PEZA to exempt admin, finance workers from WFH cap

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is looking to exclude administrative and finance functions from the 50-percent work from home (WFH) limit in ecozones, a move that will give registered business enterprises (RBEs) more flexibility while keeping their incentives.

The investment promotion agency is coming up with the guidelines for the WFH arrangements for RBEs in accordance with the CREATE MORE Act.

Under the CREATE MORE, RBEs may implement WFH arrangements for up to 50 percent of the total workforce, subject to the implementing rules and regulations formulated by the investment promotion agency.

While the WFH threshold to allow RBEs to continue enjoying incentives is at 50 percent, PEZA director general Tereso Panga told reporters that PEZA is planning to relax this policy.

“We will relax it so that the threshold can actually be increased to more than the 50 percent (cap),” Panga said.

“We will exclude from the threshold the admin and finance people,” he said.

PEZA expects the proposed policy to benefit not just firms engaged in information technology - business process management, but also those in manufacturing.

Panga said PEZA is currently waiting for the inputs of the Information Technology and Business Process Association of the Philippines (IBPAP) on the proposed guidelines.

“We’ll try to release it (guidelines) within the month or early next month,” Panga said.

Sought for comment, the IBPAP said it welcomes PEZA’s proposal and the agency’s continued work with the private sector on policies that support flexible work arrangements for RBEs, while ensuring continued access to incentives.

“We remain actively engaged with PEZA on specific ease of doing business measures aimed at streamlining processes and enhancing the operating environment for the industry,” IBPAP said.

“PEZA has been in constant communication with IBPAP during the drafting of the WFH guidelines to ensure clarity and smooth implementation and we look forward to the release of the guidelines by September,” the group added.