Tourism workers to get incentive pay hike

MANILA, Philippines - Over 200,000 tourism workers in Metro Manila will soon get performance-based pay increases.

In an interview, Alex Avila, Department of Labor and Employment (DOLE) National Capital Region (NCR) director, said the wage board in Metro Manila already issued an advisory to guide employers in the tourism industry in providing incentive pay for their workers.

“The newly crafted advisory is now under review of the National Wages and Productivity Commission (NWPC), which may still suggest minor revisions,” he said over the weekend.

Avila said the advisory will cover the almost 30,000 tourism-related establishments like hotels and restaurants, health and wellness, as well tour operators.

“Of the over half million tourism workers nationwide, over 230,000 are employed in Metro Manila, and they will be the beneficiaries of this advisory,” he said.

Avila said a number of tourism establishments in Metro Manila have already given their workers incentives like profit sharing while the advisory is still being reviewed. 

“With the two-tiered wage system, workers can get incentive pay without the need for government intervention,” he said. “The workers and employers on their own can negotiate and agree. It is more effective for the employers and workers to decide on their own because they know the situation better instead of the government issuing a general directive which may affect the profitability of the company.” 

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 initiated the two-tiered wage system as part of   government efforts to provide additional pay to workers on top of their regular salaries.

Incentive pay may be given in the form of profit sharing or bonuses. Under the system, an advisory will be crafted to give employers technical knowledge   on how to implement the performance-based pay.

The adoption of productivity pay is   voluntary for employers and will only cover certain industries.