EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE
S. No. 1684
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20 JUL13 P3:03
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Introduced by Senator Francis "Tol" N. Tolentino and Senator Ronald "Bato" M. dela
Rosa
AN ACT
EXPANDING THE COVERAGE OF THE TELECOMMUTING ACT AND 
PROVIDING INCENTIVES FOR TELECOMMUTING EMPLOYEES, AMENDING 
FOR THE PURPOSE, REPUBLIC ACT NO. 11165, OTHERWISE KNOWN AS THE 
TELECOMMUTING ACT AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The coronavirus disease (COVID-19) has infected twelve million individuals 
worldwide and claimed five hundred fifty thousand individuals. It single-handedly 
brought down the world's economy in a matter of months. In the Philippines, the 
COVID-19 cases traversed the fifty thousandth mark.
According to Secretary Dominguez, the government expected the debt-to-GDP 
ratio to rise to 50 per cent from 39 per cent last year as it increased borrowing to 
mitigate the economic impact of the pandemic. The government think-tanks stated 
that the Philippine economy may lose up to P2.5 trillion. During the first five weeks 
of the Luzon-wide ECQ alone (March 17, 2020 to April 21, 2020), over 2 million 
employees were displaced wherein about 70% of this were affected by temporary 
business closures and 30% employees were subject to alternative work arrangements 
such as reduced working days and hours, forced leave, and work-from-home.


Republic Act No. 11165, otherwise known as the Telecommuting Act, was 
signed by President Duterte last December 20, 2018. It entices the private sector to 
explore telecommuting programs for its employees. This law has become more 
relevant than ever with the shroud of the COVID-19 pandemic still hovering our nation.
The onsiaught of the COVID-19 pandemic has forced Fiiipinos to embrace the 
concepts of telecommuting and working from home. Employers, big institutionai 
companies and MSMEs aiike have already informed their empioyees to no ionger 
physically report to their respective offices and simply work from their respective 
homes as part of their safety precaution to prevent the spread of the virus and protect 
their own employees.
Working from home tends to increase utility consumption, particularly 
electricity. Residential energy use has risen due to more people staying at home. Some 
workers even purchase their own equipment for working at home. These additional 
expenses are out of the employee's own pockets and for the benefit of the employer's 
business.
According to a study by MERALCO dated July 13, 2020, for every person on a 
work-from-home arrangement, it is estimated that there will be a corresponding 
increase in consumption at around 39% (in kilo watt per hour). In terms of amount, 
this Is equivalent to a seven hundred seventy peso (P770.00) increase on their monthly 
bills or around nine thousand two hundred forty-three pesos (P9,243.00) per annum. 
The more persons working from home in a household, the higher the increase in 
consumption. As a matter of fact, electricity bills, particularly Meralco bills in Metro 
Manila have multiplied four-fold since the start of COVID-19 pandemic and 
implementation of quarantine protocols since March 2020. Stories of individuals 
shocked by the sudden increase of their bills have spread all over the news as families 
used to paying only P2,000 every month for electricity now have to pay P9,000. This 
surge is attributed to the fact that people are spending most of their time at home, 
children are using online learning facilities, and employees are now forced to or are 
voluntarily working from home. Assistance must be provided to the employees In 
order to cushion the impact of this new normal and make this practice sustainable.


Therefore, this measure seeks to amend Republic Act No. 11165, or the 
Telecommuting Act, by expanding its coverage to include the public or government 
sector as government employees also require assistance and by requiring employers 
to provide their telecommuting employees with a P1,000 non-taxable allowance per 
month to answer for the additional cost of utilities from telecommuting.
In view of the foregoing, the passage of this bill is earnestly sought.
N. TOLENTINO
RONALD "BATO" M. DELA ROSA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE
S. No. 1684
,(/> TIME:
BILLS k INDEX
Introduced by Senator Francis "Tol" N. Tolentino and Senator Ronald "Bato" M. dela
Rosa
AN ACT
EXPANDING THE COVERAGE OF THE TELECOMMUTING ACT AND 
PROVIDING INCENTIVES FOR TELECOMMUTING EMPLOYEES, AMENDING 
FOR THE PURPOSE, REPUBLIC ACT NO. 11165, OTHERWISE KNOWN AS THE 
TELECOMMUTING ACT AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 4 of Republic Act No. 11165, otherwise known as the
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Telecommuting Act, is hereby amended to read as follows:
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SEC. 4. Telecommuting Program - An employer in the private OR PUBLIC
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sector may offer a telecommuting program to its employees on a voluntary basis, and
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upon such terms and conditions as they may mutually agree upon; XXX
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Sec. 2. A new section is hereby inserted after Section 8 of Republic Act No.
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11165, which shall read as follows:
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"SEC 9. INCENTIVES FOR TELECOMMUTING EMPLOYEES. ALL
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EMPLOYEES WORKING UNDER A TELECOMMUTING PROGRAM SHALL BE
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ENTITLED TO A NON-TAXABLE TELECOMMUTING ALLOWANCE OF AT LEAST
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ONE THOUSAND PESOS (P1,000.00) FOR EVERY MONTH SERVED UNDER
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SUCH AGREEMENT. PROVIDED, THAT, NOTHING IN THIS PROVISION
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SHALL BE CONSTRUED TO ELIMINATE OR IN ANY WAY DIMINISH
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SUPPLEMENTS, ALLOWANCES, OR OTHER EMPLOYEE BENEFITS SERVING A


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SIMILAR PURPOSE BEING ENJOYED AT THE TIME OF THE 
IMPLEMENTATION OF THIS LAW. PROVIDED FURTHER, THAT, NOTHING IN 
THIS PROVISION SHALL BE INTERPRETED TO PROHIBIT THE EMPLOYERS 
OR THE COLLECTIVE BARGAINING AGREEMENT FROM PROVIDING TERMS 
HIGHER OR MORE FAVORABLE THAN THE ABOVE-MENTIONED RATE. 
PROVIDED FINALLY, THAT, ALLOWANCES GRANTED BY PRIVATE 
EMPLOYERS UNDER THIS PROVISION SHALL BE DEDUCTIBLE FOR INCOME 
TAX PURPOSES."
Succeeding sections of RA 11165 are hereby renumbered accordingiy
Sec. 3. Penaities. Any violation of the provisions of this Act shail be punished 
with a fine of not more than One Hundred Thousand Pesos (P100/000.00).
Sec. 4. Implementing Rules and Regulations. — The Department of Labor and 
Empioyment, the Department of Finance, and the Bureau of Internal Revenue shall 
promulgate the rules and regulations to implement this Act within ninety (30) days 
from the effectiveiy of this Act.
Sec. 5. Separability Clause. —If any provision or part thereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shail 
remain valid and subsisting.
Sec. 6. Repealing Clause. — Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule, or regulation contrary to or 
inconsistent with the provisions of this Act is hereby repealed, modified, or amended 
accordingly.
Sec. 7. EffectMty Clause. — This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved,