PEZA allows hybrid work arrangements

The Philippine Economic Zone Authority (PEZA) will be issuing a memorandum circular (MC) that would allow a 70% onsite and 30% remote work arrangement for Information Technology and Business Process Management (IT-BPM) firms in their economic zones.
PEZA Director General Charito Plaza said that the MC will be released before March 31 to coincide with the expiration of the Fiscal Incentives Review Board’s (FIRB) 90% remote and 10% on-site work model.
The agency explained that the MC is their way of giving “assistance and relief” to their registered business enterprises (RBEs) after the FIRB decided not to extend WFH for the IT-BPM industry.
Plaza stated that they have decided to issue an MC, instead of appealing to FIRB again, as it will integrate comments and scrub legalities with the Board of Investments (BOI).
“No more appeal because we’re just going back to the regular ratio of 70-30,” the PEZA chief stated.
Under the PEZA rules, IT-BPMs are allowed to conduct 30% of their activity outside of the ecozone as long as the company has met the minimum 70% export sales/services.
The Director-General explained that they are applying the same 70:30 ratio for its hybrid work arrangement proposal.
Plaza added that there should be “no diminution of incentives” for its RBEs that will choose to follow the MC.