Wage policy and productivity Act

Minimum wages for agricultural and non-agricultural workers set regionally.
Regional Tripartite Wages and Productivity Boards have jurisdiction to prescribe these wages.

Created as a policy and advisory body attached to the Department of Labor and Employment (DOLE).
Functions include advising the President and Congress, formulating wage and productivity policies, prescribing wage determination rules, reviewing regional wages for compliance, conducting research, overseeing regional boards, and convening national tripartite conferences.
Composition includes DOLE Secretary (chairman), NEDA Director-General (vice-chairman), two workers' representatives, two employers' representatives, and an Executive Director.
Secretariat headed by Executive Director with two Deputies provides support.

Established in all regions, including autonomous ones.
Develop regional wage and productivity plans, fix minimum wages, conduct studies, coordinate with other regions, process exemption applications, and perform necessary functions.
Composed of regional directors of DOLE (chairman), NEDA, and DTI (vice-chairmen), plus worker and employer representatives appointed by the President.

Regional Boards may issue Wage Orders following investigation when warranted.
Wage Orders take effect 15 days post-publication in regional newspapers.
Public hearings/consultations required with stakeholders before wage determination.
Aggrieved parties may appeal to the NWPC within 10 calendar days; NWPC must decide within 60 days.
Appeals do not stay Wage Orders unless a surety bond is posted.

Wages must meet minimum living standards economically feasible.
Consider demand for living wages, consumer price index, cost of living changes, workers’ needs, industrial dispersal incentives, standards of living improvements, prevailing wages, employer capacity to pay, employment effects, and equitable income distribution.
Wages can vary by regions, industries, or localities to reflect conditions.
Employers must annually register labor components and wage rates with government offices.
Wage distortion (loss of logical wage differentials) must be corrected via collective bargaining or arbitration mechanisms.
Workers paid by output must receive wages equivalent to hourly minimum wage standards.
Apprenticeships and learnerships wages automatically adjusted to prescribed rates.

Uniform increase of Php 25/day for most private sector workers.
Exceptions include lower increases (Php 20 or 15) for certain agricultural, cottage industries, small retailers, and enterprises below specified size and capitalization thresholds.
Regional Boards may grant additional increases based on need.
Increase applies to private educational institution workers upon tuition fee increase or start of next school year.
Household helpers, personal service workers, and small retail/service establishments (<10 workers) may be exempted by regional board determination.
Wage increases granted within 3 months before Act effectivity credited against the new increase.
Wage distortion disputes resolved via voluntary or compulsory arbitration without delaying wage increase application.

New businesses outside NCR and export processing zones can be exempt for up to 3 years, with specific shorter exemptions in Regions III & IV, except certain provinces enjoying full 3 years.

Share the cost of wage increases between contractors and principals/clients.
Joint and several liability imposed if principal/client fails to pay mandated increases.

Establishments with 25+ employees within 1 km radius to banks must pay wages via said banks.
Banks shall issue wage payment certifications upon worker or union request.

DOLE conducts payroll and financial record inspections regularly.
In unionized companies, labor union officers accompany inspectors.
In non-unionized companies, worker representatives participate, may submit findings and testify.

Funds sourced from existing government funds and appropriations.
Abolishes National Wages Council and National Productivity Commission; transfers assets and personnel to NWPC.
Separated personnel entitled to separation pay or preference for government employment.

Failure to pay prescribed wage increases penalized by fines up to Php 25,000 and/or imprisonment of 1-2 years.
No probation benefits for convicted offenders.
Corporate officers liable for penalties.

DOLE Secretary empowered to enact implementing rules.
Repeals inconsistent laws and ensures invalidity of parts does not affect the whole.
No reduction of existing wage or benefit rights under this Act.

Law takes effect 15 days after publication in the Official Gazette or two national newspapers.