The Pasig City Regional Trial Court Branch 152 on Thursday issued a temporary restraining order (TRO) on the implementation of the P85 minimum wage increase in Metro Manila until Aug. 13 following a petition filed by two construction companies.
Readycon Trading and Construction Corp. and R-II Builders Inc. have filed a petition to briefly halt the wage increase amid questions whether the employers’ capacity to pay were properly considered.
Based on a copy of their petition dated July 23 that was obtained by the Inquirer, representatives of Readycon and R-II Builders asked the court for a declaratory relief, or to issue a statement defining their rights and obligations under NCR Wage Order No. 27.
The wage order mandated the P85 minimum wage increase for workers in Metro Manila to be given in two tranches.
The first tranche, amounting to P60, became effective last July 25 while the second is scheduled to start on January 20, 2027.
While its petition remains pending, Readycon and R-II urged the court to issue a 72-hour temporary restraining order (TRO) or status quo ante order to suspend the implementation of the wage increase.
The court granted their request for a TRO, with the two companies ordered to post a bond worth P1 million as ‘reasonable security for damages’ should their petition for relief be eventually denied.
The hearing for the companies’ prayer for a writ of preliminary injunction has been set on Aug. 3, according to the court’s order.
In their petition to suspend the wage order, the companies argued that the increase issued by the Regional Tripartite Wages and Productivity Board (RTWPB) in NCR ‘was fixed without due regard to the standards required by Article 124 of the Labor Code.’
The provision details the relevant factors that must be considered in the determination of regional minimum wages, which includes the ‘fair return of the capital invested and capacity to pay of employers.’
The companies alleged that the recent wage increase was determined ‘without adequate regard to compounding economic conditions,’ such as the substantial increases in fuel prices caused by the Middle East conflict, which has led to higher transportation, logistics and production costs.
Because of current economic conditions, both companies said it has suffered from various challenges such as ‘measurable operating losses,’ ‘diminished margins,’ ‘elevated input costs,’ ‘subdued consumer demand’ and ‘tightened credit conditions.’
The wage increase will further heighten the expenses of the two companies, with Readycon noting that 23.59 percent of its labor force are minimum wage earners.
Readycon added that its labor costs have already been steadily increasing prior to the wage increase, saying it had spent P96.5 million on employee salaries in 2025 which was higher than the P90.26 million it spent in 2024.
The companies also argued that the P85 wage increase, which was the highest daily increase afforded to workers in Metro Manila, ‘departs sharply from two decades of regulatory practice’ where salary adjustments generally ranged around P10 to P25.
‘This petition presents a question of legal construction rather than one of economic policy,’ the companies said.
‘The question is whether Article 124 of the Labor Code, properly construed, permits the implementation of NCR Wage Order No. 27 under the circumstances alleged herein.’
In response to the TRO, Labor Secretary Francis Tolentino said he is ‘saddened’ by the decision of the court but said that the agency fully respects the judicial process.