FILE

The Department of Labor and Employment (DOLE) is encouraging construction companies across the country to adopt a new wage system that links pay increases to workers’ skills, experience, and productivity.

Labor Secretary Francis N. Tolentino recently signed an advisory promoting the voluntary adoption of the Progressive Wage Model (PWM) for lower-wage workers in the construction sector. The initiative primarily targets occupations such as carpenter helpers, mason helpers, painter helpers, tile-setter helpers, and plumber helpers.

According to DOLE, the model is designed to create a more structured and predictable path for wage growth, allowing workers to earn higher pay as they improve their competencies and performance on the job.

“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,” Secretary Tolentino said.

“Lower-wage workers no longer need to wait for a promotion to get higher wages. As they improve at their jobs, there is a clear path for their wages to increase,” he added.

Under the proposed framework, wage increases would be tied to skills development, competency certifications, verified work experience, and measurable improvements in productivity and job performance. Workers who gain higher-level skills and demonstrate greater efficiency and quality in their work would be eligible for corresponding pay increases.

Tolentino emphasized 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,” he said.

Beyond benefiting workers, DOLE believes the program could also help employers address labor shortages and improve workforce retention. By offering structured wage progression, construction firms may be better positioned to attract and keep skilled workers while promoting long-term productivity and business growth.

The labor department also said it is exploring possible incentives to encourage wider adoption of the program. Through the National Wages and Productivity Commission (NWPC), DOLE plans to work with government agencies and industry stakeholders to develop support mechanisms, including the possibility of giving participating firms preferential consideration in government procurement, subject to existing laws and regulations.

Construction companies interested in implementing the Progressive Wage Model may coordinate with their respective Regional Tripartite Wages and Productivity Boards for guidance and technical assistance.

DOLE expressed optimism that broader adoption of the PWM could help create a more competitive, productive, and sustainable construction workforce while improving earning opportunities for lower-wage workers.