Pasig court halts ₱85 NCR minimum wage hike amid business cost concerns

The first tranche of the Metro Manila wage increase was suspended after construction firms questioned the added payroll burden.

The ₱85 minimum wage increase across all industries in Metro Manila was temporarily halted by a Pasig City court amid concerns raised by a local construction company.

Pasig City Regional Trial Court Branch 152 granted a temporary restraining order on the wage hike, with the first tranche of ₱60 originally scheduled to take effect on July 19.

The court granted the TRO based on a petition filed by Readycon Trading and Construction Corp. and R-II Builders, Inc. on July 23. In the petition, the firms asked the court for declaratory relief or a statement defining their rights and obligations under Wage Order No. NCR-27, which mandated the hike.

The TRO bars the NCR Regional Tripartite Wages and Productivity Board and the National Wages and Productivity Commission from implementing the wage hike until August 13, subject to the petitioners posting a bond of ₱1 million. The court set a hearing date of August 3 to determine the next steps on the petitioners’ request.

According to the decision, Readycon president Jesus Ignacio testified that the company would incur more than ₱400,000 in additional payroll expenses from the wage increase mandate.

He said the added amount would increase project costs in bidding processes, making it difficult to comply with the order for existing construction projects.

The court granted the petition on the basis that employers also have a right to “reasonable returns of investment and to expansion and growth,” while also citing the closure of the Strait of Hormuz in Iran and its potential global economic impact that has burdened businesses.

Labor groups and the Department of Labor and Employment have both expressed concern over the decision. Labor Secretary Francis Tolentino said he respects the court’s decision but is saddened by its impact on workers.

Various workers’ unions were alarmed by the TRO, expressing concern over the court recognizing dire economic circumstances yet delaying the much-awaited and much-needed hike. Many have pointed out that the ₱85 add-on is still not enough to cope with rising inflation, with groups pushing for a ₱1,200 minimum daily wage.

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