Regulatory Change Tracker
Monitor regulatory and trade policy changes affecting CX operations across 8 markets. Stay ahead of labor law updates, data privacy requirements, and tax changes.
22 tracked changes across 8 markets
March 2026
4 changesFTC guidance on AI in customer service interactions
FTC issues guidance requiring disclosure when customers interact with AI systems in CX operations. Companies must provide clear opt-out to human agents and maintain records of AI-assisted interactions.
Labor reform bill advances: night shift differential increase
Proposed labor reform increases the night shift differential from 35% to 45% of base salary and extends the definition of night hours. Would significantly affect 24/7 CX operations running overnight shifts.
POPIA enforcement ramps up with first major BPO penalties
Information Regulator issues first significant penalties under POPIA for data breaches in the BPO sector. Penalties include fines up to ZAR 10 million and mandatory compliance audits. Signal of stricter enforcement ahead.
PEZA incentive regime extended through 2028
Philippine Economic Zone Authority confirms extension of tax incentives for registered IT-BPO enterprises including income tax holidays and duty-free importation of equipment through 2028.
February 2026
4 changesFree Zone regime renewed with enhanced digital services provisions
Dominican Republic renews its Free Zone incentive program with new provisions specifically targeting digital and BPO services including 100% income tax exemption, duty-free equipment imports, and streamlined work permits for foreign supervisors.
DPDP Act enforcement rules finalized
India's Digital Personal Data Protection Act enforcement rules now specify cross-border data transfer requirements, consent management obligations, and penalties up to INR 250 crore. BPO operations handling personal data must implement data localization measures for certain categories.
Eskom load-shedding stages reduced; BPO continuity improves
Eskom reports reduced frequency of load-shedding stages due to new generation capacity. BPO operations in major metros report improved power reliability, though backup generation remains recommended for SLA compliance.
Remote work law amendments expand employer obligations
Amendments to NOM-037 expand employer obligations for remote workers including mandatory internet and electricity subsidies, ergonomic equipment provision, and right-to-disconnect enforcement.
January 2026
7 changesZOLI free trade zone expansion for technology services
Government expands ZOLI (Zona Libre) designation to include additional technology parks in San Pedro Sula and Tegucigalpa, offering 100% income tax exemption for up to 20 years for qualifying BPO operations.
Data Privacy Act amendments strengthen breach notification
Amendments to the Philippines Data Privacy Act of 2012 reduce the breach notification window to 48 hours and increase penalties for non-compliance. BPO operations must update incident response procedures.
Profit sharing (PTU) cap adjustment
Annual adjustment to the profit-sharing cap for employees. Companies must distribute 10% of pre-tax profits, capped at 3 months salary or average of last 3 years, whichever benefits the employee more.
New Labor Code wage ceiling revisions
Revised wage ceilings under the Code on Wages increase the salary threshold for overtime eligibility. Affects compensation structures for mid-level CX agents in Tier 1 cities.
SIC issues new cross-border data transfer guidelines
Superintendencia de Industria y Comercio published updated guidelines for international data transfers, requiring documented adequacy assessments and updated privacy notices for BPO operations handling customer data.
Annual minimum wage adjustment: 7.5% increase
Government mandates 7.5% minimum wage increase across all sectors. BPO/services sector minimum rises to approximately L 13,500/month, maintaining Honduras as one of the most cost-competitive markets in LatAm.
Five additional state privacy laws take effect
New comprehensive privacy laws in Maryland, Minnesota, Nebraska, New Hampshire, and New Jersey take effect, bringing the total to 20 states with comprehensive data privacy legislation. Creates additional compliance requirements for multi-state CX operations.
December 2025
2 changesB-BBEE scorecard updates affect BPO service contracts
Updated Broad-Based Black Economic Empowerment codes revise ownership and skills development thresholds for ICT sector companies. Foreign-owned BPO operations must increase local skills investment spending by 15% to maintain preferred procurement status.
Nearshoring tax incentives launched for new operations
Federal government introduces accelerated depreciation and tax deductions for companies establishing new nearshore operations in designated economic zones, targeting BPO and shared services sectors.
November 2025
2 changesMinimum wage increase for Free Zone workers
National Salary Committee approved a 12% minimum wage increase for Free Zone workers, effective January 2026. Affects base costs for entry-level CX agents.
GST exemption clarification for export-oriented BPO services
GST Council clarified zero-rating provisions for BPO services exported to overseas clients, reducing compliance burden for export-focused operations.
October 2025
2 changesTelecommuting Act implementation guidelines updated
Updated DOLE guidelines clarify employer obligations for remote BPO workers including equipment provision, internet subsidies, and occupational safety requirements.
DOL overtime eligibility threshold updated
Department of Labor finalizes updated salary threshold for overtime eligibility under FLSA, raising the minimum salary for exempt status. Affects compensation structures for team leads and supervisors in domestic CX operations.
September 2025
1 changeFree trade zone benefits extended for BPO services
Government extends special 20% corporate tax rate (vs. 35% standard) for qualifying BPO operations within designated free trade zones through 2030.
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