Official Concept and Definition

Informal Sector (Operational Definition)

Definition

The informal sector refers to household unincorporated enterprises which consists of both informal own-account enterprises and enterprises of informal employers. Informal own-account enterprises are household unincorporated enterprises owned and operated by own-account workers, either alone or in partnership with members of the same or other households which may employ unpaid family workers as well as occasionally/seasonally hired workers but do not employ employees on a continuous basis Enterprises of informal employers are household unincorporated enterprises owned and operated by own-account workers, either alone or in partnership with members of the same or other households, which employ one or more employees on a continuous basis. Applying the set of criteria in NSCB Resolution No. 16, Series of 2003, the following cases are excluded from the informal sector:

(1) Single proprietorships, partnerships and corporations (including corporate farms, commercial livestock raising, commercial fishing and similar units);
(2) Quasi-corporations;
(3) Units with ten or more employees (unless they satisfy all the criteria);
(4) Domestic helpers hired by households;
(5) Units engaged in professional services (unless they satisfy all the criteria);
(6) Farms managed by cooperatives; and
(7) Farms, regardless of size, keeping sets of accounts separate from the households.

Formula
PSS Agency PSA
Source/s

PSA

https://psa.gov.ph/ISSiP/concepts-and-definitions
Indicators / Statistics Being Generated Informal Sector
PSA Board Resolution PSA Board Resolution No 01, Series of 2017 - 088
https://psa.gov.ph/article/nscb-resolutions-series-2002-no-15-adoption-official-definition-informal-sector, https://psa.gov.ph/article/nscb-resolutions-series-2003-no-16-adopting-set-criteria-identifying-informal-sector
Statistical Domain Economic Statistics
Statistical Activity Economic accounts

Official Concepts and Definitions

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