The House of Representatives has approved on second reading House Bill 10959, a measure to provide crucial financial protections and benefits for overseas Filipino workers (OFWs).
The bill, consolidated from several proposed bills, one of which is House Bill 4257 by OFW Party-List Rep. Marissa Magsino, aims to reduce remittance fees, prevent exploitative practices, and offer financial education for OFWs and their families.
HB 10959 states that OFWs will be entitled to a 50 percent 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.
Magsino, being one of the bill’s principal authors, underscored the importance of upholding the rights and welfare of OFWs.
The bill has outlined several key objectives and provisions to create a secure and equitable remittance framework.
“Among these objectives is preventing excessive remittance fees and high interest rates, ensuring that OFWs’ hard-earned money is transmitted with minimal financial loss,” Magsino said.
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.
