Senator Joel Villanueva has urged the government and financial regulators to slash by half the fees imposed on overseas Filipino workers (OFWs) when sending money home, warning that high remittance charges eat into the income of families relying on their loved ones abroad.
Presiding over a Senate committee hearing on banks and financial institutions, Villanueva said the burden of steep charges “diminish the value of our OFWs’ money and reduce effectively its ability to provide a better means of living for their respective families left behind here in our country.”
He filed Senate Bill No. 181, or the Overseas Filipino Workers Remittance Protection Act, seeking transparency, accountability, and lower costs in remittance services. The measure aims to provide a regulatory framework to help reduce transaction fees and ensure that more of every peso earned abroad reaches the beneficiaries in the Philippines.
Villanueva emphasized that remittances remain a crucial economic lifeline. “We must remember that OFW remittances are a lifeline for their families, which supports their basic needs,” he said, noting that the proposed legislation seeks to give regulators the tools to achieve “a significant reduction of remittance fees.”
Officials from the Department of Migrant Workers (DMW) and Bangko Sentral ng Pilipinas (BSP) expressed full support for the initiative. DMW Secretary Hans Leo Cacdac said, “Facilitating the wider use of digital remittance platforms will enhance efficiency, transparency, and financial inclusion for OFWs and their families.”
Cacdac added that financial literacy programs are already integrated into pre-departure and reintegration seminars for OFWs, aligning with the bill’s advocacy for informed financial management.
According to BSP data, total remittances reached US$19.9 billion (around ₱1.16 trillion) from January to July 2025, and US$34.5 billion (₱2.01 trillion) in 2024—equivalent to 8.3% of the country’s GDP. Globally, sending small remittance amounts costs an average of 6.49% of the money transferred.
Under the proposed law, financial institutions regulated by the BSP would also be prohibited from raising existing remittance fees without prior consultation with the BSP, DMW, and the Department of Finance.
