Bill seeks profit sharing of companies to benefit daily wage earners-A A +A
Saturday, July 12, 2014
A PARTY-LIST lawmaker proposed Saturday that all business establishments should institutionalize profit sharing so the economic improvement will trickle down to daily wage earners.
Buhay Party-list Representative Lito Atienza said his proposed profit-sharing program would be derived from the net profit made by all companies, rather than increasing the minimum daily wage, which may not be feasible at this time.
"The proposal seeks to help our countrymen benefit from the economic improvement by making sure it trickles down to our daily wage earners. It might have more far-reaching effects on laborers and workers, and would encourage them to work harder for the successful operation of their companies," said Atienza.
He said while the Standard and Poor's credit rating upgrade is a welcome development as far the country’s overall economic growth is concerned, poverty still prevails among a majority of Filipinos who have yet to feel the effects of this improvement in their everyday lives.
Last May, the country received its highest credit rating in history in recognition of the reforms undertaken by the administration. S&P gave the country a fresh rating upgrade for its long-term peso and dollar bonds. S&P raised the country’s former rating of “BBB-” to “BBB,” one notch above minimum investment grade.
In House Bill 4445 or the proposed "The Profit Sharing Act of 2014," Atienza proposed that all business establishments that made a profit for a fiscal year shall annually distribute 10 percent of their net income to all their employees, both regular and contractual.
The shared profit shall not affect the salary, 13th month pay and other benefits presently being enjoyed by the employees according to the bill now pending at the House committee on labor and employment chaired by Davao Representative Karlo Alexei Nograles.
Moreso, the total amount given by the company through profit sharing shall be Tax Creditable to the employee’s Income Tax Return (ITR).
The bill defines profit sharing as various incentive plans introduced by business that provide direct payments to employees, which depend on the company’s profitability, in addition to salaries and bonuses. (Sunnex)