TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 478
25 JlJL 14 AiO :40
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE BUSINESS ENTERPRISE 
PRODUCTIVITY GROWTH, AMENDING FOR THE PURPOSE REPUBLIC ACT 
NO. 6971, OTHERWISE KNOWN AS THE "PRODUCTIVITY INCENTIVES ACT 
OF 1990"
EXPLANATORY NOTE
One important indicator of our country's economic development is labor 
productivity. The ability of the enterprise to compete globally is dependent on the 
enterprises to produce and offer goods and services in the most effective and 
efficient way. Accordingly, it is imperative for these enterprises to promote labor 
productivity not only to expand their business opportunities but also to uphold the 
interest of the workers.
Republic Act No. 6971, otherwise known as the "Productivity Incentives Act of 
1990", was signed into law on November 22, 1990 to "encourage higher levels of 
productivity, maintain industrial peace and harmony and promote the principle of 
shared responsibility in the relations between workers and employers" and 
accordingly, "to provide corresponding incentives to both labor and capital for 
undertaking voluntary programs to ensure greater sharing by the workers in the 
fruits of their labor".


In 2017, labor productivity growth registered its highest at 8.69%. However, 
due to the unprecedented impact of the pandemic, the country was not able to 
sustain this upward trend when it registered only 2.4% growth from 2000 to 2021.
The 2021/2022 Integrated Survey on Labor and Employment (ISLE) Rider 
Survey on Productivity Improvement Program (PIP) and Gainsharing (GS) Practices 
conducted by the Philippine Statistics Authority (PSA)1 revealed that 41% of 36,342 
establishments with twenty (20) or more workers implemented various PIPs. 
Majority of these establishments is from the Service Sector which accounts for 74%, 
followed by the Industry Sector which comprises 23%, and the Agriculture Sector 
which accounts for 3%. The top three (3) PIPs implemented are:
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7S of Good Housekeeping or the training program on waste elimination 
through workplace organization. 7S means sort, systematize, sweep, 
standardize, self-discipline, sustain, and safety (64%)
• 
Continuous Process Improvement or the act of implementing 
improvements to a product, service, or process (55%)
• 
Client Satisfaction Measurement or the assessment of performance 
from the customer's point of view (52%)
A total of 1.67 million workers are covered by PIPs from the 14,774 
establishments around the country and 39% or 656,493 of them benefitted from 
Productivity Incentives: 87% of them are rank and file or production workers, 9% 
are supervisors or foremen, and 4% are managerial or executive officers.
These figures affirm that labor productivity, despite the implementation of the 
Republic Act No. 6971 and its milestones needs to be improved, and the system and 
structure supporting it under the guidance of the National Wages and Productivity 
Commission (NWPC) should be strengthened.
1 2021/2022 ISLE Rider Survey Productivity Improvement Program (PIP) and Gainsharing (GS) Practices-
National Wages and Productivity Commission


Especially in the midst of the debate on wage increases and the challenges on 
enacting a legislated wage hike, promoting the productivity of workers and business 
enterprises should be given focus to provide a holistic view on how to achieve our 
Constitutional mandate to "affirm labor as a primary economic force", "protect the 
rights of workers and promote their welfare" and at the same time, "encourage 
private enterprise and provide incentives to needed investments". As pronounced in 
Article XIII Section 3 of the 1987 Constitution, "The State shall regulate the relations 
between workers and employers, recognizing the right of labor to its just share in 
the fruits of production and the right of enterprises to reasonable returns on 
investments, and to expansion and growth."
The "Business Enterprise Productivity Act" seeks to fortify the intentions of 
the "Productivity Incentives Act of 1990", by promoting inclusive and sustainable 
work productivity programs. It aims to reinforce labor productivity through 1) the 
establishment of a Productivity Incentives Committee (PIC); 2) the adoption of 
productivity incentive programs; 3) granting productivity incentives to employees, 
and 4) providing a tax incentive to business establishments for granting incentives to 
employees. It seeks to promote a working environment with an increased level of 
productivity, maintain industrial harmony, and propel shared commitment and 
responsibility among employers and employees.
In view of the foregoing, the swift approval of this measure is highly 
recommended.
INGGQY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
25 JUL U A'lO ;40
SENATE
S. No. 478
■
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE BUSINESS ENTERPRISE 
PRODUCTIVITY GROWTH, AMENDING FOR THE PURPOSE REPUBLIC ACT 
NO. 6971, OTHERWISE KNOWN AS THE "PRODUCTIVITY INCENTIVES ACT 
OF 1990"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 1 of Republic Act No. 6971 is hereby amended to read as
follows:
"Section. 1. Short Title. - This Act shall be known as
the "BUSINESS ENTERPRISE Productivity 
[Incentives] Act [of 1990}".
Sec. 2. Section 2 of Republic Act No. 6971 is hereby amended to read as
follows:
"Sec. 2. Declaration of Policy. - It is [the-] HEREBY 
declared THE policy of the State to:
"A) [encourage—higher—levels—ef—productivity,]
ENSURE THAT HIGH AND RISING LEVEL OF 
PRODUCTIVITY SHALL BE THE OVERRIDING 
GOAL OF NATIONAL AND SECTORAL 
DEVELOPMENT PLANS TO IMPROVE THE 
COUNTRY'S OVERALL PRODUCTIVITY 
PERFORMANCE;


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"B) PROMOTE A CULTURE OF PRODUCTIVITY 
THAT SEEKS TO CONTINUALLY ENHANCE WHAT 
ALREADY EXISTS, BASED ON THE BELIEF THAT 
ONE CAN DO THINGS BETTER TODAY THAN 
YESTERDAY AND TOMORROW BETTER THAN 
TODAY."
"C) PROMOTE GAINFUL EMPLOYMENT, 
IMPROVE WORKING CONDITIONS, maintain 
industrial peace and harmony, and promote the 
principle of PARTNERSHIP AND shared responsibility 
in the relations between workers and employers, 
recognizing the right of labor to its just share in the 
fruits of production and the right of business 
enterprises to reasonable returns on investments and 
ft©^ FOR expansion and growth; AND,
"D) [accordingly—1©9 [p]Provide corresponding 
incentives to both labor and [capital] MANAGEMENT 
for undertaking [voluntary] PRODUCTIVITY 
IMPROVEMENT programs [to ensure greater] AND 
GAINsharing [by the workers in thc-fr-tHts of-fehetf 
laber]."
Sec. 3. Section 3 of Republic Act No. 6971 is hereby amended to read as
follows:
"Sec. 3. Coverage. - This Act shall apply to all business 
enterprises with or without existing and duly 
recognized or certified labor organizations [, including 
government-owned—aftd—controlled—corporations
performing proprietary functions]. It shall cover all 
employees and workers [including casual, regular, 
supervisory--------and--------managerial--------employees]
REGARDLESS
OF
THEIR
POSITION,


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DESIGNATION, OR STATUS, AND THE MANNER
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BY WHICH THEIR SALARIES/WAGES ARE PAID."
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Sec. 4. Section 4 of Republic Act No. 6971 is hereby amended to read as
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follows:
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"Sec. 4. Definition of Terms. - As used in this Act:
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"a) "Business Enterprise" refers to [industrial;
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agricultural, or agro-industrial GStabHsbments engaged
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tfl—the—production,—manufacturing,—processing,
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repacking, or assembly of goods, -including scrvicc-
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oriented—enterprises,—duly—certified—as—such—by
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appropriate government agencies.] AN ENTITY DULY
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INCORPORATED, ORGANIZED, OR REGISTERED
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PURSUANT TO THE PREVAILING APPLICABLE
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LAWS, RULES, AND REGULATIONS;
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"B) "PRODUCTIVITY" IS THE RATIO OF OUTPUT
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OVER INPUT. IT ALSO REFERS TO THE
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EFFICIENT USE OF RESOURCES IN RELATION TO
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THE EFFECTIVE DELIVERY OF QUALITY GOODS
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AND/OR SERVICES.
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"[b)Labor-Management] C) "PRODUCTIVITY
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INCENTIVES Committee (PIC)" refers to a
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[negotiating] body in a business enterprise composed
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of [the] representatives of [labor----- aad}
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management/EMPLOYERS AND EMPLOYEES
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created to [establish] FORMULATE AND
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IMPLEMENT A PRODUCTIVITY IMPROVEMENT
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PROGRAM AND a productivity incentives program,
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and to settle [disputes] ISSUES arising [therefrom in
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accordance with Section 9 hereehj FROM THE
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INTERPRETATION OR IMPLEMENTATION OF THE
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SAID PROGRAMS;


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"D) "PRODUCTIVITY IMPROVEMENT PROGRAM" 
REFERS TO A SET OF ACTIONS IDENTIFYING 
AND ADDRESSING PRODUCTIVITY PROBLEM 
AREAS FORMULATED BY THE PIC, USING 
EITHER A PRINCIPLE, TOOL, TECHNIQUE, 
METHOD, PRACTICE, GUIDELINE, MODEL, OR 
APPROACH TOWARDS PRODUCTIVITY 
IMPROVEMENT IN PEOPLE, INPUTS OR 
TECHNOLOGIES, PRODUCTS OR SERVICES, 
POLICIES, AND PROCESSES, INCLUDING 
INNOVATIVE CAMPAIGNS THAT WOULD FOSTER 
AND SUSTAIN THE INTEREST OF BOTH LABOR 
AND MANAGEMENT ON SAID PROGRAM AND 
PROMOTE A CULTURE OF PRODUCTIVITY. IT 
SHALL CONTAIN, AMONG OTHERS, 
BENCHMARKS AND MEASUREMENT OF 
PRODUCTIVITY 
OR 
EFFICIENCY
IMPROVEMENTS.
”[^] E) "Productivity Incentives Program" refers to a 
formal agreement [established—by—the—labor— 
management committee] FORMULATED BY THE PIC
containing a [process—that—wtH—promote—gainful 
employment, improve working conditions and result in
increased productivity, including cost savings, whereby
the—employees—are—granted—salary—bonuses
proportionate to increases in current productivity over
the average for the preceding three (3) consecutive
years. The agreement shall be ratified by at least a
majority of the employees who have rendered at least
service]
-(6)------months------of-
continuous-
PRODUCTIVITY IMPROVEMENT PROGRAM AND 
PROVISIONS ON THE SHARING OF THE GAINS


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AND/OR SAVINGS REALIZED FROM THE
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PRODUCTIVITY IMPROVEMENT PROGRAM, AND
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ITS COVERAGE, SHARING SCHEME, AND FORMS,
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MANNER, AND FREQUENCY OF PAYMENT OF
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SUCH INCENTIVES.
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Sec. 5. Section 5 of Republic Act No. 6971 is hereby amended to read as
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follows:
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"Sec. 5. ^LaboF-Managcmentj PRODUCTIVITY
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INCENTIVES Committee. - £a)-A business cntorprisc
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er—its—cmployoGS,—through—thetr—authorized
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rcprcGcntativcG, may initiate the formation of a labor-
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management committee that Ghall be compoGcd of an
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equal number of representatives from the management
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and from the rank-and-file employees: Provided, That
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both management -and labor-sfiall have equal voting
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rights: Provided, further, That at the request of any
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party to the negotiation, the National -Wages-and
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Productivity Commission of the Department of Labor
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and -Employment shall provide the oecessary sttidicsj
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technical information and assistance, and expert advice
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te—enable—the—parties—to—conclude—productivity
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agreements] 
BUSINESS ENTERPRISES
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EMPLOYING TEN (10) OR MORE SHALL
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ESTABLISH A PRODUCTIVITY INCENTIVES
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COMMITTEE, HEREINAFTER REFERRED TO AS
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PIC, COMPOSED OF REPRESENTATIVES FROM
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LABOR AND MANAGEMENT. 
FOR
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ESTABLISHMENTS EMPLOYING LESS THAN TEN
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(10), THE DEPARTMENT OF LABOR AND
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EMPLOYMENT 
(DOLE) SHALL PROVIDE
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TECHNICAL ASSISTANCE ON THE CREATION OF
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PIC PURSUANT TO THE IMPLEMENTING RULES


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AND REGULATIONS WHICH WILL HEREAFTER
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BE ISSUED.
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In business enterprises with £duly recognized or
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certified labor organizations, the representatives of
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labor shall be those designated by the collective
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bargaining agent(s) of the bargaining unites)] LABOR-
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MANAGEMENT COUNCILS OR LABOR-
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MANAGEMENT COMMITTEES, THE PIC MAY BE A
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SUB-COMMITTEE THEREOF.
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"[€) In business onterprises without duly recognized or
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certified labor organizations, the representatives of
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labor shall be elected by at least a majority of all rank-
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and-filo employees who have rendered at least six (6)
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months of continuous service, j
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"ON EMPLOYEE REPRESENTATION IN THE PIC,
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FOR BUSINESS ENTERPRISES WITH A
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LEGITIMATE LABOR ORGANIZATION OR
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WORKERS' 
ASSOCIATION, 
THE
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REPRESENTATIVES SHALL BE THOSE
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DESIGNATED IN THE COLLECTIVE BARGAINING
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AGREEMENT OR BY THE SAID ORGANIZATION
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OR ASSOCIATION; WHILE FOR BUSINESS
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ENTERPRISES WITHOUT A LEGITIMATE LABOR
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ORGANIZATION OR WORKERS' ASSOCIATION,
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THE REPRESENTATIVES SHALL BE THOSE
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DESIGNATED BY AT LEAST A MAJORITY OF ALL
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RANK-AND-FILE EMPLOYEES."
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Sec. 6. A new section to be denominated as Section 5-A shall be inserted
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after Section 5 of Republic Act No. 6971 which shall read as follows:
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"SEC. 5-A. PRODUCTIVITY IMPROVEMENT
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PROGRAM. - THE PIC SHALL ENDEAVOR TO
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DEVELOP A PRODUCTIVITY IMPROVEMENT


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PROGRAM, AS DEFINED IN THIS ACT, THAT 
WILL FORM PART OF THE PRODUCTIVITY 
INCENTIVES PROGRAM."
Sec. 7. Section 6 of Republic Act No. 6971 shall be amended as follows: 
"Sec. 6. Productivity Incentives Program. - fa) The 
pFOductivity incentives program shall contain provisions
for the—manner—of sharing—aed—the—factors—m
determining productivity bonuses: Provided, That the
productivity bonuses-granted to -labor- under this
program shall not be loss than half-of the percentage
increase in the productivity of the business enterprise.
b) Productivity agreements reached by the parties as
provided in this Act shall supplement existing collective
bargaining agreements.
c) If, during the existence of the productivity incentives
program or agreement, the employees will join or form
a union, such program or agreement-may, in addition
to the terms and conditions agreed upon by labor and
management, be integrated in the collective bargaining
agreement that may be entered into between them.-j
THE PIC SHALL ENDEAVOR TO 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 OF SUCH GAINS 
OR SAVINGS.
"PRODUCTIVITY INCENTIVES PROGRAM AS 
PROVIDED IN THIS ACT SHALL BE BASED ON 
THE 
IMPLEMENTED 
PRODUCTIVITY
IMPROVEMENT PROGRAM, AND WITHOUT


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PREJUDICE TO ANY COMPANY POLICY AND 
PROGRAM, CONTRACT OR COLLECTIVE 
BARGAINING AGREEMENT PROVIDING FOR 
HIGHER PRODUCTIVITY INCENTIVES.
"THE INCENTIVES AND BONUSES GRANTED BY 
VIRTUE OF THIS ACT SHALL NOT, BY ANY 
MEANS, BE CONSIDERED AS SALARY 
INCREASES."
Sec. 8. Section 7 of Republic Act No. 6971 shall be amended as follows: 
"Sec. 7. [Benefits—and-—7^—Incentives] TAX
DEDUCTIONS. - PRIVATE ESTABLISHMENTS MAY 
AVAIL OF THE FOLLOWING TAX DEDUCTIONS:
"a) Subject to the provisions of Section 6 hereof, a 
business enterprise [which] THAT adopts a 
productivity incentives program ^7] duly and mutually 
agreed upon by [parties to the labor-management 
committee,] THE PIC shall be granted a special 
deduction from gross income equivalent to fifty percent 
(50%) of the total productivity [bonusosj 
INCENTIVES given to employees under the 
PRODUCTIVITY INCENTIVES program over and 
above the total allowable ordinary and necessary 
business deductions, AS WELL AS ANY SPECIAL 
DEDUCTIONS, for said [bonuses] INCENTIVES 
under [the—National—Internal—Revenue Code;—as 
□mended] PREVAILING LAWS, RULES, AND 
REGULATIONS;
"b) Grants for [manpower] training and special studies 
given to rank-and-file employees pursuant to a
PRODUCTIVITY IMPROVEMENT program prepared 
by the [labor-management committee] PIC for the 
development of skills identified as necessary by the
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appropriate government agencies shall also entitle the 
business enterprise to a special deduction from gross 
income equivalent to fifty percent (50%) of the total 
grants over and above the allowable ordinary and 
necessary business deductions for said grants under 
the National Internal Revenue Code, as amended. 
"BUSINESS ENTERPRISES SHALL SUBMIT A 
COPY OF ITS PRODUCTIVITY INCENTIVES 
PROGRAM AND OTHER REQUIRED DOCUMENTS 
TO THE BUREAU OF INTERNAL REVENUE (BIR) 
TO AVAIL OF THE CORRESPONDING BENEFITS 
AND TAX DEDUCTIONS PROVIDED IN THIS ACT; 
"c) Any strike or lockout arising from any violation of 
the productivity incentives program shall suspend the 
effectivity thereof pending settlement of such strike or 
lockout: Provided, That the business enterprise shall 
not be deemed to have forfeited any tax incentives 
accrued prior to the date of occurrence of such strike 
or lockout, and the workers shall not be required to 
reimburse the productivity [bonuses] INCENTIVES 
already granted to them under the productivity 
incentives program. Likewise, bonuses which have 
already accrued before the strike or lockout shall be 
paid the workers within six (6) months from their 
accrual.
d) [Bonuses] INCENTIVES provided for under the 
productivity incentives program shall be given to the 
employees not later than every six (6) months from the 
start of such program over and above existing 
[bonuses] INCENTIVES granted by the business 
enterprise and by law: Provided, That the said


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[bonuses] INCENTIVES shall not be deemed as 
salary increases due the employees and workers, 
e) The special deductions from gross income provided 
for herein shall be allowed starting the next taxable 
year after the effectivity of this Act.
"F) THE BIR SHALL ESTABLISH A SYSTEM 
FOR THE AVAILMENT OF TAX DEDUCTIONS. IT 
SHALL MAINTAIN AND FURNISH THE NATIONAL 
WAGES AND PRODUCTIVITY COMMISSION 
(NWPC) AN ANNUAL RECORD OF BUSINESS 
ENTERPRISES THAT AVAILED OF TAX 
DEDUCTIONS UNDER THIS ACT FOR PROGRAM 
MONITORING."
Sec. 9. Section 8 of Republic Act No. 6971 shall be amended as follows: 
"Sec. 8. [Notification.—A business ontGrprisG which 
adopts a productivity incentives program shall submit
copies of the same to the National Wages and
Productivity Commission and to the Bureau of Internal
Revenue—for—their—information—and—record]
PRODUCTIVITY ADVISORIES. - THE REGIONAL 
TRIPARTITE WAGES AND PRODUCTIVITY 
BOARDS (RTWPBS) SHALL ISSUE ADVISORIES 
ON PRODUCTIVITY IMPROVEMENT PROGRAMS 
AND PRODUCTIVITY INCENTIVE PROGRAMS,
AND RELATIVE THERETO, SHALL PROVIDE 
TRAINING AND TECHNICAL ASSISTANCE TO 
ENTERPRISES."
Sec. 10. Section 9 of Republic Act No. 6971 shall be amended as follows: 
"Sec. 9. [Disputes] ISSUES and Grievances. - 
Whenever [disputes] ISSUES, grievances, or other 
matters arise from the interpretation or implementation 
of the productivity incentives program, the flabor-
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management committee] PIC shall meet to resolve the 
[dispute, and may seek the assistance of the National
Conciliation and Mediation Board of the Department of
Labor and Employment for such purpose. Any dispute
which remains unresolved within twenty- (20)--day5
from—the time—of its—submission—to the—labor-
management—committee—shaH—be—submitted—for
vefuntary—arbitration—m—line—with—the—pertinent
provisions of the Labor Code, as amended.-] SAME 
WITHIN FIFTEEN (15) DAYS FROM RECEIPT OF 
A FORMAL COMPLAINT FROM ANY AGGRIEVED 
PARTY, SUBJECT TO THE FOLLOWING 
CONDITIONS:
"[The productivity incentives program shall include the
name(s) of the voluntary arbitrator or panel—of
voluntary arbitrators previously chosen and agreed
upon by the labor-management committee.]
"A) PARTIES MAY AGREE ON WHETHER TO 
SUSPEND THE IMPLEMENTATION OF THE 
PRODUCTIVITY INCENTIVES PROGRAM 
PENDING THE RESOLUTION OF THE 
COMPLAINT;
"B) BUSINESS ENTERPRISES SHALL NOT BE 
DEEMED TO HAVE FORFEITED ANY TAX 
DEDUCTIONS ACCRUED PRIOR TO THE SAID 
COMPLAINT AND THE EMPLOYEES AND 
WORKERS SHALL NOT BE REQUIRED TO 
REIMBURSE THE PRODUCTIVITY INCENTIVES 
ALREADY GRANTED;
"C) LIKEWISE, PRODUCTIVITY INCENTIVES 
THAT HAVE ALREADY ACCRUED PRIOR TO THE 
SAID COMPLAINT SHALL BE PAID TO THE
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ENTITLED EMPLOYEES AND WORKERS WITHIN
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SIX (6) MONTHS FROM THE DATE OF ACCRUAL
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OF THE SAME; AND,
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"D) ANY COMPLAINT WHICH REMAINED
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UNRESOLVED WITHIN THIRTY (30) DAYS FROM
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THE TIME OF RECEIPT OF COMPLAINT SHALL BE
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REFERRED BY THE PIC TO VOLUNTARY
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ARBITRATION PURSUANT TO PREVAILING
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LAWS, RULES, AND REGULATIONS."
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"E) THE BIR SHALL ESTABLISH A SYSTEM
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FOR THE AVAILMENT OF TAX DEDUCTIONS. IT
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SHALL MAINTAIN AND FURNISH THE NATIONAL
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WAGES AND PRODUCTIVITY COMMISSION
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(NWPC) AN ANNUAL RECORD OF BUSINESS
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ENTERPRISES THAT AVAILED OF TAX
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DEDUCTIONS UNDER THIS ACT FOR PROGRAM
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MONITORING."
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Sec. 11. Section 10 of Republic Act No. 6971 shall be deleted.
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Sec. 12. A new Section to be denominated as the new Section 10 shall be
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inserted after Section 9 of Republic Act No. 6971.
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"SEC. 10. LOAN AVAILMENT - IN ADDITION TO
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THE EXISTING LOAN FACILITIES PROVIDED
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FOR BY OTHER LAWS, BANKING INSTITUTIONS
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MAY PROVIDE CONCESSIONAL FINANCIAL
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PACKAGES, LOAN OR CREDIT WINDOW
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PREFERABLY AT AN INTEREST RATE LOWER
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THAN THE PREVAILING MARKET RATE TO
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MICRO, SMALL AND MEDIUM ENTERPRISES
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(MSMES) THAT IMPLEMENT A PRODUCTIVITY
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IMPROVEMENT PROGRAM."
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Sec. 13. New sections to be denominated as Sections 10-A, 10-B, 10-C, 10-D,
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10-E, 10-F, 10-G, and 10-H shall be inserted after the new Section 10 of Republic
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Act No. 6971 and shall read as follows:
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"SEC. 10-A. SUBMISSION OF REPORTS. - ALL
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BUSINESS ENTERPRISES SHALL SUBMIT
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REPORTS ON THE CREATION OF THEIR PIC AND
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PRODUCTIVITY INCENTIVES PROGRAM TO
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THEIR RESPECTIVE RTWPBS FOR
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INFORMATION AND APPROPRIATE TECHNICAL
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ASSISTANCE, WHEN NEEDED."
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"SEC. 10-B. PRODUCTIVITY ADVOCACY. - TO
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ENABLE A CULTURE OF PRODUCTIVITY AS A
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WAY OF LIFE, PRODUCTIVITY CONCEPTS SHALL
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BE INCORPORATED IN THE BASIC AND HIGHER
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EDUCATION CURRICULA OF THE DEPARTMENT
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OF EDUCATION (DEPED) AND THE COMMISSION
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ON HIGHER EDUCATION (CHED),
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RESPECTIVELY, AND TRAINING CURRICULUM
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OF THE TECHNICAL EDUCATION AND SKILLS
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DEVELOPMENT AUTHORITY (TESDA)."
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"SEC. 10-C. MONITORING OF COMPLIANCE. -
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THE SECRETARY OF LABOR AND EMPLOYMENT,
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UNDER ARTICLE 128 OF PRESIDENTIAL DECREE
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NO. 442, AS AMENDED, OTHERWISE KNOWN AS
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THE "LABOR CODE OF THE PHILIPPINES",
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SHALL ENSURE COMPLIANCE OF BUSINESS
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ENTERPRISES TO THE PROVISIONS OF THIS
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ACT."
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"SEC. 10-D. TECHNICAL ASSISTANCE. - ANY
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MEMBER OF THE PIC MAY REQUEST TECHNICAL
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ASSISTANCE FROM THE FOLLOWING AGENCIES
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IN DEVELOPING AND IMPLEMENTING 
PRODUCTIVITY IMPROVEMENT PROGRAMS:
"A) DEPARTMENT OF AGRICULTURE (DA), FOR 
ASSISTANCE ON MODERN FARM TECHNOLOGY, 
PARTICULARLY THE AGRICULTURAL TRAINING 
INSTITUTE (ATI) FOR AGRICULTURAL 
EXTENSION ON CURRENT TECHNOLOGIES AND 
SYSTEM;
"B) DEPARTMENT OF BUDGET AND 
MANAGEMENT (DBM), PARTICULARLY THE 
SYSTEMS AND PRODUCTIVITY IMPROVEMENT 
BUREAU (SPIB), FOR TECHNICAL ASSISTANCE 
IN IMPLEMENTING THE GOVERNMENT QUALITY 
AND PRODUCTIVITY MANAGEMENT PROGRAM; 
"C) DEPARTMENT OF ENVIRONMENT AND 
NATURAL RESOURCES (DENR), FOR THE 
PROMOTION OF THE USE OF GREEN 
TECHNOLOGY AND SCIENCE TO CREATE 
PRODUCTS AND SERVICES THAT ARE 
SUSTAINABLE AND ENVIRONMENT-FRIENDLY; 
"D) DEPARTMENT OF INFORMATION AND 
COMMUNICATIONS TECHNOLOGY (DICT), FOR 
UPSKILLING PROGRAMS IN COORDINATION 
WITH TESDA, CHED, AND DEPED;
"E) DEPARTMENT OF TRADE AND INDUSTRY 
(DTI) - BUREAU OF SMALL AND MEDIUM 
ENTERPRISE DEVELOPMENT (BSMED), FOR THE 
EXTENSION OF ASSISTANCE IN THE EFFECTIVE 
MARKETING OF PRODUCTS AND SERVICES OF 
MSMES;
"F) DTI - COMPETITIVENESS BUREAU, FOR THE 
PROMOTION AND PROVISION OF COUNSELING
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SERVICES ON BUSINESS OPERATIONS TO 
ENHANCE PRODUCTIVITY GROWTH AND 
COMPETITIVENESS OF COMPANIES AND 
ENTERPRISES;
"G) DTI - INTELLECTUAL PROPERTY OFFICE OF 
THE PHILIPPINES (IPOPHIL), FOR TECHNOLOGY 
TRANSFER AND PATENT APPLICATIONS AND 
PROTECTION;
"H) DEPARTMENT OF SCIENCE AND 
TECHNOLOGY (DOST), FOR THE PROVISION 
AND PROMOTION OF TECHNOLOGY 
ACQUISITION AND USE TO IMPROVE THE 
OPERATIONAL GROWTH OF COMPANIES AND 
ENTERPRISES;
"I) DEPARTMENT OF TOURISM (DOT), FOR 
TOURISM 
QUALITY 
STANDARDS,
ACCREDITATION, AND THE DEVELOPMENT OF 
THE TOURISM VALUE CHAIN;
"J) DEVELOPMENT ACADEMY OF THE 
PHILIPPINES (DAP), FOR THE CONDUCT OF 
ENTERPRISE-APPROPRIATE TRAINING THAT 
WILL PROVIDE MSMES THE NECESSARY 
PRODUCTIVITY TOOLS AND ADVICE ON THE 
TECHNOLOGIES TO ENHANCE ENTERPRISE 
OPERATIONS AND ACHIEVE THEIR 
PRODUCTIVITY GOALS;
"K) NWPC AND RTWPBS, FOR THE PROVISION 
OF TRAINING AND TECHNICAL ASSISTANCE ON 
PRODUCTIVITY IMPROVEMENT AND 
PERFORMANCE INCENTIVES SCHEME TO 
COMPANIES AND ENTERPRISES;
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"L) TESDA, FOR THE PROVISION AND 
PROMOTION OF SKILLS TRAINING, 
ASSESSMENT, AND CERTIFICATION;
"M) UNIVERSITY OF THE PHILIPPINES (UP), 
PARTICULARLY THE INSTITUTE FOR SMALL 
SCALE INDUSTRIES (UP ISSI) AND SCHOOL OF 
LABOR AND INDUSTRIAL RELATIONS' (UP 
SOLAIR) CENTER FOR INDUSTRY 
PRODUCTIVITY AND COMPETITIVENESS (CIPC), 
FOR RESEARCH, TRAINING AND TECHNICAL 
SUPPORT TO MSMES IN PLANNING, 
IMPLEMENTING, 
AND 
ASSESSING
PRODUCTIVITY IMPROVEMENT PROGRAMS; 
AND,
"N) THE COOPERATIVE DEVELOPMENT 
AUTHORITY (CDA), FOR THE PROMOTION AND 
INTEGRATION 
OF 
PRODUCTIVITY
IMPROVEMENT AND GAINSHARING SCHEMES 
AMONG COOPERATIVES.
"IN ADDITION, ANY MEMBER OF THE PIC MAY 
ALSO SEEK ASSISTANCE FROM OTHER 
GOVERNMENT AGENCIES OR PRIVATE 
INSTITUTIONS OTHER THAN THOSE CITED 
ABOVE WHEN DEVELOPING AND 
IMPLEMENTING THEIR PRODUCTIVITY 
IMPROVEMENT PROGRAM.
"SEC. 10-E. RECOGNITION OF PRODUCTIVITY 
EXPERTS. - THE NWPC SHALL ESTABLISH A 
SYSTEM TO RECOGNIZE PRODUCTIVITY 
EXPERTS WHO WILL PROVIDE PRODUCTIVITY- 
RELATED SERVICES TO ENTERPRISES. A 
MINIMAL FEE FOR THE RECOGNITION OF
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PRODUCTIVITY EXPERTS WILL BE SET AND 
COLLECTED, AND MAY BE ADJUSTED AS 
NECESSARY SUBJECT TO THE IMPLEMENTING 
RULES AND REGULATIONS (IRR) TO BE ISSUED 
HEREAFTER.
"SEC. 10-F. ASSISTANCE TO MICRO 
ENTERPRISES. - MICRO ENTERPRISES MAY 
AVAIL OF FREE TECHNICAL ASSISTANCE FROM 
THE POOL OF NWPC-RECOGNIZED 
PRODUCTIVITY 
EXPERTS, 
UPON
QUALIFICATION WITH THE CRITERIA TO BE 
DEVELOPED BY NWPC AND TO BE INCLUDED IN 
THE IRR WHICH WILL HEREAFTER BE ISSUED. 
THE PRODUCTIVITY EXPERTS TAPPED TO 
PROVIDE FREE TECHNICAL ASSISTANCE TO 
MICRO ENTERPRISES ARE ENTITLED TO 
RECEIVE HONORARIA TO BE SOURCED FROM 
THE APPROPRIATIONS PROVIDED UNDER 
SECTION 12-B OF THIS ACT. THE AMOUNT OF 
HONORARIA SHALL BE PURSUANT TO DBM'S 
RULES AND REGULATIONS.
"MICRO ENTERPRISES WHICH MAY NOT 
QUALIFY FOR FREE TECHNICAL ASSISTANCE 
SHALL PAY THE PRODUCTIVITY EXPERTS 
RENDERING THE SERVICE AN AMOUNT 
EQUIVALENT TO THE HONORARIA SET BY THE 
DBM'S RULES AND REGULATIONS.
"THE DAP, AS THE NATIONAL PRODUCTIVITY 
ORGANIZATION, SHALL REGULARLY ENHANCE 
THE CAPABILITIES OF THE NWPC-RECOGNIZED 
PRODUCTIVITY EXPERTS ON ADVANCED AND 
EMERGING PRODUCTIVITY TECHNOLOGIES AND
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SYSTEMS AT NO COST, INCLUDING ACCESS TO 
INTERNATIONAL TRAINING PROGRAMS."
"SEC. 10-G. PERIODIC REVIEW THROUGH 
IMPACT ASSESSMENT. - THE EFFECTIVENESS OF 
THIS ACT SHALL BE REVIEWED AND EVALUATED 
BY THE DOLE EVERY THREE (3) YEARS FROM 
ITS EFFECTIVITY DATE THROUGH IMPACT 
ASSESSMENT ON THE SUBJECT BUSINESS 
ENTERPRISES' PRODUCTIVITY AND THE 
PRODUCTIVITY IMPROVEMENT PROGRAM'S 
PROGRESS.
"ALL GOVERNMENT AGENCIES THAT PROVIDE 
TECHNICAL ASSISTANCE TO BUSINESS 
ENTERPRISES IN SECTIONS 7 AND 10-D SHALL 
ALSO SUBMIT THEIR RESPECTIVE ANNUAL 
REPORTS TO THE DOLE ON THE AVAILMENT OF 
ASSISTANCE BY THE SUBJECT BUSINESS 
ENTERPRISES.
"THE DOLE SHALL CONSOLIDATE AND SUBMIT 
THE AFORECITED REPORTS TO CONGRESS 
EVERY THREE (3) YEARS."
"SEC. 10-H. STRENGTHENING WORKPLACE 
BIPARTITE MECHANISM. - THE DOLE SHALL 
FORMULATE A PROGRAM, IN CONSULTATION 
WITH EMPLOYER AND LABOR GROUPS, TO 
STRENGTHEN THE BIPARTITE MECHANISM, 
ESPECIALLY IN THE AREA OF BARGAINING 
FOCUSED ON PRODUCTIVITY."
Sec. 14. Section 11 of Republic Act No. 6971 is hereby amended to read as
follows:
"Sec. 11. Penalty. - Any person who shall make any 
fraudulent claim under this Act, regardless of whether
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or not a tax [benefit] DEDUCTION has been granted,
2 
shall upon conviction be punished with imprisonment
3 
of not less than six (6) months but not more than one
4 
(1) year or a fine of not less than [two] TWENTY
5 
thousand pesos [(P2,000.00)] (P20,000.00) but not
6 
more than [six] FIFTY thousand pesos [(P6,000.00)]
7 
(P50/000.00)/ or both, at the discretion of the Court,
8 
without prejudice to prosecution for any other acts
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punishable under existing laws.
10 
"In THE case of partnerships or corporations, the
11 
penalty shall be imposed upon the officer(s) or
12 
employee(s), AND OTHER PERSONS
13 
RESPONSIBLE who knowingly approved, authorized
14 
or ratified the filing of the fraudulent claim [, and other
15 
persons responsible therefor]."
16 
Sec. 15. Section 12 of Republic Act No. 6971 is hereby amended to read as
17 
follows:
18 
"Sec. 12. Non-Diminution of Benefits. - Nothing in this
19 
Act shall be construed to diminish or reduce any
20 
benefits and other privileges enjoyed by [the] workers
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under existing laws, decrees, 
executive orders,
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company policy or practice, or any agreement or
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contract between the employer and employees."
24 
Sec. 15. New sections to be denominated as Sections 12-A, 12-B and 12-C
25 
are inserted after Section 12 of Republic Act No. 6971 which shall read as follows:
26 
"SEC. 12-A. PUBLIC SECTOR. - THE CIVIL
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SERVICE COMMISSION (CSC) AND THE DBM
28 
MAY ESTABLISH A SIMILAR SYSTEM IN THE
29 
PUBLIC SECTOR.
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"SEC. 12-B. APPROPRIATIONS. - THE AMOUNT
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NECESSARY FOR THE IMMEDIATE AND
32 
EFFECTIVE IMPLEMENTATION OF THIS ACT
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SHALL BE CHARGED AGAINST AVAILABLE FUNDS
2 
OF THE DOLE. THEREAFTER, SUCH SUMS AS MAY
3 
BE NECESSARY FOR THE IMPLEMENTATION OF
4 
THIS ACT SHALL BE INCLUDED IN THE ANNUAL
5 
APPROPRIATES OF THE DOLE.
6 
"SEC. 12-C. IMPLEMENTING RULES AND
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REGULATIONS. - WITHIN ONE HUNDRED
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EIGHTY (180) DAYS FROM THE EFFECTIVITY OF
9 
THIS ACT, THE DOLE, IN CONSULTATION WITH
10 
THE OTHER GOVERNMENT AGENCIES AND
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CONCERNED STAKEHOLDERS, SHALL ISSUE THE
12 
RULES AND REGULATIONS NECESSARY TO
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EFFECTIVELY IMPLEMENT THE PROVISIONS OF
14 
THIS ACT."
15 
Sec. 16. Separability Clause. - Should any provision of this Act be declared
16 
unconstitutional, the remainder thereof not otherwise affected shall remain in full
17 
force and effect.
18 
Sec. 17. Repealing Clause. - All laws, presidential decrees, executive orders,
19 
and proclamations or administrative regulations that are inconsistent with the
20 
provisions of this Act are hereby repealed, amended, or modified accordingly.
21 
Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after
22 
its publication in the Official Gazette or in a newspaper of general circulation.
Approved,
20