28/08/2026
-Delays in AEP processing under DOLE AO no. 199 series 2026
For non-resident foreign nationals to work in the Philippines, they must obtain and Alien Employment Permits (AEP) from the Department of Labor and Employment (DOLE) and a working visa from the Bureau of Immigration (BI). The AEP is a pre-requisite for all almost visa applications (e.g. 9g pre-arranged employment visa, PEZA Visa). Without the AEP, the working visa will not be processed.
For more than 25 years, the processing of AEPs has been decentralized to the DOLE regional offices for easier access to employers nationwide and for localized implementation of the domestic market labor test. Article 40 of the Labor Code of the Philippines requires the DOLE to determine if there are no Filipinos, competent, able and willing to perform the job for which the foreign national is being hired.
Recently, the DOLE issued Administrative Order (AO) No. 199, Series of 2026, which transferred the processing of AEPs from the regional offices to the Bureau of Local Employment (BLE) in Manila effective June 9, 2026. The processing time of AEP has increased from 30 days to more than 60 days. At present, company representatives from all over the country are spending days commuting to Manila to follow-up pending applications at the BLE. Newly hired foreign nationals may not work until the AEP and 9g visa are completed. Foreign nationals with expiring visas are unable to file for renewal of their working visas because the AEP was not renewed on time. The foreign national has to downgrade the working visa and re-apply for a new working visa. In many cases, the foreign national is Ordered To Leave (OTL) by the BI. The OTL in imposed by the BI is worthy of a separate discussion all together.
The AEP problems are magnified exponentially.
One of the working visas affected by the AEP delay is the PEZA Visa issued by the Philippine Economic Zone Authority (PEZA) to their locators or Registered Business Enterprises (RBE).
To alleviate the problem, PEZA issued Memorandum Circular no. 2026-052 on 26 August 2026 to allow RBEs to apply for a new visa or visa renewal with only a proof that an AEP application has been filed. Kudos to PEZA Director General Tereso O. Panga. However, once the PEZA Visa is approved, the visa will be stamped or implemented on the passport by the BI. The latter requires the presentation of the AEP. The process goes back to the AEP problem. The foreign national has to wait for the AEP to complete the PEZA Visa. At least, the PEZA memo prevents the expiration of the existing visa and from having to file for downgrading to a tourist visa. The foreign national is also spared from dealing with an OTL imposed by the BI incidental to the downgrading.
Foreign investors, business organizations and foreign chambers are hoping the DOLE AEP process improves soon or the BI makes an adjustment like the PEZA.
