When courts, agencies stepped in to block wage hikes

Other government bodies, apart from the NWPC and regional boards, blocked supposed wage hikes before MANILA, Philippines – A month after the “historic” P85 minimum wage hike was promised for workers in Metro Manila, a Pasig City court temporarily halted the rollout. It came after two construction companies raised concerns that the hike would disrupt projects that already went through bidding. This is not the first time that a court, other government bodies, or officials intervened and blocked wage increases in the country. According to the Wage Rationalization Act, the National Wages and Productivity Commission (NWPC) and its regional counterparts can issue wage orders after public hearings, consultations, and deliberative meetings. Congress may also introduce bills for wage hikes. The President and civil society groups can call on wage policy-making bodies to review and revise wages. President Ferdinand Marcos Jr. made the same call in 2024. The following are the interventions made by agencies and public officials in relation to regional and national wage hikes: Pasig RTC suspends P85 NCR Wage Hike (2026) The first tranche of P60 was implemented on July 25, 2026, with the additional P25 scheduled for next year, January 20, 2027. However, Branch 152 of the Pasig Regional Trial Court issued a temporary restraining order against the regional wage board and the NWPC’s Wage Order No. 27 until August 13, following a petition by two construction companies. Readycon Trading and Construction Corporation and R-II Builders argued that the sudden increase would affect existing projects that already went through bidding before the announcement. The two companies cautioned that the hike would reduce profits, make them less competitive in bidding, cut jobs, and even suspend operations. The court found that the implementation may cause irreparable harm, as companies might have to adjust salaries to prevent wage compression. However, the Federation of Free Workers and the Nagkaisa Labor Coalition pointed out that the order bypasses Article 126 of the Labor Code. The code states that appeals must be filed with the NWPC or Regional Boards before any court can issue an injunction or temporary restraining order. A hearing for a longer preliminary injunction was scheduled for August 3. P100 hike dies after Congress sine die (2025) A bill to increase the minimum wage by P100 died after the 19th Congress adjourned its annual session. It was the closest legislated increase since the 1989 hike before decentralization through the Wage Rationalization Act. The 19th Congress had two versions of the hike. Senator Juan Miguel Zubiri filed Senate Bill No. 2534 proposing a P100 daily increase. The House of Representatives also had House Bill No. 11376, which called for a P200 increase in minimum wage. Another bill must be introduced and passed in the 20th Congress to increase the daily minimum earnings of workers. COVID-19 pandemic (2020) During the COVID-19 pandemic, then-Department of Labor and Employment (DOLE) secretary Silvestre Bello III discouraged having a minimum wage hike because of the economy’s fragility at the time. Bello reasoned that job security was more important and that employers might not be able to meet the calls for a wage increase from P537 to around P700. DOLE believed that a hike during the pandemic would be counterproductive and would force micro, small, and medium businesses to close. He cautioned that petitions made by labor groups to increase wages must be studied. SC voids Cagayan wage order (2007) The Supreme Court (SC) in 2007 voided Wage Order No. R02-03, which was issued in 1995. The Court ruled that the Regional Tripartite Wages and Productivity Board of Region II overstepped its authority by granting an across-the-board wage increase for non-minimum wage earners. This 1995 wage order implemented a P15 increase across-the-board in the region, regardless of employment status. The Bankers’ Council for Personnel Management asked the NWPC whether member-banks with head offices in Metro Manila were exempt from the hike since their employees were already paid above the regional minimum wage. Metrobank filed a petition directly with the Court of Appeals (CA). The CA denied the petition since the company failed to file within the proper period of 15 days after the decision. Metrobank then elevated the petition to the SC. Years later, the High Court voided the wage increase, but ruled that workers should not be required to refund the amounts they had received and that the minimum wage would remain unchanged at the time. SC voids rushed Cagayan wage order (1998) Another wage order in Cagayan once again found itself in the middle of a legal battle. This time, the dispute centered on whether it had been rushed. In 1994, DOLE discovered that Cagayan Sugar Milling Company (CARSUMCO) did not give the increase to its higher-earning employees and violated Wage Order No. RO2-02. CARSUMCO filed an appeal, but DOLE ruled that the company had violated the wage order and ordered it to pay the salary deficiency worth P555,133.41. The regional board later amended the wage order without holding the mandatory public hearings, resulting in the “across-the-board” wage increase in 1995 that Metrobank challenged years later. After a back-and-forth between the company and DOLE, the SC issued a TRO pending resolution of the matter. In 1998, the SC ruled in favor of CARSUMCO, clearing the original penalty and declaring the wage order null and void. – Rappler.com