House Approves New Bill On Productivity Incentives For Enterprises

The House of Representatives approved Wednesday, December 1 a bill that seeks to strengthen productivity incentives for enterprises and promote inclusive and sustainable productivity growth.

The lower chamber approved HB 10410, which will repeal RA 6971 or the Productivity Incentives Act of 1990 once passed. The bill aims to encourage higher levels of productivity in all industries and enable enterprises to compete globally.

Under the bill, incentives will be provided to both labor and capital to ensure that gains are fairly shared between workers and employers.

Businesses with employees of 10 or more must form productivity incentive committees, composed of members from the management and labor, to formulate and implement productivity incentive programs.

Government agencies will be required to provide enterprises with technical assistance in developing these programs.

Businesses that adopt the productivity incentive program will be given tax incentives, with a special deduction from gross income that is equivalent to the total productivity incentives given to employees.

Baguio Representative Mark Go, principal sponsor of the bill, said, “the ability of enterprises to compete globally is dependent on the capacity of these enterprises to produce and offer goods in the most effective and efficient way.”

The Baguio lawmaker said that the preservation of balance in the workplace is necessary to recognize both the rights of workers and their employers.

HB 10410 will soon be transmitted to the Senate.###