1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No.  _________ 
Introduced By Representative LORENZ R. DEFENSOR 
EXPLANATORY NOTE 
This bill seeks to recognize the significant and crucial role the informal 
economy plays in the Philippine economy and in providing jobs to Filipinos 
nationwide.  
It is the policy of the State to promote just and dynamic social order as 
provided under Section 9, Article II of the 1987 Constitution which declares, "The 
State shall promote a just and dynamic social order that will ensure the prosperity and 
independence of the nation and free the people from poverty through policies that provide 
adequate social services, promote full employment, a rising standard of living, and an 
improved quality of life for all." 
According to the ILO Recommendation No. 204 concerning the Transition 
from the Informal to the Formal, adopted during the 104th International Labour 
Conference (TLC) in June 20151 informal economy 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".  
In the Philippines, the Labor Force Survey data indicated that 38.3% of those 
employed are in vulnerable forms of employment meaning 2 out of 5 workers are 
less likely to have formal work arrangements and access to social protection and are 
more at risk during crises2.  
Acknowledging that most Filipinos enter the informal economy not by choice 
but as a consequence of limited opportunities in the formal economy, this bill seeks 
1 https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:R204. 
2 https://www.ilo.org/manila/areasofwork/informal-economy/lang--en/index.htm. 
August 25, 2022
10:29 am
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to provide social protection, occupational safety and health and implement labor 
protection policies similar to the protection granted to workers in the formal 
economy. The right to decent work is equal, universal and inalienable for all 
workers. 
 
Thus, the immediate passage of this measure is earnestly sought. 
 
 
 
 
 
 
 
 
 
    LORENZ R. DEFENSOR 
 
 
 
 
 
 
Representative, 3rd District Iloilo 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No.  _________ 
Introduced By Representative LORENZ R. DEFENSOR 
AN ACT 
PROVIDING FOR THE MAGNA CARTA OF WORKERS IN THE INFORMAL 
ECONOMY, 
INSTITUTIONALIZING 
MECHANISMS 
FOR 
IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
TITLE 1 
1 
GENERAL PROVISIONS 
2 
3 
Chapter I 
4 
Framework and Principles 
5 
6 
Section. 1. Short Title. — This Act shall be known as the "Magna Carta of Workers 
7 
in the Informal Economy". 
8 
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 will ensure the prosperity and
11 
independence of the nation and free the people from poverty through policies
12 
that provide adequate social services, promote decent and full employment, a
13 
rising standard of living, and improved quality of life for all;
14 
(b) Protect, promote and fulfill the rights of every worker including the right to self-
15 
organization, just and humane conditions of work, access to social protection,
16 
access to justice, security of and in the workplace, and the right to represent
17 
their organizations in a continuing process of consultation, in the context of
18 
quadpartism towards maximizing the provision of a comprehensive package of
19 
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reforms, interventions, and services in accordance with their articulated needs 
20 
and interests;  
21 
(c) Recognize the role and give proper value to the contributions of workers in the 
22 
informal economy and informal economic units, and make them visible in all 
23 
relevant national and local statistics;  
24 
(d) Promote gender equity and equality by protecting women workers in the 
25 
informal economy against gender-based discrimination, exploitation and abuse, 
26 
advancing women's social, economic, political, and reproductive rights, and 
27 
improving their access to social protection and participation/representation in 
28 
decision-making bodies and processes; 
29 
(e) Establish an integrated and coherent policy at all levels of government of 
30 
formalization, inclusive development, and greater responsiveness to the needs 
31 
of the workers and enterprises in the informal economy; 
32 
(f) Protect vulnerable workers from among the "Basic Sectors” as defined under 
33 
Republic Act No. 8425, and people living with HIV and AIDS, from 
34 
discrimination, exploitation, abuse and harassment, as well as from performing 
35 
work hazardous to their occupational, physical, mental, emotional, reproductive 
36 
and spiritual health; 
37 
(g) Take measures that will ensure legal security of tenure of workers and the safety 
38 
and security of their workplaces, taking into account and including the physical 
39 
environment, services, processes and systems needed to enable workers to 
40 
productively and safely perform their work; and 
41 
(h) Update labor, employment and establishment statistics and align the 
42 
segmentation of assets by further segmenting the micro-enterprises to give 
43 
preferential treatment to total asset and capital of P150,000.00 pesos and below 
44 
as defined under the Social Reform Agenda of 1997 (RA 8425) and conduct 
45 
periodic review of them. 
46 
 
47 
Sec. 3. Framework and Principles. — Article Il, Section 9 of the 1987 
48 
Constitution declares, "The State shall promote a just and dynamic social order that will 
49 
ensure the prosperity and independence of the nation and free the people from poverty 
50 
through policies that provide adequate social services, promote full employment, a rising 
51 
standard of living, and an improved quality of life for all." It shall give the highest 
52 
priority to the enactment of measures that protect and enhance the rights of all 
53 
people to human dignity; reduce social, economic and political inequalities; lessen 
54 
vulnerabilities to risks including those brought about by environmental degradation 
55 
and natural disasters, remove cultural inequities by redistributing wealth and 
56 
political power for the common good; and to develop an enabling environment 
57 
conducive to responsible citizenship. Towards this end, in the context of social 
58 
dialogue, the government at all levels shall formulate and implement coherent and 
59 
integrated strategies that are rights-based, participatory, gender-responsive and 
60 
sustainable. These strategies shall also be in accordance with the most relevant and 
61 


 
5 
empowering 
provisions 
of 
International 
Labour 
Organization 
(ILO) 
62 
Recommendation No. 204 concerning the Transition from the Informal to the 
63 
Formal: 
64 
 
65 
(a) 
Coherence of policies and programs established for the purpose of bringing 
66 
vulnerable workers and economic units into the economic and social 
67 
mainstream, and spur entrepreneurial or growth-oriented informal businesses 
68 
to graduate to formal status; 
69 
(b) 
Coordination across a broad range of policy areas in facilitating the transition 
70 
to the formal economy including pre-employment macro-economic policies 
71 
and labor market policies to help low-income households, unemployed 
72 
persons and other disadvantaged persons escape poverty and access 
73 
employment; 
74 
(c) 
Structural reforms in all relevant levels of government by creating committees 
75 
and special offices for the development and protection of workers in the 
76 
informal economy and supporting their representational, entrepreneurial, and 
77 
other rights, through their organizations, without being limited to tripartite 
78 
structures and particular strategies; 
79 
(d) 
Accessible, affordable and effective promotion of social security, including 
80 
labor market interventions, occupational safety and health, and the extension 
81 
of maternity protection to women in the informal economy, social welfare 
82 
programs and safety nets, disaster risk reduction and management 
83 
mechanisms, and adaptive measures to respond to climate change; 
84 
(e) 
Regulated access for use of public spaces and regulated access to public natural 
85 
resources for subsistence livelihoods through policies, programs and 
86 
interventions that will ensure the security of workplaces of workers in the 
87 
informal economic units, including, among others, the "relocation before 
88 
demolition" of vendors and small transport terminals, towards a work 
89 
environment that protects their rights and enables them to achieve greater 
90 
productivity; 
91 
(f) 
Minimum and simplified regulations to encourage the development of 
92 
ingenuity and entrepreneurial spirit among workers in the informal economy 
93 
including property rights; 
94 
(g) 
Preservation and expansion, during the transition to the formal economy, of 
95 
the entrepreneurial potential, dynamism, skills and innovative capacities of 
96 
workers and economic units in the informal economy; 
97 
(h) 
A balanced approach combining incentives with compliance; 
98 
(i) 
The need to prevent deliberate avoidance of, or exit from, the formal economy 
99 
for the purpose of evading taxation or the application of social and labor laws 
100 
and regulations; 
101 


 
6 
(j) 
Tax reforms based on net income for informal economic units and application 
102 
of tax laws or incentives for the informal economy workers currently enjoyed 
103 
by the formal labor; 
104 
(k) 
Social Dialogue mechanisms whereby informal workers' organizations will 
105 
participate and be in tripartite consultation in designing, evaluating, and 
106 
implementing policies and programs of relevance to the informal economy;  
107 
(l) 
Support system to expand market for products, access loans for additional 
108 
capital requirement and simplify bureaucratic systems and procedures for the 
109 
Micro, Small and Medium Enterprises (MSMEs); 
110 
(m) Relaxation of the procurement procedures for the contracting micro 
111 
entrepreneurs of the government; 
112 
(n) 
Review, amendment and efficient implementation of policies on sub-
113 
contracting such as DOLE Department Order No. 5 on Industrial Homework 
114 
and other relevant policies;  
115 
(o) 
A road map of development for both informal economy workers and economic 
116 
units shall guide the government in all levels in the context of social dialogue; 
117 
and 
118 
(p) 
After formalization, all laws applicable to formal labor and economic units 
119 
shall apply. 
120 
 
121 
Sec. 4. Scope. - This Act shall apply to all workers and economic units including 
122 
enterprises, entrepreneurs and households — in the informal economy, in 
123 
particular: 
124 
 
125 
(a) Those in the informal economy who own and operate economic units, including: 
126 
 own-account workers; 
127 
 employers; and 
128 
 members of cooperatives and of social and solidarity economy units; 
129 
(b) Contributing family workers, irrespective of whether they work in economic 
130 
units in the formal or informal economy; 
131 
(c) Employees holding informal jobs in or for formal enterprises, or in or for 
132 
economic units in the informal economy, including but not limited to those in 
133 
subcontracting and in supply chains, or as paid domestic workers employed by 
134 
households; and 
135 
(d) Workers in unrecognized or unregulated employment relationships. 
136 
 
137 
Sec. 5. Definition of Terms. — As used in this Act, the following terms shall mean: 
138 
 
139 
(a) Basic sectors refer to the disadvantaged sectors of Philippine society, namely: 
140 
farmer-peasant, artisanal fisher folk, workers in the formal sector and migrant 
141 
workers, workers in the informal sector, indigenous peoples and cultural 
142 


 
7 
communities, women, differently-abled persons, senior citizens, victims of 
143 
calamities and disasters, youth and students, children, and urban poor; 
144 
(b) Community Contracting refers to the process of concluding an agreement between 
145 
a community and a contracting authority, whereby the community (or a section 
146 
thereof) is responsible for the implementation of the work, and therefore, 
147 
functions as a contractor; 
148 
(c) Daily Basis refers to the per day mode of paying a worker, as bilaterally agreed 
149 
upon by the employer and worker; 
150 
(d) Hazardous Work Conditions refer to any activity or circumstance where a worker is 
151 
exposed to any risk which constitutes an imminent danger to his or her health or 
152 
safety. This includes potential risks of disability, injury, illness or death due to 
153 
the presence of biologic agents, radiation, chemicals, substances, hazardous 
154 
materials; physical hazards in the work environment; or the nature of work, 
155 
processes performed, or equipment used therein; 
156 
(e) Informal Economy - based on the ILO Recommendation No. 204 concerning the 
157 
Transition from the Informal to the Formal, adopted during the 104th 
158 
International Labour Conference (TLC) in June, 2015 this refers to "all economic 
159 
activities by workers and economic units that are — in law or in practice — not 
160 
covered or insufficiently covered by formal arrangements"; 
161 
(e-1) Economic Units in the informal economy include: 
162 
- 
units that employ hired labour; 
163 
- 
units that are owned by individuals working on their own account, 
164 
either alone or with the help of contributing family workers;  
165 
- 
cooperatives and social and solidarity economy units; 
166 
- 
informal work that may be found across all sectors of the economy, 
167 
in both public and private spaces. 
168 
(f) Informal Economy Workers' Organization refers to a group or groups of informal 
169 
sector workers, whether formally constituted or otherwise, that are organized 
170 
with the primary objective of promoting the welfare of workers in informal 
171 
economy; 
172 
(g) Monthly Basis refers to the per month mode of paying a worker as bilaterally 
173 
agreed upon by the employer and worker; 
174 
(h) Pakyaw Basis refers to the pre-contracted wholesale mode of paying a worker as 
175 
bilaterally agreed upon by the employer and worker; 
176 
(i) Piece rate refers to payment of products or services by piece of work or by service 
177 
rendered; 
178 
(j) Security of and in the Workplace refers to the right of every worker and informal 
179 
economic units to an enabling environment that guarantees and protects the 
180 
spaces to undertake their work, including the right to feel safe in one's own 
181 
work space, legal security of tenure and freedom from discrimination, risk, 
182 
danger, doubt, anxiety, or fear of being removed, evicted or prevented from 
183 
working; 
184 


 
8 
(k) Social Protection refers to policies, programs, and all other interventions that 
185 
support communities, households and individuals, both women and men, and 
186 
aimed at: reducing poverty through the promotion and sustenance of livelihood 
187 
and 
employment; 
preventing, 
managing 
and 
overcoming 
risks 
and 
188 
vulnerabilities throughout their life cycle, like protection against hazards and 
189 
sudden loss of income; and realizing their rights as citizens through their full 
190 
participation in decision-making affecting or may affect their access to and 
191 
control over resources necessary to maintain and sustain a decent and secure 
192 
life. 
193 
 
194 
Social protection schemes shall include labor market interventions, social 
195 
insurance, social welfare, safety nets, disaster risk reduction and management 
196 
mechanisms, adaptive measures in the context of climate change, affordable 
197 
housing and other provisions necessary for vulnerable groups to adequately 
198 
address and manage risks. 
199 
(l) Working Hours refer to the period of time within which a worker is required to be 
200 
on call to perform any and all tasks that may be designated, regardless of 
201 
whether there are actual tasks being undertaken; and 
202 
(m) Volunteer workers of government instrumentalities refer to workers in government 
203 
instrumentalities receive allowances or honoraria. These include but are not 
204 
limited to: barangay health workers (BHW), barangay tanod, barangay nutrition 
205 
scholars (BNS), barangay daycare workers, enumerators, and among others. 
206 
 
207 
Chapter II 
208 
Coverage, Registration and Annual Dues 
209 
 
210 
Sec. 6. Coverage. — This shall include all those defined in Section 4 of this Act, 
211 
Informal Economy (IE) businesses and enterprises, and organizations of workers in 
212 
informal economy. 
213 
 
214 
Sec. 7. Registration. — 
215 
(a) Workers. — There shall be a simple and standard system of registration in 
216 
accordance with the framework and principles of this Act. A one-time 
217 
registration fee of not more than Fifty pesos (P50.00) per individual worker, 
218 
shall be paid to the municipality or city where they reside. 
219 
 
220 
Any IE worker registered in the local government provided for in this Act 
221 
shall be listed in the centralized database system, and shaft be issued an identity 
222 
card and a record book that shall list all services and benefits availed of. These 
223 
signify eligibility to avail of development programs, provided, that the poorest 
224 
and the most vulnerable workers shall be given priority. 
225 


 
9 
 
226 
The concerned LGU shall review, revalidate and reassess such database as a 
227 
tool for local planning and for other purpose every two (2) years from the date 
228 
of last registration. Renewal of eligibility shall be in accordance with the merit 
229 
and fitness principle, and with the conditions that no child labor shall be used 
230 
and no activities harmful to the environment shall be implemented. 
231 
 
232 
(b) Informal Economic Unit. — A comprehensive database of all economic units shall 
233 
be developed and maintained. Such database shall take into account the different 
234 
sub-classifications in terms of asset size, number of workers, social insurance 
235 
provided, statutory benefits and wages, industry, geography, premises, sex, 
236 
ethnicity, vulnerability, and roles and functions. The database shall also indicate 
237 
informal economic units which may be categorized as livelihood enterprises and 
238 
entrepreneurial or growth-oriented informal businesses. Further, the database 
239 
shall include information on payments collected from IE workers, Workers in the 
240 
Informal Economy (WIE) organizations and economic units. The Barangay Micro 
241 
Business Enterprise (BMBE) Registry, in general, shall include these informal 
242 
economic units.  
243 
 
244 
The aforesaid comprehensive database shall form part of the bases of 
245 
assessment and monitoring of the growth of informal economy. 
246 
 
247 
All local government units shall formulate a uniform and simple checklist of 
248 
requirements for registration, and establish an IE One-Stop Shop Center which 
249 
shall handle all transactions and processing of business permit applications 
250 
within their respective jurisdiction and worker's registration. The Center shall 
251 
ensure that processing of the business permit of the informal economic units 
252 
shall be expedited within one (1) day. The P150,000.00 asset size shall be given an 
253 
affordable business registration (Mayor's Permit) of P500.00 renewable annually 
254 
until two (3) years of operation after which, shall be subject to the regular 
255 
business permit requirements of the local government. The BIR shall also exempt 
256 
from sales tax for the same period of three (3) years the said asset size of 
257 
economic unit renewable annually.  
258 
 
259 
(c) Informal Economy Organizations/Associations. — IEO/A shall register or accredit 
260 
with the Department of Labor and Employment (DOLE). 
261 
 
262 
Sec. 8. Annual Dues. — IE workers and organizations shall pay annual dues to be 
263 
determined by the Local Government Unit (LGU) concerned, in consultation with 
264 
their respective Workers in Informal Economy Local Development Office 
265 
(WIELDO) referred to in Title I, Chapter IX of this Act. In no case shall the annual 
266 
dues to be paid by IE workers be more than 30% of the prescribed daily minimum 
267 


 
10 
wage as determined by the Regional Tripartite Wages and Productivity Board 
268 
(RTWPB) in their respective regions or provinces. 
269 
 
270 
These annual dues shall accrue to the respective LGU where they are 
271 
accredited. The accumulated funds from these dues shall be used for programs to 
272 
benefit IE workers and organizations/associations, business activities, enterprises 
273 
and organizations, as recommended by the WIELDO. Such programs and 
274 
disbursement of funds shall be approved by the concerned LGU Council in 
275 
consultation with the local informal economy constituents. 
276 
Chapter Ill 
277 
Rights And Benefits 
278 
 
279 
Sec. 9. Workers in the informal economy shall have the same basic rights accorded 
280 
to all workers, as enshrined in the Philippine Constitution, the Labor Code, as 
281 
amended, and relevant international human rights instruments and labor 
282 
Conventions. These include, but are not limited to the rights to: 
283 
 
284 
(a) Work, which includes the rights to: security of/in the workplace; make a living 
285 
by work freely chosen or accepted; and avail of technical and vocational 
286 
guidance and training programs; 
287 
(b) Enjoyment of just and favorable conditions of work; 
288 
(c) A living wage and equal remuneration for work of equal value without 
289 
distinction of any kind, in particular for women who shall be guaranteed equal 
290 
wages for work similar or equivalent to those done by men; 
291 
(d) Equal opportunity for promotion, subject to no other considerations than 
292 
seniority and competence; 
293 
(e) Safe and healthy working conditions safeguarding general, occupational and 
294 
reproductive health; 
295 
(f) Access to basic services including but not limited to affordable medical care, 
296 
reproductive and other health services, low-cost housing, water, sanitation, 
297 
electricity and transport; 
298 
(g) Rest, leisure and reasonable limitation of working hours, and periodic holidays 
299 
with pay, as well as remuneration for public holidays whenever applicable;  
300 
(h) Maternity and paternity benefits, as provided for by law; 
301 
(i) Equal access to education, skills training, and economic resources to develop 
302 
self-reliance, especially of children and young persons, without any
303 
 
discrimination; 
304 
(j) Self-organization to collectively negotiate with government and other entities in 
305 
the promotion of their welfare and advancement of their interests, free from any 
306 
political interference; 
307 


 
11 
(k) An adequate standard of living for workers and their families, adequate food, 
308 
clothing, and shelter, and the continuous improvement of such standard; 
309 
(l) Freedom from any form of discrimination, violence, exploitation including 
310 
sexual exploitation, harassment, abuse, and any form of inhumane treatment 
311 
which debases, degrades or demeans the intrinsic worth and dignity of the 
312 
worker as a human being; 
313 
(m) Accessible social protection, comprising mainly of, but not limited to labor 
314 
market programs, social security, health care and insurance, and social welfare 
315 
interventions; 
316 
(n) Equal treatment before the law; 
317 
(o) Substantial participation in policy and decision-making processes, including 
318 
access to information and other resources relevant to the promotion and 
319 
protection of their rights and welfare through organizations that truly represent 
320 
the sector; 
321 
(p) Equal access to justice though appropriate mechanisms, including, but not 
322 
limited to, alternative dispute resolution processes; and 
323 
(q) Access to public procurement including advice and reserving quotas for 
324 
informal economic units. 
325 
 
326 
Sec. 10. Own-account workers as well as informal economic units, being the 
327 
working poor's primary instruments to address and overcome poverty, shall be 
328 
accorded the following preferential rights by the State: 
329 
 
330 
(a) Infrastructure support such as farm-to-market roads, common, affordable and 
331 
secure workplaces and facilities, merchandising centers, farmers' markets or a 
332 
bagsakan with proper storage facilities, and inventory bulk-buying centers;  
333 
(b) Policy support to promote and protect local and domestically-produced 
334 
products and services; 
335 
(c) Access to markets, including capacity-building to access E-marketing facilities; 
336 
(d) Access to affordable, appropriate and adequate financial services, including, 
337 
among others, collateral-free and gender-balanced credit at low interest;  
338 
(e) Access to appropriate and adequate machinery, equipment, and other 
339 
technologies, with the end in view of increasing productivity and growth; 
340 
(f) Protection from unjust dislocation from places where economic activities are 
341 
conducted with the "provision of relocation before demolition policies"; 
342 
(g) Measures against racketeering, extortion, and harassment, by both State and 
343 
non-State elements; 
344 
(h) Fiscal relief, including among others exemption from taxes, fees and other 
345 
assessments, to be put into place by concerned national agencies and local 26 
346 
government units sixty (60) days after the effectivity of this Act; 
347 


 
12 
(i) Common workplaces, common technology facilities, adequate and affordable 
348 
marketing facilities such as economic freedom parks, merchandising centers, 
349 
and inventory bulk-buying centers; 
350 
(j) Freedom from deprivation of property without valid cause and due process of 
351 
law; and 
352 
(k) Affordable and customized social security and insurance programs. 
353 
 
354 
Sec. 11. Organizations of workers in informal employment, including unions, 
355 
cooperatives, social and solidarity economic units/organizations and mutual benefit 
356 
associations, shall have the right to: 
357 
(a) Freely function and act as the representatives of their members in policy and 
358 
decision-making processes, collective negotiations, and other similar bodies and 
359 
processes in the context of tripartism and multi-sector; 
360 
(b) Establish national federations or confederations and to protect the right of the 
361 
latter to form or join local unions and international trade-union organizations; 
362 
(c) Access information from concerned government institutions and other parties 
363 
that are pertinent to the protection and promotion of the rights and welfare of 
364 
their members;  
365 
(d) Own property, real or personal, for the use and benefit of their organizations 
366 
and members; 
367 
(e) Sue and be sued under their registered names; 
368 
(f) Undertake all other activities, not contrary to law, designed to benefit their 
369 
organizations and members; and 
370 
(g) Be accorded preferential option in the awarding of contracts for the undertaking 
371 
of national and local projects funded by either the National or local government 
372 
units including foreign-assisted projects. Guidelines for this shall be included in 
373 
the Implementing Rules and Regulations of this Act. 
374 
 
375 
Notwithstanding any provision of a general or special law to the contrary, the 
376 
income and properties of legitimate workers' organizations, including grants, 
377 
endowments, gifts, donations and contributions they may receive from fraternal 
378 
and similar organizations, local or foreign, which are actually, directly and 
379 
exclusively used for their lawful purposes, shall be free from taxes, duties and other 
380 
assessments. The exemptions provided herein may be withdrawn only by a special 
381 
law expressly repealing this provision. 
382 
 
383 


 
13 
Sec. 12. Organizing Workers in Informal Economy. — WIE shall be encouraged to 
384 
organize themselves for their mutual benefit and protection, and for other legitimate 
385 
purposes. Toward this end, the State shall encourage and assist these workers in the 
386 
formation 
of 
their 
self-help 
organizations, 
associations, 
federations, 
and 
387 
confederations. 
388 
 
389 
The State shall encourage the formation of cooperatives among marginalized 
390 
farmers, fisher-folk, as well as manufacturing, transport, retail, services, and home-
391 
based workers to enable members to: purchase inputs at lower cost, obtain fair 
392 
prices for their produce, avail of credit assistance and skills training, and share from 
393 
collective gains of the cooperatives. 
394 
 
395 
Attention will be given to organizing women and other vulnerable WIE. 
396 
 
397 
Sec. 13. Assistance to Organizations of Workers in the Informal Economy. — All 
398 
concerned national government agencies, government financial institutions and 
399 
local government units shall include in their plans, programs, projects and activities 
400 
efforts that will support and address concerns of organizations of WIE. 
401 
 
402 
Sec. 14. Monitoring of Growth — The local government units (LGUs) shall 
403 
supervise the Workers in Informal Economy Local Development Office (WIELDO) 
404 
as created by Chapter IX of this Act, and monitor the growth of informal 
405 
employment business activities or enterprises, three (3) years after the enactment of 
406 
this Act, and every three (3) years thereafter. The centralized database referred to in 
407 
Section 7 shall be the basis of this monitoring. 
408 
 
409 
Chapter IV 
410 
Prohibited Acts Concerning Engagement of  
411 
Workers in the Informal Economy 
412 
 
413 
Sec. 15. Prohibition Against Recruitment or Finders' Fees. —Regardless of whether 
414 
the worker was sourced either through an employment agency or a third party, WIE 
415 
shall neither be charged nor levied a recruitment fee or finders' fee by the 
416 
aforementioned employment agency or third party. 
417 
 
418 
Sec. 16. Prohibition Against Hazardous Work and Conditions. — Workers shall not 
419 
be engaged to do hazardous work, activity or undertaking, or be exposed to 
420 
hazardous working conditions. 
421 
 
422 


 
14 
For purposes of this Section, hazardous work or conditions shall include, but not be 
423 
limited to the following: 
424 
 
425 
(a) Any work which requires workers to render services beyond eight (8) hours 
426 
without commensurate compensation; 
427 
(b) Any work or activity which exposes the worker to physical, emotional or sexual 
428 
abuse or threat of such abuse; 
429 
(c) Any work which involves manual handling or transport of heavy loads; 
430 
(d) Any work in an unhealthy environment which exposes workers to hazardous 
431 
substances, agents or processes, or to temperature, noise levels, or vibrations 
432 
damaging or potentially damaging to their health; 
433 
(e) Any work which requires workers to continuously render service during late 
434 
nights; 
435 
(f) Any and all forms of slavery or practices similar to slavery, such as the sale and 
436 
trafficking of persons, forced or compulsory labor, debt bondage and serfdom; 
437 
(g) Any use, procuring or offering of the worker for prostitution or pornography;  
438 
(h) Any use, procuring or offering of the worker for the commission of any offense 
439 
or crime, particularly for the production, trafficking, or sale of narcotic drugs 
440 
and substances as defined in the Dangerous Drugs Act; 
441 
(i) Any other type of work or activity which, by its nature or the circumstances in 
442 
which it is carried out, is likely to jeopardize the health, safety, or morals of the 
443 
workers; and 
444 
(j) Any other type of work, activity, condition or undertaking that maybe 
445 
hereinafter be defined as hazardous by the Department of Labor and  
446 
Employment. 
447 
 
448 
Sec. 17. Prohibition Against Interference and Coercion. — Any person is prohibited 
449 
from committing any of the following acts of interference and coercion:  
450 
(a) Preventing any worker from upholding or exercising his/her rights; 
451 
(b) Preventing any worker from joining or assisting organizations for purposes not 
452 
contrary to law; 
453 
(c) Preventing any worker from carrying out his/her duties or functions in an 
454 
organization, or to penalize the same for any lawful action performed in that 
455 
capacity; 
456 
(d) Harassing, threatening, coercing or intimidating any worker that result in 
457 
preventing him or her from performing his or her duties and functions; 
458 
(e) Transferring, penalizing or terminating the services of a worker without valid or 
459 
legal ground; and  
460 
(f) Other acts calculated to diminish the independence and freedom of workers' 
461 
organization to direct its own affairs. 
462 
 
463 


 
15 
Chapter V 
464 
Social Protection 
465 
 
466 
Social protection as defined in Section 5 of this Act shall have the components 
467 
enumerated and discussed in this chapter. 
468 
 
469 
Sec. 18. Labor Market Programs. — The State shall provide adequate resources to 
470 
sustain labor market programs following decent work standards, including 
471 
emergency and guaranteed employment schemes, to ensure livelihood security and 
472 
prevent or mitigate the effects of sudden loss of income in the context of sustainable 
473 
development and developing local economies in both rural and urban areas. 
474 
 
475 
The State shall ensure that these schemes are labor-intensive, developmental, 
476 
sustainable, and engage women, men, the youth, and older people in building 
477 
infrastructure, socialized housing, social forestry focusing on the planting of 
478 
traditional trees, organic farming, and food production programs. 
479 
 
480 
LGUs shall encourage and provide incentives to constituents who want to 
481 
engage or are engaged in sustainable and/or organic farming. All idle private or 
482 
public lands within their jurisdiction shall be cultivated or planted with organic 
483 
food crops like corn, root crops or vegetables. If applicable, LGUs must allocate a 
484 
portion of their local funds for mangrove reforestation and prohibit conversion of 
485 
any mangrove forest to residential, commercial or industrial use. 
486 
 
487 
In pursuit of decent work, the State in all its labor market programs, shall 
488 
adopt a comprehensive framework and plan on occupational safety and health that 
489 
covers all workers, formal and informal, and implemented at both national and local 
490 
levels. 
491 
The State shall encourage entrepreneurship among the disadvantaged, especially 
492 
women and young people in informal employment, through simple and efficient 
493 
procedures and the provision of adequate and affordable marketing facilities such 
494 
as those provided for by Section 9 (i) of this Act. 
495 
 
496 
The State through LGUs shall promote community contracting to give 
497 
preference to WIE and their organizations in accessing employment opportunities 
498 
and related benefits. 
499 
 
500 
Sec. 19. Social Security. — In the interest of equity, the State shall endeavor to 
501 
extend social security protection to all workers and their beneficiaries against the 
502 
hazards of disability, sickness, maternity, old age, death, unemployment, and other 
503 


 
16 
contingencies resulting in loss of income or financial burdens. The State also, 
504 
recognizing the intermittent nature of job and income in the informal economy, 
505 
shall subsidize the contributions of the workers in the informal economy. 
506 
 
507 
The Social Security System (SSS) shall ensure coverage for all workers, 
508 
particularly the working poor belonging to the informal economy. The SSS, in 
509 
consultation with informal workers' organizations, shall customize products and 
510 
services for them that are accessible and affordable. In the interest of equity, the 
511 
State shall cover what should have been the employers' share for contributions of 
512 
informal workers, had they been formally employed. 
513 
 
514 
The SSS shall develop schemes involving government subsidies and 
515 
sponsorship programs to assist those who cannot afford to enroll and sustain their 
516 
membership. 
517 
 
518 
To achieve universal coverage, the SSS shall facilitate the accreditation of 
519 
cooperatives, women's and people's organizations, trade unions and WIE 
520 
associations, microfinance and micro-insurance institutions and similar groups as 
521 
collecting agents of premiums and facilitators of claims with the least burdensome 
522 
conditions and with appropriate incentives. It shall develop effective partnerships 
523 
with these organizations. 
524 
 
525 
The 
SSS 
Commission, 
in 
the 
spirit 
of 
democracy, 
transparency, 
526 
accountability, and equity, shall be required to conduct regular consultations with 
527 
and provide information and reports to its membership. Both formal and informal 
528 
workers shall be represented in the SSS Commission, where gender balance shall 
529 
also be observed. 
530 
 
531 
The SSS in cooperation with other relevant national agencies and LGUs, shall 
532 
support indigenous and community-based social protection schemes which 
533 
complement other needs in times of risk such as damayan, tulungan, saranay, small 
534 
mutual benefit associations, and micro-finance organizations initiated or  
535 
participated in by WIE so that these can be sustained, systematized and up-scaled. 
536 
 
537 
An enabling environment for such organizations and schemes shall also be 
538 
developed. Toward this end, the Insurance Commission (IC) and other relevant 
539 
regulatory agencies are hereby mandated to review their policies and framework to 
540 
make them more developmental and supportive of the alternative schemes outlined 
541 
above. 
542 
 
543 


 
17 
Sec. 20. Social Security for Volunteers of Government Instrumentalities. —
544 
Volunteer workers of government instrumentalities as defined in Sec. 5 of this Act, 
545 
shall be covered by the Government Service Insurance System (GSIS) and be entitled 
546 
to at least a minimum package of customized products, services and benefits to be 
547 
designed with their participation and with adequate government subsidy. 
548 
 
549 
Sec. 21. Universal Health Care. —The Philippine Health Insurance Corporation 
550 
(PhilHealth) shall ensure and substantiate universal, actual, active, and up-to-date 
551 
coverage of workers in the informal economy, through the effective implementation 
552 
of Republic Act No. 11223, or the Universal Healthcare Law, which mandates the 
553 
coverage of every Filipino citizen to the National Health Insurance Program (NHIP). 
554 
 
555 
In compliance with Republic Act No. 11223, PhilHealth shall ensure the 
556 
provision of a minimum benefit package which shall be periodically upgraded to 
557 
meet the goa! of universal coverage which is affordable, accessible and appropriate 
558 
to the needs of all. 
559 
 
560 
Further, PhilHealth shall immediately extend its services to underserved 
561 
areas by facilitating and accelerating accreditation of hospitals and clinics, and by 
562 
ensuring that these service providers remain viable through immediate 
563 
reimbursement. 
564 
 
565 
These shall include the provision of service by duly-accredited and 
566 
adequately-furnished health facilities, with appropriately educated and rationally 
567 
compensated health personnel, to underserved areas up to the barangay level. 
568 
 
569 
Sec. 22. The State shall encourage provision of and access to affordable quality 
570 
childcare and other care services in order to promote gender equality in 
571 
entrepreneurship and employment opportunities and to enable the transition to 
572 
formal economy. 
573 
 
574 
Sec. 23. The State shall sustain, enhance, and institutionalize the Social Protection 
575 
Floor initiative through convergence of the resources of various agencies so that it 
576 
can provide continuous social security and health insurance subsidies to vulnerable 
577 
and other informal workers as well as initiate programs for the unemployed, 
578 
children, and older persons based on applicable and ever-improving standards. 
579 
 
580 
CHAPTER VI 
581 
Security in the Workplace of Workers in Informal Employment 
582 
 
583 


 
18 
Security in the workplace as defined in Section 5 of this Act shall involve the 
584 
following: 
585 
 
586 
Sec. 24. Designation of Workplaces. — The concerned Local Government Unit 
587 
(LGU), in coordination with their respective WIELDO, and after consultation with 
588 
WIE, affected communities, and other relevant groups, shall identify and designate 
589 
viable workplaces for informal workers; routes, terminals, and specific lanes for 
590 
small transport workers; and design a system of assigning these to accredited 
591 
informal workers, These may include markets and vacant areas near markets, 
592 
vacant public spaces and other spaces which may be designated as allowable 
593 
workplaces for informal workers. 
594 
 
595 
Should concerned WIE prefer to conduct their economic activities within an 
596 
identified private property, the LGU shall negotiate with the owner of the property 
597 
for the possible use of such property as WIE's workplace. The LGU shall likewise 
598 
encourage and assist the parties in forging a possible memorandum of agreement. 
599 
The LGUs, within sixty (60) days from the effectivity of this Act, shall conduct a 
600 
survey to identify viable vacant areas suitable for routes, terminals, lanes, 
601 
productivity and merchandising centers and workplaces for use of WIE in their 
602 
respective localities. 
603 
 
604 
The LGUs shall, within ninety (90) days after the survey and based on 
605 
recommendations of WIELDO and consultations with concerned WIE, affected 
606 
inhabitants and relevant sectors, pass an ordinance designating such workplaces. 
607 
 
608 
Sec. 25. Protection of Agricultural Lands and their Occupants. — The LGUs, in 
609 
coordination with the Department of Agrarian Reform (DAR) shall protect all 
610 
agricultural lands from conversion or reclassification to non-agricultural uses. 
611 
Special Economic Zones Sites, Tourist Sites or Socialized Housing Sites shall not be 
612 
allowed in irrigated and irrigable lands. 
613 
 
614 
The LGUs shall include in their Comprehensive Land Use Plan (CLUP) all the 
615 
agricultural lands as protected zones. 
616 
 
617 
The LGUs shall make an inventory of all agricultural lands under leasehold 
618 
and shall enforce the security of tenure of tenants, right of redemption and right of 
619 
first refusal on the subject land. The LGUs shall provide assistance and protection to 
620 
tenants in agricultural lands whose landowners violate the provisions of R.A. No.  
621 
3844 or the Agricultural Land Reform Code. Tenants shall not be evicted based on 
622 
unilateral termination of the tenancy relationship by landowners. 
623 


 
19 
 
624 
Sec. 26. Use of Municipal Waters, Beach Fronts, and Foreshore Areas. — Municipal 
625 
waters shall be used exclusively by marginalized fisher-folk and allied workers. 
626 
They shall be given priority in the granting of permits and licenses for the 
627 
establishment of fish pens, fish corrals, fish traps, shellfish culture or similar 
628 
structures for culture of marine products within the municipal waters. 
629 
 
630 
Beach fronts and foreshores are public domain and may be used by any 
631 
person especially marginalized fisher-folk. LGUs shall ensure that no beach within 
632 
their jurisdiction is exclusive for the use of resort guests or private persons. 
633 
 
634 
LGUs in coordination with the National Housing Authority (NHA), shall 
635 
establish and create fisher-folk settlement areas on private or public lands, 
636 
specifically those near the fishing grounds, for municipal fisher-folk with security of 
637 
tenure. 
638 
 
639 
The consent of the affected fisher-folk shall be required before an area is 
640 
declared a marine protected area or a fish sanctuary by the national or local 
641 
government unit. 
642 
 
643 
Sec. 27. Policy on Eviction and Demolition. - WIE shall not be evicted from their 
644 
homes and workplaces without legal ground as provided for R.A. No. 7279, 
645 
otherwise known as the "Urban Development and Housing Act of 1992". In cases where 
646 
eviction or demolition is warranted under Section 28 of R.A. No. 7279, the same 
647 
shall be conducted upon compliance of the following: 
648 
 
649 
(a) Notice upon the affected persons or entities at least thirty (30) days prior to the 
650 
date of eviction or demolition; 
651 
(b) Adequate consultations on the matter of resettlement with the duly designated 
652 
representatives of the families to be resettled and the affected communities in 
653 
the areas where they are to be relocated; 
654 
(c) Presence of local government officials or their representatives during eviction 
655 
or demolition; 
656 
(d) Proper identification of all persons taking part in the demolition; 
657 
(e) Execution of eviction or demolition only during regular office hours from 
658 
Mondays to Fridays and during good weather, unless the affected families 
659 
consent otherwise; 
660 
(f) No violence or unreasonable force shall be committed against women, children, 
661 
senior citizens, persons with disabilities and other identities similarly situated 
662 
in the course of eviction or demolition; 
663 


 
20 
(g) Non-use of heavy equipment for demolition except for structures that are 
664 
permanent and of concrete materials; 
665 
(h) Proper uniforms for members of the Philippine National Police (PNP) who 
666 
shall occupy the first line of law enforcement and observe proper disturbance 
667 
control procedures; and 
668 
(i) Adequate relocation, whether temporary or permanent; provided, however, 
669 
that in cases of eviction and demolition pursuant to a court order involving 
670 
underprivileged and homeless citizens, relocation shall be undertaken by the 
671 
local government unit concerned and the National Housing Authority (NHA) 
672 
with the assistance of other government agencies within forty-five (45) days 
673 
from service of notice of final judgment by the court, after which period the 
674 
said order shall be executed; provided, further, that should relocation not be 
675 
possible within the said period, financial assistance in the amount equivalent to 
676 
the prevailing minimum daily wage multiplied by sixty (60) days shall be 
677 
extended to the affected families by the local government unit concerned. 
678 
 
679 
Sec. 28. Policy on Confiscation of Materials and Impounding of Vehicles. — In cases 
680 
where demolition or eviction is warranted, the person who conducts the same shall 
681 
issue an itemized receipt of all products, goods, and other materials seized from the 
682 
affected WIE. 
683 
 
684 
Tricycles, pedicabs, and other modes of transportation shall not be 
685 
impounded for violations of license, registration, or traffic regulations unless the 
686 
said vehicles were utilized in the conduct of criminal activities. In cases of mere 
687 
violation of traffic regulations, a traffic violation ticket shall be issued to the erring 
688 
driver without impounding his/her vehicle. 
689 
 
690 
Sec. 29. Policy on Relocation of Vending Sites. — Before any public market is 
691 
closed, sold or demolished, all market vendors shall first be relocated by the LGU to 
692 
a temporary or new public market. Notice of the intention to close, sell, or demolish 
693 
any public market shall be made to all concerned vendors at least sixty (60) days 
694 
before the actual transfer or relocation to another market site. Within the sixty (60)-
695 
day period after issuance of notice, the LGU shall conduct consultations with 
696 
affected vendors on the selection of the relocation site and implementation of the 
697 
relocation. 
698 
 
699 
Pending the designation of viable vending areas, vendors occupying public places 
700 
not previously designated as vending sites shall be provided with viable temporary 
701 
sites by the LGU. Notice of temporary transfer shall be given to the vendors at least 
702 
fifteen (15) days before the actual transfer. This shall likewise apply to vendors 
703 
granted with permits but whose workplaces are withdrawn from the list of 
704 


 
21 
allowable vending sites. Any change in the list of allowable vending sites shall only 
705 
be done after consultations with affected vendors. 
706 
 
707 
In the event that a new public market is constructed in place of an old one, 
708 
market vendors with stalls displaced from their workplaces shall be given priority 
709 
in the assignment of stalls in the new market. 
710 
 
711 
Sec. 30. Policy on Relocation of Terminals. — Designated terminals for tricycles 
712 
and pedicabs shall not be arbitrarily relocated without prior notice and consultation 
713 
with small transport groups, affected community and other relevant sectors. 
714 
Provided, that relocation of terminals can only be effected through an Ordinance. 
715 
Provided further, that after the enactment of such ordinance, notice of intention to 
716 
relocate terminals shall be made to all small transport groups and affected 
717 
community at least sixty (60) days before the actual relocation. 
718 
 
719 
Chapter VII 
720 
Special Allocations of Development Initiatives 
721 
 
722 
Sec. 31. Special Allocations for Development Initiatives. — The development 
723 
initiatives for WIE shall form part of an integrated and convergent plan to address 
724 
poverty and vulnerability. The national and local government units shall work 
725 
together in support of such plan to maximize impact of meager resources. 
726 
 
727 
(a) At least ten percent (10%) of the annual national budget shall be appropriated 
728 
for programs and services for WIE. These programs shall be implemented based 
729 
on the principles of merit and equity by the Department of Labor and 
730 
Employment (DOLE) at the national level and the WIELDO at the local level. 
731 
 
732 
(b) For purposes of program implementation, the DOLE shall manage 30%, and 
733 
WIELDO, 70% of the funds from the annual General Appropriations Act (GAA) 
734 
as provided for in the previous paragraph of this section. 
735 
 
736 
(c) The Implementing Rules and Regulations (IRR) of this Act shall determine 
737 
additional guidelines on, among others, the use of such finances to ensure that 
738 
programs and services truly benefit WIE. 
739 
 
740 
Sec. 32. Sourcing and Adopting Development Initiatives — Other sources of funds 
741 
to be used exclusively for initiatives addressing the needs and empowerment of 
742 
WIE shall be identified in the IRR of this Act and may include the following: 
743 
 
744 


 
22 
(a) Government financial institutions and mechanisms such as the Land Bank of the 
745 
Philippines (LBP), Development Bank of the Philippines (DBP), National 
746 
Livelihood Support Fund (NLSF), and Quedan Rural Credit and Guarantee 
747 
Corporation shall set aside a specific percentage of their loan portfolio to 
748 
informal economy enterprises and shall give priority to women-led informal 
749 
economy enterprises by providing loans at an interest of not more than twelve 
750 
percent (12%) per annum consistent with the spirit of R.A. No. 7882;  
751 
 
752 
(b) The Department of Social Welfare and Development (DSWD) shall strengthen 
753 
its Self-Employment Assistance Program (SEAK) to uplift and empower women 
754 
in poverty, particularly those in the informal economy, by adopting an 
755 
integrated, credit-plus approach to micro-finance; 
756 
 
757 
(c) The Small Business Guarantee and Finance Corporation (SBGFC) created under 
758 
Republic Act (R.A.) No. 8289 shall assist in the sourcing and adopting of 
759 
development initiatives for competitive enterprises in terms of finance, 
760 
technology, production, management and business linkages. It shall also 
761 
provide and promote, develop and widen in both scope and service reach 
762 
various alternative modes of financing for informal economy business activities 
763 
or enterprises, including but not limited to: direct and indirect project lending, 
764 
venture capital, financial leasing, secondary mortgage and/or rediscounting of 
765 
loan papers to such business activities or enterprises, and crop production 
766 
financing. Further, the Corporation shall guarantee loans obtained by qualified 
767 
worker or business activity or enterprise, under such terms and conditions 
768 
adopted by its Board; 
769 
(d) The Department of Trade and Industry (DTI) shall contribute to enable the 
770 
development of a business environment that shall include initiatives such as 
771 
supply chain and market outlets, and schemes to develop Special Credit 
772 
Windows to upscale informal enterprises; and  
773 
 
774 
(e) The Department of Science and Technology (DOST) shall support technology 
775 
related initiatives of workers and enterprises in the informal economy. 
776 
 
777 
Sec. 33. Exclusivity of Government Programs. — The government shall ensure that 
778 
programs of financing, grants and other similar incentives meant to benefit WIE 
779 
shall be exclusively extended to accredited workers, business activities, enterprises 
780 
or organizations in the informal economy. 
781 
 
782 
Sec. 34. Inclusivity of Benefits. — The exemptions and other benefits provided in 
783 
this Act shall apply for a period of not exceeding ten (10) years from the date of 
784 
accreditation of such IE worker, business activity, enterprise, or organization. 
785 
 
786 


 
23 
Chapter VIII 
787 
Informal Economy Development Council (IEDC) 
788 
 
789 
Sec. 35. Creation of the Informal Economy Development Council (IEDC). — There is 
790 
hereby created an Informal Economy Development Council, hereinafter referred to 
791 
as the IEDC, which shall be an agency within the Department of Labor and 
792 
Employment (DOLE). The DOLE shall institute appropriate reforms within its 
793 
structure, programming and other processes, including adjusting its human 
794 
resource capabilities to ensure that WIE-focused programs are efficiently and 
795 
adequately implemented to address the needs of these workers. Likewise, an inter-
796 
agency committee shall be formed to coordinate policies and programs of various 
797 
government agencies towards the transition of informal economic units to formal. 
798 
The IEDC shall be constituted within thirty (30) days after the approval of the IRR of 
799 
this Act. 
800 
 
801 
Sec. 36. Mandate and Functions of IEDC. — The mandate and functions of IEDC 
802 
shall include the following: 
803 
 
804 
(a) Develop and ensure implementation of a simple system of registration 
805 
accreditation for the IE workers, enterprises, and organizations in accordance 
806 
with the standards and provisions of this Act; 
807 
(b) Provide guidelines for the implementation by LGUs of a fair and credible system 
808 
of evaluation, accreditation, review and assessment, merit promotion, rendering 
809 
of grant and incentive awards and other policies relative to the effective and 
810 
efficient implementation of this Act; 
811 
(c) Develop and ensure implementation of annual, long-term and medium-term 
812 
plans for the informal economy, the last of which should form part of the 
813 
Medium 
Term 
Philippine 
Development 
Plans 
(MTPDP) 
towards 
814 
institutionalizing comprehensive, rights-based, gender-responsive and child-
815 
friendly programs and policies for the IE; 
816 
(d) Develop and ensure effective implementation of labor standards covering WIE 
817 
as provided for by this Act; 
818 
(e) Develop and ensure implementation of gender-based monitoring and evaluation 
819 
mechanisms, efficient and effective programs and policies, and gender-
820 
responsiveness of interventions toward harnessing the full potentials of women 
821 
WIE; 
822 
(f) Coordinate with LGUs for the development and implementation of periodic 
823 
evaluation of all accredited IE members, enterprises and organizations — taking 
824 
into account their accomplishments, capabilities and potentials. The results of 
825 
such evaluation shall be used as bases for accreditation, the grant of awards and 
826 
incentives, training and retraining; 
827 


 
24 
(g) Establish a performance appraisal system for all accredited workers, enterprises 
828 
and organizations in the informal economy which shall be the basis for granting 
829 
or renewal of incentives, rewards and recognition, training and development, 
830 
including adequate mechanisms to ensure their active participation and 
831 
involvement; 
832 
(h) Ensure effective participation of WIE and their organizations through the 
833 
establishment of regular consultative mechanisms and processes. Annual 
834 
national, regional and provincial consultations among the organizations of WIE 
835 
shall be conducted to determine specific issues and problems affecting specific 
836 
WIE sub-sectors, and monitor and evaluate implementation of programs and 
837 
policies; 
838 
(i) Establish and develop a centralized and sex-disaggregated database system to 
839 
effectively guide policy formulation and implementation relative to the WIE. The 
840 
databank shall be available for public use and shall include but not  limited to 
841 
the following: statistical profile of WIE based on age, location, type of work, 
842 
average monthly incomes, work hours, and other relevant statistical information; 
843 
data on informal enterprises, including capitalization and sources of capital, 
844 
number and status of workers, average incomes; List and contact information of 
845 
government 
and 
non-government 
organizations 
(NGOs) 
that 
provide 
846 
educational, socio-economic, legal, and other services to WIE; Inventory of 
847 
resolved and pending cases involving activities of WIE; Database on the needs 
848 
and problems of women and children in the informal economy nationwide 
849 
aimed at strengthening policies and programs against child labor; and 
850 
Compilation of international instruments, existing laws and programs affecting 
851 
the interest and welfare of WIE and information on how these workers may use 
852 
or avail of such instruments, laws and programs; 
853 
(j) Develop and ensure implementation of a communication plan including massive 
854 
information dissemination activities targeting WIE, their enterprises and 
855 
organizations, in the various regions towards a better understanding and 
856 
appreciation of the benefits this Act may bring them; 
857 
(k) Consistent with Section 2 (h) of this Act, to develop and ensure implementation 
858 
of a comprehensive plan to eliminate child labor; 
859 
(l) Monitor and coordinate implementation of policies and programs through the 
860 
Regional IEDC officers; 
861 
(m) Coordinate and harmonize all informal economy-related policies, programs, 
862 
projects and activities of various government agencies towards greater efficiency 
863 
and effectiveness; 
864 
(n) Monitor the LGU-generated incomes from informal employment through the 
865 
LGUs' periodic report submitted to the Council; 
866 
(o) After consultations with WIE organizations, develop and ensure implementation 
867 
of policies and programs that will address specific needs and ensure rights of 
868 
WIE subsectors; 
869 


 
25 
(p) Develop and ensure implementation of accessible and just conflict resolution and 
870 
adjudication systems and mechanisms to promote dialogue, conciliation, 
871 
mediation and redress of grievances to protect the rights of WIE; and 
872 
(q) From time to time, call on the participation of any government agency or 
873 
bureaucracy in its deliberations especially when such agency is directly or 
874 
indirectly concerned with or affecting the growth and development of the IE. 
875 
 
876 
Sec. 37. Composition. — The Chair of the IEDC shall be the Secretary of Department 
877 
of Labor and Employment. IEDC members may elect from among themselves a 
878 
Vice-Chair to preside over meetings in the absence of the Chair. The members shall 
879 
be the following: 
880 
 
881 
(a) Secretary of the Department of Trade and Industry (DTI) 
882 
(b) Director General of the National Economic and Development Authority 
883 
(NEDA); 
884 
(c) Secretary of the Department of Agriculture (DA); 
885 
(d) Secretary of the Department of Social Welfare and Development (DSWD); 
886 
(e) Secretary of the Department of Interior and Local Government (DILG); 
887 
(f)  Chairperson of the Commission on Human Rights (CHR); 
888 
(g) Lead Convener of the National Anti-Poverty Commission (NAPC); 
889 
(h) Secretary of the Department of Transportation (DOTR); 
890 
(i)  Chairperson of the Social Security System (SSS); 
891 
(j)  Chairperson of Philippine Health Insurance Corporation (PhilHealth); 
892 
(k)  Chairperson of the Philippine Commission on Women (PCW); 
893 
(l)  Secretary of the Department of Public Works and Highways (DPWH); 
894 
(m)  One (1) representative from the private sector; 
895 
(n)  One (1) representative each from the League of Cities, League of 
896 
Municipalities, League of Provinces and League of Councilors; 
897 
(o)  The incumbent NAPC Informal Sector Sectoral Representative; 
898 
(p)  At least 30% of the total membership of IEDC shall come from organizations 
899 
of workers in the informal economy accredited with DOLE and DA. 
900 
Guidelines for the selection of non-government IEDC members, including 
901 
processes and mechanics shall be determined by the IRR of this Act. Provided, 
902 
further, That at least 40 percent of the 30 percent are women. 
903 
 
904 
Representatives from the Social Partners, private sector, NGOS and WIE 
905 
organizations shall serve as IEDC members for a term of three (3) years without re-
906 
election and shall be subject to terms and conditions provided for by the IRR. 
907 
 
908 


 
26 
The private sector, workers in informal economy and women's organizations' 
909 
representatives to the IEDA shall be entitled to receive Per Diem of at least Two 
910 
Thousand Five Hundred Pesos (P2,500.00) per meeting. 
911 
 
912 
Sec. 38. IEDC Meetings. — The IEDC shall meet once every two (2) months and may 
913 
call for special meetings as the need arises; provided, that the frequency of such 
914 
special meetings shall not exceed four (4) times annually. 
915 
 
916 
Sec. 39. Initial IEDC Funds. — Ten million pesos (P10, 000,000.00) shall be allocated 
917 
from the Presidential discretionary fund for the initial operating expenses of the 
918 
IEDC. 
919 
 
920 
Sec. 40. Executive Committee of the IEDC. — An Executive Committee of nine (9) 
921 
members shall be convened. Besides the Chair and Vice-Chair, the following shall 
922 
be elected by the IEDA members from among themselves or their duly designated 
923 
alternate representatives: four (4) representatives of WIE organizations, one (1) from 
924 
the different leagues of local officials, one (1) from the private sector, and one (1) 
925 
from a national government agency, provided, that at least three (3) members of the 
926 
Executive Committee are women. 
927 
 
928 
The Executive Committee shall have the authority to act for and in behalf of 
929 
IEDC during intervals of meetings, and only within the specific authority granted 
930 
by the IEDC. 
931 
 
932 
Sec. 41. IEDC Secretariat. — The following secretariat functions shall be integrated 
933 
in the DOLE secretariat functions: 
934 
 
935 
(a) Prepare and recommend, in coordination with LGUs and other government 
936 
agencies, annual, medium-term, and long-term Informal Economy Development 
937 
Plans for approval of the IEDC; 
938 
(b) Coordinate the preparation of position papers and background materials for 
939 
discussion or approval during IEDC and its Executive Committee meetings; 
940 
(c) Assist in coordinating and monitoring policies, programs and activities of all 
941 
government agencies with respect to the implementation of this Act; 
942 
(d) Prepare, collate, and integrate all inputs to the IEDC's yearly report on the status 
943 
of WIE, business activities or enterprises in the country, or other matters as 
944 
directed by IEDA; 
945 
(e) Submit periodic reports to IEDC on the progress and accomplishments of its 
946 
work programs; and 
947 


 
27 
(f) Perform other secretariat and administrative functions as authorized by the 
948 
IEDC or its Executive Committee. 
949 
 
950 
Sec. 42. Regional and Provincial IEDC Officers. — The DOLE Regional and 
951 
Provincial offices (NEDA Resolution) shall have Regional and Provincial IEDC 
952 
Officers who shall be appointed by the IEDC and shall have functions that include: 
953 
monitoring and coordinating of IEDC initiatives in the regions and Provinces; 
954 
evaluation of policies programs for workers in informal economy; providing 
955 
technical 
956 
assistance in the development of local plans and programs; as well as other 
957 
administrative functions necessary for the success of IEDC initiatives in their 
958 
jurisdiction. 
959 
 
960 
IEDC Regional Officers shall have automatic seats in all Regional 
961 
Development Councils (RDCs). 
962 
 
963 
Sec. 43. Rationalization of Programs. — IEDC shall conduct continuing review of 
964 
government programs for the poorest of the poor and the WIE and submit to 
965 
Congress and the President of the Philippines a report thereon together with its 
966 
policy recommendations. 
967 
 
968 
Chapter IX 
969 
Workers in Informal Employment Local Development Office (WIELDO) 
970 
 
971 
Sec. 44. Workers in Informal Employment Local Development Office. — The 
972 
Workers in Informal Employment Local Development Office (WIELDO) shall be 
973 
established in every city and municipality to perform functions that shall include 
974 
but  not limited to the following: 
975 
 
976 
(a) Prepare an overall development plan and work program that will address the 
977 
needs of the WIE, prioritizing the poorest and most vulnerable, and incorporate 
978 
them in their respective city, municipal, and barangay 
development plans; 
979 
(b) In consultation with WIE organizations in the area, identify specific needs of 
980 
various IE subsectors and recommend appropriate measures to be taken; 
981 
(c) Ensure accreditation and registration of WIE, especially those with assets of 
982 
P150,000 and below, to facilitate their immediate access to benefits and services; 
983 
(d) Monitor, assess and evaluate implementation of the plans and programs as well 
984 
as the performance of informal workers, their economic activities and their 
985 
organizations in the areas; 
986 


 
28 
(e) Lead in the local implementation of Chapter VI (Security in the Workplace of 
987 
WIE) of this Act; 
988 
(f) Coordinate with other local offices, private sector and other organizations with 
989 
24 existing programs for WIE towards integration and convergence; 
990 
(g) Conduct education and training programs that will: raise their consciousness 
991 
especially on but not limited to workers', women's and children's rights; 
992 
(h) Provide new ideas especially to those with the least assets and formal education; 
993 
and develop or upgrade technical, entrepreneurial and leadership skills WIE; 
994 
(i) Provide technical support and facilitate access to credit, market, technology, 
995 
social protection schemes, and training for WIE; 
996 
(j) Train pools of community trainers in business counseling and awareness raising 
997 
on occupational safety and health hazards, risks and social protection;  
998 
(k) Support organizing activities among WIE; 
999 
(l) Establish sex-disaggregated databank on human resources and skills registry to 
1000 
be used as tools for LGU planning and budgeting; 
1001 
(m) Provide offices and other necessary resources to support organizing, advocacy, 
1002 
training and other activities of local organizations of WIE; 
1003 
(n) Conduct specialized training such as negotiation skills and conduct of time and 
1004 
motion studies to determine proper wages; 
1005 
(o) Provide services, which shall include but not be limited to counseling, 
1006 
conciliation, mediation, and legal assistance for the furtherance of this Act, 
1007 
prioritizing those with the least access to justice; and 
1008 
(p) Ensure that the LGU is capacitated to undertake and implement rights-based 
1009 
and gender-responsive programs for WIE. 
1010 


 
29 
The local government shall encourage organization of economic units and set 
1011 
respective rules and regulations towards smooth interventions to support MSME 
1012 
informal enterprise development towards transitioning to formality. In the performance 
1013 
of WIELDO's functions, the principle of preferential treatment to the poorest and most 
1014 
vulnerable shall be observed. 
1015 
 
1016 
Sec. 45. Composition. — The Local Chief Executives (LCEs) shall be the primary 
1017 
overseers of WIELDO's operations. The IRR of this Act shall provide for WIELDO's 
1018 
composition provided that, informal workers' representatives shall form at least fifty 
1019 
percent (50%) of WIELDO's membership. Provided further, that IE representatives shall 
1020 
not be less than five (5), and provided finally, that at least forty percent (40%) of all 
1021 
WIELDO's members are women. Other relevant guidelines on WIELDO's operations 
1022 
shall be included in the IRR of this Act. 
1023 
 
1024 
Sec. 46. Local Government Unit Informal Economy Development 28 Fund (LGU-IEDF). 
1025 
— An Informal Economy Development Fund shall be established by every municipality 
1026 
and city. Such fund will be supervised and managed by the concerned LGU through 
1027 
the WIELDO but subject to audit by the Commission on Audit (COA). 
1028 
 
1029 
For the establishment and initial operations of WIELDO, each LGU shall allocate at 
1030 
least three per cent (3%) of their twenty percent (20%) Development Fund from their 
1031 
IRA. 
1032 
 
1033 
Thereafter, the LGU-IEDF shall be funded using: 
1034 
 
1035 
(a) Registration fees and annual dues paid by individual workers in the informal 
1036 
economy, their livelihood activities, and organizations and associations as 
1037 
provided for by Sections 6 and 7 of this Act; 
1038 
(b) Shares from the 70% of the at least 10% funds from the Annual General 
1039 
Appropriations Act as provided for by Chapter VII, Section 32 (a) and (b) of this 
1040 
Act; and 
1041 
(c) Annual allocations from LGUs Development Fund the percentage of which shall 
1042 
be determined by LGUs. 
1043 
 
1044 
Following the principle of merit and equity, LGUs that fulfill such allocations may 
1045 
receive additional assistance from the national government as recommended by IEDC; 
1046 
provided, that they have formulated their local development plan for WIE. 
1047 
 
1048 


 
30 
Sec. 47. Additional Sources of Funds. — The following may be tapped by LGUs as 
1049 
additional sources of funds for WIELDO initiatives: 
1050 
(a) at least fifty percent (50%) of fees and annual dues collected from small transport — 
1051 
for programs for workers in the small transport industry; 
1052 
(b) at least fifty percent (50%) of collected fees and annual dues from business 
1053 
establishments and entrepreneurs falling under the category of informal sector — 
1054 
for programs focusing on micro-entrepreneurs and their workers; 
1055 
(c) at least fifty percent (50%) of collected fees and annual dues from small 24 vendors 
1056 
— for programs focusing on vendors; 
1057 
(d) at least fifty percent (50%) of fees and annual dues collected from marginalized 
1058 
fisherfolks — for programs focusing on fisherfolk; and 
1059 
(e) at least ten percent (10%) of funds from the Philippine Amusement and Gaming 
1060 
Corporation (PAGCOR) and Philippine Charity and Sweepstakes Office (PCSO) 
1061 
 
1062 
TITLE 11 
1063 
EMPLOYMENT OF WORKERS IN INFORMAL ECONOMY 
1064 
 
1065 
Chapter I 
1066 
Requisites for Employment Agreement 
1067 
 
1068 
Sec. 48. Minimum Standards. — All working arrangements entered into by WIE shall 
1069 
be in accordance with the minimum applicable labor and social standards as contained 
1070 
in Title Il of this Act. 
1071 
These standards shall be strictly enforced in informal economic enterprises 
1072 
supplying or doing outsourcing work for exporters, investors-locators in export 
1073 
processing zones or industrial parks licensed by the Export Processing Zone, and 
1074 
domestic formal sector manufacturers and retailers-distributors. 
1075 
For workers engaged by independent informal economic enterprises, DOLE, in 
1076 
coordination with IEDA shall audit the capacity of these enterprises to comply with 
1077 
these standards. Those incapable of meeting the standards shall be assisted to upgrade 
1078 
their capacity to improve their businesses, as well as the capacity comply with relevant 
1079 
labor and social standards. 
1080 
 
1081 
Sec. 49. Provisions of Employment Agreement. — The employment contract shall be in 
1082 
written form. However, the absence of a written agreement does not mean the absence 
1083 
of an employment relationship. As a matter of right, WIE can insist on a written 
1084 
agreement based on minimum standards. 
1085 


 
31 
In cases wherein minors are contracted with, the said negotiated contract shall be 
1086 
signed on his/her behalf by either parent or legal guardian, with the expressed written 
1087 
consent of the said minor. 
1088 
In cases wherein illiterate workers are contracted with, the said contract shall be 
1089 
explained to the worker concerned and attested to by a representative from the LGU or 
1090 
an elected Barangay official in the city or municipality where the worker is designated 
1091 
to work. 
1092 
Each of the contracting parties shall be provided with a full set of the duly signed 
1093 
agreement which shall include the following basic provisions: 
1094 
(a) working arrangement/mode;  
1095 
(b) period/duration of employment;   
1096 
(c) compensation, which shall not be below the minimum standard, and mode of 
1097 
payment; 
1098 
(d) computation of contributions for social security and medical insurance including 
1099 
for those who fan under DOLE Department Order No. 5; 
1100 
(e) duties and responsibilities; 
1101 
(f) working hours and day-off schedules; 
1102 
(g) living quarters or sleeping arrangements (for live-in workers); 
1103 
(h) the date, term and mode of delivery or date of completion; 
1104 
(i) minimum of twenty percent (20%) down payment for labor cost and services and 
1105 
minimum of 50% for inventory of raw materials used in the production for 
1106 
homeworkers per DOLE Order No.5. 
1107 
 
1108 
Minimum standard compensation referred to above shall be determined by the 
1109 
Regional Wage Boards per subsector of WIE. In the case of piece rates, this shall be 
1110 
based on the conduct of time and motion studies facilitated by the DOLE Bureau of 
1111 
Working Conditions. While there are no standardized rates for workers in informal 
1112 
economy jobs, the basis of computation shall not be below the applicable minimum 
1113 
wage of the region where they are covered. 
1114 
Enforcement of the standard compensation rates shall be in accordance with the 
1115 
capability to comply as explained in Section 40 of this Act. 
1116 
 
1117 
Sec. 50. Payment of Wages. Payment derived from negotiated agreement shall be made 
1118 
directly to the workers. No deductions from such payments shall be made by the 
1119 
employer except those provided for by law. The expressed written consent of the 
1120 
worker shall be first secured before deductions are made. 
1121 
No parent, guardian, relative or any other person shall be allowed to take a loan 
1122 
against the compensation of his or her relative-worker without the express written 
1123 


 
32 
consent of the concerned worker. Neither shall a worker of minor age be mandated to 
1124 
work in payment of loan or liability incurred by a parent, guardian, relative, or any 
1125 
other person. 
1126 
 
1127 
Chapter Il 
1128 
IE Workers of Minor Age 
1129 
 
1130 
Sec. 51. Allowable Employment of Workers of Minor Age. — Children fifteen (15) years 
1131 
but below eighteen (18) years of age may be employed; provided, that parental or legal 
1132 
guardian consent is presented and attested to by any representative of the LGU or duly 
1133 
elected Barangay official where the work is to be done. In no instance however, shall 
1134 
children below fifteen (15) years old be engaged in whatever form of productive 
1135 
services. 
1136 
Further, workers of minor age shall not be allowed to render work for more than 
1137 
four (4) hours, five (5) days a week, exclusive of one (1) hour break for breakfast or 
1138 
lunch whichever is applicable. 
1139 
 
1140 
TITLE III 
1141 
FINAL PROVISIONS 
1142 
 
1143 
Sec. 52. Penal Provision. — 
1144 
(a) Any person who shall willfully interfere with, restrain or coerce a worker in the 
1145 
exercise of his or her rights or shall in any manner commit any act in violation of 
1146 
any of the provisions of this Act shall, upon conviction, be punished by a fine of not 
1147 
less than Twenty Thousand Pesos (P20,000.00) or imprisonment of one (1) to six (6) 
1148 
years or both fine and imprisonment at the discretion of the Court. 
1149 
(b) If the offender is a public official or, the Court, in addition to the penalties provided 
1150 
in the preceding paragraph, may impose the additional penalty of disqualification 
1151 
from public office. 
1152 
(c) Any person who violates Section 28 of this Act (Policy on Confiscation of Materials 
1153 
and Impounding of Vehicles) shall be liable. Nothing herein shall prohibit the 
1154 
aggrieved WIE from initiating a criminal or civil action against the responsible 
1155 
person or officer applicability. 
1156 
(d) Failure to implement Sections 30 and 31 of this Act (Policy on Relocation of Vending 
1157 
Sites and Policy on Relocation of Terminals) shall render the responsible official/s 
1158 
administratively liable pursuant to Republic Act No. 7160 and other pertinent laws 
1159 
and criminally liable whenever applicable. 
1160 
 
1161 


 
33 
Sec. 53. Implementing Rules and Regulations. – The Implementing Rules and 
1162 
Regulations (IRR) of this Act shall be formulated by drafting a committee composed of 
1163 
representatives of offices that will be members of IEDA and WIE organizations 
1164 
provided that, at least 30% of the drafting committee members shall come from the 
1165 
latter and provided further that at least 30% of committee members are women. Said 
1166 
committee will start work on the IRR within three (3) months after the effectivity of this 
1167 
Act and finish within six (6) months thereafter.  
1168 
 
1169 
Sec. 54. Separability Clause. – If any provision of this Act be declared unconstitutional 
1170 
or invalid, the provisions not affected shall continue to be in full force and effect. 
1171 
 
1172 
Sec. 55. Repealing Clause. – All laws, decrees, orders, rules and regulations or other 
1173 
issuances inconsistent with the provisions of this Act are hereby repealed, amended or 
1174 
modified accordingly. 
1175 
 
1176 
Sec. 56. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
1177 
the Official Gazette or in any two (2) newspapers of general circulation in the 
1178 
Philippines. 
1179 
 
1180 
 
Approved.  
1181