Governance

Wage Rationalization

The systematic process of fixing minimum wages and promoting productivity to ensure a decent standard of living.

Definition

Wage Rationalization refers to the policy and process, primarily governed by Republic Act No. 6727, aimed at systematically determining and adjusting minimum wages and fostering productivity improvement and gain-sharing measures. Its objective is to ensure a decent standard of living for workers while balancing the interests of labor and industry. DOLE Department Order No. 251-25 integrates gender equity principles into this broader wage policy framework.

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