The Philippine government will pursue legal remedies to overturn a court-issued temporary restraining order (TRO) that halts the implementation of a minimum wage increase in the National Capital Region (NCR), with labor officials asserting that the salary adjustment was carried out in full compliance with due process.

On Thursday, Pasig City Regional Trial Court Branch 152 issued a 20-day TRO against the enforcement of Wage Order No. 27, which had approved a P85 daily minimum wage increase for private-sector workers in Metro Manila. The wage order's first tranche of P60 took effect on July 25, with a second tranche of P25 scheduled for January 2027. The increase represented one of the larger adjustments issued by the NCR wage board in recent years, coming amid sustained inflation that has eroded purchasing power for minimum wage earners.

Under the Philippines' regional wage-setting framework, the Regional Tripartite Wages and Productivity Boards are empowered to issue wage orders tailored to economic conditions in their respective regions. These orders are subject to review by the National Wages and Productivity Commission before taking effect.

Labor Secretary Francis N. Tolentino confirmed that workers who have already received the initial P60 increase will not be required to return the additional compensation.

"The workers already have a vested right, so that should not be returned… because at the time it was received, there was no order from the National Wages and Productivity Commission that it was suspended," Mr. Tolentino said in a statement in Filipino.

He indicated that the Office of the Solicitor General will spearhead the government's legal response, representing the National Wages and Productivity Commission in the court proceedings.

The TRO was sought by two construction firms, which argued that the "abrupt" mandated wage increase would be fully absorbed by their operating budgets, resulting in sustained financial deficits and potential job cuts. The petition reflects a recurring tension in Philippine wage policy between labor groups advocating for living wages and employer associations warning of cost burdens on small and mid-sized enterprises.

Sarah Buena S. Mirasol, chairperson of the NCR wage board, maintained that the board acted within its legal authority in issuing the wage order. She noted that the plaintiffs should have exhausted available administrative remedies by appealing to the national commission before turning to the courts.

"We are confident of the fact that we followed due process, and we follow the process as provided in the guidelines for the minimum wage fixing," Ms. Mirasol said.

She further argued that any request for a restraining order should demonstrate harm to all minimum wage earners rather than being limited to a specific sector.

The government intends to defend the validity of the wage hike at the next court hearing scheduled for August 3.

— Erika Mae P. Sinaking