In July 1989, the Philippine Congress enacted into law Republic Act No. 6727, also known as the "Wage Rationalization Act."

The Act established a new mechanism for minimum wage determination through the creation of the National Wages and Productivty Commission ( NWPC) and the 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).

To be the primary policy development and resource center on wages, incomes and productivity.

To ensure a decent standard of living for workers and their families, and contribute to the competitiveness of enterprises through improved productivity of workers.

NWPC is a key policy making body on wages, incomes and productivity, mandated under RA 6727 or the Wage Rationalization Act (1989) and RA 6971 or the Productivity Incentives Act of 1990 to:

• Determine minimum wages at the regional,provincial and/or industry levels; and
• Promote productivity improvement and gainsharing schemes, particularly among micro, small and medium enterprises.

NWPC formulates policies and guidelines on wages, incomes and productivity and exercises technical and administrative supervision over the RTWPBs.

With 17 RTWPBs (including ARMM) responsible for setting minimum wages and promoting productivity improvement programs.

Research and Policy

• Advise the President and Congress on matters relating to wages, incomes, and productivity
• Determine and fix minimum wage rates at the regional,provincial, and industry levels
• Undertake researches and studies on wages and productivity
• Formulate policies and guidelines on wages, incomes, and productivity

Training and Consulting

• Provide training courses on quality and productivity (Q&P) improvement for company owners, managers, supervisors, and workers of qualified small and medium enterprises (SMEs).
• Extend firm level consulting and technical assistance on the actual implementation of Q&P improvement projects for beneficiary-SMEs.
• Promote gainsharing schemes at the firm level.

Information and Publication

• Render information services in the areas of wages, incomes, and productivity to walk-in and phone -in clients, as well as through the NWPC website and library.
• Disseminate publication and information materials on minimum wages and Q&P improvement ang gainsharing.
• Conduct wage clinics or one-on-one consultation with clients on wage related concerns.

Other Services
(Program Transferred from Bureau of Working Condition)

Facility Evaluation

      Is a program transferred from Bureau of Working Condition to the National Wages and Productivity Commission, pursuant to Executive Order No. 366. Through this program, employeers and employees may decide and agree to consider meals, housing and facilities furnished by the employer to his/her employes as part of the wages/salaries of employees. This is done by deducting the determined/reasonable value of meals, housing and facilities from the current minimum wage due to the employees, subject to the agreement of the workers and employers. Enterprises who wish to avail of this scheme may inquire from the Regional Tripartite Wages and Productivity Boards (RTWPBs) having jurisdiction in the area.

Time and Motion Study (Work Improvement and Measurement Study)

      Is a program transferred from Bureau of Working Condition to National Wages and Productivity Commission, pursuant to EO 366. This involves the conduct of time and motion studies (Work Improvement and Measurement Studies) to set production standards that are fairly equivalent to the daily minimum wage. RBs are bonded to conduct the study in accordance with the guidelines issued by the NWPC.

A. Policy/guidelines/standards formulation on wages and productivity

1. Develop and implement a two-tier wage system within the current regional minimum wage fixing framework  (R.A. 6727)  to protect the income of vulnerable workers and promote productivity and competitiveness at the regional, industry and firm level. The two-tier wage system shall consist of a mandatory floor wage (1st tier) and a voluntary productivity or performance -based wage system for wages above the floor wage (2nd tier).
2. Formulate and implement policies on facility evaluation and time-and-motion studies/workimprovement for wage determination and industry standards setting.
3. Evaluate wage exemption policies under RA 6727 and RA 9178 to determine effectivenessand relevance to new and emerging labor market conditions
4. Align research and data base development to support the two-tiered wage policy reform

B. Technical assistance and advocacy services on wages and productivity

1. Develop and implement the Green Productivity Training Program for MSMEs;
   
2. Upgrade ISTIV productivity training modules through inclusion of “green” concepts and other technologies  (e.g.    ILO’s Succeeding in Business);
   
3. Expand implementation of  Service Quality training program for Key Employment Generators (KEGs) to the supply chain of the Tourism Industry (e.g. transport, port/airport services and other service-oriented industries such as medical tourism);
   
4. Provide training and technical assistance on productivity improvement to DOLE  officers and staff relative to:
   
   
   1. Technical Assistance/ Advisory Visit (TAV) program under its Labor  Standards Enforcement Framework (LSEF), towards greater focus on productivity and competitiveness of micro and small enterprises.
      
      
   2. Transforming  DOLE  frontliners (e,g, labor inspectors, conciliators-mediators and livelihood focal persons) to become Productivity Specialists towards sustainability of DOLE’s livelihood beneficiaries (DILP) and other assistance programs.
      
      
   3. Green Our DOLE program which aims to instill  heightened consciousness on  productivity, competitiveness and  environmental impact  of DOLE programs, projects and activities.
      
      
5. Strengthen communication campaign on NWPC programs and services to heighten public awareness and involvement; and

6. Intensify networking and strategic alliances on wages and productivity at both local and international levels.

C. Management Services

1. Enhance program management through improved planning process and information services.
2. Conduct audit of IT resources and utilization to determine optimal use and effectiveness.
3.  Develop HRD Plan for CO and regional staff and conduct capacity building on new and relevant concepts, techniques, tools and technologies on wages, productivity, communication and management.
4. Expedite completion of NWPC Rationalization Plan, in coordination with DBM, to ensure effective service delivery on wages and productivity.
5. Promote employees safety  and welfare through implementation of Collective Negotiation Agreement (CAN), health maintenance program and sports/cultural activities.

The Commission      

The NWPC is composed of the following:

• Secretary of Labor and Employment-ex-officio Chairman;
• Director-General of the National Economic and Development Authority (NEDA) as ex-officio Vice Chairman;
• Two representatives each from the worker and employer sectors (appointed by the President for a term of five years) as Members; and
• Executive Director of the NWPC Secretariat-ex officio member.

     The Commission is assisted by its secretariat.

The Boards

     Each RTWPB is composed of the following: