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Technical Assistance on the part-fixed, part performance-based compensation scheme in the public transport industrty

Part-Fixed and Part-Performance-Based Compensation Scheme refers to the compensation scheme for bus drivers and conductors wherein the fixed component shall be based on an amount mutually agreed upon by the owner/operator and the driver/conductor, which shall in no case be lower than the applicable minimum wage. The performance-based component shall be based on safety performance and business performance such as ridership, revenues/profitability, and other related parameters.

The policy goal is to ensure the protection and welfare of bus drivers and conductors by fixing stable income, and to ensure the safety of the riding public by preventing risk-taking behaviors among bus drivers focused on meeting their commission or ‘boundary’.

An approved compensation scheme is also one of the requisites of the DOLE Regional Office for the issuance of Certificate of No Pending Case (CNPC) to bus companies.



  • DOLE Department Order 118, Series of 2012 or the “Rules and Regulations Governing the Employment and Working Conditions of Drivers and Conductors in the PUB Transport Industry”;
  • NWPC Guidelines No. 01, Series of 2019 or the “Revised Operational Guidelines on the Adoption of Part Fixed, Part Performance-Based Compensation Scheme in the Public Bus Transport Industry”
  • Auxiliary Provisions to NWPC Guidelines No. 01, Series of 2019


The Guidelines applies to all public utility bus (PUB) owners and/or operators employing drivers and conductors. It does not cover owners and/or operators of the following: 

  • Coaches  
  • School bus  
  • Tourist bus; and  
  • Similar buses who are holders of Certificate of Public Convenience (CPC) issued by LTFRB 


All PUB owners and/or operators shall send their application with the necessary attachments to the Regional Tripartite Wages and Productivity Board (RTWPB) which has jurisdiction over their principal place of business. The RTWPB shall then evaluate the compliance of the proposed compensation scheme to the Guidelines.  

If compliant, it will be endorsed to the DOLE Regional Director for approval; if non-compliant, it will be returned to the PUB owner/operator for revision and/or amendment. The RTWPB can also provide technical assistance to the concerned PUB owner/operator to correct the non-conformance. 


The PUB owner/operator shall submit to the RTWPB the compensation scheme along with the required documents within sixty (60) days prior to the scheduled confirmation of bus units.  

The RTWPB shall review the compensation scheme within seven (7) working days and endorse the same to the Chairperson for his/her review and approval within five (5) working days from receipt thereof.  



  • DOLE DO No. 118, S. 2012
  • NWPC Guidelines No. 01, S. 2019
  • Memorandum – Auxiliary Provisions
  • Proposed Compensation Scheme/ Application Form (ANNEX B)
National Wages and Productivity Commission
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