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 (HB) No. 6683 or the “Enterprise Productivity Act” effectively repeals Republic Act (RA) No. 6971 or the Productivity Incentives Act of 1990 and was passed by members of the chamber with 242 against three voting.
The bill also establishes a system of tax incentives for enterprises, small or large, that will successfully establish and implement a productivity incentives program for their employees.
“This is to recognize both the Filipino workers’ hard work and the enterprises’ willingness to reward the productivity of labor. Together, they make up a strong pillar of our economy, and this measure pays tribute to their immeasurable contribution to nation-building,” Speaker Ferdinand Martin G. Romualdez said.
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.
As for tax deductions, private establishments are entitled to deduct 50% of the total productivity incentives granted to their employees and 50% of the total grants for training and special studies given to employees pursuant to the productivity incentives program prepared by the Committee from their gross income.
“The Bureau of Internal Revenue shall establish a system for availing of tax deductions. It shall maintain and furnish the National Wages and Productivity Commission (NWPC) with an annual record of business enterprises that avail of tax deductions under this Act for program monitoring,” HB 6683 said.
As MSMEs may fall under the purview of the provisions of the bill if it becomes law, banking institutions are mandated to “provide a loan facility or extend a credit window to micro, small and medium enterprises at an interest rate lower than the prevailing rate that implement a productivity improvement program.”
The National Innovation Council created under Republic Act No. 11293 or the “Philippine Innovation Act” is tasked to “have as one of its overriding goals the attainment of high and rising levels of productivity.”
Also, the Secretary of Labor and Employment is mandated to ensure the compliance of enterprises to the provisions of the proposed measure, as it also encourages the Civil Service Commission and the DBM to establish a similar system in the public sector.
Authors of the bill include Reps. Joey S. Salceda, Mark O. Go, Michael L. Romero Ph.D., Juan Fidel Felipe F. Nograles, Christopherson “Coco” M. Yap, , Allan U. Ty, Mary Mitzi L. Cajayon-Uy, Charisse Anne C. Hernandez, Keith Micah “Atty. Mike” D.L. Tan, Munir N. Arbison Jr., Romeo M. Acop, Bonifacio L. Bosita, Carl Nicolas C. Cari, Jonathan Keith T. Flores, Edwin L. Gardiola, Teodorico T. Haresco Jr., Edcel C. Lagman, Gerville “Jinky Bitrics” R. Luistro, Marissa “Del Mar” P. Magsino, Khymer Adan T. Olaso, Rodolfo “Ompong” M. Ordanes, Florida “Rida” P. Robes, Ma. Alana Samantha T. Santos, Leody “Odie” F. Tarriela, Jocelyn P. Tulfo, Patrick Michael D. Vargas, Christopher V.P. De Venecia, Alfred C. Delos Santos, Paolo Z. Duterte.
Geraldine B. Roman, Roman T. Romulo, Jeffrey Soriano, Midy N. Cua, Mikaela Angela B. Suansing, Sonny “SL” L. Lagon, Nicanor M. Briones, Rosanna “Ria” V. Vergara, Reynante U. Arrogancia, Ray T. Reyes, Rex Gatchalian, Jose C. Alvarez, Ma. Rachel J. Arenas, Sergio C. Dagooc, Wilter Y. Palma, Jude A. Acidre, Peter John D. Calderon, Noel “Bong” N. Rivera, Manuel Jose “Mannix” M. Dalipe, Gus S. Tambunting, John Tracy F. Cagas, Kristine Singson-Meehan, Shernee A. Tan-Tambut and Linabelle Ruth R. Villarica.
