NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 1358
Senate
oS 1!)<? ^'ra'p,avil
*22 OCT-3 Pl*-38
Rf-CEIVED BY:,
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND INSTITUTIONALIZING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO THE 
FORMAL ECONOMY, FOR IMPLEMENTATION THEREOF AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
Based on the March 2022 Labor Force Survey of the Philippine Statistics Authority, 
workers in the informal sector are at 17 million or 36.2% of the total number of employed 
persons in the country1. The informal economy hums with activities of millions of Filipinos 
who work tirelessly on sometimes thankless jobs where they are not regulated or 
protected by the State. Flowever, policy makers and legislators should understand that 
the informal economy is still a relatively underdeveloped and unexplored avenue for 
reducing poverty, inequality, and unemployment.
It is then in the interest of everybody that workers in the informal economy are 
protected. In relation to this, the Magna Carta of Workers in the Informal Economy 
(MACWIE) is written with the end in view of establishing the formal rights of informal 
economy workers like the right to security in the workplace and the right to a living wage 
and equal renumeration. Their right to organization is also secured and workers in the 
formal economy are encouraged to organize themselves for their mutual benefit and 
cooperation.
https://www.dole.gov.ph/news/dole-awards-p20m-to-informal-workers/


The importance of social protection is also highlighted in the bill. As such, 
government agencies and local government units are encouraged to provide social safety 
nets like conditional case transfers, cash-for-work, emergency employment schemes, and 
fee waivers, among others. Social insurance also takes prime importance: there is a focus 
on making social insurance universally available to workers in the informal sector. Social 
Security, Pag-Ibig, and Philhealth shall be made accessible and affordable to them, and 
the State is enlisted to subsidize the corresponding contribution of employers' had the 
informal economy workers have been in formal employment.
Perhaps more importantly, the bill also seeks to protect the dignity of informal 
economy sectors by securing their workplaces and prohibiting demeaning acts against 
them. For instance, the bill states that the workers in the informal economy sector shall 
not be evicted from their homes and workplaces without the proper legal grounds. 
Confiscation of materials and impounding of their vehicles like tricycles and pedicabs are 
also not allowed unless these have been used for criminal activities.
In view of the foregoing, the immediate passage o this bill is earnestly sought.
RISA HONTIVEROS ^ 
Senator 
I


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 1358
Senate
l* ^ of tl)f girrrftarp
*22 OCT -3 PI 38
RECEIVED BY;
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS, ENTERPRISES AND 
ORGANIZATIONS IN THE INFORMAL ECONOMY AND INSTITUTIONALIZING 
MECHANISMS FOR RECOGNITION, INTEGRATION, AND TRANSITION TO THE 
FORMAL ECONOMY, FOR IMPLEMENTATION THEREOF AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
TITLE I
2 
GENERAL PROVISIONS
3
4 
Chapter I
5 
GENERAL PRINCIPLES
6
7 
Section 1. Short Title. -This Act shall be known as the "Magna Carta of Workers
8 
in the Informal Economy"or MACWIE
9 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to:
10 
a) Promote a just and dynamic social order that shall ensure the prosperity
11 
and independence of the nation and free the people from poverty through
12 
policies that provide adequate sociai services; 
promote 
decent,
13 
environmentally sound and full employment; a rising standard of living;
14 
and an improved quality of life for all;
15 
b) Protect, promote, and fulfill the rights of every worker inciuding gender
16 
equity, non-discrimination, the right to self-organization, just and humane
17 
conditions of work, access to social protection programs and services,
18 
access to justice, security of and in the workplaces, and the right to
19 
represent their organizations in a continuing process of consultation and
20 
social dialogue, with equitable membership in relevant tripartite bodies;
21 
and


1 
c) Establish and fully implement an integrated and coherent policy, at all
2 
levels of government, of formalization of informal economic units and
3 
informal economy workers and make them visible in all relevant national
4 
and local statistics.
5 
Sec. 3. Coverage. - This Act shall apply to all workers and economic units -
6 
including enterprises, entrepreneurs and households - in the informal economy, in
7 
particular:
8 
a) Those who own and operate economic units including:
9 
a. self-employed workers;
10 
b. self-employed own-account workers;
11 
c. employers;
12 
d. members of cooperatives; and
13 
e. members of other social and solidarity economy units;
14 
b) Home-based workers or contributing family workers, irrespective of
15 
whether they work in economic units in the formal or informal economy;
16 
c) Employees holding informal jobs in or for formal enterprises, or for
17 
economic units in the informal economy, including but not limited to those
18 
in contract arrangement and/or in supply chains, or as non-regular paid
19 
domestic workers employed by households;
20 
d) Workers in unrecognized or unregulated employment relationships
21 
provided that the work performed is not illegal;
22 
e) Volunteer; contractual; job orders; and other vulnerable workers in
23 
government instrumentalities; and
24 
f) Agricultural workers or fisherfolk in unrecognized or unregulated
25 
agricultural or farming endeavors and fishing activities.
26 
Sec. 4. Definition of Terms. - As used in this Act, the following terms shall mean:
27 
a) "Informai Economy" refers to "all economic activities by workers and
28 
economic units that are, in law or in practice, not covered or insufficiently
29 
covered by formal arrangements."
30 
b) "Economic Units"\v[ the informal economy include but are not limited to:
31 
a. Units that employ hired labor;
32 
b. units that are owned by individuals working on their own account,
33 
either alone or with the help or contributing family workers;
34 
c. cooperatives and other social and solidarity economy units; and
35 
d. informal work that may be found across all sectors of the economy,


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
in households, as well as public and private spaces including 
government instrumentalities and Government Owned and 
Controiled Corporations (GOCCs)
c) "Informal Economy Workers' Organization"- Refers to a group or groups 
of informal workers, whether formally constituted or otherwise, that are 
organized with the primary objective of promoting the rights and welfare 
of workers in informai economy,.
d) "Informal empioymenf - Refers to an employment arrangement in the 
formal or informal sectors or in households that exist based mostly on 
casual employment, kinship or personal and social relations with no formal 
guarantees on legal and social protection and employment benefits, and 
prevalent in economic units that are unregistered, unlicensed and 
unregulated.
e) "Security of and in the Workplace" - refers to the right of every worker 
and informal economic unit to an enabling environment that guarantees 
and protects the spaces, facilities, and structures to undertake their work, 
including the right to feei 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 from working.
f) 
"Social Protection"- Refers to policies and programs that seek to reduce 
poverty and vulnerability to risks and enhance the social status of the 
marginalized by promoting and protecting livelihood and employment, 
protecting against hazards and sudden ioss of income, and improving 
people's capacity to manage risk, as well as all other interventions that 
support communities, households, and individuals, both women and men, 
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, sociai 
insurance, social welfare, safety nets, disaster risk reduction and 
management mechanisms, adaptive measures in the context of climate 
change, affordable housing, and other provisions necessary for vulnerable 
groups to adequately address and manage risks, vulnerabilities, and 
threats to workers' livelihood activities and overall quality of life.
g) "Social and Solidarity Economy Unitd' - Refers to enterprises and 
organizations including cooperatives as defined under Republic Act No.
3


1 
9520, mutual benefit societies, associations, foundations and social
2 
enterprises which produce goods, services and knowledge that meet the
3 
needs of the community they serve, through the pursuit of specific social
4 
and environmental objectives and the fostering of solidarity.
5 
h) "Volunteer, contractual, job orders, and other vulnerable workers in
6 
government instrumentalities" - Refers to workers in government
7 
instrumentalities who do not occupy plantilla positions;receive salaries but
8 
not benefits; are contracted out for specific periods of time; and/or who
9 
receive allowances or honoraria. These include but are not limited to: [job
10 
order and other contractual workers,] project staff, barangay health
11 
workers, barangay tanod, barangay nutrition scholars, barangay daycare
12 
workers, barangay volunteers and other vulnerable workers in
13 
government instrumentalities for disasters, enumerators, among others.
14 
i) Social Protection Floor- Refers to a set of guarantees ensuring access to
15 
essential health services, income support for children for education,
16 
health, and nutrition, income assistance for economically active groups
17 
who do not have sufficient earnings in case of emergencies, and financial
18 
support for elderly population, and women informal workers in difficult
19 
and vulnerable circumstances like single mothers, and women survivors
20 
of abuse and violence.
21
22 
Chapter II
23 
RIGHTS AND BENEFITS
24
25 
Sec. 5. Workers in the informal economy shall have the same basic rights accorded
26 
to all workers, as enshrined in the Philippine Constitution, the Labor Code as amended,
27 
and relevant international human rights instruments and international labor standards.
28 
Accordingly, the state shall guarantee all workers in the informal economy the following
29 
rights:
30 
a) Security of and in the workplace;
31 
b) Make a living through work freely chosen or accepted; and avail of
32 
technical and vocational guidance and training programs;
33 
c) Just and favorabie conditions of work, including provision for work-life
34 
balance such as child-care and other facilities to reduce and redistribute
35 
family and domestic responsibilities;
36 
d) A living wage and equal remuneration for work of equal value without


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
distinction of any kind, in particular for women who shall be guaranteed 
equal wages for work similar or equivalent to those done by men;
e) Equal opportunity for promotion, subject to no other considerations than 
seniority and competence;
f) Safe and healthy working conditions safeguarding general, occupational 
and reproductive health;
g) Basic services including but not limited to affordable medical care, 
reproductive and other health services including modern family planning, 
low-cost housing, water, sanitation, electricity and transport;
h) Rest, leisure and reasonable limitation of working hours and periodic 
holidays with pay, as well as remuneration for public holidays whenever 
applicable;
i) Maternity and paternity benefits, as provided for by law;
j) Equal access to education, skills training, and economic resources to 
develop self-reliance, especially of children and young persons, without 
any discrimination;
k) 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;
l) An adequate standard of living for workers and their families, adequate 
food, clothing, and shelter, and the continuous improvement of such 
standard;
m) 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;
n) Accessible, affordable, and appropriate social protection as defined in 
Section 4, (f) of this Act;
o) Equal treatment before the law;
p) Substantial participation in policy and decision-making processes through 
their organizations and the use of social dialogue, including access to 
information and other resources relevant to the promotion and protection 
of their rights and welfare;
q) Equal access to justice though appropriate mechanisms, including, but not 
limited to, alternative dispute resolution processes; and


1 
r) Access to public procurement including advice and reserving quotas for
2 
informal economic units.
3 
Sec. 6. Own-account workers as well as informal economic units, being the working
4 
poor's primary instruments to address and overcome poverty, shall be accorded the
5 
following preferential rights by the State;
6 
a) Infrastructure support such as farm to market roads, common, affordable
7 
and secure workplaces and facilities, merchandising centers, farmers'
8 
markets or Bagsakan with proper storage facilities, and inventory bulk-
9 
buying centers;
10 
b) Policy support to promote and protect local and domestically-produced
11 
products and services, and support in enhancing their participation in the
12 
value chain process;
13 
c) Ease and facilitation of access to markets, including capacity-building to
14 
access and maximize e-marketing facilities;
15 
d) Access to affordable, appropriate and adequate financial services,
16 
including, among others, collateral-free and gender-responsive credit at
17 
low interest;
18 
e) Access to appropriate and adequate machinery, equipment, and other
19 
technologies, with the end in view of increasing productivity, enhancing
20 
quality of products and services, and growth;
21 
f) Protection from unjust dislocation from places where economic activities
22 
are conducted with the "provision of relocation before demolition";
23 
g) Measures against racketeering, extortion, and harassment, by both State
24 
and non-state elements;
25 
h) Freedom from deprivation of property without valid cause and due process
26 
of law; and,
27 
i) Affordable and customized social security and insurance programs.
28 
Sec. 7. Rights of Legitimate Organizations of Workers in the Informal Economy
29 
(WIE), Organizations of workers in informal employment, including unions, cooperatives,
30 
social and solidarity economic units/organizations and mutual benefit associations, shall
31 
have the right to:
32 
a) Freely function and act as the representatives of their members in policy
33 
and decision-making processes, coilective negotiations, and other similar
34 
bodies and processes in the context of tripartism and multi-sector;
35 
b) Establish, join or affiliate with local unions, national federations or


1 
confederations, and international trade union organizations, a right which
2 
shall be duly recognized, protected and supported by the national
3 
government;
4 
c) Access information from concerned government institutions and other
5 
parties that are pertinent to the protection and promotion of the rights
6 
and welfare of their members;
7 
d) Own property, real or personal, for the use and benefit of their
8 
organizations and members;
9 
e) Sue and be sued under their registered names; and
10 
f) Undertake all other activities, not contrary to law, designed to benefit their
11 
organizations and members.
12 
Sec. 8. Organizing Workers in Informai Economy. - Workers in informal economy
13 
[WIE] shall be encouraged to organize themselves into self-help organizations,
14 
associations, federations, and confederations for their mutual benefit and protection, and
15 
for other legitimate purposes. Special attention shall be given to organizing women and
16 
other vulnerable workers in informal economy.
17 
Sec. 9. Assistance to Organizations of Workers in the Informal Economy. - All
18 
concerned national government agencies, government financial institutions and local
19 
government units shall include in their annual plans and budgets, programs and projects
20 
that support and address concerns of organizations of WIE and their members.
21
22 
Chapter III
23 
SECURITY IN THE WORKPLACE OF WORKERS IN INFORMAL ECONOMY
24
25 
Sec. 10. Designation of Workplaces. - Local Government Units (LGU), in
26 
coordination with organizations of WIE within their jurisdiction, affected communities,
27 
and other relevant groups, shall endeavor to identify, designate, and design a system of
28 
assignment on the following;
29 
a) Productivity and merchandizing centers as viable workplaces for informal
30 
workers; which may include markets and vacant areas near markets,
31 
vacant public spaces and spaces which may be a private property that the
32 
LGU may acquire, lease or negotiate with legitimate organizations of
33 
workers in the informal economy for lease under a memorandum of
34 
agreement, and
35 
b) routes, terminals, and specific lanes for small transport workers;
36 
The process of identifying and designation of such workplaces shall be determined in the
7


1 
Implementing Rules and Regulations (IRR) of this Act, provided, that such process shall
2 
have the substantial participation of relevant WIE organizations and stakeholders.
3 
Sec. 11. Policy on Eviction and Demolition. - Workers in the informal economy or
4 
employment shall not be evicted from their homes and workplaces without legal ground
5 
as provided for by R.A. 7279, otherwise known as the "Urban Development and Housing
6 
Act of 1992", and provision of livelihood opportunities, adequate water and electricity
7 
availability, as well as decent conditions of living in accordance with law. Logistical
8 
viability for the displaced shall be given priority in determining resettlement areas,
9 
provided that, there shall be no demolition without ensuring appropriate resettlement.
10 
Sec. 12. Policy on Confiscation of Materials and Impounding of Vehicles. -In cases
11 
where demolition or eviction is warranted, the person, government agencies or their
12 
agents who conduct the same shall issue a duly signed itemized receipt of all products,
13 
goods, and other materials seized from vendors and other affected WIE.
14 
Tricycles, pedicabs, and other modes of transportation shall not be impounded for
15 
violations of license, registration, or traffic regulations unless the said vehicles were
16 
utilized in the conduct of criminal activities. In cases of violation of traffic regulations, the
17 
issuance of a traffic violation ticket shall suffice.
18 
Sec. 13. Policy on Relocation of Vending Sites. -Before any public market is closed,
19 
sold or demolished, all market vendors shall first be relocated by the LGU to a temporary
20 
or new public market. Notice of the intention to close, sell, or demolish any public market
21 
shall be made to all concerned vendors at least sixty (60) days before the actual transfer
22 
or relocation to another market site. Within the sixty (60)-day period after issuance of
23 
notice, the LGU shall conduct consultations with affected vendors on the selection of the
24 
relocation site and implementation of the relocation.
25 
Vendors, ambulant or otherwise, occupying public places not previously designated as
26 
vending sites shall be provided with viable temporary sites by the LGU. Notice of
27 
temporary transfer shall be given to the vendors at least fifteen (15) days before the
28 
actual transfer. This shall likewise apply to vendors granted with permits but whose
29 
workplaces are withdrawn from the list of allowable vending sites. Any change in the list
30 
of allowable vending sites shall only be done after consultations with affected vendors.
31 
In the event that a new public market is constructed in place of an old one, market
32 
vendors with stalls displaced from their workplaces shall be assured of stall assignment
33 
in the new market. Displaced ambulant vendors, shall, as much as practicable also be
34 
given appropriate selling sites.
35 
Sec. 14. Policy on Relocation of Terminals. - Designated terminals for tricycles,
36 
pedicabs and other similar modes of transportation shall not be arbitrarily relocated
8


1 
without prior notice and consultation with small transport groups, legitimate organizations
2 
of workers in the informal economy, affected community and other relevant sectors.
3 
Relocation of terminals can only be effected through an Ordinance. Provided further, that
4 
after the enactment of such ordinance, notice of intention to relocate terminals shall be
5 
made to affected transport groups and community at least sixty (60) days before the
6 
actual relocation.
7
8 
Chapter IV
9 
SOCIAL PROTECTION FOR WORKERS IN THE INFORMAL ECONOMY
10
11 
Social protection as defined in Section 4(f) of this Act shall have the following
12 
components:
13 
Sec. 15. Institutionalization of Soda! Protection Floor for the Workers in the
14 
Informal Economy. —The State shall support, sustain, enhance, and institutionalize social
15 
protection initiatives for WIE through the convergence of resources of various agencies
16 
to provide continuous social security and health insurance subsidies to WIE. Such
17 
resources shall also be used for programs for the unemployed, children, women in difficult
18 
and vulnerable circumstances, and older persons based on applicable and ever improving
19 
standards.
20 
Sec. 16. Social Welfare Efforts. - The Department of Social Welfare and
21 
Development (DSWD) shall consolidate its strategic social welfare efforts to address the
22 
needs of the workers in the informal economy, including but not limited to direct
23 
assistance, policy development and community engagement for the workers.
24 
Sec. 17. Pole of the Department of Labor and Employment. - The DOLE shall
25 
engage in labor market interventions that shall provide adequate protection for the WIE.
26 
The DOLE shall likewise ensure timely and immediate action for labor concerns, security
27 
of tenure, job generation and other pertinent concerns. It shall, in collaboration with other
28 
livelihood and enterprise development implementing agencies. Department of Local
29 
Government (DILG) and Department of Finance (DOF), develop a typology of
30 
formalization of informal economic units in terms of, among others, registration and
31 
standardized, affordable business permit cost, increased compliance, and extension of
32 
labor and social security program.
33 
Sec. 18. Social Safety Nets. -The State shall ensure that the social safety nets
34 
provided by the DOLE, DSWD, Department of Agriculture (DA) and other government
35 
agencies shall be easily accessible to the WIE and their organizations. These shall include
36 
but not be limited to conditional cash transfers, unconditional cash transfers, school
9


1 
feeding programs, unconditional in-kind transfers, public works, cash-for-work,
2 
emergency employment schemes, and fee waivers.
3 
Sec. 19. Women, Family and Child Care Program - The DOLE, Department of
4 
Health (DOH), Philippine Health Insurance Corporation (PhilHealth), and DSWD shall
5 
ensure that maternity protection is extended to informal economy workers in accordance
6 
with Sections 9 and 10 of R.A. 11210, the Expanded Maternity Leave Law. Programs on
7 
maternal and child health and nutrition; child feeding; modern family planning; and other
8 
health-related services shall be strengthened and target women WIE.
9 
The State shall encourage the provision of and access to affordable quality childcare and
10 
other care services to promote gender equality in entrepreneurship, employment
11 
opportunities, and to enable the transition to formal economy.
12 
Sec. 20. Social Insurance. - As specified in the IRR of this Act, the government
13 
shall ensure that all social insurance programs including but not limited to Social Security,
14 
Pag-ibig (Home Development Mutual Fund) and PhilHealth shall be fully available,
15 
accessible and affordable to WIE, and that the government agencies governing them shall
16 
formulate policies and mechanisms for their full utilization and benefit, in consultation
17 
with the representatives of WIE. In the interest of equity, the State shall subsidize the
18 
corresponding employers' contribution, had they been in formal employment.
19 
Sec. 21. Disaster Risk Reduction and Management (DRRM) and Climate Change.
20 
- The state, particularly at the community level, shall engage WIE and their organizations
21 
in DRRM efforts from preparedness, to response, rehabilitation and recovery. Responding
22 
to climate change in terms of minimizing contributions to greenhouse gas emissions and
23 
adapting to its long-term impact through resiliency-building programs shall also involve
24 
WIE and their organizations.
25
26 
Chapter V
27 
LABOR STANDARDS AND ENFORCEMENT OF LABOR LAWS
28 
FOR WORKERS IN THE INFORMAL ECONOMY
29
30 
Sec. 22. Applicability of the Provisions of the Labor Code. -The provisions of the
31 
Labor Code governing the employer-employee relationship particularly on general labor
32 
standards and occupational safety and health standards shall apply to all forms of work
33 
arrangements in the informal economy.
34 
The state shall adopt a developmental perspective in dealing with informal economic
35 
units. The DOLE, in coordination with the lEDC, shall assess the capacity of these
36 
enterprises to comply with general labor standards. Those incapable of meeting the
37 
standards shall be assisted to upgrade their capacity to improve their businesses, as well
10


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
as the capacity to comply with relevant labor and social standards.
Sec. 23. Prioritization for Education and Training. - The State shall implement 
adequate training and information campaigns to provide WIE and their employers the full 
knowledge on applicable labor and occupational safety and health standards for their 
subsequent compliance.
Sec. 24. Prohibited Acts Specific to Workers in the Informal Economy. The following 
are deemed prohibited:
a) Non-compliance with minimum labor standards and occupational health and 
safety standards. The employment contract shall be in writing specifying the 
terms and condition of engagement which must not be lower than the minimum 
standards provided by law. However, the absence of a written agreement does 
not mean the absence of an employment relationship.
The contract shall be explained to the worker and attested to by an elected 
Barangay official in the barangay where the worker is designated to work.
b) Recruitment or Finders' Fees. Regardless of whether the worker was sourced 
either through an employment agency or a third party, WIE shall neither be 
charged nor levied a recruitment fee or finders' fee.
c) Hazardous Work and Conditions in Formal Workplaces. Workers shall not be 
engaged to do hazardous work, activity or undertaking, or be exposed to 
hazardous working conditions in accordance with existing laws and the IRR of 
this Act.
d) Interference and Coercion. Any person is prohibited from committing any of the 
following acts of interference or coercion:
a. Preventing any worker from upholding or exercising his/her rights;
b. Preventing any worker from joining or assisting organization 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 worker without 
valid or legal ground; and
f. Other acts that or threaten to diminish the independence and freedom 
of a workers' organization to direct its own affairs.
e) Non-compliance with Republic Act No. 7610, as amended by Republic Act No.
11


1 
9231 in the employment of minors. In cases where minors are contracted or
2 
hired to render work or services, the age should be at least fifteen (15) years
3 
old and there is parental or legal guardian consent in the employment contract,
4 
which is presented and attested to by any representative of the LGU or duly
5 
elected Barangay official where the work is to be done, and that the employers
6 
of these children should provide them with access to at least elementary or
7 
secondary education, either through traditional schooling or alternative learning
8 
systems.
9 
Sec. 25. Visitoria! and Enforcement Power of the Secretary of Labor and
10 
Employment. - Employment contracts and/or engagements in the Informal Economy shall
11 
be subject to the visitorial and enforcement power of the Secretary of Labor and
12 
Employment pursuant to Article 128 of the Labor Code of the Philippines.
13
14 
TITLE II
15 
Chapter I
16 
INFORMAL ECONOMY DEVELOPMENT COUNCIL (lEDC)
17
18 
Sec. 26. Creation of the Informal Economy Development Council (lEDC). - There
19 
is hereby created an Informal Economy Development Council, hereinafter referred to as
20 
the lEDC, which shall be an attached agency of the National Economic and Development
21 
Authority (NEDA). The lEDC shall institute appropriate reforms within its structure,
22 
programming and other processes, including adjusting its human resource capabilities to
23 
ensure that WIE-focused programs are efficiently and adequately implemented to address
24 
the needs of these workers. An inter-agency committee shall be formed to coordinate
25 
policies and programs of various government agencies towards the transition of informal
26 
economic units to formal.
27 
The lEDC shall be constituted within thirty (30) days after the approval of the IRR of this
28 
Act.
29 
Sec. 27. Mandate and Functions oflEDC. - The mandate and functions of lEDC
30 
shall include the following:
31 
a) Develop and ensure implementation of annual, long-term and medium-
32 
term plans for the informal economy. The last of which should form part
33 
of the Medium Term Philippine Development Plans (MTPDP) towards
34 
institutionalizing comprehensive, needs and rights-based, gender-
35 
responsive and child-friendly programs and policies for the IE;
36 
b) Develop policies to transition WIE and informal economic units to formal
37 
economy and according to standards provided for in this Act and related
12


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
laws, treaties or statutes;
c) Develop and implement training programs, and certify workers for jobs in 
industries that produce goods and render services for the benefit of the 
WIE;
d) Develop and ensure implementation of gender-based monitoring and 
evaluation mechanisms, efficient and effective programs and policies, and 
gender-responsive interventions toward harnessing the full potentials of 
women WIE;
e) Ensure that concerned government agencies shall allocate in their 
respective Special Allocation for Development Initiatives adequate 
resources for programs that will benefit WIE;
f) Develop and ensure implementation of a simple system of registration of 
WIE, and accreditation of informal livelihood activities enterprises, and 
organizations in accordance with the standards and provisions of this Act;
g) Provide guidelines for the implementation by LCDs 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;
h) Ensure the effective implementation of labor standards covering WIE as 
provided for by this Act and corresponding IRR;
i) Coordinate with LGUs for the development and implementation of periodic 
evaluation of all accredited IE members, enterprises and organizations 
for use as bases for accreditation, the grant of awards and incentives, 
training and retraining;
j) Ensure effective participation of WIE and their organizations through the 
establishment of regular consultative mechanisms and processes.
k) 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 while strictly 
complying with laws on privacy and confidentiality. The database [and] 
shall include pertinent information as specified in the IRR of this Act.
l) Develop and implement a communication plan and campaign targeting 
WIE, their enterprises and organizations, towards a better understanding 
and appreciation of the benefits of this Act;
m) Consistent with Section 2 (h) of this Act, to develop and ensure 
implementation of a comprehensive plan to eliminate child labor;
13


1 
n) /Assess all means to ensure the transition of informal economic units and
2 
the WIE from their position in the informal economy to forma! economy
3 
as contained in the IRR of this Act;
4 
o) Coordinate and harmonize all informal economy-related policies,
5 
programs, projects and activities of various government agencies
6 
including the Regional 
lEDC Officers towards greater efficiency and
7 
effectiveness;
8 
p) Monitor the LGU-generated incomes from informal employment;
9 
q) Conduct annual reviews of government programs for the WIE and submit
10 
to Congress and the President of the Philippines corresponding reports
11 
thereon together with policy and other recommendations;
12 
r) Develop and ensure implementation of accessible just conflict resolution
13 
and adjudication systems and mechanisms to promote dialogue,
14 
conciliation, mediation and redress of grievances to protect the rights of
15 
WIE; and
16 
s) From time to time, call on the participation of relevant government
17 
agencies in its deliberations as necessary.
18 
Sec. 28. Composition. —The lEDC shall be co-chaired by the Director General of
19 
NEDA and the Secretary of Department of Labor and Employment. lEDC members may
20 
elect from among themselves a Vice-Chair to preside over meetings in the absence of the
21 
Chair. The members shall be the relevant government instrumentalities as determined by
22 
the IRR of this Act provided that, at least 30% of total membership of lEDC shall come
23 
from organizations of WIE accredited with the SEC, DOLE or DA. Provided, further, that
24 
at least 40 percent of the 30 percent are women.
25 
Representatives from the Social Partners, private sector, NGOs and WIE organizations
26 
shall serve as lEDC members for a term of three (3) years without re-election and shall
27 
be subject to terms and conditions provided for by the IRR.
28 
Sec. 29. Initial lEDC Funds. - PlOO million pesos (P100,000,000.00) shall be
29 
allocated from the Presidential discretionary fund for the initial operating expenses of the
30 
lEDC, which shall include the initial allocation of funds for the operations of the WIELDU
31 
at the LGU level.
32 
Sec. 30. lEDCSecretariat - The lEDC Secretariat shall be jointly organized by the
33 
NEDA and the DOLE with functions that shall be determined by the IRR of this Act and
34 
integrated in the DOLE secretariat functions.
35 
Sec. 31. Regional and Provincial lEDC Officers. - There shall be Regional and
36 
Provincial lEDC Officers who shall be appointed by the lEDC and shall have functions that
14


1 
include: monitoring and coordinating of lEDC initiatives in the regions and Provinces;
2 
evaluation of policies programs for WIE; providing technical assistance in the
3 
development of local plans and programs; as well as other administrative functions
4 
necessary for the success of lEDC initiatives in their jurisdiction.
5 
lEDC Regional Officers shall have automatic seats in all Regional Development Councils
6 
(RDCs).
7
8 
Chapter II
9 
WORKERS IN INFORMAL ECONOMY LOCAL DEVELOPMENT UNIT (WIELDU)
10
11 
Sec. 32. Workers in Informal Economy Local Development Unit (WIELDU). - The
12 
Workers in Informal Economy Local Development Unit (WIELDU) shall be established in
13 
every city and municipality to perform the foilowing functions among others in
14 
consultation with the WIE and their organizations:
15 
a) prepare an overall development plan and work program that will address
16 
the needs of the WIE. The barangay development plans shall be
17 
incorporated in this overall development plan;
18 
b) encourage the organizing of informal economic units and WIE;
19 
c) develop and maintain a comprehensive, age, and sex-disaggregated
20 
database of all WIE and economic units within the jurisdiction of the LGU
21 
that shall include all relevant information as contained in the IRR of this
22 
Act. Provided that, laws on privacy and confidentiality shall be fully
23 
complied with. Provided further, that the database shall include
24 
information on payments collected from WIE, organizations and economic
25 
units;
26 
d) establish an IE One-Stop Shop Center which shall handle all transactions
27 
and processing of business permit applications within their respective
28 
jurisdiction and worker's registration; and,
29 
e) support MSME informal enterprise development towards transitioning to
30 
formality.
31 
In addition, the WIELDU may also perform other similar functions and undertakings
32 
pursuant to the provisions of this Act. In the performance of WIELDU's functions, the
33 
principle of preferential treatment to the poorest and most vulnerable shall be observed.
34 
Sec. 33. Composition. —The Local Chief Executives (LCEs) shall be the primary
35 
overseers of WIELDU's operations. The IRR of this Act shall provide for WIELDU's
36 
composition provided that, informal workers' representatives shall form at least fifty
15


1 
percent (50%) of WIELDU's membership. Provided further, that IE representatives shall
2 
not be less than five (5), and provided finally, that at least forty percent (40%) of all
3 
WIELDO's members are women. Other relevant guidelines on WIELDU's operations shall
4 
be included in the IRR of this Act.
5 
Sec. 34. Local Government Unit Informal Economy Development Fund (LGU-IEDF).
6 
—An Informal Economy Development Fund shall be established by every municipality and
7 
city. Such fund will be supervised and managed by the concerned LGU through the
8 
WIELDU and subject to audit by the Commission on Audit (COA).
9 
For the initial operations of WIELDU, each LGU shall allocate a portion from their Internal
10 
Revenue Allotment or IRA.
11 
Thereafter, the LGU-IEDF shall be funded using:
12 
a) Registration fees and annual dues paid by individual workers in the
13 
informal economy; and accreditation fees of their livelihood activities,
14 
organizations, and enterprises; and
15 
b) Annual allocations from LGUs' Development Fund the percentage of which
16 
shall be determined by LGUs.
17 
Following the principle of merit and equity, LGUs that fulfill such allocations may receive
18 
additional assistance from the national government as recommended by lEDC; provided,
19 
that the LGUs have sufficiently complied with all requirements by the lEDC.
20 
Sec. 35. Registration of Informal Economy Workers, and Accreditation of Economic
21 
Units and Organizations. — Pursuant to its functions under the Local Government Code,
22 
the Local Development Council in coordination with the WIELDU, shall establish a
23 
standard system of registration of WIE, and accreditation of informal livelihood activities,
24 
organizations, and economic units provided that the system shall be simple, efficient,
25 
affordable, uniform, and accessible to all.
26 
Such registration or accreditation shall signify eligibility of the WIE, their livelihood
27 
activities, organizations, or enterprises to avail of development programs, provided that,
28 
the poorest and most vulnerable shall be given priority. The registration or accreditation
29 
may be renewed subject to requirements set forth by the LDC in coordination with the
30 
WIELDU.
31 
Sec. 36. Annual Dues. - WIE and their organizations shall pay annual dues to be
32 
determined by the concerned LGU) in consultation with their WIELDU). Said annual dues
33 
shall be no more than 30% of the legally prescribed daily minimum wage in their
34 
respective regions or provinces.
35 
These annual dues shall accrue to the concerned LGU and shall be used for programs to
36 
benefit WIE, their organizations, business activities, and enterprises based on
16


1 
recommendations by the WIELDU and the local informal economy constituents.
2 
Sec. 37. Registration and Non-Registration. - In no case shall registration be
3 
construed as a basis for rights and entitlements under this Act. Non-registration should
4 
not deprive WIE of their rights stated in the Act. Registration as a WIE in the LGU is
5 
voluntary and shall not be made as a prerequisite to work by any private enterprise or
6 
government unit. However, registration shall guarantee prioritization and immediate
7 
recognition of the rights and benefits due to the workers in the informal economy.
8
9 
TITLE III
10 
FINAL PROVISIONS
11
12 
Sec. 38. Pena! Provisions.
13 
a) Any person who shall willfully interfere with, restrain or coerce a worker
14 
in the exercise of his or her rights or shall in any manner commit any act
15 
in violation of any of the provisions of this Act shall, upon conviction,
16 
be punished by a fine of not less than Twenty Thousand Pesos
17 
(P20,000.00) or imprisonment of one (1) to six (6) years or both fine and
18 
imprisonment at the discretion of the Court.
19 
b) If the offender is a public official or an official of a GOCC, the Court, in
20 
addition to the penalties provided in the preceding paragraph, may impose
21 
the additional penalty or disqualification from public office.
22 
c) Any person who violates the provision of this Act on Policy on Confiscation
23 
of Materials and Impounding of Vehicles shall be liable. Nothing herein
24 
shall prohibit the aggrieved WIE from initiating a criminal or civil action
25 
against the responsible person or officer.
26 
d) Failure to implement the provisions of this Act on Relocation of Vending
27 
Sites and Policy on Relocation of Terminals shall render the responsible
28 
official/s administratively liable pursuant to Republic Act 7160 and other
29 
applicable laws without prejudice to any civil or criminal case that may be
30 
filed against erring officials. If a private institution or company is found to
31 
have violated any provision of this Act, its business license shall be
32 
suspended or revoked at the discretion of the Court.
33 
Sec. 39. Impiementing Rules and Regulations (IRR). - The Implementing Rules
34 
and Regulations (IRR) of this Act shall be formulated by a committee to be co-led by
35 
DOLE and NEDA. The members of the committee shall be the representatives of
36 
government offices mentioned in this Act, and WIE organizations. Provided that, at least
17


1 
30% of the committee members shall come from the latter, and provided further, that at
2 
least 30% of committee members are women. Said committee will start work on the IRR
3 
within three (3) months after the effectivity of this Act and finish within six (6) months
4 
thereafter.
5 
Sec. 40. Appropriations. - The amount of one hundred (100) million pesos
6 
(P100,000,000.00) shall be appropriated for the initial implementation of this Act.
7 
Sec. 41. Separability Clause. - If any provision of this Act is declared
8 
unconstitutional or invalid, the provisions not affected shall continue to be in full force
9 
and effect.
10 
Sec. 42. Repealing Clause. - All laws, decrees, orders, rules and regulations or
11 
other issuances inconsistent with the provisions of this Act are hereby repealed, amended
12 
or modified accordingly,
13 
Sec. 43. Effectivity. -This Act shall take effect fifteen (15) days after its publication
14 
in at least two (2) newspapers of general circulation of the Official Gazette, whichever
15 
comes first.
Approved,
18