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Wednesday, April 17, 2024

House endorses productivity incentives bill for Senate OK

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The House of Representatives has endorsed for Senate approval a bill strengthening productivity incentives for enterprises and promote inclusive and sustainable productivity growth.

This, after the lower chamber approved House Bill 10410 on third and final reading late Wednesday. The bill seeks to repeal Republic Act 6971 or the Productivity Incentives Act of 1990 once passed.

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

The measure said 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.

It added government agencies would be required to provide enterprises with technical assistance in developing these programs.

The bill added businesses that adopt the productivity incentive program would be given tax incentives, with a special deduction from gross income that is equivalent to the total productivity incentives given to employees.
Baguio Rep. Mark Go, principal sponsor of the bill, said the bill aims to encourage higher levels of productivity in all industries and enable enterprises to compete globally.

β€œThe 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,” he said.

He added that the preservation of balance in the workplace is necessary to recognize both the rights of workers and their employers.

Read full article on BusinessMirror

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