Overseas Filipino Workers Credit Assistance Act of 2025

flier of tir TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) AUG -7 P4:38 First Regular Session RECENED BY SENATE S. No. 1141 Introduced by Senator JV Ejercito AN ACT ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS FILIPINO WORKERS EXPLANATORY NOTE Overseas Filipino Workers (OFWs) are considered the nation's economic heroes for boosting the local economy, especially through remittances, which represent around 10% of the Philippine Gross Domestic Product (GDP). 1 From the 2.16 million Filipinos who worked abroad from April to September 2023, the total remittances reached 238.63 billion pesos.? Aside from sustaining their families, OFWs also invest in family start-ups and other businesses to grow their finances and gradually build their financial security once they retire and return home. These businesses not only provide extra income for their families but also open job opportunities. However, the loved ones left behind are the cost of pursuing better salaries in foreign countries. Every day, OFWs face challenges of isolation, cultural differences, exhaustion, and, despite all the hard work — financial distress. 1 Albert, Jose Ramon G. et al. (2023). Long-Term Effects of Labor Migration in the Philippines: "Napakasakit, Kuya Eddie!", PIDS Discussion Paper Series, No. 2023-17, Philippine Institute for Development Studies (PIDS), Quezon City ≥ 2023 Overseas Filipino Workers (Final Results). Philippine Statistics Authority. (2024, September 13). https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos

The tedious application process to become an OFW requires effort and resources. On top of submitting requirements and finding a legitimate recruitment agency, thousands of pesos should also be allotted for fees and payments. Prior to approval, a fortune has already been spent out of their pockets. Hence, OFWs tend to have financial troubles even before starting to work. While settling their financial circumstances, they need to secure living expenses and are sometimes expected to provide money for their families immediately. This experience is more difficult, as they are also adapting to the economic demands of the foreign country. Furthermore, this bill proposes to allow qualified OFWs to avail of not more than Fifty Thousand Pesos (Php 50,000) worth of loan from the Overseas Worker and Welfare Administration (OWWA). This amount shall cover expenses for their recruitment process, other expenses, including air transportation and placement fees, and their families' living expenses during the first three (3) months of absence. The sacrifices of our "bagong bayani" have fed families, paid tuition fees, built homes, and filled balikbayan boxes. In support of our migrant workers, this measure seeks to offer an option to alleviate their financial difficulties. In view of the foregoing, the passage of this legislation is earnestly sought. JV EJERCITO

White of ill TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session AUG -7 P4:38 SENATE RECEIVED OF: S. No. 1141 Introduced by Senator JV Ejercito AN ACT ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS FILIPINO WORKERS Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. — This Act shall be known as the "Overseas Filipino Workers

2 Credit Assistance Act of 2025."

Sec. 2. Declaration of Policy. - Consistent with the State policy that the State

affirms labor as a primary economic force and that it shall protect the rights of workers and promote their welfare. It is hereby declared that the government and its instrumentalities must promote and carry out programs geared towards advancing the interest of the Overseas Filipino Workers (OFWs) by providing them access to credit 8 facilities even before their departure and/or deployment.

Sec. 3. Loans. - An overseas contract worker with a valid employment contract

10 as certified by the Philippine Overseas Employment Administration (POEA) may avail 11 of a loan of not more than Fifty Thousand Pesos (Php 50,000.00) from the Overseas 12 Worker and Welfare Administration (OWWA) to defray the living expenses of his family 13 during the first three (3) months of absence as well as recruitment expenses including placement fees, documentation costs and plane tickets. Provided, That any one of the members of his family not otherwise disqualified by law shall participate in the loan as co-borrower and execute necessary documentation to that effect. Provided, further, 17 That the loan shall be granted and released by the OWWA upon proper submission of

1 the following documents, duly certified to in writing by the recruitment agency with 2 corresponding authentication and properly certified/verified by the POEA: a. Employment Contract; b. Plane ticket; and c. Bank account.

Sec. 4. Establishment of Bank Account. - Overseas workers availing of the credit

assistance under this Act shall open a bank account in which payments for the loan shall be made.

Sec. 5. Payment of Loan. - The loan shall be paid in twelve (12) equal monthly

10 installments or more but not exceeding twenty-four (24) months at a preferred 11 interest rate not to exceed six percent (6%) per annum through the bank account to be established under the immediately preceding Section. For the purpose, the applicant shall execute the necessary authority for the bank to withhold the monthly loan amortization from his remittances.

Sec. 6. Implementing Rules and Regulations (IRR). - The OWWA, in consultation

with organized labor groups and the relevant sectors, shall issue rules and regulations for the effective implementation of this Act. The IRR shall include provisions that will address non-payment of loans provided under this Act and the corresponding penalties that may be imposed, collection and administration of loans, and other issues of significance relevant to this Act.

Sec. 7. Appropriation. - The amount needed to implement the provisions of this

Act shall be appropriated out of the Overseas Workers Welfare Fund.

Sec. 8. Repealing Clause. - Any other provisions of law or rules and regulations

inconsistent to the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,