Press Release
June 8, 2014

Nancy to hear Magna Carta for Workers in the Informal Economy
Measure to benefit 18 million workers

Senator Nancy Binay will hold a hearing this week on a Magna Carta for Workers in the Informal Economy that seeks to extend Social Security and Philhealth coverage, security from forced evictions and other benefits for some 18 million workers in the informal economy.

"Malaki po ang ginagampanang papel at kontribusyon sa ekonomiya ng mga manggagawa sa informal economy ngunit hindi sila masyadong nabibigyan ng pansin," Binay, chairperson of the the Social Justice, Welfare and Rural Development committee, said.

The Magna Carta seeks to provide a framework for workers in informal economy including but not limited to:

  • Policies to bring marginalized workers and economic units into economic and social mainstream

  • Structural reforms in government through institutionalized committees and programs

  • Social protection through social insurance coverage, basic healthcare, social welfare programs

  • Applicable labor standards and provisions for poorest and most vulnerable workers Among the salient points of the measure are:

  • It aims to provide benefits such as Social Security System (SSS) and PhilHealth coverage for workers. Volunteer workers in the government service shall be covered by the Government Service Insurance System (GSIS).

  • Local Government Units (LGUs), under the measure, in coordination with the Department of Agrarian Reform (DAR) shall protect irrigated and irrigable agricultural lands from conversion or reclassification to non-agricultural uses.

  • Informal workers shall not be evicted from their homes and workplaces without legal ground under the proposed measure. It also designates the National Housing Authority (NHA) and the concerned LGU to provide an adequate temporary or permanent relocation for those evicted or those whose houses were demolished.

  • An Informal Economy Development Authority will also be created under the measure, which will the primary agency responsible for the promotion, growth, development and empowerment of the workers in the informal economy as well as their enterprises and organization in the country. "Kaya dapat lamang po na mabigyan sila ng karampatang pangangalaga ng pamahalaan sa pamamagitan ng mga polisiya, programa at benepisyo," Binay added.

Senators Francis Escudero, Miriam Defensor-Santiago, Juan Edgardo Angara and Jinggoy Estrada have filed Senate Bills 441, 1153, 1941 and 2015 for the proposed measure in the present Congress. A committee hearing is scheduled on Tuesday, June 10 in the Senate.

The 2013 Labor Force Survey of the National Statistics Office showed that 18.08 million Filipinos work in the informal economy, which is almost 43 percent of the country's labor force of 37.8 million.

The informal economy workers covers but is not limited to small farmers owning land not more than 3 hectares; rural and agricultural workers; small fisherfolk/operators owning boats of 3 gross tons or less; home-based workers who are independent producers of goods or services; ambulant vendors or peddlers; street vendors; drivers and workers of land and sea transportation; operators of jeepneys, tricycles, pedicabs and taxis; small scale miners; construction workers; and waste pickers and recyclers.

It also includes beauticians, barbers, and masseuses as well as "on-call" workers in the entertainment, movie and media such as bit players, stuntmen and women, crew, make-up artists, among others.

Various estimates on the contribution of the informal sector to the Gross Domestic Product range from 30 to 43 percent.

A related measure, the Magna Carta for the Poor, will be heard in the plenary of the House of Representatives. A Senate version of the bill was also referred to the Social Justice committee.

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