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The Philippine Senate building
PNA file photo by Avito Dalan
MANILA, Philippines — Amid concerns that the escalating Middle East crisis could threaten the jobs of overseas Filipino workers and adversely affect their families through global inflation, the Senate approved on third and final reading yesterday two measures designed to safeguard OFWs’ hard-earned money and strengthen their financial security.
Senate Bills 1917 and 1910 seek to shield OFW remittances from excessive bank charges and provide free financial education to help migrant workers manage their income more effectively.
SB 1917, or the OFWs’ Remittance Protection Act, requires remittance service providers to clearly disclose all fees and foreign exchange rates to prevent unreasonable deductions on remittances.
The measure also prohibits sudden or unilateral changes in charges, mandates consultations with stakeholders before fee adjustments and imposes penalties on violators.
“Our OFWs are not only sending dollars, dirhams or euros. They are sending hope and a future for their families,” said bill sponsor Sen. Joel Villanueva.
“It is only right that we ensure that the fruits of their labor are protected and that every peso they send home reaches their loved ones more fully,” he added.
Villanueva said many OFWs remain trapped in an outdated remittance system marked by excessive fees, hidden charges and unclear foreign exchange practices that reduce the amount reaching their families.
“This bill is not anti-business. It advances a balanced system – one that allows fair returns for service providers, while ensuring strong protection for those whose only capital is their labor, time and sacrifice,” he said.
The senator noted that the continuing conflict in the Middle East, where many Filipinos are deployed, underscores the urgency of protecting remittance flows.
SB 1910, or the Free OFW Financial Education Act, meanwhile, requires migrant workers to undergo free and comprehensive financial literacy seminars covering investing, savings and consumer protection before departure and after arrival.
Acknowledging the volatile situations OFWs face abroad, bill sponsor Sen. Raffy Tulfo said the measures ensure their earnings are “protected, wisely used and invested for a better future.”
“Financial literacy is more than managing money. It is about dignity, security and giving our OFWs the tools to thrive both abroad and at home,” he said.
The measure also mandates online access to financial advisers so deployed OFWs can receive guidance remotely, with funding to be sourced from the annual national budget.
Financial literacy programs will be implemented by the Department of Migrant Workers and the Overseas Workers Welfare Administration.
