The country’s leading group of employers said micro-entrepreneurs will be the most affected by the upcoming implementation of the ₱50 wage hike for private sector workers in the National Capital Region (NCR), warning that it could lead to job losses and business closures.

The Employers Confederation of the Philippines (ECOP) stated that these small-time businesses, which account for approximately 90 percent of the country's total businesses, should now prepare for a substantial impact.

ECOP President Sergio Ortiz-Luis Jr. explained that computation shows that the wage hike is actually higher than ₱50.

When mandatory employer contributions and benefits are factored in—such as Social Security System (SSS), Pag-IBIG Fund, overtime pay, separation pay, and bonuses—the actual cost rises by 30 percent.

He said this will increase the cost to every employee to around ₱65, raising doubts about micro-entrepreneurs' ability to bear the impact of higher wages.

Under Republic Act (RA) No. 6727 or the Wage Rationalization Act, businesses that regularly employ no more than 10 or fewer workers can apply for an exemption.

Ortiz-Luis said this provision should ideally prevent job cuts or even closures among small businesses.

Applying for such an exemption, however, would entail costs such as lawyers’ fees. He said this is why entrepreneurs are not so keen to pursue the remedy.

Apart from micro-entrepreneurs, ECOP said the wage increase would leave behind the capital region’s informal workers.

He said workers such as farmers, fishermen, and tricycle drivers have no employers to give them higher pay to cope with the ensuing inflation.

Nonetheless, Ortiz-Luis said employers will honor the implementation of the ₱50 minimum daily wage hike since “it went through due process.”

Last month, the employers’ group expressed their opposition to measures that would increase salaries through legislation instead of regional wage boards.

The Department of Labor and Employment (DOLE) recently announced that private sector workers in NCR would see an additional ₱50 to their daily wage.

The increase will raise the wage of workers in the non-agriculture sector to ₱695 from ₱645, while from ₱608 to ₱658 for workers in the agriculture sector, service and retail establishments employing 15 or fewer workers.

This is equivalent to a ₱1,100 per month increase for a five-day work week or a ₱1,300 increase for those working six days a week.

The raise would benefit approximately 1.2 million workers in Metro Manila and nearby cities and provinces.

The ₱50 wage hike will take effect on July 18.