WITH all Regional Tripartite Wages and Productivity Boards (RTWPBs) having issued their wage orders, the National Wages and Productivity Commission (NWPC) yesterday reminded employers that there is no singular rule on addressing cases of wage distortion under the law.
In a social media post, NWPC-Wage Policy and Research Division head Queen Espinas said the manner of addressing the issue of wage distortion is fully in the hands of the employers and their employees.
“There is no single or specific formula provided by law in correcting wage distortion because employers and employees are given the freedom to create their formula,” said Espina.
“Parties are at liberty to discover or explore ways to revive the intended gap between the wage rates,” she added.
Wage distortion occurs when the difference in wage structures or rates among employee groups within an enterprise is significantly eliminated or substantially diminished due to mandated wage increases.
Restoring the substantial distinction or gap in wage rates is permissible under Article 124 of the Labor Code of the Philippines.
The NWPC has been encouraging enterprises to seek guidance and technical assistance from the RTWPB when facing wage distortion concerns.
