FEB.

5, 2015

NR # 3733

House labor committee okays bill repealing

Productivity Incentives Act of 1990
The House Committee on Labor and Employment has reported out for plenary
deliberation a bill establishing a Productivity Improvement Program, repealing Republic
Act 6971 otherwise known as the Productivity Incentives Act of 1990.
Rep. Rufus B. Rodriguez (2nd District, Cagayan de Oro City), one of the authors of
consolidated House Bill 5292, said more than ten years into the implementation of the law,
only a handful of business enterprises have yet adopted the program due to certain
restrictive provisions of the law that make it hard to implement.
The measure addresses such concerns making a law more responsive to the
situations prevailing in labor and employment, Rodriguez said.
Rep. Karlo Alexei B. Nograles (1st District, Davao City), committee chairman,
urged his colleagues to support the passage of the bill.
The measure shall encourage the formation of productivity incentives committees
in business enterprises with the end of establishing productivity incentives programs that
will provide schemes for measuring productivity, and sharing of productivity bonuses with
employees, Nograles said.
Rep. Diosdado Macapagal Arroyo (2nd District, Camarines Sur), another author of
the bill, said the government should protect the rights and promote the welfare of all
workers as the primary social economic force.
Rep. Emmeline Aglipay Villar (Party-list, DIWA), also a co-author of the bill, said
the adoption of a productivity program will result not only in increased income for both
the workers and the establishments; it will likewise make the Filipino workforce more
competitive in international trade, thereby contributing to poverty reduction through job
generation.
Under the measure, tax incentives to business enterprises that adopt a productivity
incentives program for their employees shall be provided by granting a special deduction
from the gross income equivalent to 50 percent of the total productivity bonuses given to
the employees.
An additional special deduction shall also be provided from gross income
equivalent to 50 percent of the total grants for manpower training and special studies
given by business enterprises to their rank and file employees.

Priority training programs and services shall also be provided by the Department of
Labor and Employment (DOLE) and partner government agencies to businesses adopting
productivity incentives programs.
Productivity Incentives Program, duly ratified by the employees, shall contain,
among others, provisions for measuring productivity and efficiency improvements,
sharing of productivity bonuses, coverage, percentage sharing, forms of bonus payment,
and manner and frequency of distribution, in accordance with the terms and conditions
that may be agreed upon by both labor and management.
Other co-authors of the bill are Reps. Imelda Calixto-Rubiano (Lone District, Pasay
City), Gloria Macapagal-Arroyo (2nd District, Pampanga), Maximo Rodriguez, Jr. (Party
List, ABAMIN), Francis Gerald Abaya (1st District, Cavite), Christopher Co (Party List,
AKO BICOL), Rodel Batocabe (Party List, AKO BICOL), Emil Ong (2 nd District,
Northern Samar), Angelina DL. Tan (4 th District, Quezon), Leah Paquiz (Party List, ANG
NARS), Maria Victoria Sy-Alvarado (1st District, Bulacan), Roy Seeres, Sr. (Party List,
OFW), Emmi De Jesus (Party List, GABRIELA), Eric Olivarez (1 st District, Paraaque
City), Raymond Democrito Mendoza (Party List, TUCP), and Gustavo Tambunting (2 nd
District, Paraaque City). (30) jc