MANILA, Philippines — In a major policy shift aimed at mitigating the impact of the national energy emergency, the Fiscal Incentives Review Board (FIRB) has officially authorized registered business enterprises (RBEs) in economic zones and free ports to implement work-from-home (WFH) arrangements for up to 90 percent of their workforce.
The directive, contained in Resolution No. 005-2026 issued on Friday, April 10, 2026, serves as a response to the power constraints and rising operational costs triggered by the global oil crisis.
The new guidelines provide much-needed clarity and flexibility for investors while maintaining the country’s fiscal framework:
- Incentive Protection: RBEs can adopt the 90% WFH setup without losing their fiscal and non-fiscal incentives.
- Effective Date: The measure is retroactive to March 24, 2026, and will remain in effect for one year unless shortened or extended by the President.
- Agency Discretion: Investment promotion agencies (IPAs) like PEZA are allowed to set lower thresholds based on specific industry needs, but the limit cannot go below 50 percent.
- Penalties for Non-Compliance: Firms that exceed the authorized WFH threshold without approval will be required to pay regular income tax for the portion of the workforce above the limit.
Finance Secretary and FIRB Chair Frederick Go emphasized that the move is aligned with the CREATE MORE Act, which seeks to maintain a responsive and competitive investment climate.
“We are striking the right balance between flexibility and accountability, ensuring that businesses can continue operating safely and efficiently while upholding fiscal discipline,” Go stated. The measure specifically targets the IT-BPM sector, which has been vocal about the need for remote work to reduce the strain on the national power grid and lower commuting costs for employees.
The IT and Business Process Association of the Philippines (IBPAP) hailed the decision as a critical business continuity measure.
- Cost Relief: The move is expected to significantly lower utility costs for large office spaces and provide immediate financial relief to employees facing high transportation fares.
- PEZA’s Advocacy: The resolution follows a formal request from the Philippine Economic Zone Authority (PEZA), which had originally pushed for up to 100 percent WFH capability to navigate the energy lockdown.
By allowing the majority of employees to work from home, the government aims to reduce peak-hour electricity demand in major business districts like Makati, BGC, and Ortigas, helping to stabilize the national grid during the ongoing energy shortage.