Wage Rationalization Act

January 2014NATIONAL WAGES AND PRODUCTIVITY COMMISSIONIn July 1989, the Philippine Congress enacted into law Republic Act 6727, also known as the "Wage Rationalization Act", which established a regional minimum wage system through the creation of the National Wages and Productivity Commission (NWPC) and its 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).MandatesThe NWPC, as key policy making body on wages, incomes, and productivity, has the following mandates:• Fix minimum wages on regional, provincial, and/or industry levels;• Promote productivity improvement and gain-sharing; and, SDHTEC• Provide the necessary studies and technical assistance to enable workers and employers to conclude productivity agreements under Republic Act 6971, the "Productivity Incentives Act of 1990".The NWPC is tasked to develop general policies and guidelines on wages, incomes, and productivity and exercise technical and administrative supervision over the RTWPBs.The RTWPBs, on the other hand, are tasked to implement the wages, incomes, and productivity policies and programs in their respective regions. Vision and MissionVisionTo...