The Philippine Economic Zone Authority (PEZA) board chaired by Trade Secretary Alfredo Pascual approved in principle the extension to March 2023 the 30-percent limit in the work-from-home (WFH) arrangement as an interim measure for registered business enterprises (RBEs) that prefer a hybrid work setup.
This as the information technology-business process management (IT-BPM) industry expressed alarm over the worsening attrition in the sector resulting from the lack of a long-term policy on WFH.
Tereso Panga, officer-in-charge director-general of PEZA, in a text message yesterday said the agency in its board meeting on Friday will get inputs and clarification from the Department of Finance and the Board of Investments to make sure the policies on WFH are aligned.
But he said this will become a policy addressed by an ad referendum where PEZA will revise its earlier memorandum that allowed the WFH setup until September 12.
“The board wants to make sure the (WFH) policy goes beyond BCP (business continuity plan) measure…and to focus more on WFH as a long standing policy by PEZA,” Panga said.
For this policy to be adopted, Panga said “there is no need for the FIRB (Fiscal Incentives Review Board) resolution… there is no need for the PEZA board to convene.”
Panga added PEZA will submit on Tuesday its formal request to the FIRB for the waiver of penalties on companies that have exceeded the 30-percent WFH cap as a breather for RBEs.
Meanwhile, Celeste Ilagan, chief policy and regulatory affairs officer of the IT Business Process Association of the Philippines said the lack of a clear policy on hybrid work has led many IT-BPM workers to explore other job opportunities as freelancers such as from overseas-based companies actively recruiting online from the Philippines.
“The biggest problem now of the BPO industry is really not having a permanent WFH policy,” Ilagan said at the National Employers Conference last week, adding employees would rather resign than go back to the office.
“Many companies from overseas are hiring directly from the Philippines and therefore, our attrition becomes a bigger problem,” Ilagan added.
IT-BPM in the Philippines has the highest attrition rate of 30, even up to 40 percent.