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Bill mandating productivity incentives for workers okayed

February 8, 2023 Jester P. Manalastas 250 views

A measure seeking to mandate all enterprises in the country employing 10 or more workers to establish a productivity incentives program for their employees has been approved on third and final reading at the House of Representatives.

House Bill 6683 or the “Enterprise Productivity Act” repeals Republic Act (RA) No. 6971 or the Productivity Incentives Act of 1990 was approved by 242 lawmakers with three against.

The bill’s one of the principal authors 1PACMAN Rep. Mikee Romero said it aims to establish a system of tax incentives for enterprises, small or large, that will successfully establish and implement a productivity incentives program for their employees to recognize both the Filipino workers’ hard work and the enterprises’ willingness to reward the productivity of labor.

Speaker Martin Romualdez expressed gratitude to the passage of the bill as he believes this will both help the employers and employees build a better and productive workplace.

Provisions of the measure apply to all business enterprises “with or without existing and duly recognized collective bargaining agreements. It shall cover all employees and workers regardless of their position, designation, or status, and the manner by which their wages are paid.”

It mandates the establishment of a Productivity Incentives Committee made up of representatives from the management and from the employees, whether or not a labor organization or employees’ association exists in the enterprise.

“The Committee shall develop the productivity incentives program. Whenever gains or savings are realized from the implementation of the productivity improvement program, the management shall initiate the discussion on the sharing thereof,” Sec. 6 of the measure read.

“Productivity incentives program as provided in this Act shall be based on the implemented productivity improvement program, and without prejudice to any company policy, program, contract, or collective bargaining agreement providing for higher productivity incentives,” it added.