Philippines Allows Temporary Work From Home for Ecozone Firms During Energy Emergency
The Philippine government has authorised temporary work‑from‑home (WFH) arrangements for businesses operating in economic zones and freeport areas as the country manages a national energy emergency. The Fiscal Incentives Review Board (FIRB) approved the measure to help registered business enterprises maintain operations while protecting their fiscal incentives. According to a government announcement, the policy allows up to 90% of an eligible workforce to work remotely under specific conditions and monitoring requirements.
The temporary arrangement follows President Ferdinand Marcos Jr’s declaration of a state of national energy emergency through Executive Order No. 110, s. 2026 on 24 March 2026, issued in response to global energy pressures linked to the ongoing conflict in the Middle East. The measure aims to reduce operational disruption while ensuring economic activity continues across export‑oriented sectors.
Temporary WFH Flexibility for Registered Business Enterprises
Under FIRB Resolution No. 005‑2026, issued on 10 April 2026, investment promotion agencies (IPAs) are authorised to permit registered business enterprises (RBEs) to implement temporary WFH arrangements for up to 90% of employees working on registered projects or activities. The resolution operationalises investor‑responsive provisions under the Implementing Rules and Regulations of Republic Act No. 12066, also known as the Corporate Recovery and Tax Incentives for Enterprises to Maximise Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
Rule 24, Section 3 of the CREATE MORE Act IRR allows RBEs affected by exceptional circumstances to adopt temporary measures to support recovery and maintain operations. The latest decision reflects broader efforts by the Philippine government to strengthen operational resilience and continuity during crises, similar to initiatives highlighted in technology‑enabled disaster response initiatives in the Philippines.
“We are extending full support to our investors as we navigate through this energy emergency, so they can remain competitive and keep their operations running smoothly. In line with our promise in the CREATE MORE Act, we are prepared to provide a responsive incentives regime that not only safeguards workers, but supports investors and their businesses,” — Frederick D. Go, Chairperson, Fiscal Incentives Review Board
Operational Limits and Compliance Requirements
While the resolution allows WFH arrangements of up to 90% of the workforce, IPAs may impose a lower threshold depending on operational requirements. Any approved threshold must not fall below 50% of the workforce assigned to the registered project or activity.
To ensure fiscal discipline in the administration of tax incentives, RBEs that exceed their IPA‑approved WFH threshold will face financial penalties. Non‑compliant firms must pay the regular income tax multiplied by the extent to which the threshold was exceeded. The excess is calculated based on the monthly average of the violations.
Businesses implementing the temporary arrangements must notify their relevant IPA and submit documentation including asset inventories, a surety bond, and regular operational reports. Monthly updates are also required for assets moved outside ecozone or freeport areas.
Any tax‑ and duty‑free imported assets leaving economic zones must receive prior IPA approval and be covered by a surety bond to safeguard government revenues. IPAs are also responsible for monitoring compliance and may introduce additional oversight measures, which must be reported to the FIRB.
Maintaining Employment and Export Performance
The policy requires RBEs to maintain their export revenue commitments and retain their existing workforce levels regardless of the extent of remote working allowed. The measure reflects the government’s attempt to balance operational flexibility with accountability and economic stability.
These conditions align with broader national efforts to strengthen digital readiness and continuity planning, as reflected in initiatives such as the Philippines–EU collaboration on digital resilience, which emphasises secure connectivity and adaptive operating models during emergencies.
“Through this temporary measure, we are striking the right balance between flexibility and accountability, ensuring that businesses can continue operating safely and efficiently while upholding fiscal discipline and protecting government revenues,” — Frederick D. Go, Secretary
The temporary WFH policy took effect on 24 March 2026 and will remain in force for one year unless Executive Order No. 110, s. 2026 is lifted or extended by the President.
