Metro workers may get performance-based pay hike

MANILA, Philippines - Workers in Metro Manila may enjoy a performance-based pay hike next year.

National Wages and Productivity Commission (NWPC) executive director Criselda Sy said the wage board in Metro Manila is coming out soon with an advisory on productive-based pay hike.

“The advisory on productive-based scheme is already being crafted and will be out anytime,” Sy said.

She said the advisory would serve as guideline for employers in giving incentive or productivity pay on top of their workers’ regular salaries.

“We hope the advisory will give employers who do not have technical knowledge the idea on how to implement the performance based pay,” Sy said.

She, however, said the adoption of productivity pay is only voluntary for employers and will only cover certain industries.

“The scheme is voluntary and not permanent. It’s not a lifetime benefit and it will just really depend on the performance of workers and the capacity of the employers,” she said.         

Sy said among the commercial establishments being considered to implement productivity pay are from the tourism industry in Malate, Manila.

The government has been encouraging private companies nationwide to adopt gain-sharing or productivity-based wage system as part of the two-tiered wage policy.

Labor Secretary Rosalinda Baldoz said the two-tiered wage policy is aimed at giving additional pay on top of mandated floor wage in the form of incentives, profit sharing and bonuses.

Many commercial establishments in Region 4 have been implementing gain-sharing policy in compliance with the newly adopted two-tiered wage system.

Baldoz initiated the adoption of two-tiered wage system in an effort to provide better income for all workers nationwide.