Philippines Raises WFH Cap to 90% for Ecozone Firms Amid Energy Crisis

The Philippines has doubled the remote work allowance for economic zone companies to 90% of their workforce, a crisis-driven policy shift aimed at easing the strain of soaring energy costs amid the Middle East conflict.

Under Fiscal Incentives Review Board (FIRB) Resolution No. 005-2026, issued April 10, investment promotion agencies can now approve work-from-home (WFH) setups up to 90% for registered business enterprises, retroactive to March 24 when President Ferdinand Marcos Jr. declared a national energy emergency via Executive Order No. 110. The one-year measure preserves fiscal incentives but caps allowances at at least 50% in some cases, with penalties such as standard corporate income tax on excess remote workers. Firms must maintain export revenues and employment levels.

Business groups hailed the move. The American Chamber of Commerce of the Philippines (AmCham) said it “reinforces investor confidence” by balancing flexibility with stability, especially in digitally enabled sectors such as IT-BPM and shared services. The Philippine Economic Zone Authority (PEZA), which pushed for 100% WFH, noted it would cut costs in transport, logistics, and power.

Labor advocates claimed victory, too. The BPO Industry Employees Network (BIEN) credited “collective pressure from workers,” warning firms against using return-to-office mandates for constructive dismissal as the policy’s expiration looms.

Finance Secretary Frederick Go emphasized accountability: “We’re striking the right balance between flexibility and fiscal discipline to protect government revenues.”

The policy responds to tightening oil supplies, with fuel prices up sharply since early March.