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P85 Wage Hike Still Frozen: DOLE Chief Now Demands Answers From Court and Petitioners

MANILA, Philippines — Labor Secretary Francis Tolentino is calling for greater public accountability in the continuing legal battle over Metro Manila’s P85 daily minimum wage increase, saying both the companies that challenged the wage order and the court that halted its implementation should explain their positions to Filipino workers.

In an interview with Super Radyo dzBB on Saturday, August 22, Tolentino questioned why public attention has largely focused on the Department of Labor and Employment (DOLE), while the two companies that sought the injunction have faced fewer questions about why they challenged the wage increase.

Tolentino also called for the legal basis behind the court’s action to be publicly explained, particularly after the Pasig City Regional Trial Court issued an injunction preventing the implementation of Wage Order No. NCR-27.

“What is their legal basis?” Tolentino said, referring to the court’s decision and calling for greater public scrutiny of the case.

The controversy began after the Regional Tripartite Wages and Productivity Board–NCR approved an P85 increase in the daily minimum wage for covered private-sector workers in Metro Manila.

The adjustment was designed to raise the daily minimum wage for workers in the non-agricultural sector from P695 to P780, with the increase divided into two tranches: P60 for the first tranche and P25 scheduled for January 20, 2027. More than 1.1 million minimum wage earners were expected to benefit.

The wage order was initially scheduled for implementation in July, but its rollout was challenged in court by Readycon Trading and Construction Corp. and R-II Builders Inc.

The Pasig RTC Branch 152 initially issued a temporary restraining order stopping the implementation. The court later issued a preliminary injunction, extending the suspension while the case is being resolved.

Court cites possible employment impact

The Pasig court’s preliminary injunction came after the TRO expired. The court also required the petitioners to post a P10-billion injunction bond.

According to reports, the court considered the potential impact of the wage increase on businesses and employment, reasoning that the loss of employment could be more serious and difficult to reverse than temporarily foregoing the additional wages.

That reasoning has drawn criticism from labor groups, which argue that workers should not be forced to wait for relief amid rising living costs.

The Trade Union Congress of the Philippines (TUCP), among other labor groups, has opposed the continued suspension and said it would pursue available legal remedies to challenge the injunction.

DOLE fights back

DOLE has not accepted the court freeze without a legal challenge.

The department filed a motion for reconsideration before the Pasig RTC seeking to lift the injunction and allow the wage order to proceed. DOLE maintains that the wage increase was approved through the legally prescribed wage-setting process.

DOLE-NCR has also said the wage order went through tripartite consultations involving representatives of government, labor and employers before its approval.

The department has additionally pointed to assistance available to businesses affected by the wage adjustment. Through its Adjustment Measures Program, eligible micro, small and medium enterprises have received financial assistance intended to help them adapt to higher labor costs.

Some employers still chose to pay the higher wage

Despite the court order, DOLE-NCR said several employers voluntarily continued implementing the wage increase.

The department cited companies and small businesses that announced they would continue paying the higher rates despite the injunction. DOLE described these employers as voluntarily complying with the wage order while the legal dispute continues.

This has added another layer to the controversy: while the court battle continues, some businesses have chosen to provide workers with the wage adjustment anyway.

The bigger question: who should decide wage policy?

At the heart of the dispute is not simply the P85 increase, but the question of whether a regular trial court can halt the implementation of a wage order issued through the country’s regional wage-setting system.

Labor groups and government officials have questioned the Pasig RTC’s intervention, pointing to provisions of the Labor Code concerning injunctions against proceedings before wage boards.

The controversy has therefore evolved into a wider legal and policy dispute involving workers’ purchasing power, employers’ ability to absorb higher labor costs, the authority of regional wage boards and the jurisdiction of the courts.

For workers, however, the issue remains immediate: the additional income they were expecting has been placed on hold.

What happens next?

Tolentino’s latest remarks come as DOLE continues its legal effort to overturn the injunction.

Labor groups have also asked the Supreme Court to intervene in the dispute, while lawmakers and worker advocates have called for the wage increase to be allowed to proceed.

For now, the P85 increase remains tied up in litigation.

The case could ultimately determine not only when Metro Manila workers receive their promised wage adjustment, but also how far courts may go in intervening in wage orders issued by specialized government bodies.

And as Tolentino puts pressure on both the petitioners and the court to explain their positions, the next major question is now looming: Will the P85 wage hike finally reach workers — or remain frozen until the legal battle is settled?

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