The IT and Business Process Association of the Philippines on Monday welcomed the decision of President Ferdinand Marcos Jr. to allow 100-percent work-from-home arrangement in recognition of the industry’s contributions to the economy.
“IBPAP enthusiastically welcomes this FIRB resolution and thanks DTI for advocating the WFH scheme as a new business reality, and the FIRB for approving the recommendation. The association and its members vow to work even more closely with the government in bring-in more BPO investments, particularly in the higher value-added segments,” said IBPAP president Jack Madrid.
“We are equally heartened to have the support of the Fiscal Incentives Review Board composed of the Department of Finance, the Department of Trade and Industry, the Department of Budget and Management and the National Economic and Development Authority,” the group said in a statement.
“While it started out as an expedient measure in response to nationwide lockdowns, it very quickly ushered in a new era of work for the sector—reinforcing our agility and resilience and proving that the ITBPM industry is an important pillar of the country’s economy,” IBPAP said.
The FIRB agreed to allow IT-BPM or BPO firms in economic zones to adopt up to 100-percent work-from-home arrangement and still enjoy tax incentives by shifting their registration from the Philippine Economic Zone Authority to the Board of Investments.
IBPAP said with the latest development, its members are confident about increasing their full-time employees by another 1.1 million in the next 6 years, on top of today’s 1.4 million.
“This is a wonderful outcome to IBPAP’s staunch advocacy for WFH/hybrid work, and we are extremely thankful to our partners in the government for listening to the sector and its employees in adapting to flexible work arrangements in the future of work,” IBPAP said.
“The procedure for transfer of registration from PEZA to BOI will be seamless – to be carried out expeditiously,” said Trade Secretary Fred Pascual who serves as co-chair of FIRB, PEZA and BOI.
“From the beginning, our priority has been to secure a solution for the sector’s WFH setup, which has become the new normal post-pandemic,” he said.
Registered firms should signify with PEZA their intention to shift registration to the BOI. PEZA will then endorse the request to the BOI for the issuance of a certificate of registration, along with the remaining incentives the firms stand to benefit from.
The agreed arrangement was one of the options presented by the Department of Trade and Industry to the FIRB, which is chaired by Finance Secretary Benjamin Diokno.