MANILA – The House of Representatives on Monday approved on second reading two measures designed to enhance the welfare of overseas Filipino workers (OFWs), particularly through remittance fee protection and free financial education.
During the plenary session, lawmakers passed through voice voting House Bill (HB) 10959, also known as the OFW Remittance Protection Act, which proposes a 50-percent discount on remittance fees charged by banks and non-bank financial intermediaries.
In exchange, these institutions will receive tax deductions based on the cost of services provided to OFWs, which will be treated as ordinary and necessary expenses deductible from their gross income.
The bill also prohibits banks and non-bank financial intermediaries from raising OFW remittance fees without prior consultation with the Department of Finance (DOF), the Bangko Sentral ng Pilipinas (BSP), and the Department of Migrant Workers (DMW).
The House also approved HB 10914, known as the Free OFW Financial Education Act, on second reading.
The measure mandates all OFWs to undergo financial education seminars, which will be incorporated into the Pre-Departure Orientation Seminar (PDOS) for departing workers.
The training, which will be continuously updated, aims to provide OFWs with the tools to manage their finances, protect themselves from investment scams, and make informed decisions about savings and investments.
“This measure is a timely and much-needed piece of legislation that would benefit and protect our migrant workers from investment scams, avoid being victims thereof, and provide them with a proper knowledge to save their money through appropriate education and training in financial literacy,” said House Deputy Majority Leader and Tingog Party-list Rep. Jude Acidre, who sponsored the bill before the plenary.
The proposed legislation also mandates Post-Arrival Training Seminars (PATS) on financial education for OFWs, to be completed within a reasonable time after their arrival in their destination country, or upon transferring to a new employer.
The training will cover subjects such as consumer protection, safeguarding mortgaged properties, avoiding exorbitant loan interest rates, and understanding credit information, particularly for micro and small-scale enterprises.
The Department of Migrant Workers (DMW) will serve as the lead agency in implementing the mandatory financial education programs for OFWs and their families. (PNA)