The Employers Confederation of the Philippines (ECOP) cautioned regional wage boards against automatically following Metro Manila's newly approved minimum wage increase, warning that uniform wage adjustments could place additional pressure on businesses, particularly micro, small and medium enterprises (MSMEs).

While the employers' group formally opposed the National Capital Region's P85 daily minimum wage increase, it said it respects the decision of the Regional Tripartite Wages and Productivity Board-NCR, noting that the wage order went through the proper tripartite consultation and deliberation process.

ECOP, however, said its greater concern is the long-standing practice of other regional wage boards granting similar increases simply because Metro Manila raised its rates.

"For decades, wage increases granted in the National Capital Region have had a way of trickling down to other regions, not because local conditions warranted it, but because of the pressure to 'match NCR.' This has become an unwritten and, in ECOP's view, unsound practice," the group said.

It stressed that each Regional Tripartite Wages and Productivity Board was created to determine wages based on its own economic conditions, including cost of living, productivity and the capacity of employers to pay.

The business group said a recent flash survey conducted among employers across various industries and company sizes showed that the NCR wage adjustment is expected to increase operating costs, especially for MSMEs.

According to ECOP, many businesses anticipate responding through price increases, cost-cutting measures and adjustments in work arrangements to cope with higher labor expenses.

"These are the real consequences that regional boards outside NCR must weigh independently, using their own data on cost of living, productivity, and capacity to pay, rather than simply following NCR's lead," it said.

ECOP urged all regional wage boards to exercise independent judgment and rely on local economic data instead of treating the NCR wage increase as a benchmark for other regions.