PEZA extends support to IT-BPO firms

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) has asked the Fiscal Incentives Review Board (FIRB) to use revenue as basis for the threshold for the work-from-home (WFH) arrangement for information technology - business process outsourcing (IT-BPO) companies instead of the total workforce as a form of support to the industry amid the pandemic.

In a statement yesterday, the PEZA said it has made a request to the FIRB “to reinstate the basis of the threshold of the WFH arrangement to gross revenue instead of the total workforce as a temporary measure available to IT enterprises.”

Under PEZA directives issued earlier, which allowed WFH arrangement for IT-BPO firms until Sept.12 this year, the registered IT enterprises can engage in WFH operations to the extent of up to 90 percent of their total revenues.

Earlier this month, FIRB issued Resolution 19-21, which allowed the WFH scheme for IT-BPO firms to have up to 90 percent of the total workforce under WFH arrangement until Jan.1, 2022.

Under the same resolution, a 75 percent ceiling would be in place until March 31, 2022.

But should a state of calamity due to the COVID-19 pandemic be extended beyond Jan.1 next year, the 90 percent ceiling would be kept until March 31 under the FIRB resolution.

PEZA director general Charito Plaza said the appeal is anchored on the threat posed by the Delta variant of COVID-19, which is considered more contagious.

The PEZA sees the revenue-based computation of the threshold as a way to afford more protection to IT-BPO employees.

The Information Technology and  Business Process Association of the Philippines (IBPAP) has  stated a clarification on the threshold is “a fair treatment considering that any breach that might happen would only be due to compelling circumstances, such as putting the health and safety of employees as more paramount.”

Given the recent surge in COVID-19 cases, the IBPAP said member-companies are heeding the call of the government to place as many of their employees under WFH as possible to prevent the risk of getting the virus.

“Our members are registered enterprises that aim to maintain their export revenue commitments and keep their people to ensure seamless delivery of services. However, there are factors affecting revenue and employee attrition that are beyond the control of the enterprise,” IBPAP said.

PEZA also requested for leniency in the imposition of the penalty as enterprises try to comply with the latest directive from the FIRB.

“Many of our locators are reeling from the effects of this pandemic, but they are continuing operations to comply with the global supply and demand. This continues to help us to keep the jobs of our people and our economy afloat. The little we can do is to assist them in matters such as this,” Plaza said.