Malacañang on Tuesday clarified that the government is not suspending the implementation of the P85 daily minimum wage increase for private sector workers in the National Capital Region (NCR).

Palace Press Officer Undersecretary Claire Castro confirmed during a briefing that the scheduled wage increase will proceed as planned, adding that the executive branch has not received formal requests from private sector groups seeking a suspension or reconsideration of the order.

“No. There is no suspension. No one is halting. It would be implemented,” Castro said in Filipino, noting that no directive to delay the order exists.

This clarification follows a statement from the Foundation for Economic Freedom (FEF) urging the government to halt the increase, citing economic risks.

The economic policy group expressed concern that a sudden daily wage hike of this size would result in unintended consequences that could disproportionately harm vulnerable populations.

FEF argued that the P85 increase far outpaces productivity growth and inflation, which could drive up basic commodity prices as businesses pass labor costs to consumers.

The group added that micro, small and medium enterprises operate on thin margins and lack the capital to absorb sudden overhead spikes, warning that forced wage hikes could trigger layoffs, reduced work hours, or business closures.

Under Wage Order No. NCR-27, the P85 daily minimum wage increase for NCR private sector workers will be implemented in two tranches. The first tranche of P60 takes effect on 25 July, followed by the remaining P25 on 20 January 2027.