/ 25 July 2022

SENATOR Loren Legarda pushed for a measure that will protect the remittances of overseas Filipino workers through financial education.

In her Senate Bill 10, Legarda said that it is imperative for the government to protect the hard-earned money of OFWs.

The measure mandates concerned government agencies to conduct financial education programs for OFWs and their families.

At the same time, the bill aims to set a limit on the amount of remittance fees and charges to be enforced by intermediaries, provide up to 50% discount to OFWs sending money to their immediate family members and grant tax deductions to the intermediaries that provide discounts on remittance fees.

“The money remitted by OFWs to their beneficiaries in the Philippines goes through intermediaries or financial institutions. In the course of transfer, the amount supposedly remitted are subject to various fees and usurious charges, thereby depleting the amount to be received by the beneficiaries,” the senator said.

According to the Bangko Sentral ng Pilipinas, personal remittances in 2021 constituted 8.9% of the country’s gross domestic product and 8.5% of its gross national income.