The concept of a legitimate livelihood deserves reexamination, especially when it comes to the 17 million informal workers who make up nearly a quarter of our national workforce. These workers – jeepney drivers, street vendors, construction laborers and countless others – are part of a vast network that holds up our economy. Despite being labeled as “informal,” they work tirelessly, pay taxes on what they buy and provide essential services that keep our society moving. However, due to technical classifications, they lack access to social benefits that could serve as a safety net and support their path out of poverty.
It is a paradox in our economic and social system: informal workers contribute greatly but receive far too little in return. The system views them as somehow unofficial, sidelining them from the financial protections that should be available to anyone working in the economy. Imagine, for a moment, the street vendor who sells goods that sustain the daily needs of working communities, or the jeepney driver who, for a few pesos, provides critical transport services in urban and rural areas alike. They contribute significantly to the mobility, commerce and well-being of our society. However, because these workers do not fit into a neat box of employment classifications, they face a lack of access to Pag-IBIG’s affordable housing, SSS retirement benefits and PhilHealth insurance.
While these benefits are intended to support and uplift working citizens, our approach excludes informal workers – despite their willingness to work, to contribute and to serve as the backbone of our country. Informal workers, who are very much a part of the working class, are subject to the same value-added tax as everyone else, effectively contributing to the same tax base as larger, formalized businesses. These individuals, in fact, form the largest tax base of VAT payers in our economy. Their purchases – from gasoline for their tricycles to the ingredients for their food stalls – contribute to the national economy just as much as, if not more than, many formal sectors. However, because they are not registered as employees or corporate entities, they remain overlooked by the institutions that could provide them with basic protections and pathways out of poverty.
For these informal workers, making contributions to social safety nets remains challenging. Although provisions exist for “voluntary contributions” to these funds, these mechanisms are still primarily designed for formal employees and corporate workers. The result is that the benefits end up largely concentrated among those who are employed by businesses with the resources and administrative structure to support regular contributions. Meanwhile, the majority of informal workers – despite their contributions to the economy and their potential to lift themselves and their families out of poverty – are denied access to systems that could secure their futures.
This lack of recognition represents a substantial missed opportunity, not only for these workers but for the nation as a whole. The informal sector accounts for roughly 25 percent of our labor force, individuals who are neither indigent nor unemployed. Every day, these workers provide services, generate income and contribute to their communities. Recognizing this sector’s contribution to society and extending social protections could significantly enhance our national economic health, helping to reduce poverty levels with minimal additional expenditure. These individuals do not require charity; they need recognition, fair treatment and a system that acknowledges their contributions.
Imagine if, instead of ignoring informal workers, we offered them targeted programs to support their growth. Basic interventions such as providing access to health insurance, retirement savings and affordable housing would empower these workers. They would gain the peace of mind that comes from knowing that an illness would not mean financial ruin or that a lifetime of work could provide for their old age. Additionally, offering opportunities for skill development and upskilling would not only help these workers increase their earning potential but also improve the quality of services they provide, creating a positive cycle of growth and contribution.
What we need is a shift in perspective – a system that respects and rewards the effort to work. The government should consider simplifying or rethinking the classifications and regulations surrounding labor benefits, making them inclusive of the informal sector. These workers do not fit neatly into existing categories, nor should they be expected to; their work often involves flexibility and dynamism. This does not make their contributions any less valuable; rather, it underscores the need for adaptable policies that recognize diverse types of work.
Critics may argue that extending benefits to informal workers is financially impractical. However, the social and economic return of providing these workers with a safety net far outweighs the cost. Investing in their health, housing and retirement will create a healthier, more stable workforce – one that is able to work without the constant fear of financial insecurity. And, as informal workers become more secure, they are likely to spend and invest more in their communities, creating a ripple effect that supports local businesses and strengthens the overall economy.
In essence, if we truly wish to address poverty and inequality in our country, we must start by recognizing the legitimacy of all types of work. We cannot continue to exclude workers simply because they do not fit into traditional employment categories. Instead, we must value their contributions and offer them access to the same protections and benefits that other workers receive. This is not only a matter of economic sense but of basic fairness and respect.
Our nation has already made significant strides in addressing other forms of discrimination and exclusion. Just over two decades ago, our society was transformed when the government passed legislation to eliminate the stigma associated with “illegitimate children.” This legal shift recognized that a child’s value should not be determined by the circumstances of their birth. Today, all children are legally considered legitimate, regardless of the technicalities surrounding their parentage. This change was an acknowledgement of a basic truth: that all children deserve equal care and love.
In the same way, we must begin to see all workers – whether formal or informal – as legitimate children of our economy. They are all contributors to our national wellbeing, each playing a role in keeping our society moving forward. It is time for us to extend the same care and recognition to all workers, valuing their work and contributions, no matter what form they take. If we can recognize the worth of every child, surely we can recognize the worth of every worker.