Philippine regulators have allowed outsourcing firms to adopt up to 90% work-from-home (WFH) arrangements, easing a key operational constraint as companies grapple with rising costs amid an energy crunch.
The Fiscal Incentives Review Board (FIRB) approved the expanded cap in a resolution dated April 8, raising the allowable WFH share for registered business enterprises (RBEs) in economic and freeport zones from 50%.
The measure, which takes effect retroactively from March 24, will be in place for one year unless extended or lifted.
Trade Secretary Cristina Roque said the move would help firms maintain cost competitiveness while reducing the burden of higher fuel prices on workers.
The policy follows a state of national energy emergency declared by Ferdinand Marcos Jr., who has encouraged flexible work arrangements to mitigate the impact of rising energy costs.
The Philippine Economic Zone Authority and the IT and Business Process Association of the Philippines welcomed the decision, describing it as a practical business continuity measure that allows firms to remain agile and sustain service delivery to global clients.
Under existing rules tied to fiscal incentives, RBEs were previously limited to a 50% WFH arrangement.
The temporary increase allows firms to preserve tax perks while adjusting operations, provided they meet compliance requirements set by investment promotion agencies, including reporting on equipment and maintaining export revenues and employment levels.
The policy signals a further shift toward flexibility in the Philippines’ outsourcing sector, where work-from-home rules have been a persistent point of tension between regulators and industry players.
By expanding the cap, the government is effectively prioritising competitiveness and continuity as cost pressures mount.
The move could accelerate the adoption of hybrid work models in the BPO industry, reinforcing the country’s appeal to global clients while helping firms manage operational risks.
Outsourcing News Philippines