A PASIG court has issued a temporary restraining order (TRO) halting the implementation of the mandated minimum wage increase in Metro Manila, citing the potential for irreparable injury to businesses, according to court documents shared by the Department of Labor and Employment (DoLE) on Thursday.
In an eight-page order dated July 30, Pasig City Regional Trial Court Branch 152 Judge Marie Joyce P. Manongsong granted the request of Readycon Trading and Construction Corp. and R-II Builders, Inc. to stop the implementation of Wage Order No. NCR-27.
The wage order mandates an P85 daily increase in the minimum wage for private-sector workers in the National Capital Region, to be implemented in two tranches, beginning with a P60 increase that took effect on July 25.
“This court finds that the peculiar circumstances of this case justify the issuance of a temporary restraining order to briefly stall the implementation of the assailed wage order,” Judge Manongsong wrote in the ruling.
The construction firms argued that the wage increase would be absorbed entirely by their budgets, leading to “reduced profitability, sustained deficit, reduction of workforce, possible suspension of operations or work closure.”
Based on the ruling, Readycon President Jesus Ignacio testified that the company would immediately incur more than P400,000 in additional payroll expenses from the wage increase alone.
He said construction firms compute project costs during the bidding stage, making it difficult to absorb sudden increases in labor costs under existing contracts.
While acknowledging the state’s duty to ensure workers receive a living wage, the court said employers’ constitutional rights must also be protected.
The judge noted that the “right of enterprises to reasonable returns of investment and to expansion and growth” should be upheld, warning that disregarding these rights would be “counter-productive and ultimately subversive of the nation’s thrust towards a resurgence in our economy.”
The court also cited the economic impact of the March 2026 closure of the Strait of Hormuz and the ensuing oil crisis, saying these had aggravated the financial burden on businesses.
The TRO bars the Regional Tripartite Wages and Productivity Board-National Capital Region and the National Wages and Productivity Commission from implementing the wage order until Aug. 13.
The petitioners were ordered to post a P1-million bond to answer for potential damages. The court set a hearing on the application for a preliminary injunction on Aug. 3.
The trial court earlier issued an order directing the parties to keep the status quo.
The Trade Union Congress of the Philippines (TUCP) earlier condemned the petition, calling it an attempt to deprive Metro Manila workers of the wage increase and warning that it threatens the country’s wage-fixing system under the Wage Rationalization Act.
“This is not simply an objection to a wage order. This is an attempt to destroy the integrity of tripartism itself,” the labor group said, arguing that employers had participated in the wage board proceedings and should have pursued remedies under Wage Rationalization Act, including an appeal before the NWPC, instead of going to court.
The wage order grants an P85 daily minimum wage increase in two tranches: an initial P60 effective July 25 and the remaining P25 on Jan. 20, 2027.
The Regional Tripartite Wages and Productivity Board-National Capital Region did not immediately reply to an e-mail seeking comment. — Erika Mae P. Sinaking and Mark Joseph M. Sanchez