The Department of Labor and Employment (DOLE) is urging the construction industry to adopt the Progressive Wage Model (PWM), a productivity-linked wage system that enables lower-wage workers to receive higher compensation as they advance their skills, gain work experience, or enhance their productivity.

DOLE Secretary Francis N. Tolentino signed the “Advisory on the Voluntary Adoption of a Progressive Wage Model for Lower-Wage Workers in the Construction Industry” on 16 June 2026. The advisory aims to guide the implementation of the PWM for lower-wage occupations in the construction industry, particularly carpenter helpers, mason helpers, painter helpers, tile-setter helpers, and plumber helpers.

“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 PWM, compensation growth is anchored on skills upgrading (training, competency certification, and validated work experience); productivity enhancement (improvements in efficiency, work quality, safety compliance, and overall performance); and wage progression (higher-level skills and increased productivity receive commensurate increases in pay).

Secretary Tolentino also clarified that the PWM is meant to support, not replace the country’s current 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.

Likewise, Secretary Tolentino said that adoption of the PWM is anticipated to benefit the construction industry employers by helping attract, retain and develop skilled workers through structured wage progression linked to skills and competencies, which will support workforce stability, productivity improvement and inclusive growth.

To support the adoption of the PWM, Secrtary Tolentino said that the National Wages and Productivity Commission, an attached agency of the DOLE, shall continue to engage relevant government agencies and social partners to create possible incentives. These may include giving construction companies preferential consideration in government procurement subject to applicable laws, rules, and regulations.

Construction industry employers interested in adopting the PWM may coordinate with their respective Regional Tripartite Wages and Productivity Boards for technical assistance.

For more information, please call the NWPC landline at 8527-8013 or email info@nwpc.dole.gov.ph.