(MANILA BULLETIN)

The House of Representatives has approved on second reading two measures that aim to strengthen financial safeguards for Overseas Filipino Workers (OFWs).

Sponsored by Tingog Party-list Rep. Jude Acidre, both House Bill (HB) No. 10914 and HB No. 10959 seek to address the financial challenges faced by OFWs abroad and improve protections for their remittances to the Philippines.

HB No. 10914, or the the Free Financial Education Act for OFWs and Their Families, seeks to institutionalize a comprehensive financial literacy training to equip OFWs with essential knowledge on consumer protection, credit management, and debt avoidance.

“This measure is designed to empower OFWs with the financial knowledge necessary to protect their hard-earned income,” said Acidre, chairman of the House Committee on Overseas Workers Affairs.

Acidre, who is also one of the bill’s authors, said the measure will protect migrant workers from investment scams which have become prevalent in social media.

Under the bill, all OFWs shall undergo mandatory financial literacy training seminars. These shall be part of the Pre-Departure Orientation Seminar (PDOS) of outgoing OFWs and Post Arrival Training Seminars (PATS) at their countries of destination.

Meanwhile, HB No. 10959 or the OFW Remittance Protection Act aims to provide a 50 percent discount on remittance fees for funds sent to the Philippines.

“This legislation will bring direct relief to OFWs by significantly reducing remittance costs,” noted 

The deputy majority leader explained that the measure also provides incentives to encourage remittance centers to grant the proposed discount.

He noted that banks and financial intermediaries may claim the discounts as tax deductions “based on the cost of services rendered to OFWs to be treated as ordinary and necessary expense deductible from their gross income”.

Additionally, it mandates prior consultation with the Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), and the Department of Migrant Workers (DMW) before any increases in remittance fees.

Acidre underscored that this will ensure transparency and accountability before a planned increase.

According to the Visayas lawmaker, these two bills build upon the prior initiatives from previous Congresses that are rooted in enhancing support for OFWs and their families.

With this, he urged his colleagues in the lower chamber to prioritize the passage of these measures.

“These measures reflect a commitment to securing the welfare of OFWs and recognizing their contributions to our economy,” Acidre said.

“By reducing costs and providing financial education, we aim to support OFWs in achieving long-term stability for themselves and their families,” he emphasized.