Philippine BPOs seek expanded WFH as global fuel costs rise
MANILA, PHILIPPINES — The Philippine IT-BPM industry is seeking temporary work-from-home (WFH) flexibility for employees as rising global oil prices drive up commuting costs and strain household budgets, SunStar reports.
The IT and Business Process Association of the Philippines (IBPAP) has formally requested the Philippine Economic Zone Authority (PEZA) to recognize the current fuel crisis as a business continuity planning (BCP) circumstance, allowing companies to exceed the existing 50 percent cap on remote work for PEZA-registered projects.
“To help mitigate these challenges, IBPAP has urged Peza to recognize the situation as a BCP circumstance and temporarily allow WFH arrangements beyond the current 50 percent threshold for registered projects,” said IBPAP President Jack Madrid.
“This proposal is intended to provide practical and immediate flexibility for companies, enabling them to manage rising commuting costs, support employee welfare, and maintain operational continuity — while remaining aligned with the Create More framework,” he added.
Rising fuel costs drive demand for BPO remote work
Rising oil prices are already hitting workers through higher transport fares and other daily expenses, according to business process outsourcing (BPO) workers’ advocacy group BIEN Pilipinas.
“For many BPO workers who commute regularly and work on fixed wages, even small increases quickly translate into tighter household budgets and difficult trade-offs,” the group said in a Facebook post.
The group stressed that employers should provide transportation support, fuel allowances, and relief measures for staff required to work on-site.
BIEN Pilipinas highlighted that recent electricity rate increases implemented by Philippine electric company Meralco will result in a cost increase of PHP 321 (US$5.39) for households that use 500 kilowatt-hours (kWh). The group argued that companies must account for remote worker expenses through extra payment benefits or salary increases.
Philippine lawmakers have joined calls for expanded flexible work arrangements. Senator Joel Villanueva urged both public and private sector employers to adopt hybrid setups which include compressed workweeks and staggered hours along with other commuting reduction schemes.
“At a time when oil prices are rising due to unrest in other parts of the world, we must use the mechanisms we already have in law to help workers,” he said, citing the Telecommuting Act of 2018.
Senator Sherwin Gatchalian also proposed a four-day workweek, which includes one day for WFH to reduce fuel and energy expenses. Meanwhile, Representative Elijah San Fernando insisted that employees must still receive their complete salary.
Balancing WFH productivity and labor rights
Industry and labor leaders cautioned that WFH may not suit all sectors.
“There are a lot of benefits to this, but it is not one-size-fits-all,” said Sergio Ortiz-Luis, Jr., president of the Employers Confederation of the Philippines, noting that manufacturing, construction, and healthcare require on-site presence.
Labor groups, including Jose Sonny Matula of the Federation of Free Workers, demanded that worker-centered policies provide specific protections against wage reductions, unpaid overtime, and cost shifting.
“Internet access, data expenses, and essential work tools are employer responsibilities — not employee sacrifices,” Matula said.
Advocates argue that the implementation of flexible work arrangements will improve the resilience of the Philippine outsourcing industry. BPO companies use flexible work arrangements to decrease employee commuting expenses and enhance their workers’ health, which helps them maintain their productivity and international market position during fuel price fluctuations.
