FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. 1196 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
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Modern heroes are what we call them. Overseas Filipino Workers, whose hard-
earned dollars are responsible for buoying up our economy to levels that have allowed 
us to achieve growth as a nation, and industrialization along with modernization as a 
country. 
It is with great pleasure, honor and urgency that the passage of this legislation is 
earnestly sought as this will allow the Overseas Filipino Workers to feel the rewards of 
their hard work, and reap the benefits, which, once upon a time, during the prime of 
their lives, they strived hard to achie~e. 
For this reason, assistance in the form of discounts in establishments, medical 
assistance, enjoyment of benefits granted by the respective social service systems, 
even housing programs, shall be extended to them, all matters of expressing our debt of 
gratitude to them, because we as a' nation can only move forward if we know how to 
look back from where we came from. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
-S.B. 1196 
, {-
-
Introduced by Senator Manny Villar 
AN ACT 
12 Pi :'D 
GRANTING BENEFITS AND SPECIAL PRIVILEGES TO FORMER 
OVERSEAS FILlPIN,O WORKERS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policies and Objectives. - Pursuant to the 
Constitution, the State hereby adopts a policy of giving full protection to labor, and 
affirms labor as a primary social economic force. Consonant with these constitutional 
principles the following are the declared policies of this Act: 
a) to recognize the magnitude of contribution to the economy of overseas Filipino 
workers whose lonely sacrifices in foreign lands bring in a considerable 
amount of foreign exchange; 
b) to motivate and assist former overseas Filipino workers to contribute to nation 
building; 
In accordance with those policies, this Act aims to grant former overseas Filipino 
workers with a package of benefits and incentives. 
SEC. 2. Definition of Terms. - As used in this Act, the term "former overseas 
Filipino worker" shall mean any resident citizen of the Philippines at least fifty (50) years 
old, previously certified by the Department of Labor and Employment Philippine 
Overseas Employment Agency for overseas employment purposes and has an income 
of not more than sixty thousand pesos (P60,000.00) per annum subject to review by the 
National Statistics Coordination Board (NSCB) every three (3) years. It covers all 
nationals who have worked in a foreign country under employment contracts for a 
period not less than 10 years, including but not limited to, professionals, seamen, 
entertainers, domestic helpers, regardless of their employment status in the foreign 
country. 
SEC. 3. Privileges of former OFWs. - Any qualified former OFW as determined 
by the Office for Former Overseas Filipino Workers (OFOFW) shall be entitled to the 
following: 
a) the grant of twenty percent (20%) discount from all establishments relative to 
utilization of transportation services, hotels and similar lodging establishment, 
restaurants and recreation centers and purchase of medicine anywhere in the 
country: Provided, That private establishments may claim the cost as tax 
credit; 
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b) a minimum of twenty percent (20%) discount on admission fees charged by 
theaters, cinema houses and concert halls, circuses, carnivals and other 
similar places of culture, leisure and amusement; 
c) exemption from the payment of individual income taxes: Provided, That their 
annual taxable income does not exceed the income level as determined by 
the National Economic Development Authority (NEDA) for that year; 
d) free medical and dental consultations in private or public hospitals and similar 
establishments anywhere in the country and medical insurance program to be 
provided by the Philippine Health Insurance Corporation (PHIC); 
e) to the extent practicable and feasible, the continuance of the same benefits 
and privileges given by the Government Service Insurance System (GSIS), 
Social Security System (SSS) and PAG-IBIG, as the case may be, as are 
enjoyed by those in actual·service; 
f) priority in existing livelihood programs being undertaken by various government 
agencies subject to the guidelines and qualifications by the implementing 
body; and 
g) priority in national housing programs, affordable "pabahay" loans and other 
housing opportunities subject to the guidelines and qualifications set by the 
National Housing Authority (NHA) or the Home Development Mutual Fund 
(HDMF). 
Such privately-owned establishments shall enjoy tax credits equivalent to the 
discounts extended to former OFWs. 
SEC. 4. Retirement Benefits. - To the extent practicable and feasible, 
retirement benefits from both the Government and the private sectors shall be upgraded 
to be at par with the current scale enjoyed by those in actual service. 
SEC. 5. The Office of Former Overseas Filipino Workers (OFOFW) - There 
shall be established in the Office of the Mayor an OFOFW to be headed by a Councilor 
who shall be designated by the Sangguniang Bayan and assisted by the Community 
Development Officer in coordination with the Department of Labor and the Department 
of Social Welfare and Development. The functions of this office are: 
a) to maintain and regularly update on a quarterly basis the list of former OFWs 
and to issue nationally uniform individual identification cards which shall be 
valid anywhere in the country; 
b) to service as a general information and liaison center to serve the needs of 
former OFWs; and 
c) to issue nationally uniform individual identification cards which shall be valid 
anywhere in the country. 
SEC. 6. Municipal Responsibility. - It shall be the responsibility of the 
municipality through the mayor to ensure that the provisions of this Act are implemented 
to its fu lIest. 
SEC. 7. Penalties. - Violation of any provision of this Act for which no penalty is 
specifically provided under any other law, shall be punished by imprisonment not 
exceeding one (1) month or a fine not exceeding One Thousand pesos (P 1,000.00) or 
both. 
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SEC. 8. Implementing Rules and Regulations. - The Secretary of Social 
Welfare and Development, jointly with the Department of Labor and Employment, 
Department of Finance, the Department of Tourism, the Department of Health, the 
Department of Transportation and Communications and the Department of Interior and 
Local Government shall issue the necessary rules and regulations to carry out the 
objectives of this Act. 
SEC. 9. Appropriation. - The necessary appropriation for the operation and 
maintenance of the OFOFW shall be appropriated and approved by the local 
government units concerned. The National Government shall appropriate such amount, 
as may be necessary to carry out the objectives of this Act. 
SEC. 10. Repealing Cause. - All provisions of laws, orders, decrees, including 
rules arid regulations inconsistent herewith are hereby repealed and/or modified 
accordingly. 
SEC. 11. Effectivity. -This Act shall take effect fifteen (15) days following its 
publication in a newspaper of general circulation. 
Approved, 
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