IBPAP Pushes for WFH Set-up for its Employees

In reference to the directive of the Fiscal Incentives Review Board (FIRV), the IT Business Process Association of the Philippines (IBPAP) stated that the 100% physical return to offices currently threatens the industry’s growth and presents a big challenge to its stakeholders. 

The IBPAP has stated that “a critical risk that industry players face is increased employee attrition if the WFH/hybrid work setup is not available.”

Despite the known risk of penalties by the FIRB on those companies who will not follow the RTO, the IBPAP says that a handful of companies or registered business enterprises (RBEs) would rather allow their staff to continue their current work-from-home scheme. 

FIRB’s penalty for non-compliance with their RTO is the suspension of income tax incentives for each month the company does not comply. 

The IT-BPM industry contributes around $29.49 billion in service export revenue and employs a total of 1.44 million in the Philippines. 

Mr. Jack Madrid, IBPAP President, and CEO said that their basis for locating their company in the Philippines was due to the local regulations, laws, and policies which they compared to other countries. He goes on further to state that the industry’s firms give high importance to tax incentives, which could be a dealbreaker in their investment decisions. 

The IBPAP has released a statement saying that “IBPAP, as the flagship organization of the IT-BPM industry in the Philippines, stands by our position on WFH/hybrid work, and the legal basis of the LOAs granted by PEZA to allow 30 percent WFH arrangement until 12 September 2022,”

The group also adds that “this has enabled companies to accommodate the strong preferences of its employees and execute a smooth, phased return to on-site operations in the immediate term before a permanent WFH/hybrid work policy is established,”

Source: Manila Bulletin