In a significant move for one of the Philippines' economic pillars, Senator Raffy Tulfo has introduced a groundbreaking bill designed to enhance workplace protections and compensation for employees in the Business Process Outsourcing (BPO) sector.
Key Provisions of the BPO Workers’ Welfare and Protection Act
Filed as Senate Bill No. 1493, or the "BPO Workers’ Welfare and Protection Act," the proposed legislation directly addresses long-standing concerns within the industry. The bill's champion, Senate Committee on Labor and Employment chairperson Raffy Tulfo, stated that the measure aims to uphold the rights of the many Filipinos, particularly the youth, who seek employment in BPO firms.
The bill mandates the automatic suspension of work during major calamities such as typhoons, earthquakes, and volcanic eruptions. This provision comes in response to reports that some BPO companies required staff to report on-site during Super Typhoon Uwan, forcing employees to brave dangerous conditions like floodwaters and power outages.
Furthermore, the bill proposes that attendance should be voluntary during heavy rains and other hazardous weather, with eligible workers receiving hazard pay.
Enhanced Job Security and a Landmark Wage Proposal
A cornerstone of the proposed law is the significant boost in entry-level pay. Tulfo is seeking to establish a national entry-level wage of at least P36,000 for BPO workers, a figure that substantially exceeds current regional wage rates.
Job security is also a major focus. Under the bill, BPO employees would automatically become regular employees after completing the maximum six-month probationary period. If an employee's training period is shorter, they would gain regular status immediately upon finishing their training.
Other critical benefits outlined in the measure include:
- Access to medical benefits upon hiring, not just after regularization.
- The right to self-organize for collective bargaining.
- Participation in decision-making processes concerning workplace policies.
Protecting a Pillar of the Philippine Economy
This legislative push aims to strengthen protections for an industry that is vital to the national economy. The Philippine IT-BPM sector is a massive employer and revenue generator.
In 2024, the industry contributed approximately $38 billion in revenue, accounting for about eight percent of the national GDP. It employed 1.82 million people, with revenue growing by seven percent from the previous year.
Looking ahead, the sector is projected to generate around $40 billion in export revenue for 2025, with a growth rate of five percent that outpaces the global average.
By introducing this bill, Tulfo seeks to ensure that the workers powering this economic engine receive the fair treatment, safety, and compensation they deserve.
