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).
Justly remunerated and productive Filipino workforce in globally competitive enterprises.
Set minimum wage that protects vulnerable workers from undue low pay. Promote productivity improvement and incentive schemes among MSMEs.
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
NWPC is a key policy-making body on wages, incomes, and productivity, mandated under Republic Act No. 6727 or the Wage Rationalization Act (1989) and Republic Act No. 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.
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
Provide training courses on quality and productivity (Q&P) improvement for company owners, managers, supervisors, and workers of qualified micro, small and medium enterprises (MSMEs).
Extend firm level consulting and technical assistance on the actual implementation of Q&P improvement projects for beneficiaries.
Promote gainsharing schemes at the firm level.
Information and Publication
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.
Minimum Wage Setting
The minimum wage is a social protection tool intended to protect vulnerable workers from undue low pay. The Regional Tripartite Wages and Productivity Boards (RTWPBs) are mandated to determine minimum wage rates for workers in the private sector by region, province and/or by industry, and for domestic workers. The RTWPBs use as basis the set criteria for minimum wage determination which balance the needs of workers and their families, the capacity of employers/industries to pay, and the requirements for social and economic development, guided by the policy of regular, predictable and moderate wage adjustments to minimize potential impact on key macro-economic outcomes.
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.
The NWPC is composed of the following:
Secretary of Labor and Employment as Chairperson;
Secretary of the National Economic and Development Authority (NEDA) as Vice Chairperson;
Secretary of the Department of Trade and Industry as Observer;
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 as Member.
The Commission is assisted by its secretariat.
The Regional Boards
Each RTWPB is composed of the following:
DOLE Regional Director as Chairperson;
NEDA and DTI Regional Directors as Vice-Chairpersons; 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, headed by the Board Secretary.