If this bill passes, those working from home will get a P1,000 per month non-taxable allowance

Have you returned to the office?
Jul 6, 2022
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At first glance, being able to work from home seems like a win-win proposition for all involved. Remote employees eliminate a grueling commute from their daily routine, and employers get a better-rested and more efficient workforce.

It isn’t perfect, though. One drawback is that work-from-home employees will have to spend more on utility costs that would otherwise be negated if working from an office—electricity, water, Internet, and so on. A new bill filed by senator Francis Tolentino, though, aims to address this issue.

The new bill, if passed, will expand Republic Act No. 11165—also known as the Philippine Telecommuting Act—to require employers to provide remote employees with a P1,000 per month non-taxable allowance to cover utility costs while working from home.

“Working from home tends to increase utility consumption, particularly electricity. Residential energy use has risen due to more people staying at home,” the bill reads.

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“Some workers even purchase their own equipment for working at home. These additional expenses are out of the employees’ own pockets and for the benefit of the employer’s business.”

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The bill also aims to expand the country’s Telecommuting Act to cover government employees as well.

“Assistance must be provided to employees to cushion the impact of this new normal and make this work arrangement sustainable.”

Employers found in violation of this act may be fined up to P100,000. The Department of Labor and Employment (DOLE), Department of Finance (DOF), and Bureau of Internal Revenue (BIR) are tasked with promulgating the bill’s rules and regulations.

If passed, this bill would definitely help ease the financial burden of having to consume electricity while working remotely. Are you in favor of this?

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Remote work allowance bill filed in PH senate

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