, procuring or offering of the worker for prostitution or pornography; 
 


8. any use, procuring or offering of the worker for the commission of any offense or crime, 
particularly for the production, trafficking, or sale of narcotic drugs and substances as defined 
in the Dangerous Drugs Act; 
 
9. 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 workers; and 
 
10. any other type of work, activity, condition or undertaking that maybe hereinafter be defined 
as hazardous by the Department of Labor and Employment. 
 
SEC. 16. Prohibition Against Interference and Coercion. Any person is prohibited from 
committing any of the following acts of interference and coercion: 
 
1. preventing any worker from upholding or exercising his/her rights; 
 
2. preventing any worker from joining or assisting organizations for purposes not contrary to 
law; 
 
3. 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; 
 
4. harassing, threatening, coercing or intimidating any worker that result in preventing him or 
her from performing his or her duties and functions; 
 
5. transferring, penalizing or terminating the services of a worker without valid or legal ground; 
and 
 
6. other acts calculated to diminish the independence and freedom of workers' organization to 
direct its own affairs. 
 
Chapter V 
SOCIAL PROTECTION 
 
Social protection as defined in Section 4 of this Act shall have the following components: 
 
SEC.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 Joss of income, in the context of sustainable development and developing local 
economies in both rural and urban areas. 
 
1. 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. 
 
2. LGUs shall encourage and provide incentives to constituents 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. 
 
3. 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. 


 
4. The State shall 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. 
 
5. The State through LGUs shall promote community contracting to give preference to WIE 
and their organizations in accessing employment opportunities and related benefits. 
 
SEC. 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 or financial burden. 
 
1. 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' 
organizations shall customize products and services for them that are accessible and 
affordable. In the interest of equity, the State shall cover what should have been the employers' 
share for contributions of informal workers had they been formally employed. 
 
2. The SSS shall also develop schemes involving government subsidies and sponsorship 
programs to enable those who cannot afford to enroll and sustain their membership 
 
3. To achieve universal coverage, the SSS shall facilitate the accreditation of cooperatives, 
women's and people's organizations, trade unions and \NIE associations, microfinance and 
micro-insurance institutions and similar groups as collecting agents of premiums and 
facilitators of claims with the least burdensome conditions and with appropriate incentives. It 
shall develop effective partnerships with these organizations. 
 
4. The SSS Commission, in the spirit of democracy, transparency, accountability, and equity, 
shall be required to conduct regular consultations with and provide information and reports to 
its membership. 8otr1 formal and informal workers shall be represented in the SSS 
Commission, where gender ba1ance shall also be observed. 
 
5. The SSS in cooperation with other relevant national agencies and LGUs, 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 upscaled. 
 
6. An enabling environment for such organizations and schemes shall be developed. Toward 
this end, the Insurance Commission (IC) a:nd other relevant regulatory agencies are hereby 
mandated to review its policies and framework to make them more developmental and 
supportive of the alternative schemes outlined above. 
 
SEC. 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 a minimum package 
of customized product, services and benefits to be designed with their participation and with 
adequate government subsidy. 
 
SEC 20. Health Care System and Financing. The State shall establish a comprehensive and 
integrated healthcare system that guarantees provision, oil 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 health care 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. 
 
SEC. 21. Universal Health Insurance. All citizens of the Philippines shall be covered by the 
National Health Insurance Program as provided for in RA 0606, The National Health Insurance 
Act of 2013. To achieve this, PhilHealth with the participation of all stakeholders shall critically 
review its current operations. It shall also ensure the provision of a minimum benefit package 
which shall be periodically upgraded to meet the goal of universal coverage which is 
affordable, accessible and appropriate to the needs of all. 
 
1. Government subsidies for PhilHealth sponsorship programs shall be expanded to cover not 
only the ultra poor but also the working poor who mostly belong to the informal economy. For 
the working poor, what should have been contributed by employers if they were 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, persons with 
HIV and AIDS and other marginalized sectors, to better serve increasing numbers of those in 
need. Organized groups with at least 500 members shall be allowed to be collecting agents of 
premiums with incentives. 
 
2. PhilHealth shall immediately extend its services to underserved areas by facilitating and 
accelerating accreditation of hospitals and clinics, and by ensuring that these service providers 
remain viable through immediate reimbursement. 
 
3. PhilHealth, in accordance with its guiding principles, shall promote maximum community 
participation and shall recognize the roles and strengths of the public and private sectors in 
healthcare, including people's organizations 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 healtf1 insurance and other indigenous schemes initiated and participated 
in WIE. 
 
4. PhilHealth, with maximum participation of all stakeholders, shall review its benefit 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 check-ups and other outpatient services, 
coverage of workplace -related injuries and illnesses 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: 
 
SEC. 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 designate 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. 
Should 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 LGUs, 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 and workplaces for use of WIE in their respective localities. 
The LGUs shall, within 90 days after the survey and based on recommendations of 
WIELDO and consultations with concerned \/VIE, affected inhabitants and relevant sectors, 
pass an ordinance designating such workplaces. 
 
SEC. 23. Protection of Agricultural Lands and their Occupants. The LGUs, 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, Tourist 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 lands as protected zones. 
The LGUs shall make an inventory of all agricultural lands under leasehold and shall 
enforce the security of tenure of tenants, right of 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 RA 3844 or the Agricultural Land Reform Code. 
Tenants shall not be evicted based on unilateral termination of the tenancy relationship by 
landowners. 
 
SEC. 24. Use of Municipal Waters, Beach Fronts, and Foreshores. Municipal waters shall be 
used exclusive 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, specifically those near the fishing 
grounds, for municipal fisherfolk with security of tenure. 
The consent of the affected fisherfolk shall be required before an area can be declared 
a marine protected area or a fish sanctuary to the national or local government unit. 
 
SEC. 25. Policy on Eviction and Demolition. WIE shall not be evicted from their homes and 
workplaces without legal round as provided for in Republic Act 7279 or the Urban 
Development and Housing Act of 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: 
 
1. notice upon the affected persons or entities at least thirty (30) days prior to the date of 
eviction or demolition; 
 
2. adequate consult8tions on the matter of resettlement with the duly designated 
representative of the families to be resettled and the affected communities in the areas where 
they are to be relocated. 
 
3. presence of local government ofi1cials or their representatives during eviction or demolition; 
 
4. proper identification of all persons taking part in the demolition; 


 
5. execution of eviction or demolition only during regular office hours from Mondays to Fridays 
and during good weather, unless the affected families consent otherwise; 
 
6. 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. 
 
7. non-use of heavy equipment for demolition except for structures that are permanent and of 
cemented material; 
 
8. 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  
 
9. 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 relocation should 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. 26. Policy on Confiscation of Materials and Impounding of Vehicles. In cases where 
demolition or eviction is warranted, the person who conducts the same shall issue an 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. 
 
SEC. 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) days before the actual transfer or relocation 
to another market site. Within sixty (60) day period after issuance of notice, the LGU shall 
conduct consultations with affected vendors on the selection of 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 provided with viable temporary sites by the 
LGU. Notice of temporary transfer shall be given to the vendors at least fifteen (15) days before 
the actual transfer. This shall likewise apply to vendors granted with permits but whose 
workplaces are withdrawn from the list of allowable vending sited. 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. 
 
SEC. 28. Policy on Relocation of Terminals. Designated terminal 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 effected through an Ordinance. Provided further that 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 
 
SEC. 29. Special Allocations of Development Initiatives. - The development of 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. 
 
1. At least ten percent (10%) or 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 of the Department of Labor and Employment (DOLE) at the national level and the 
WIELDO at the local level. 
 
2. For purposes of program implementation, the DOLE shall manage 30%, and WIELDO, 70% 
of the funds from the General Annual Appropriations Act (GAA) as provided for in the previous 
paragraph this section. 
 
3. The Implementing Rules and Regulations (IRR) of this Act shall determine additional 
guidelines on, among others, tt1e use of such finances to ensure that programs and services 
truly benefit WIE. 
 
SEC. 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 
 
1. 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 and shall set aside a specific 
priority to women-led informal economy enterprises by providing loans at an interest of not 
more than twelve percent (12%) per annum consistent with the spirit of RA 7882, An Act 
Providing Assistance to Women Engaging in Micro and Cottage Enterprises. 
 
2. 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.  
 
3. 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 models 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 the qualified worker or business activity or enterprise, under such 
terms and conditions adopted by its Board. 
 
4. 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. 
 


5. The Department of Science and Technology (DOST) shall support technology-related 
initiatives of workers and enterprises in the informal economy. 
 
SEC. 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, enterprises or organizations in the 
informal economy. 
 
SEC. 32. Exclusivity 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 VIII 
Informal Economy Development COUNCIL (IEDC) 
 
SEC.  33. Creation of the Informal Economy Development Council (IEDC). - There is hereby 
created an Informal Economy Development Council, hereinafter referred to as the IEDC, which 
shall be an agency within the Department of Labor and Employment (DOLE). The DOLE shall 
institute appropriate reforms 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. 
 
SEC. 34. Mandate and Functions of IEDC. - The mandate and functions of IEDC shall include 
the following: 
 
1. Develop and ensure implementation of a simple system of accreditation of the IE workers, 
enterprises, and organizations in accordance with the standards and provisions of this Act;  
 
2. Provide guideline for the implementation 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; 
 
3. Develop and ensure implementation of annual, long-term and 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; 
 
4. Develop and ensure effective implementation of labor standards covering WIE as provided 
for by this Act, 
 
5. Develop and 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; 
 
6. Coordinate with LGUs for the development and implementation of periodic evaluation of all 
accredited IE members, enterprises and organizations -- taking into account their 
accomplishments, capabilities and potentials. The results of such evaluation shall be used as 
bases for accreditation, the grant of awards and incentives, training and retraining; 
 
7. Establish a performance appraisal system for all accredited workers, enterprises and 
organizations in this informal economy which shall be the basis for granting or renewal of 
incentives to ensure their active participation and involvement. 


 
8. 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. 
 
9. 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 information 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 instruments, laws and programs 
 
10. 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; 
 
11. Consistent with Section 2 (b) of this Act, to develop and ensure implementation of a 
comprehensive plan to eliminate child labor; 
 
12. Monitor and coordinate interpretation of policies and programs through the Regional IEDC 
offices; 
 
13. Coordinate and harmonize all informal economy-related policies, programs, projects and 
activities of various government agencies towards greater efficiency and effectiveness; 
 
14. Monitor the LGU-generated incomes from informal employment through the LGUs periodic 
report submitted to the Council. 
 
15. After consultations with WIE organizations, develop and ensure implementation of policies 
and programs that will address specific needs and ensure right of WIE subsectors; 
 
16. Develop and ensure implementation of accessible and just conflict resolution and 
adjudication systems and mechanisms to promote dialogue, conciliation, mediation and 
redress of grievances to protect the rights of WIE; and 
 


17. From time to time call on the participation of any government agency or bureaucracy in its 
deliberations especially when such agency is direct or indirectly concerned with or affecting 
the growth and development of the IE. 
 
SEC. 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: 
 
1. Secretary of the Department of Trade and Industry (DTI) 
 
2. Director General of the National Economic and Development Authority (NEDA) 
 
3. Secretary of Department of Agriculture (DA) 
 
4. Secretary Social Welfare and Development (DSWD) 
 
5. Secretary of the Department of Interior and Local Government (DILG) 
 
6. Chair of the Commission on Human Rights (CHR) 
 
7. Lead Convenor of the National Anti-Poverty Commission (NAPC) 
 
8. Secretary of Department of Transportation and Communication (DOTC); 
 
9. Chair of Social Security System (SSS) 
 
10. Chair the Philippine Health Insurance Corporation (PhilHealth) 
 
11. Chair of the Philippine Commission on Women (PCW) 
 
12. Secretary of the Department of Public Works and Highways (DPWH) 
 
13. One (1) representative from the private sector at large, all Filipino citizens, proven to have 
been active in assisting the informal economy workers. 
 
14. One (1) representative each from the League of Cities, League of Municipalities, League 
of Provinces and League of Councilors; 
 
15. The incumbent NAPC Informal Sector Sectoral Representative 
 
16. At least 30% of total membership of IEDC shall come from organizations of workers in the 
informal economy, as well as Peop1e s Organizations (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 non-government IEDC members, including processes 
and mechanics shall be determined by the IRR of this Act. 
 
Representatives from the private sector, NGOs and WIE organizations shall serve as 
IEDC members for a term of three (3) years without re-election and shall be subject to terms 
and conditions provided for by the IRR. 
The private sector, workers in informal economy and women’s organizations’ 
representatives to the IEDA shall be entitled to receive per diem of at least Two Thousand 
Five Hundred Pesos (P2,500)  per meeting. 
 


SEC. 36. IEDC Meetings. – The IEDC shall meet once every two (2) months and may call for 
special meeting as the need arises; provided, that the frequency of such special meetings 
shall not exceed four (4) times annually. 
 
SEC. 37. Initial IEDC Funds. – Ten million pesos (P10,000,000) shall be allocated from the 
Presidential discretionary fund for the initial operating expenses of the IEDC. 
 
SEC. 38. Executive Committee of the IEDC. – An Executive Committee of nine (9) members 
shall be convened. Besides the Chair and Vice-Chair, the following shall be elected by the 
IEDA members from among themselves their duly designated alternate representatives; four 
(4) representatives of WIE organizations, 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 in behalf of IEDC during 
intervals of meetings, and only within the specific authority granted by the IEDC. 
 
SEC 39. IEDC Secretariat. The following secretariat funds shall be integrated in the DOLE 
secretariat functions: 
(a) Prepare and recommend, in coordination with the LGU 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 IEDC and its Executive Committee meetings; 
(c) Assist in coordinating and monitoring policies, programs and activities of all 
government agencies with respect to the implementation of this Act; 
(d) Prepare, collate, 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 the IEDA; 
(e) Submit periodic reports of 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. 
 
SEC. 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 have functions that include: monitoring and coordinating of IEDC 
initiatives in the regions and Provinces; evaluation of policies programs for workers 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). 
 
SEC. 41. Rationalization of Programs. IEDC shall conduct continuing review of government 
programs for the poorest of the poor and the WIE and submit to Congress and the President 
of the Philippines a report theron together with its policy recommendations. 
 
Chapter IX 
Workers In Informal Employment Local Development Office (WIELDO) 
 
SEC. 42. Workers in Informal Employment Local Development Office (WIELDO). – the 
Workers in Informal Employment Local Development Office (WIELDO) shall be established in 
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 plans. 
(b) In consultation with WIE organizations in the area, identify specific needs of various IE 
subsectors and recommend appropriate measures to be taken. 
(c) Ensure accreditation of WIE, especially those with assets of P150, 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 organizations in the areas; 
(e) Lead in the local implementation of Chapter Vi (Security on the Workplace of WIE) of this 
Act; 
(f) Coordinate with other local offices, private sector and other organizations with existing 
programs for WIE 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 WIE; 
(h) Provide technical supports 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 resources and skills registry to be used 
as tools for LGU planning and budgeting; 
(l) Provide offices and other necessary resources 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 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. 
 
SEC. 43. Composition. The Local Chief Executives (LCEs) shall be the primary overseers of 
WIELDOs operations. The IRR of this Act shall provide for WIELDOs composition provided 
that, informal workers’ representatives shall form at least fifty percent (50%) of WIELDO’s 
decision-making body. Provided further, that IE representatives shall not be less than five (5), 
and provided finally that at least forty percent (40%) of the members of WIELDOs decision-
making body are women. Other relevant guidelines on WIELDO’s operations shall be included 
in the IRR of this Act.  
 
SEC. 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 HB 
768 Section 38 with modifications.    
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 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. 
 
SEC. 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 fisherfolks 
– for programs focusing on fisherfolk; 
(e) at least fifty percent (50%) of funds from the Philippine Amusement and Gaming 
Corporation (PAGCOR) and Philippine Charity Sweepstakes Offices (PCSO) 
 
TITLE II 
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY 
 
Chapter I 
Requisites for Employment Agreement 
 
SEC. 46. Minimum Standards. – 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 of 
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 IEDA, 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 to comply with relevant labor and 
social standards. 
 
SEC. 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 cases wherein minors are contracted with the said negotiated contract shall be 
signed on by his/her behalf by either parent or legal guardian, with the expressed written 
content of the said minor.  
In cases wherein illiterate workers are contracted with, the said contract shall be 
explained to the worker concerned and attested to by a representative from the LGU or an 
elected Barangay official in the city or municipality where the worker is designated to work. 


 
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) duration of employment; 
(c) compensations, which shall not be below the minimum standard, and mode of 
payment; 
(d) computation of contributions for social security and medical insurance including for 
those who fall under DOLE Department Order No. 5; 
(e) duties and responsibilities; 
(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 compensation referred to above shall be determined by the Regional Wage 
Boards 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 rated for workers in informal economy jobs, the basis of computation shall 
not be 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. 
 
SEC. 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 deductions 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 on payment of 
loan or liability incurred by a parent, guardian, relative, or any other person. 
 
Chapter II 
IE Workers of Minor Age 
 
SEC. 49. Allowable Employment of Workers of Minor Age – Children fifteen (15) years up to 
seventeen (17) years of age may be employed provided, that parental or legal guardian 
consent is presented and attested to by any representative of the LGU or duly elected 
Barangay official where to 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 money 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 
 
SEC. 50. Penal Provision: 
 
(a) Any person who shall willfully interfere with restrain or coerce a worker in the exercise of 
his 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 of a fine of not less than Twenty Thousand Pesos 


(P20, 000) 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, 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 herein shall prohibit the aggrieved WIE from 
initiating a criminal or civil action against the responsible person or officer applicability. 
(d) Failure to implement Section 27 and 28 of this Act (Policy on Relocation of Vending Sites 
and Policy on Relocation of Terminals) shall render the responsible official/s administratively 
liable pursuant to Republic Act 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. 
 
SEC. 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 committee members are women. Said committee will start work on the IRR 
within three (3) months after the effectivity of this Act and finish within six (6) months thereafter. 
 
SEC. 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. 
 
SEC. 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. 
 
SEC. 54. Effectivity – This Act shall take effect fifteen (15) days after its publication in at least 
two (2) newspapers of general circulation of the Official Gazette, whichever comes first. 
 
Approved,