Sciate Mifice of the focacary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 26 MAR 19 A10:41 RECEIVED BY: SENATE S. No. 1998 Introduced by Senator MANUEL "LITO" M. LAPID AN ACT ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS FILIPINO WORKERS EXPLANATORY NOTE The remittances of Overseas Filipino Workers (OFWs) serve as a vital lifeline for the Philippine economy. These contributions provide the National Government with the necessary fiscal space to fund essential public services and development programs, enriching not only the families of the workers but the entire nation. Despite being hailed as our "modern-day heroes," OFWs often face significant barriers when seeking financial support at home. Ironically, the very nature of their overseas employment-the source of their contribution-is often the primary reason financial institutions deny their loan applications. Many OFWs find themselves trapped in a cycle of rigorous bureaucratic processes and exhaustive documentation requirements that their local counterparts do not face. This bill seeks to bridge that gap by establishing a Credit Assistance Program through the Department of Migrant Workers (DMW). This program allows qualified OFWs to avail of a loan of up to Fifty Thousand Pesos (P50,000.00). This ensures that funds are available to cover critical recruitment expenses- such as placement fees, documentation, and airfare as well as the living expenses of their families during the first three months of their deployment.
Acknowledging the contributions of our OFWs through words alone is insufficient. True recognition requires legislative action that responds to their sacrifices and simplifies their transition to working abroad. By removing the financial hurdles that currently burden our migrant workers, we reaffirm our commitment to their welfare and the stability of their families. In view of the foregoing, the immediate passage of this bill is earnestly requested. Senator
Senaie TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 26 MAR 19 A10:41 First Regular Session SENATE S. No. 1998 RECEIVED BY: Introduced by Senator Manuel "Lito" M. Lapid 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 Credit Assistance Act of 2026."
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 10 interest of the Overseas Filipino Workers (OFWs) by providing them access to credit 11 facilities even before their departure and/or deployment.
Sec. 3. Loans.- An overseas contract worker with a valid employment contract
as certified by the Philippine Overseas Employment Administration (POEA) may avail of a loan of not more than Fifty Thousand Pesos (Php 50,000.00) from the Overseas Worker and Welfare Administration (OWWA) to defray the living expenses of his family 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, that the loan shall be granted and released by the OWWA upon proper submission of
the following documents, duly certified to in writing by the recruitment agency with 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 interest 11 rate not to exceed six percent (6%) per annum through the bank account to be 12 established under the immediately preceding Section. For the purpose, the applicant 13 shall execute the necessary authority for the bank to withhold the monthly loan 14 amortization from his remittances.
Sec. 6. Implementing Rules. - The OWWA, in consultation with organized labor
16 groups and the relevant sectors, shall issue rules and regulations for the effective implementation of this Act. The Implementing Rules and Regulations 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 24
regulations inconsistent to the provisions of this Act are hereby repealed, amended, or modified accordingly
Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation. Approved,