THE Department of Labor and Employment (DOLE) encouraged the country’s construction firms to adopt a Progressive Wage Model (PWM) that rewards workers with higher pay as they gain skills, experience, and productivity.
Labor Secretary Francis Tolentino said on Wednesday that he signed the “Advisory on the Voluntary Adoption of a Progressive Wage Model for Lower-Wage Workers in the Construction Industry,” which is designed to ensure that covered workers receive at least the applicable minimum wage while providing a structured path toward higher earnings.
“The Progressive Wage Model is a wage-setting framework designed to ensure that covered lower-wage workers receive at least the applicable minimum wage while providing clear and predictable pathways for wage progression,” he said.
The advisory guides in implementing the PWM for lower-wage occupations in the construction sector, including carpenter helpers, mason helpers, painter helpers, tile-setter helpers, and plumber helpers.
Tolentino emphasized that workers no longer have to wait for promotions to receive better compensation.
Instead, employees can move up the wage ladder by upgrading their skills, obtaining certifications, gaining work experience, and improving their job performance.
Under the PWM, wage increases are tied to measurable improvements in productivity, efficiency, work quality, safety compliance, and overall performance.
The labor chief stressed that the PWM is not intended to replace the country’s existing regional minimum wage system.
“The PWM will not replace our regional minimum wage system. With its voluntary adoption, workers’ wages will be more competitive, boosting their productivity further,” Tolentino said.
DOLE believes the model will also benefit employers by helping them attract, retain, and develop skilled workers.
The department said the approach can contribute to workforce stability, higher productivity, and more inclusive economic growth within the construction industry.
To encourage wider adoption, the National Wages and Productivity Commission will continue working with government agencies and social partners to explore possible incentives, including preferential consideration in government procurement, subject to existing laws and regulations.
Construction firms interested in implementing the Progressive Wage Model may coordinate with their respective Regional Tripartite Wages and Productivity Boards for technical assistance and guidance.
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