Filipinos working across Europe are being caught between rising living costs in their host countries and accelerating inflation back home, with a Madrid-based firm cautioning that the financial pressure could force many to slash the money they send to their families.
Conectando Filipinas, a consultancy linked to the Systembrand Group that works to connect Philippine businesses with Spanish markets, said the war in the Middle East is compounding the everyday strain already felt by overseas Filipino workers in Spain, the United Kingdom, France, and Germany.
Housing alone is placing a heavy burden on workers. The firm cited estimates from a French online rental platform showing that a one-bedroom apartment now runs between €900 and €1,200 per month. Grocery bills are climbing alongside rents, with the firm pointing to fuel costs as a driver of higher prices across food production, packaging, and delivery.
“Food expenses, aside from dining, are spiraling because of the high cost of fuel (and its impact on) product and packaging, manufacturing, and logistics,” Conectando Filipinas said.
The consultancy put figures to the worst-case scenario: an OFW who typically remits €300 a month could find themselves sending home only €150 — a cut the firm described as “reflecting a survivalist scenario where high local inflation in Europe forces a significant cut in transfers.” A contrasting outcome is also possible. If OFWs follow patterns of “altruism” seen among migrant communities during periods of stress, monthly remittances could rise to €500 as workers prioritize their families over their own circumstances.
Back in the Philippines, the economic backdrop is already worsening. Inflation climbed to 4.1% in March, up from 2.4% in February and 1.8% a year earlier, pushing past the Bangko Sentral ng Pilipinas target ceiling of 4%. The BSP separately reported that bank-coursed cash remittances rose 2.6% to $2.79 billion in February, though analysts warn those figures predate the most acute phase of the regional conflict.
“These combined pressures abroad and at home are reshaping how OFWs manage their financial obligations,” the firm said.
Conectando Filipinas also raised concerns about the structural integrity of remittance channels over time. It warned that a prolonged conflict could expose money transfer systems to security risks and service disruptions, delaying funds that families in the Philippines depend on. Employers in Europe, themselves facing tightening conditions, could pass those pressures down to workers through reduced wages, forced moves, or deteriorating working relationships.
The firm noted that the Filipino population in Europe — particularly in Portugal and Spain — is projected to grow, which could support remittance volumes from those countries. Whether that growth translates into more money reaching Philippine households, however, will depend heavily on how long the conflict continues and how deeply it reshapes the financial conditions of workers abroad.
“The European Filipino diaspora and the effects of the Iran War have forced overseas Filipino workers to contend with the challenges of both residing abroad while maintaining and sustaining their family ties back in their homeland,” the firm said.
