In July 1989, the Philippine Congress enacted into law Republic Act No. 6727, also known as the "Wage Rationalization Act."
The Act established a new mechanism for minimum wage determination through the creation of the National Wages and Productivty Commission ( NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) in all regions of the country.
The NWPC is an attached agency of the Department of Labor and Employment (DOLE).
Justly remunerated and productive Filipino workforce in globally competitive enterprises.
Set minimum wage that protects workers' welfare.
Promote enterprise and workers' productivity
The NWPC is committed to:
- Provide quality service to the workers and enterprises on wages, incomes and productivity through policy and program development and implementation.
- Comply with all applicable legal requirements
- Continually improve all processes and systems to meet requirements of relevant interested parties; and
- Enhance the competencies of its talents.
Performing one's duties and responsibilities according to the work ethics in public service.
Acting with a sense of urgency and providing timely, relevant and pioneering solutions to ensure quality service to internal and external clients.
Working with determination and dedicationto exceed clients' expectation.
Ensuring open government initiatives and upholding the values of tripartism, participation and partnership.
Generating and translating ideas into goods or services that create value.
Cultivating synergy with the organization and among partners and stakeholders towards a common goal.
- Determine minimum wages at the regional,provincial and/or industry levels; and
- Promote productivity improvement and gainsharing schemes, particularly among micro, small and medium enterprises.
NWPC formulates policies and guidelines on wages, incomes and productivity and exercises technical and administrative supervision over the RTWPBs.
With 17 RTWPBs (including ARMM) responsible for setting minimum wages and promoting productivity improvement programs.
The NWPC and RTWPBs provide the following services on wages, incomes, and productivity:
Research and Policy
- Advise the President and Congress on matters relating to wages, incomes, and productivity
- Determine and fix minimum wage rates at the regional,provincial, and industry levels
- Undertake researches and studies on wages and productivity
- Formulate policies and guidelines on wages, incomes, and productivity
Training and Consulting
Information and Publication
- Provide training courses on quality and productivity (Q&P) improvement for company owners, managers, supervisors, and workers of qualified small and medium enterprises (SMEs).
- Extend firm level consulting and technical assistance on the actual implementation of Q&P improvement projects for beneficiary-SMEs.
- Promote gainsharing schemes at the firm level.
- Render information services in the areas of wages, incomes, and productivity to walk-in and phone -in clients, as well as through the NWPC website and library.
- Disseminate publication and information materials on minimum wages and Q&P improvement and gainsharing.
- Conduct wage clinics or one-on-one consultation with clients on wage related concerns.
- Policies/Guidelines/Standards Formulation on Wages and Productivity
- Implement the two-tiered wage system (2TWS) along the objectives of adequate protection to income of vulnerable workers and improved productivity and competitiveness within a total incomes policy framework. Floor or minimum wage shall continue to be set by the RTWPBs under the 2TWS while productivity or performance-based pay in accordance with the prescribed guidelines;
- Conduct facility evaluation and time-and-motion studies/work improvement in support of wage fixing and productivity improvement mandate; and
- Enhance research, advocacy and database development towards greater focus on the 2TWS.
Technical Assistance and Advocacy Services on Wages and Productivity
- Intensify capacity building of enterprises towards greater adoption of innovative practices and environmental sustainability;
- Create a multi-agency pool of competent productivity specialists through sustained capacity building on productivity, innovation, and enterprise development;
- Sustain the advocacy on Productivity Toolbox as a strategy to attract more MSMEs to engage in productivity improvement programs and gainsharing;
- Adopt innovative advocacy strategies towards boosting public awareness and securing support on policies and programs on wages, incomes and productivity; and
- Intensify/broaden networking alliances on wages, incomes and productivity through convergence and partnerships with strategic (DOST, DTI, DOT, DA, academe) and social partners both at local and international levels
- Strengthen program management for efficient public service through improved planning and execution processes;
- Implement continuous capacity building through staff development and training
- Focus on core governance functions and improve performance and service delivery, consistent with the objectives of EO 366 thru QMS; and
- Promote employees’ safety and welfare by undertaking programs on health maintenance, cultural and GAD-related activities.
The NWPC is composed of the following:
- Secretary of Labor and Employment-ex-officio Chairman;
- Director-General of the National Economic and Development Authority (NEDA) as ex-officio Vice Chairman;
- Two representatives each from the worker and employer sectors (appointed by the President for a term of five years) as Members; and
- Executive Director of the NWPC Secretariat-ex officio member.
The Commission is assisted by its secretariat.
Each RTWPB is composed of the following:
- DOLE Regional Director as ex-officio Chairman;
- Regional Directors of the NEDA and Department of Trade and Industry as ex-officio Vice Chairmen; and
- Two representatives each from the worker and employer sectors (appointed by the President for a term of five years) as Members.
The boards are assisted by their respective secretariat.