SENATE BILL (SB) NO. 1493, or the proposed BPO Workers’ Welfare and Protection Act, represents the latest effort to ensure that industry employees are protected, a business process outsourcing (BPO) employee association said.
Mylene Cabalona, president of the BPO Industry Employees Network (BIEN), said the industry is beset by limited safeguards, weak labor standards, meager pay, and unsafe work hours.
The Cebu earthquake raised questions about the 1.8 million-worker strong industry’s labor practices, with employees allegedly refused permission to leave their workstations after the quake struck in the evening Cebu time, which coincided with the period during which BPO workers were servicing key Western markets.
“We’ve been pushing this in Congress since 2013. The BPO industry has been largely self-regulating,” Ms. Cabalona said by telephone.
“More lawmakers should sponsor and support this legislation process. BPO workers contribute significantly to the economy and deserve protection and fair pay.”
Filed by Senator Rafael T. Tulfo on Nov. 17, the bill sets an industry minimum wage, automatic regular-employee status after training or probation, enhanced medical and social benefits, and disaster safeguards during typhoons, earthquakes, and fires.
Mr. Tulfo said the bill “aims to uphold and safeguard the rights of many Filipinos, particularly youth seeking immediate employment in BPO firms.”
Entry-level BPO salaries currently range from P20,000 to P35,000, with technical specialists earning P25,000-P40,000.
According to the IT and Business Process Association of the Philippines (IBPAP), the industry generated $38 billion in export revenue in 2024, up from $35.5 billion in 2023, and employed 1.82 million full-time staff, up 7%.
Employment could hit nearly 2 million by 2025, it said.
IBPAP said it is currently reviewing the new Senate bill and consulting stakeholders.
Department of Labor and Employment Secretary Bienvenido E. Laguesma said a technical committee will review the bill.
“Let’s await the process, which will hopefully produce legislation that is mutually beneficial to labor-management relations in the BPO industry,” Mr. Laguesma added.
SB 1493 closely mirrors the House counterpart, House Bill No. 5166, or the Magna Carta for BPO Workers.
Renso Bajala, BIEN secretary-general, noted the risk of delays or dilution of key provisions in committee and in bicameral sessions.
“The biggest challenges will be industry pushback, especially on wages, regularization, and mandatory suspension during disasters,” he told BusinessWorld via Viber.
“Healthy, secure workers make for a more stable and competitive industry. The alignment of Senate and House versions shows that these reforms are timely, achievable, and widely recognized as overdue,” he added. — Erika Mae P. Sinaking