The Philippine Chamber of Commerce and Industry (PCCI) warned that the newly mandated ₱85 daily minimum wage hike could exacerbate inflation and force businesses to accelerate automation, calling for government intervention to lower the cost of living instead of relying solely on wage adjustments.

While the country’s largest business organization acknowledged the authority of the Department of Labor and Employment (DOLE) and the Regional Tripartite Wages and Productivity Board in issuing the order for the National Capital Region, it stressed that wage determination must weigh the survival of micro, small, and medium-sized enterprises against the financial demands of the workforce.

PCCI President Perry A. Ferrer affirmed that employers intend to comply with the mandate when it takes effect. However, he cautioned that significant shifts in labor costs without corresponding gains in productivity could trigger a broader economic slowdown, ultimately weakening the Philippines’ competitiveness and discouraging inbound investments.

Ferrer urged the government to prioritize structural economic reforms over localized wage adjustments. He emphasized that lowering the costs of basic commodities, transport, fuel, and utilities would provide more sustainable relief for the entire domestic population, rather than benefiting only selected formal sectors.

The business group indicated that the wage order would likely disrupt operations for companies navigating thin profit margins.

PCCI Director for Labor and Employment Butch Guerrero noted that employers are poised to rationalize their operations.

According to Guerrero, businesses are expected to tighten procurement, renegotiate supplier contracts, postpone capital expenditure on expansions, and fast-track automation to offset the increased payroll expenses.

Guerrero, who also chairs the upcoming 52nd Philippine Business Conference and Expo, warned that these corporate adjustments could trigger a ripple effect in both the formal and informal sectors, potentially affecting the livelihoods of the country’s estimated 50-million workforce.

Moving forward, the PCCI stated it will seek constructive social dialogue with government agencies, labor groups, and other economic stakeholders to advocate for policies that balance worker welfare with enterprise viability.

Ferrer maintained that the chamber's long-term focus remains on lobbying for regulatory reforms that improve the country's ease of doing business, expand high-quality employment opportunities, and foster an environment where economic progress benefits both capital and labor.