The Crisis Facing BPO Workers

Taken from www.alamy.com

BPO workers make up a significant part of the Philippines’ economy—employing between 1.5 to 1.7 million people directly (and supporting millions more) and contributing 8–10 percent of GDP, or over $30 billion annually(Business World, 2025) Despite their centrality to national economic health, many face eroding wages, job instability, poor working conditions, and minimal labor rights.

Workers report shocking entry-level wages—often between ₱12,500–₱15,000 monthly, despite inflation and escalating cost of living (Philippine Star and Reddit, 2024). One Reddit user who began with ₱18,000 in 2006 was now offered just ₱13,000 as a seasoned applicant—a clear regression, not progress (Reddit, 2024)

Many agents are placed on “floating status”: retained officially but unpaid for months if client contracts shift or end, even as companies continue hiring for other accounts (Philstar, 2024) The industry remains largely non-unionized, and organizing is discouraged through managerial pressure and red‑tagging (Wikipedia). Night-shift and voice agents face physical ailments like shoulder/back pain, throat irritation, and hearing damage, alongside psychosocial stress—disrupted sleep, safety concerns, and burnout from relentless call volume and performance metrics.

The Marcos Jr. Administration’s Response—Promises and Gaps

In April 2025, the Marcos administration approved funding to upskill up to 340,000 BPO workers annually as AI reshapes the sector. The program includes near‑hire individuals and students, marking a step toward workforce transformation.

Legislative engagement but slow progress

Bills like House Bill 8189 (the proposed “Magna Carta for BPO Workers”) have been filed since 2023, aiming to enforce fair labor practices, living wages, and job security measures—but none have been enacted into law yet 

Overlooking deeper structural issues

While upskilling is welcomed, many critics argue these measures fall short if basic rights aren’t guaranteed. Under the bare-bones IRR of the CREATE MORE Act, the government's tax policies have primarily benefited corporations, providing incentives while failing to push for wage increases or worker protections (BIEN, 2025).

BPO workers—and groups like BIEN—stress that the economy has been prioritized over worker welfare. They’ve demanded a ₱36,000 national minimum wage for entry-level agents, a robust Magna Carta, and enforceable labor rights, but have largely been ignored. Labor groups also warn that without legislative protections, the rise of AI could accelerate layoffs. Despite claims of training, many workers receive no formal upskilling support—and often have to pay for it themselves (BusinessWorld, 2025).

Why the Welfare Neglect Matters

1. Economic vulnerability: BPO workers support households, pay taxes, and sustain the broader consumer economy—but live with wages that often do not meet a living standard.

2. Mental and physical toll: Night shifts, performance pressure, and lack of labor protections cause significant stress and deteriorating health.

3. Rapid AI disruption without legal cover: Automation threatens to displace big segments of the workforce unless formal rules ensure a “just transition.”

4. Inequality of bargaining power: Without union support or enforceable labor rights, BPO workers remain at the mercy of industry metrics and corporate cost-cutting.

A Call for Meaningful Action

While the Marcos administration has made gestures—such as funding for upskilling and introducing legislative reform—the reality on the ground suggests these steps are too limited or too slow. Workers continue to struggle with below‑living wages, insecure contracts, lack of labor protections, and AI-fueled job displacement without safety nets.

True reform would require:

Prompt passage of a BPO Workers Welfare law guaranteeing fair wages, job security, benefits, and union rights.

A living wage floor—such as the proposed ₱36,000 entry-level salary—to replace sub‑minimum offers.

Government-mandated employer support for training and transition programs—not optional or out-of-pocket.

Enforcement against employers who discourage unions or harass organizing workers.

Health and safety standards tailored to shift work, and psychosocial support for mental wellness.

Until these are in place, BPO workers remain the backbone of the industry whose productivity powers the economy—without receiving the dignity, security, or care they deserve.

References: 

BIEN Philippines. (2025, February 21). No more sellout: Filipino BPO workers unite against CREATE MORE exploitation. BIEN Philippines. https://bienphilippines.wordpress.com/2025/02/21/no-more-sellout-filipino-bpo-workers-unite-against-create-more-exploitation/

BWorld Online. (2025, January 1). Reluctance to integrate AI leaves BPO workers even more vulnerable. https://www.bworldonline.com/the-nation/2025/01/01/644216/reluctance-to-integrate-ai-leaves-bpo-workers-even-more-vulnerable/

BWorld Online. (2025, March 26). The end of BPO as we know it. https://www.bworldonline.com/opinion/2025/03/26/661670/the-end-of-bpo-as-we-know-it/

Philstar.com. (2023, May 21). Bill seeking fair labor practices, job security for BPO workers filed. https://www.philstar.com/headlines/2023/05/21/2267487/bill-seeking-fair-labor-practices-job-security-bpo-workers-filed/

Philstar.com. (2025, April 27). Marcos OKs funding upskilling BPO workers. https://www.philstar.com/headlines/2025/04/27/2438658/marcos-oks-funding-upskilling-bpo-workers

Reddit. (2024–2025). BPO workers discuss wages and conditions [Online forum thread]. Reddit. https://www.reddit.com/r/BPOinPH/

Wikipedia contributors. (n.d.). Business process outsourcing in the Philippines. Wikipedia. Retrieved July 20, 2025, from https://en.wikipedia.org/wiki/Business_process_outsourcing_in_the_Philippines

Wikipedia contributors. (n.d.). Labor policy in the Philippines. Wikipedia. Retrieved July 20, 2025, from https://en.wikipedia.org/wiki/Labor_policy_in_the_Philippines