Guidelines on the Implementation of the Two-Tiered Wage System

September 21, 2012NWPC GUIDELINES NO. 02-12GUIDELINES ON THE IMPLEMENTATION OF THE TWO-TIERED WAGE SYSTEMPursuant to RA 6727, the following guidelines are hereby adopted for the implementation of the Two-Tiered Wage System, a reform within the current minimum wage system.SECTION 1. The Two-Tiered Wage System is an approach to minimum wage setting which aims to improve the coverage of minimum wages; promote worker and enterprise productivity and; address the negative effects of minimum wage policies.Since it is a reform under the current system, it maintains regional minimum wage setting by the RTWPBs. It upholds the policy of setting minimum wage to protect vulnerable workers and recognizing collective bargaining as the primary mode for setting wages and other terms and conditions of employment. TaDAISSECTION 2. Definition of Terms. —a. Board — refers to the Regional Tripartite Wages and Productivity Board.b. Commission — refers to the National Wages and Productivity Commission.c. Order — refers to the Wage Order promulgated by the Board pursuant to its wage-fixing authority.d. Advisory — refers to the Wage Advisory issued by the Board...