The decision of Concentrix – the single largest private employer in the country of more than 100,000 staff – and other information technology-business process management (IT-BPM) companies to forego incentives was a risky, interim measure meant to prioritize the needs of their workers who preferred hybrid work, industry leaders said.
Concentrix and the IT Business Process Association of the Philippines in separate statements said the moves to give up perks as penalties for implementing hybrid should not be taken to mean incentives are no longer important to the industry.
Concentrix said incentives are necessary for the industry to grow and to realize its potential to add tens of thousands of jobs in the country.
“Concentrix continues to implore the government to assist — and not impair — all efforts towards further increasing employment opportunities, which the industry can only achieve if the government recognizes the all-around benefits of hybrid work arrangements and acts accordingly,” it added.
Amit Jagga, senior vice president and country leader of Concentrix Philippines, said if potentially higher fiscal taxes in the Philippines are imposed for work-from-home (WFH) and hybrid-work employers like Concentrix, “this action will erode our country’s attractiveness to foreign investors who are looking for partners who have scale and flexibility in operations and staffing.”
Jack Madrid, IBPAP president, said Concentrix’ and other IT-BPM companies decision to forego the incentives was “ a difficult interim measure” to address the needs of their employees and meet the demand of clients who prefer hybrid work arrangements.
“Even at the risk of being meted with penalties imposed by the FIRB (Fiscal Incentives Review Board) on companies who are unable to comply with the return-to-office (order), some of these registered business enterprises (RBEs) will choose to allow employees to continue working from home,” Madrid said.
The penalty prescribed by the FIRB is suspension of income tax incentives for every month of an RBE’s non-compliance.
Madrid said the industry hopes the FIRB will soon reconsider its decision and rule in favor of the IT-BPM industry by allowing its players the privilege of fully implementing the Philippine Economic Zone Authority’s letters of authority on WFH. – Irma Isip
