We can now continue WFH!

Photo: Manila Times

At last the long-standing issue of WFH and RTO problem has been resolved last September 14, 2022 meeting of FIRB and PEZA.  Diokno said on the “The FIRB met yesterday, and we decided that there will be a smooth transition of benefits from Peza to BOI, so the problem is solved,” “The tax incentives will continue, but they [BPOs] can opt to do it from home,”

With this being said, we can now continue to work from home.  

The transition from PEZA to BOI has been a discussion to more enhanced taxation and deduction for IT-BPO companies.   Albay Representative Joey Salceda said he would work with the Department of Finance (DOF) and the Department of Trade and Industry (DTI) to encourage BPOs to register with the enhanced deductions system under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, either as exporters or as Board of Investments (BOI)-registered domestic enterprises. 1*

Why do we want to work from home? 

This setup has given every worker an opportunity to transition from regular working in the office to a flexible option to stay at home while preparing every member of the family to cope with the challenges of the pandemic.  

Working from home will enable us to help our families to do activities while keeping their job.  It has been noted that in the past year the yield of the BPO sector has grown 10% from the last year and is expected to forecast an additional 10% in the next quarter of this year according to Manila Times.   

1. WFH while doing Home Schooling.

The WFH setup will also help us in managing our homeschooling setup.  I have a 6-month-old baby and my wife and decided to subscribe to homeschooling for our 5-year-old toddler.  The WFH setup will enable us to strengthen our setup to do daily activities.  In our house, my wife prepares the activities and I help her oversee our little one to perform the task while I do the work at home.   

When my son asked me, "Papa why can you just work here at home?".  It broke my heart to see that at the early age of five, he can already appreciate the time that we spend with him at home.  And now, at least I have an assurance that there is a time that he can anticipate to have at least 1 hour quality time while working from home. 

This is a good favor from the government. 

2. WFH a cut from expenses. 

The 30% working from home means a cut from our daily expenses.  This is the right financial perspective, the 30% expenses can be a big saving we can allocate for future use.  If we follow the 10-20-70 rule perspective in finances, this is a higher portion of savings.  We make sure that these savings go to an allocation that will help the family such as an Emergency fund, Travel Fund, the allocation for Family Medical assistance.  

You can also use these savings as additional funds to support other people in need.   Your ideas matter.   Wherever you put your savings just make sure that it adds benefits to you and your family.   

3. The 70 % RTO is a quiet help to our sanity. 

Throughout this pandemic, working from home has made a lot of degreasing attachment to IT BPO companies for the employees to be at home however the sanity has been sacrificed.  A lot of employees chose to stagnate at home and opt not to go out.  The 70% working in the office at least helps us to get back to our normal sanity little by little.  It is understood that transition is quite difficult and the 30% from home will help to remove the stress brought by the office setting. 

From the IT-BPM CEO (Jack Madrid)Post on Linkedin: 

On behalf of the Philippine IT-BPM sector and its 1.44 million Filipino employees, the IT and Business Process Association of the Philippines (IBPAP) would like to express our appreciation to President Marcos for his clear understanding and vision of how indispensable IT-BPM is to the PH economy.

We are equally heartened to have the support of the Fiscal Incentives Review Board (FIRB) Board composed of the Department of Finance, Secretary Benjamin Diokno, the Department of Trade and Industry, Secretary Alfred Pascual, the Department of Budget and Management (DBM), and the National Economic and Development Authority (NEDA).

IBPAP has been voicing the industry’s support for WFH-Hybrid during the pandemic. While it started out as an expedient measure in response to nationwide lockdowns, it quickly ushered in a new era of work for the sector—reinforcing our agility and resilience and proving that the IT-BPM industry is a major pillar of the country’s economy.

It is great news that the FIRB will be facilitating a smooth transfer of the registration of IT-BPM enterprises from PEZA to BOI. This will not involve physically relocating their operations or giving up the incentives that they are currently enjoying.

This is a wonderful outcome to IBPAP’s staunch advocacy for WFH / Hybrid work, and we are extremely thankful to our partners in the government for listening to IBPAP as the voice of the IT-BPM industry, its employers and employees as we adapt to the flexibility of workways that’s needed in the future of work.

WFH / Hybrid work is a game-changer for the Philippines and the sustainability of the IT-BPM sector, and it will be a contributing factor to our ability to create 1.1 million new direct jobs for Filipinos, generate billions more in annual investment revenues and foreign exchange, and significantly increase our countryside footprint by 2028.

We are also grateful to have had the constant assistance and guidance of PEZA and BOI throughout this challenging time. We will continue to work with them and our other stakeholders to iron out the details and process of this registration transfer.

Onward and upwards 🇵🇭

In conclusion, there is a big help brought by the approval of hybrid working of IP-BPO societies in the Philippines. 

About the author 

Jack Marbida is a husband to his wife Wene and a father of 2 little boys Isaac and Israel, he is a financial advisor, speaker, and writer who helps families be financially stable and grow their relationships. He works with families to help them reach their goals by teaching them about financial literacy and helping them develop a healthy relationship with money.

He has been featured in Sun Life Financials and others for his work as a financial coach. He is also the founder of Online Advisors Financial Education, which provides free educational content through blogs and videos.

Jack speaks at conferences across the Philippines on topics such as family finances, and personal and professional growth.  

You can contact Jack Marbida through his social media accounts or email him at papajackph@gmail.com.

Cheers!