Dole urges construction sector to adopt progressive wage model

MANILA, Philippines — The Department of Labor and Employment (DOLE) on Wednesday called on the construction industry to adopt the agency’s model that promotes competitive and sustainable salaries for lower-wage workers while improving their skills.

According to Dole, the advisory signed by Dole secretary Francis Tolentino last June 16 serves as a guide for the implementation of the Progressive Wage Model (PWM) for carpenter helpers, mason helpers, painter helpers, tile-setter helpers, and plumber helpers.

READ: Philippine unemployment rate falls to 4.7% in April

Article continues after this advertisement

In a press release, Tolentino explained that the PWM “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.”

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

The agency said the model enables compensation growth through skills upgrading, productivity enhancement, and wage progression.

Citing the construction industry’s contribution to the country’s economy and the need for favorable working conditions, DOLE said the issuance of the policy guidelines is “timely and necessary.”

“There is a need to encourage mechanisms that rationally link wages to workers’ skills and productivity—especially at the lower end of the wage structure—to support income progression and strengthen incentives for workers to remain in the domestic labor market rather than seek employment overseas,” the advisory read.

READ: Tolentino focusing on workers’ welfare, future-ready jobs for the youth

Article continues after this advertisement

Tolentino said the model would provide lower-wage workers with a “clear path” toward higher earnings as they improve their skills and performance, even without promotion. He clarified, however, that the PWM does not seek to replace the country’s existing wage system.

“The PWM will not replace our national minimum wage system. With its voluntary adoption, workers’ wages will be more competitive, boosting their productivity further,” he said.

Article continues after this advertisement

DOLE emphasized that adoption of the model is voluntary and must be mutually agreed upon by employers and employees.

The agency encouraged stakeholders to seek assistance from the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

“To further support the adoption and advance the objectives of the PWM, the NWPC shall continue to engage relevant government agencies and social partners for possible incentive mechanisms, including preferential consideration in government procurement, subject to applicable laws, rules, and regulations,” it noted. /dp