News: BPO Night Differential Pay Bill Stirs Controversy!

[] The House Committee on Labor and Employment made deliberations on Rep. Zajid G. Mangudadatu’s House Bill (HB) 2225, which paves the way for the increase of the night differential pay of BPO workers by up to 25% of their basic pay.

The problem is this – other night workers may seek the same benefit, which may negatively impact employment volumes.

Randolph S. Ting, Committee Chair from the third district of Cagayan


“We need to check on its constitutionality because of the requirement of equal protection under the law… why is it only for BPOs?”

The Goal!

HB 2225 seeks to increase the compensation of graveyard-shift BPO employees due to the safety and health issues involved with working at night.

Patricia P. Hornilla, Executive Director, National Wages and Productivity Commission


“We support the legislative intent, taking into consideration the hazards, risks and stress associated with night work; however, what we are concerned about is the impact of additional night shift pay for other workers in other industries…”

There is also a plan to expand HB 2225 to cover workers of BPO’s located in Information Technology Centers and Philippine Economic Zone Authority zones.

Nicki S. Agcaoili, Executive Director for Industry and External Affairs, IT & Business Process Association Philippines, Inc (IBPAP)


“The current practice is we (BPO’s) pay 10% (more) per hour, if their shift falls between 10PM and 6AM… We have to factor in the competition, like India and China. Currently only the Philippines offers a night differential…”

As per IBPAP, it is still drafting its position on HB 2225, but as of press time, it has taken a protectionist position which takes into consideration the Philippine BPO competitiveness versus other countries.