Special wage package eyed for ecozone workers

The Philippine Economic Zone Authority ( PEZA) is working out with the Department of Labor and Employment (DOLE) a special wage package for its economic zones that would make the Philippines a more attractive investment destination.

PEZA director general Charito Plaza said she had proposed to DOLE Secretary Silvestre Bello III a special wage package for workers and locators in economic zones.

The proposal would likely lower wages of workers in the zones but this would be compensated by a package of benefits such as housing, scholarships and livelihood for their families, Plaza said.

“I had a dialogue with Secretary Bello and one of which I requested is be provided with special package of wage rate that we will implement in the special economic zone area. This is one of the attractions and support we can give to our locators,” Plaza said.

The PEZA chief said Bello welcomed her proposal and agreed to come up with a technical working group to come up with the special wage package for the workers and locators in economic zones.

“We are now competing in terms of incentives and benefits. That’s why I went to Dubai because they have first class ecozones. I studied what kind of incentives they are providing and I was told Vietnam is providing cheaper labor. So we’re trying to find ways for our incentive package to be more attractive,” she added.

PEZA zones are among the top foreign investor magnets of the country because of the incentives it provides to locators. It also boasts of a “no red tape only red carpet” mantra.

PEZA locators are provided with incentives such as income tax holiday, tax and duty free importation of raw materials and capital equipment, domestic sales allowance, exemption from payment of local government taxes and fees, and special visa for foreign investors and immediate family members, among others.