The House of Representatives approved on second reading two key bills aimed at improving the welfare of overseas Filipino workers (OFWs) by protecting remittance fees and providing financial education.
Lawmakers, through voice voting during the plenary session, passed House Bill (HB) 10959, known as the OFW Remittance Protection Act. This bill seeks to mandate a 50% reduction in remittance fees charged by banks and financial intermediaries. In return, these institutions will receive tax deductions based on service costs, classified as deductible expenses from their gross income. The bill also prohibits fee increases for OFW remittances without consultations involving the Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), and Department of Migrant Workers (DMW).
Additionally, the House approved HB 10914, or the Free OFW Financial Education Act. This legislation will require all OFWs to participate in financial education seminars as part of their Pre-Departure Orientation Seminar (PDOS). The training, regularly updated, aims to equip OFWs with the skills to manage their finances, safeguard against scams, and make informed savings and investment choices.
House Deputy Majority Leader Jude Acidre of the Tingog Party-list, who sponsored the bill, highlighted its importance in helping OFWs avoid scams and build financial literacy. The bill also includes Post-Arrival Training Seminars (PATS) to be conducted after OFWs reach their destination or change employers. These sessions will cover consumer protection, handling loan interest rates, and credit information, particularly relevant for small businesses.
The DMW will oversee the mandatory financial education programs for OFWs and their families.
