Philippines wage hike TRO: Workers who already received NCR increase won’t have to return pay, DOLE says

Workers in Metro Manila who have already received the recently approved minimum wage increase will not be required to return the additional amount, the Department of Labor and Employment (DOLE) has clarified, after a court order temporarily halted the implementation of the wage hike.

Labor Secretary Francis N. Tolentino said DOLE is working with relevant government agencies to respond to the temporary restraining order (TRO) issued by the Pasig Regional Trial Court on July 30, which suspended the implementation of NCR Wage Order No. 27.

Tolentino also expressed disappointment over the issuance of the TRO but stressed that he respects the judicial process. He said he would allow the court to explain the basis for its decision while DOLE continues to fulfil its mandate of protecting workers’ welfare in accordance with existing labour laws.  

The wage order provides for an PHP85 increase in the minimum wage for workers in the National Capital Region. The TRO means the implementation of the increase is currently on hold while the legal proceedings continue.

However, Tolentino stressed that workers who had already received the wage adjustment before the TRO took effect would not have to return the additional pay.

“The worker already has a vested right to it. It should not be returned because at the time it was prepared and received, there was no order from the National Wages and Productivity Commission suspending,” Tolentino said.

The labour secretary also said employers cannot ask workers to repay the wage differential or recover it through deductions in subsequent payroll cycles.

“Let us remain calm for now. Let us wait for the decision of a co-equal branch. We respect the judiciary. We did this for the welfare of Filipino workers… all of this is for the welfare of workers and employers,” Tolentino said.

DOLE, through the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Board-NCR (RTWPB-NCR), is coordinating with the Office of the Solicitor General (OSG), which will represent the agencies in the court proceedings.

DOLE-NCR Regional Director and RTWPB-NCR Chair Atty. Sarah Buena S. Mirasol said the agencies are working with the OSG to establish the legal basis for the wage order and determine the next steps following the TRO.

“We are cooperating and coordinating with the Office of the Solicitor General to argue that this latest wage order is valid and that we followed the required process,” Mirasol said.

Mirasol said the wage board had followed due process, with labour, employer and government representatives given opportunities to present their positions and comments during deliberations.

“We are confident in the fact that we followed due process, and we followed the process as provided in the guidelines for minimum wage fixing,” she said.

Under Republic Act No. 6727, or the Wage Rationalization Act, regional wage boards bring together representatives from labour, employers and government to deliberate on minimum wage adjustments.

DOLE said it remains committed to protecting workers’ rights and welfare while adhering to existing labour laws as the legal proceedings over the NCR wage increase continue.