THE House of Representatives has approved on second reading House Bill No. 10959, a landmark measure to provide crucial financial protections and benefits for Overseas Filipino Workers (OFWs).
This bill, consolidated from multiple proposed bills, one of which is House Bill 4257 by OFW Party List Rep. Marissa “Del Mar” Magsino, aims to reduce remittance fees, prevent exploitative practices, and offer financial education for OFWs and their families.
House Bill 10959 states that OFWs will be entitled to a 50% discount on remittance fees for transactions sent to their immediate family members in the Philippines, and remittance centers can claim these reductions as tax-deductible business expenses.
OFW Party List Rep. Marissa “Del Mar” Magsino, one of the bill’s principal authors, underscored the importance of these protections:
“Sa pakikipagtulungan natin sa ating mga kapwa natin mambabatas upang mapagaan ang pasanin ng ating mga OFWs sa pagpapadala ng kita sa kanilang mga pamilya, nabuo ang consolidated House Bill 10959 mula sa iba’t ibang panukala kasama na ang ating inihain na House Bill 4257. Ang 50% na diskwento sa remittance fees para sa ating mga OFWs na ating itinutulak ay malaking tulong upang mas mapakinabangan ng kanilang mga mahal sa buhay ang pinaghirapang sweldo sa ibang bansa. Alam natin na ito ang pangunahing dahilan ng pagtatrabaho ng ating mga kababayan sa abroad – ang makatulong sa pag-angat ng buhay ng kanilang naiiwan na pamilya.”
The bill has outlined several key objectives and provisions to create a secure and equitable remittance framework. Chief among these objectives is preventing excessive remittance fees and high interest rates, ensuring that OFWs’ hard-earned money is transmitted with minimal financial loss.
Banks and other financial institutions will also be prohibited from raising remittance fees without prior consultation with the Department of Finance (DOF), the Bangko Sentral ng Pilipinas (BSP), and the Department of Migrant Workers (DMW). To reinforce compliance, HB 10959 establishes specific penalties for institutions that violate these protections.
Furthermore, the bill emphasizes the importance of financial literacy, mandating free financial education programs for OFWs and their families, organized by the DMW in coordination with OWWA, DOF, and BSP. These initiatives will cover essential topics, including consumer protection, mortgage safeguards, and loan management, and will be required as part of OFWs’ Pre-Departure Orientation Seminars, with additional support through Post-Arrival Training Seminars in host countries.
“OFWs contribute around USD 37.2 billion to our economy. Thus, it is but fitting that we provide the policy to protect their hard-earned money from unfair financial practices, ensuring that their sacrifices are respected and their remittances maximized for their families.” added Rep. Marissa “Del Mar” Magsino.
House Committee on Overseas Workers Affairs Chairperson Rep. Jude Acidre, who presented the bill to the plenary, highlighted that financial intermediaries providing the mandated discounts can treat these reductions as necessary business expenses for tax purposes, promoting compliance while safeguarding OFWs’ financial welfare.
