Informal Sector his/her family.

He/she works on an
occasional basis.
Objectives:
A. Various Forms of the Informal
Sector
1. Identify the different forms of the a. Composition
informal sector of the economy i. Employment
2. Express his or her opinion about excluded from the
Filipinos in the informal sector formal sector
3. Assess the contributions of the ii. Informal employment
informal sector to the whole that are part of the
economy formal sector
4. Examine the laws and programs of b. Characteristics
the government related to the i. The company or
informal sector workers are not
registered
ii. The business is not
Understanding the concept considered a legal
- Informal sector is composed of entity which is
informal business and informal independent from its
employment. Informal employment is owner or owners
made up of homeworker, self iii. It is usually owned
employed/self-account worker, and managed by
employer, employee, and unpaid blood relatives
family worker. iv. It is usually not
well-organized and
Terms to remember has only a few
- ILO- it is a United Nations agency workers
whose mandate is to advance social c. Attribution
and economic justice by setting i. Failure to declare the
international labor standards occupation of workers
- Homeworker- a person who works of the company
at, or near his/her home in the ii. Temporariness of the
production of goods for a fixed job
agreement with an employer or iii. Insufficient number of
contractor. working hours or
- Self-employed- a person who has wage compared to
no employer or contractor and what had been
operates business on his/her own. officially declared
- Employer- a person similar to iv. Illegitimacy of the
self-employed but employs one or business
more paid employees v. Operation of business
- Employee- a paid employee in an beyond the official
informal enterprise status of the business
- Unpaid family worker- one who vi. The business does
works without pay in a fam or not comply with labor
business operated by a member of laws
B. Importance of Informal Sector
 a. Generates employment it encourages the formation
b. Increases total production and growth of Barangay
c. Contribution in National micro business enterprises
Income by granting them incentive
C. Reasons for the existence of the and other benefits.
Informal Sector e. Philippine Labor Code- a
a. Uneven economic legal code that determines all
development employment practices and
b. Weak or ineffective labor relations in the
implementation of laws Philippines
D. Issues and Problems in the f. RA 8282 (Social Security
Informal Sector Act)- It is the policy of the
a. Players in the Informal State to establish, develop,
Sector promote and perfect a
b. Government and economy sound and viable tax"exempt
E. Laws and Programs Related to social security system
the Informal Sector suitable to the needs of the
a. RA 8425 (Social Reform people throughout the
Policy Alleviation Act of Philippines which shall
1997)- Provides for the promote social justice and
formulation of a Social provide meaningful
Reform Agenda (SRA) as protection to members and
part of the National their
Anti-Poverty Action Agenda beneficiaries against the
which shall seek to redress hazards of disability,
social inequality. sickness, maternity, old age,
b. RA 7607 (Magna Carta for death, and other
Small Farmers)- aims in contingencies resulting in
realizing equitable loss of income or financial
distribution of benefits and burden.
opportunities through the g. RA 7875 (National Health
empowerment of the small Insurance Act)- promises to
farmers provide financial access to
c. RA 6977 (Magna Carta for quality health care services
Small Enterprises)- Magna though a social health
Carta is a landmark insurance program.
legislation that mandates the h. RA 7796 (Technical
government to support, Education and Skills
strengthen and promote the Development Act)- it aims
development of SMEs by: to encourage the full
Providing a conducive participation of and mobilize
business environment for the industry, labor, local
them. Providing easier government units and
access to finance. Creating technical- vocational
linkages between SMEs and institutions in the skills
larger organizations. development of the country's
d. RA 9178 (Barangay Micro human resources
Business Enterprises Act)-