Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
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 
Republic Act 11165 or the Telecommuting Act, which was enacted in 2018, allows employers in the private 
sector to offer a telecommuting program to their employees on a voluntary base. It is presently the only 
law that covers telecommuting in the Philippines. The said law defines “telecommuting” as working from 
an alternative workplace with the use of telecommunications and/or computer technologies. With the onset 
of the COVID-19 pandemic, most companies have shifted to telecommuting, in compliance with the 
community quarantine measures implemented by the government.  
In the past year, we have witnessed how telecommuting could be a viable work arrangement in the post-
COVID-19 world. Telecommuting offers benefits to employees and employers alike—with reduced costs for 
transportation and increased level of flexibility for employees; and increased productivity and savings from 
reduced operational costs. On top of these, this arrangement may also help alleviate road traffic conditions 
as employees would not have to travel from home to the workplace.  
In consideration of these abovementioned benefits, this measure seeks to expand RA 11165 to include in 
its coverage institutions from the public sector. This measure also seeks to provide incentives to 
telecommuting employees, in consideration of the additional costs to utilities as people work in their homes. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the Filipino 
people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 5, 2022
9:03 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
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: 
SECTION 1. Section 4 of Republic Act No. 11165, otherwise known as the Telecommuting Act, is hereby 
amended to read as follows:  
SEC. 4. Telecommuting Program – An employer in the private OR PUBLIC sector may 
offer a telecommuting program to its employees voluntarily, and upon such terms and 
conditions as they may mutually agree upon; XXX  
Sec. 2. A new section is hereby inserted after Section 8 of Republic Act No. 11165, which shall read as 
follows:  
"SEC 9. INCENTIVES FOR TELECOMMUTING EMPLOYEES. ALL EMPLOYEES 
WORKING UNDER A TELECOMMUTING PROGRAM SHALL BE ENTITLED TO A 
NON-TAXABLE TELECOMMUTING ALLOWANCE OF AT LEAST ONE THOUSAND 
PESOS (P1,000.00) FOR EVERY MONTH SERVED UNDER SUCH AGREEMENT. 
PROVIDED, THAT, NOTHING IN THIS PROVISION SHALL BE CONSTRUED TO 
ELIMINATE OR IN ANY WAY DIMINISH SUPPLEMENTS, ALLOWANCES, OR 
OTHER EMPLOYEE BENEFITS SERVING A 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 accordingly. 
Sec. 3. Penalties. Any violation of the provisions of this Act shall be punished with a fine of not more 
than One Hundred Thousand Pesos (P 100,000.00).  
Sec. 4. Implementing Rules and Regulations. – The Department of Labor and Employment, 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 effect of this Act.  
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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 shall 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. Effectivity Clause. – This Act shall take effect fifteen (15) days after its publication in at least 
two (2) newspapers of general circulation. 
Approved,