Philippines to release flexible work rules for IT-BPO, ecozone firms
PASAY, PHILIPPINES — The Philippine Economic Zone Authority (PEZA) will release final work-from-home (WFH) guidelines for registered businesses by September, expanding flexible work options beyond information technology-business process outsourcing (IT-BPO) firms, according to a report by Daily Tribune.
These regulations will provide a balance between flexibility in operation and tax incentives to strengthen the role of the country as a leading center of outsourcing with an export value of $16 billion in IT-business process management (BPM).
Landmark WFH rules to boost business agility
PEZA’s upcoming implementing rules under the CREATE MORE Act will allow all registered business enterprises (RBEs) in ecozones—not just IT-BPO firms—to adopt remote work without losing tax incentives.
Vivian Santos, PEZA Deputy Director General for Operations, emphasized the policy seeks to harmonize workforce flexibility with fiscal compliance, calling it a milestone for the Philippines’ investment climate.
“This policy marks a milestone in harmonizing flexibility in work arrangements with the integrity of our fiscal incentives regime,” Santos said.
The upcoming draft caters to the needs of certain industries that require hybrid work models following the pandemic.
At present, PEZA has more than 1,000 IT-BPM companies employing 988,100 people. The new regulations are likely to attract more international businesses.
Policy shift targets sustained outsourcing dominance
The growth of WFH aligns with the initiative to keep the Philippines the most preferred location in the world of voice BPO and a leading IT services platform.
In one of the latest dialogues in the industry conducted by PEZA, the importance of partnering with agencies in all aspects, including operational perfection and compliance, was highlighted, as it would make policies adaptive to emerging business demands.
Santos pointed out that the rules would offer clear and responsive guidelines for RBEs embracing telecommuting.
“Through this, PEZA aims to provide RBEs with clear, responsive, and inclusive guidelines on how they can implement WFH setups while continuing to enjoy their incentives,” she said.
This comes as the sector continues to experience solid growth despite the disruptions caused by the pandemic, with ecozone locators being key contributors to the country’s development.
According to analysts, the flexibility may assist the retention of investors in view of regional threats posed by India and Vietnam.
