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 Productivity 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).
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 the requirements of relevant interested parties; and
- Enhance the competencies of its talents.
Our Core Values
Makatao (People Centric)
“Our people is our prime asset.”
“Innovation makes things possible.”
“Public service at its best.”
NWPC is a key policy-making body on wages, incomes, and productivity, mandated under RA 6727 or the Wage Rationalization Act (1989) and RA 6971 or the Productivity Incentives Act of 1990 to:
- 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:
- 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
- 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.
NWPC’s Top Three Program Thrusts/Priorities
- Implement the Two-tiered Wage System (2TWS) along the following objectives:
- Tier 1 – to provide adequate protection to income of vulnerable workers and improved productivity by ensuring that all MWRs are above the poverty threshold, balanced with the employer’s capacity to pay and the requirements of economic development.
- Tier 2 – to improve enterprise productivity and competitiveness within a total incomes policy framework by strengthening the advocacy for the adoption of productivity/performance-based incentive schemes.
2. Productivity Toolbox
- Sustain the advocacy on Productivity Toolbox as a strategy to attract more MSMEs to engage in productivity improvement programs and gainsharing to improve enterprise competitiveness.
- Good Governance and Accountability
- Sustain good governance and accountability by strengthening program management for efficient public service delivery and through improved planning and execution processes, including continuous capacity building for program implementers.
- 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.
- 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.