THE Philippine Economic Zone Authority (Peza) is no longer appealing its bid, before the Fiscal Incentives Review Board (FIRB), to implement a revenue-based threshold for work-from-home (WFH) arrangements in the information technology-business process management (IT-BPM) sector.
Peza Director General Charito Plaza, in an interview with the BusinessMirror, said the FIRB has not yet responded to their renewed call for the WFH scheme.
The regulator of economic zones, to recall, recently asked the FIRB to reconsider their proposal after rejecting it in September.
“No response from FIRB which means go on with their decision [that] WFH is based on total number of employees,” she told this newspaper.
The Peza proposal, which seeks to base the threshold on gross revenues, will allow locators to have 100-percent WFH arrangement for the work force. However, it also means that only 90 percent of the revenues of the activity will be subject to incentives.
The Peza law states that all activities of registered locators must be within the ecozones for them to avail of the incentives.
Asked if Peza will be filing an appeal again, Plaza replied: “No more, we’re just guiding our locators [on] how to implement FIRB’s decision.”
The FIRB has decided to allow WFH arrangements for up to 90 percent of employees in the IT-BPM sector until March 31 next year. This means 10 percent of the employees are working on-site.
Earlier, the Peza official expressed concern for the on-site work force amid the Covid-19 situation.
“This will defeat the purpose of the extension of the WFH arrangement, which is to limit the mobility of workers and lessen the pressure on public transport because they will contribute to the number of people outside even if it is possible for them to perform their jobs within the confines of their respective homes,” she had explained.
Trade Secretary Ramon Lopez, who is also a FIRB co-chairman, said previously that the current WFH arrangement was “reasonable” as it is based on consultations with the industries.
“Moreover, you can see that the country is gradually and safely moving to more reopening of the economy into the new normal with increasing vaccination rate, the reduction in Covid cases and HCUR [hospital care utilization rate],” he told the BusinessMirror earlier.
Lopez, as such, said they expect more employees reporting for work physically. Still, the trade official said that the hybrid working scheme can improve productivity moving forward.
According to a survey by IT and Business Process Association Philippines, the hybrid working model for the industry is expected to stay until next year.