PCCI calls for balanced approach to P85 NCR wage hike

The Philippine Chamber of Commerce and Industry (PCCI), the country's largest business organization, on Wednesday called for a balanced approach to implementing the P85 daily minimum wage increase for workers in Metro Manila, emphasizing the need to consider the capacity of smaller businesses to absorb higher labor costs.

"We affirm our commitment to the rule of law and call upon all employers in the region to comply fully with the Wage Order upon its effectivity," PCCI president Perry Ferrer said in a statement.

"While we recognize the legitimate aspiration of Filipino workers for better wages amid the continuing rise in the cost of living, we believe that wage determination must take into account the capacity of enterprises—particularly micro, small, and medium enterprises (MSMEs)—to absorb significant increases in labor costs while preserving jobs, maintaining business viability, and sustaining investments," Ferrer said.

The PCCI chief also urged the government to adopt wage policies that "strengthen enterprise productivity and competitiveness."

Ferrer warned that wage increases not accompanied by productivity gains and lower business costs could fuel inflation, weaken competitiveness, and discourage investment.

“More than wage increases, we hope that our government will address the growing inflation - lowering the cost of basic commodities, transportation, gasoline, and other necessities- so that gains will benefit all Filipinos and not only selected sectors,” he said.

PCCI director for labor and employment Butch Guerrero highlighted the broader economic impact of the wage adjustment.

Guerrero said employers operating on thin margins may be forced to rationalize operations by streamlining procurement, renegotiating supplier contracts, delaying expansion, or accelerating automation.

“These adjustments, while necessary, may ripple across the formal and informal sectors of the economy, ultimately affecting the livelihoods of the country’s nearly 50-million workforce,” Guerrero said.

Labor Secretary Francis Tolentino announced on Tuesday that the first tranche of the increase, amounting to P60, will take effect on July 19, 2026, while the remaining P25 will be implemented on January 20, 2027.

Tolentino denied claims that the timing of the wage hike announcement was linked to a protest led by members of the Iglesia ni Cristo (INC), who questioned the possible filing of plunder charges against Senator Rodante Marcoleta.

Meanwhile, Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (ECOP), opposed the wage increase, saying some businesses would struggle to afford the additional costs.

"For the first time, nag-dissent kami doon sa P85. Masyadong malaki," Ortiz-Luis said in a Super Radyo dzBB interview.

(For the first time, we dissented on the P85 wage hike. It's simply too high.)

Sonny Africa, executive director of the non-government think tank IBON Foundation, said the P85 daily wage increase remains insufficient.

"Kulang na kulang actually ‘yung ibinigay na sahod. Mas malaki pa sana ‘yung dapat ibinigay nila," Africa said.

(The wage increase is actually far from enough. They could have granted a much larger increase.) — VBL, GMA News