The Department of Labor and Employment (DoLE) is urging the construction industry to voluntarily adopt a productivity-linked wage system that allows lower-wage laborers to earn higher compensation as they upgrade their skills.

Labor Secretary Francis N. Tolentino signed the advisory on 16 June, targeting entry-level and support roles in the sector, including helpers for carpenters, masons, painters, tile-setters and plumbers.

Known as the Progressive Wage Model, the framework ensures workers receive at least the regional minimum wage while establishing a predictable pathway for salary increases based on career advancement.

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

Under the framework, compensation growth is tied to three pillars: skills upgrading through training and competency certifications, productivity enhancements such as improved work quality and safety compliance, and structured wage progression.

Tolentino clarified that the new model is intended to complement, rather than replace, the country’s existing minimum wage structure.