SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
'15 
SEP 17 
AlO :55 
SENATE 
S. No. 
2055 
(In substition of S.B. Nos. 24, 679, 721, 1147, and 1235 
taking into consideration H. No. 4990) 
Prepared by the Committees on Labor, Employment and Human Resources 
Development, Foreign Relations; and Finance with Senators Jinggoy Ejercito 
Estrada, Cynthia A. Villar, Loren Legarda, Ralph Recto, Antonio "Sonny" Trillanes IV, 
Joseph Victor Ejercito, and Sonny Angara as authors 
AN ACT 
GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE 
OVERSEAS WORKERS WELFARE ADMINISTRATION 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
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3 
CHAPTER I 
TITLE, POLICY AND OBJECTIVES 
4 
SECTION. 1. Short Title. -
This Act shall be known as the "Overseas 
5 
Workers Welfare Administration Act". 
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7 
SEC. 2. Declaration of Policy. - It is the policy of the State to afford full 
8 
protection to labor" local and overseas, organized and unorganized, and promote 
9 
full employment opportunities for all. Towards this end, it shall be the State's 
10 
responsibility to protect the overseas Filipino workers (OFWs). 
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12 
The Overseas Workers Welfare Administration (OWWA) shall be one of the 
13 
principal agencies of the State to serve and promote the interest and welfare of the 
14 
OFWs and their families. 
15 
16 
Welfare assistance, services, and programs provided by OWWA shall be 
17 
gender-sensitive, taking into consideration the different impacts of labor migration to 
18 
men and women. 
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SEC. 3. Objectives. - This Act is enacted to provide guidelines on matters 
21 
concerning the OWWA, its mandate, purposes and objectives, membership, 
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1 
collection of contributions, and availment of benefits and services. This Act also 
2 
embodies the policies on fund management, programs and services administration. 
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CHAPTER II 
6 
NATURE, SCOPE AND FUNCTIONS OF OWWA 
7 
8 
SEC. 4. Nature of the OWWA. - The OWWA is a national government 
9 
agency vested with a special function of developing and implementing welfare 
10 
programs and services that respond to the needs of its member-OFWs and their 
11 
families. It is endowed with powers to administer a trust fund to be called the 
12 
OWWA Fund. Being a chartered institution, the OWWA shall not fall under the 
13 
category of any of the following: Government Instrumentalities with Corporate 
14 
Powers (GICP), Government Corporate Entities (GCE), Government Financial 
15 
Institutions (GFI) and/or Government-Owned or -Controlled Corporations (GOCC). 
16 
17 
The OWWA shall be an attached agency of the Department of Labor and 
18 
Employment (DOLE). Its officials and employees are covered by the Salary 
19 
Standardization Law. 
20 
21 
SEC. 5. Scope. - This Act shall apply to the OWWA, the OWWA Secretariat, 
22 
the OWWA Fund, to its member OFWs and those who will avail of the voluntary 
23 
membership program of the OWWA, and to overseas recruitment/manning 
24 
agencies/employers who are duly registered with the Philippine Overseas 
25 
Employment Administration (POEA). 
26 
27 
SEC. 6. Functions. - The OWWA shall exercise the following functions: 
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29 
(a) To protect the interest and promote the welfare of member-OFWs in all 
30 
phases of overseas employment in recognition of their valuable contribution to 
31 
the overall development effort; 
32 
33 
(b) To facilitate the implementation of the provisions of the Labor Code of the 
34 
Philippines (Presidential Decree No. 442, as amended) and the Migrant 
35 
Workers and Overseas Filipinos Act of 1995 (Republic Act No. 8042, as 
36 
amended), concerning the responsibility of the government to promote the 
37 
well-being of OFWs. Pursuant thereto, and in furtherance thereof, it shall 
.38 
provide legal assistance to member-OFWs; 
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(c) To provide social and welfare programs and services to member-OFWs, 
41 
including social assistance, education and training, cultural services, financial 
42 
management, reintegration, and entrepreneurial development services; 
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(d) To provide prompt and appropriate response to global emergency or crisis 
45 
situations affecting OFWs and their families; 
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(e) To ensure the efficiency of collections and the viability and sustainability of the 
48 
OWWA Fund through sound, judicious, and transparent investment and 
49 
management policies; 
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2 


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(f) To undertake studies and research for the enhancement of social, economic, 
2 
and cultural well-being of member-OFWs; and 
3 
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(g) To develop, support and finance specific projects for the welfare of member-
s 
OFWs. 
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CHAPTER III 
DEFINITION OF TERMS 
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SEC. 7. Definition of Terms. - As used in this Act: 
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(a) Compensation refers to the basic pay or salary received by an officer or 
14 
employee of the OWWA, pursuant to the official appointment, excluding per 
15 
diems, bonuses, overtime pay, honoraria, allowances and any other 
16 
emoluments received in addition to the basic pay that are not integrated into 
17 
the basic pay under existing laws; 
18 
19 
(b) Contribution or membership fee refers to the amount paid to the OWWA by 
20 
an OFW or the employer in accordance with the provisions of this Act; 
21 
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(c) Dependent refers to any of the following: 
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(1) The legal spouse; 
25 
(2) The legitimate, legitimated, legally adopted child, including the illegitimate 
26 
child, who is unmarried, not gainfully employed, not over the age of 
.27 
majority, or is over the age of majority but incapacitated and incapable of 
28 
self-support due to a mental or physical defect; and 
29 
(3) The parents dependent upon the member-OFWs for support; 
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31 
(d) Non-Active OWWA Member refers to an OFW whose OWWA membership 
32 
has expired; 
33 
34 
(e) Non-Member OFWrefers to an undocumented OFW and who has not availed 
35 
of the voluntary membership of the OWWA; 
36 
37 
(f) OWWA Member refers to an OFW with a paid contribution or membership fee; 
38 
39 
(g) Overseas Filipino Worker (OFW) refers to a person who is to be engaged, is 
40 
engaged, or has been engaged in a remunerated activity in a state of which 
41 
the person is not a citizen, or on board a vessel navigating the foreign seas 
42 
other than a government ship used for military or non-commercial purposes, or 
43 
on an installation located offshore or on the high seas; and 
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45 
(h) Voluntary OWWA member refers to the OFW who has availed of the 
46 
voluntary membership of OWWA on site. 
47 
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CHAPTER IV 
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3 
MEMBERSHIP, CONTRIBUTION AND COLLECTION 
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SEC. 8. Registration of Membership. - Membership in the OWWA may be 
5 
obtained in two (2) ways: 
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7 
(a) By compulsory registration upon processing of employment contracts of 
8 
OFWs at the POEA; and 
9 
10 
(b) By voluntary registration of OFWs at job sites. 
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12 
SEC. 9. Amount of Contribution and Effectivity of Membership. -
13 
Membership in the OWWA, either through the compulsory or voluntary coverage, 
14 
shall be effective upon payment of membership contribution in the amount of 
15 
twenty-five US dollars (US$ 25.00) or its equivalent in the prevailing foreign 
.16 
exchange rates. Such membership shall be considered active until the expiration of 
17 
the OFW's existing employment contract or after two years from contract effectivity, 
18 
whichever comes first. 
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20 
In case of voluntary registration, membership shall be considered active until 
21 
the expiration of the OFW's existing employment contract or after two years from 
22 
the date of voluntary registration, whichever comes first. 
23 
24 
Based on actuarial studies and taking into consideration the welfare and 
25 
interest of the member-OFWs, the OWWA Board may adjust or modify the amount 
26 
of membership contribution. 
27 
28 
SEC. 10. Proof of Membership. -
Upon payment of the required 
29 
contribution, an OWWA member shall be issued an Official Receipt, an OWWA E-
30 
Card, identification card, or other proof of membership. No additional or extra 
31 
charges shall be levied on the member-OFW. 
32 
33 
The OWWA shall maintain a comprehensive database of member-OFWs, 
34 
which shall be updated regularly. 
35 
36 
SEC. 11. Renewal of Membership. - Membership shall be renewed upon 
37 
payment of contribution on contract renewal or issuance of a new contract of 
38 
employment. In the case of voluntary membership, coverage shall be renewed upon 
39 
payment of contribution of twenty-five US Dollars (US $25.00) or its equivalent in the 
40 
prevailing foreign exchange rates. 
41 
42 
SEC. 12. Separate Accounting of Land-based and Sea-based Members' 
43 
Contributions. -
For a more effective financial management, the membership 
44 
contributions of land-based and sea-based members shall be accounted for in two 
45 
(2) separate books of accounts. 
46 
47 
SEC. 13. Authorized Collecting Officers.-
48 
49 
(a) Membership contributions shall be collected by duly authorized OWWA 
50 
collecting officers, deputized collecting officers or accredited collecting agents. 
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1 
The collection of membership contributions shall be made at the POEA 
2 
contract processing hub, OWWA regional and overseas offices, and other 
3 
accredited collection centers. 
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(b) In case of voluntary members who register at the job site, membership 
6 
contributions shall be made directly to the OWWA Overseas Offices located in 
7 
the respective foreign service posts of the Philippines. 
8 
9 
SEC. 14. Reportorial Requirements and Handling of Collections. - The 
10 
collecting officer, deputized collecting officer, or the accredited collecting agent shall 
11 
prepare and submit the required monthly reports to the OWWA Central Office in the 
12 
Philippines. Handling of collections and deposits by collection officers shall be 
13 
governed by the generally accepted accounting and auditing rules. 
14 
15 
SEC. 15. Sanctions for Erring Officers. -
Corresponding administrative 
16 
sanctions and other disciplinary measures, including recall from post, suspension, or 
17 
separation from service, shall be imposed upon any officer who violates the 
18 
preceding section. 
19 
20 
SEC. 16. Prohibition Against Discrimination on Membership. - No OFW 
21 
shall be denied membership to the OWWA by reason of age, gender, nationality, 
22 
religious belief, or political affiliation. The OWWA shall take affirmative steps to 
23 
enhance the access of OFWs to its programs and services. 
24 
25 
SEC. 17. Payment of Contribution or OWWA Fee by Employer. -
26 
Contributions to the OWWA Fund must be paid by the employers or prinCipals, or in 
27 
their default, by the recruitment/manning agency in the case of new hires. The POEA 
28 
shall ensure that this stipulation is made an integral part of the overseas employment 
29 
contract. 
30 
31 
SEC. 18. Penalty for Violation by Recruitment/Manning Agency. -
32 
Violation by a recruitment/manning agency of the preceding section shall be 
33 
punishable under existing POEA rules and regulations. 
34 
35 
SEC. 19. Deposit and Remittance of Collection. -
36 
37 
(a) OWWA Central Office and Regional Offices - The collecting officer shall, on a 
38 
daily basis, deposit all collected OWWA fee contributions to the OWWA Capital 
39 
Fund Account with the Land Bank of the Philippines. For reconciliation and 
40 
record purposes, bank validated deposit slips shall be prepared in triplicate 
41 
forms to be distributed to the: (1) servicing bank; (2) collecting officer; and (3) 
42 
appropriate OWWA office together with the Report of Collections. 
43 
44 
(b) OWWA Overseas Officers - The OWWA overseas collecting officer shall, on a 
45 
daily basis, deposit all OWWA fee contributions in the same currency received, 
46 
to a separate bank account for collections in the name of the "Office of the 
47 
Labor Attache - OWWA Collections," in the depository bank of the Department 
48 
of Foreign Affairs (DFA), or in the accredited correspondent bank of the Land 
49 
Bank of the Philippines. Accumulated monthly collections shall be remitted to 
5 


1 
the OWWA Capital Fund Account with the Land Bank of the Philippines not 
2 
later than the fifth (5th) day of the following month. 
3 
4 
No withdrawals, except remittances of collections, can be made from the 
5 
bank accounts for collections without prior written approval of the Administrator or 
6 
the duly authorized OWWA representative, subject to the policies approved by the 
7 
OWWA Board. 
8 
9 
The OWWA overseas offices shall be authorized to retain the required 
10 
amount for the beginning and maintaining balance of the abovementioned bank 
11 
accounts for collections. 
12 
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CHAPTER V 
15 
THE OWWA BOARD OF TRUSTEES 
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17 
SEC. 20. The OWWA Board of Trustees. - To carry out the purposes of 
18 
this Act, the OWWA shall be directed and controlled by a Board of Trustees which 
19 
shall act as its policy making body. It shall be composed of the following members: 
20 
21 
(a) Secretary of Labor and Employment, as Chairperson; 
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23 
(b) OWWA Administrator, as Vice Chairperson; 
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25 
(c) Secretary of Foreign Affairs; 
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27 
(d) Secretary of Finance; 
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(e) Secretary of Budget and Management; 
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31 
(f) POEA Administrator; 
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(g) Three (3) representatives from the land-based OFWs who are nominated and 
34 
appointed in accordance with the provisions of Republic Act No. 8042, as 
35 
amended by Republic Act No. 10022; 
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37 
(h) Two (2) representatives from the sea-based OFWs who are nominated and 
38 
appointed in accordance with the provisions of Republic Act No. 8042, as 
39 
amended by Republic Act No.1 0022; 
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41 
(i) One (1) representative from the women sector who is nominated and 
42 
appointed in accordance with the provisions of Republic Act No. 8042, as 
43 
amended by Republic Act No.1 0022; 
44 
45 
0) One (1) representative from the land-based recruitment sector who is selected 
46 
from among the various associations of registered overseas placement and 
47 
recruitment agencies based in the Philippines, who shall be appointed by the 
48 
President of the Philippines to serve a single term of three (3) years; and 
49 
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(k) One (1) representative from the sea-based manning sector, who is selected 
2 
from among the various associations of registered overseas placement and 
3 
manning agencies based in the Philippines, who shall be appointed by the 
4 
President of the Philippines to serve a single term of three (3) years. 
5 
The Trustees holding office as members of the OWWA Board at the time of the 
6 
effectivity of this Act shall continue to serve until the expiration of their term of 
7 
appointments. 
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9 
In case of vacancy in any of the appointive positions in the OWWA Board, the 
10 
vacancy shall be filled by the subsequent nomination of the respective sector 
11 
concerned, in the same manner as the selection of the predecessor. Such successor 
12 
shall hold office for the unexpired term. 
13 
14 
SEC. 21. Per Diem. - The members of the OWWA Board shall not receive 
15 
any compensation but shall be provided with per diem at rates allowed under 
16 
existing rules and regulations. 
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18 
SEC. 22. Responsibilities and Powers of the Board of Trustees. - The 
19 
Board shall exercise the following specific powers and duties: 
20 
21 
(a) To define the thrusts of the OWWA and adopt policy guidelines to ensure their 
22 
implementation; 
23 
24 
(b) To preserve the integrity of the OWWA Fund; 
25 
26 
(c) To approve programs, projects, and the organizational structure of the OWWA 
27 
Secretariat; 
28 
29 
(d) To modify or adjust the membership contribution and other necessary charges 
30 
based on periodic reviews and actuarial studies, subject to due consultation 
31 
with OFWs or nongovernment organizations (NGOs) advocating the protection 
32 
of the rights and welfare of OFWs and their families; 
33 
34 
(e) To formulate rules and regulations governing financial transactions and 
35 
prepare the annual and supplemental budget of the Secretariat for submission 
36 
to the DBM; 
37 
38 
(f) To formulate rules and regulations governing the conduct and discipline of 
39 
OWWA officials and employees; 
40 
i 
41 
(g) To ensure the efficiency of collection and the viability and sustainability of the 
42 
fund through sound and judicious investment and fund management policies; 
43 
44 
(h) To receive and appropriate all sums to carry out the purposes and functions of 
45 
the OWWA; 
46 
47 
(i) To authorize the construction or repair of its buildings, machinery, equipment 
48 
and other facilities, and the purchase and acquisition of real and personal 
49 
properties, including the necessary supplies, materials and equipment; 
7 


1 
U) To receive in trust legacies, gifts and donations of real and personal property 
2 
of all kinds, and to administer and dispose the same when necessary for the 
3 
benefit of the OWWA general membership and subject to the instructions of 
4 
the donor, if any; 
5 
6 
(k) To delegate any of its powers to the Chairperson of the Board or to the 
7 
Administrator of the OWWA Secretariat in case of national emergency that 
8 
affects the rights and welfare of its member-OFWs and their families; 
9 
10 
(I) To prescribe such general policies, rules and regulations, not contrary to law, 
11 
consistent with the purposes of the OWWA subject to due consultation with 
12 
OFWs or nongovernment organizations (NGOs) advocating the protection of 
13 
the rights and welfare of OFWs and their families; and 
14 
15 
(m) To exercise such powers as may be proper and necessary to carry out the 
16 
objectives of this Act. 
17 
18 
19 
CHAPTER VI 
20 
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT 
21 
22 
SEC. 23. Schedule of Meetings. - The regular meetings of the Board shall 
23 
be held every last Friday of the month. If a change of date becomes necessary, the 
24 
meetings shall be held at the most convenient time set by the Board. 
25 
26 
Special Board meetings and executive meetings may be scheduled as the 
27 
need arises. Special Board meetings may be called upon by the Chairperson or 
28 
upon the instance of five (5) members of the Board. 
29 
30 
SEC. 24. Proceedings of the Board. - The proceedings of the Board shall 
31 
be governed by the following rules: 
32 
33 
(a) Notice of Meetings - The Board Secretary shall distribute to all members of 
34 
the Board the notice of meeting, together with the discussion materials, at 
35 
least three (3) working days prior to the scheduled meeting. 
36 
37 
(b) Quorum - In determining the existence of a quorum, the Board shall adopt 
38 
the simple majority rule of one half of the total filled Board seats plus one. 
39 
40 
(c) Voting - For the approval of any policy requiring the disbursement of the 
41 
OWWA Fund, an affirmative vote of the absolute majority of all the members 
42 
shall be required. For the approval of all other policies, an affirmative vote of 
43 
a majority of the members present constituting a quorum shall be necessary. 
44 
45 
(d) Attendance in Board Meetings -
Board members are responsible for 
46 
attending all Board meetings. The ex officio members of the Board of 
47 
Trustees may designate in writing their permanent alternate who shall have 
48 
voting power. The Board shall install teleconferencing facilities in order to 
49 
muster a quorum during Board meetings. 
50 
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1 
(e) Presiding Officer -
The Chairperson shall preside over meetings of the 
2 
Board. In the absence of the Chairperson, the Vice Chairperson shall 
3 
preside. 
4 
5 
(f) Board Resolution - All decisions of the Board shall be expressed in the form 
6 
of Resolutions and shall take effect upon adoption and signing by all the 
7 
members present, subject to requisite publication. Provided that resolutions 
8 
may be modified or superseded by another resolution. 
9 
10 
(g) Records Management and Archiving of Board Documents -
The Board 
11 
Secretary shall ensure a complete and thorough recording of all proceedings 
12 
during a Board meeting. The minutes of the previous meeting shall be made 
13 
available for approval during the succeeding scheduled Board meeting. 
14 
15 
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25 
The minutes of the meeting shall contain the attendance, business arising 
from 
the minutes of the 
previous meeting, 
agreements 
reached, 
corresponding resolutions, other items noted or discussed, and instructions 
issued by the Board. 
, 
All minutes of meetings and Board Resolutions, tape recordings, and other 
documents pertaining to the business of the Board shall be kept and 
archived pursuant to standard records management systems, procedures 
and shall be made accessible to the public at all times. 
26 
CHAPTER VII 
27 
OWWA SECRETARIAT 
28 
29 
SEC. 25. The OWWA Secretariat. - The OWWA Secretariat shall be the 
30 
implementing arm of the OWWA. 
31 
32 
SEC. 26. Duties and Responsibilities of the OWWA Secretariat. - The 
33 
OWWA Secretariat shall perform and 
assume the following duties and 
34 
responsibilities: 
35 
36 
(a) To implement all decisions and policies promulgated by the Board including 
37 
investment and fund management; 
38 
39 
(b) To manage programs and implement the delivery of welfarfi! services to its 
40 
members, both local and overseas, supported by advocacy and information 
41 
campaign programs; 
42 
43 
(c) To formulate medium-term development plans responsive to the welfare, 
44 
needs, and demands of member-OFWs; 
45 
46 
(d) To submit work and financial plans for Board consideration; 
47 
48 
(e) To provide policy analyses and recommendations for Board consideration; 
49 
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1 
(f) To conduct continuing research and studies, including impact evaluation, in aid 
2 
of policy and program development; 
3 
4 
(g) To regularly monitor and conduct assessment and evaluation of organizational 
5 
performance; 
6 
7 
(h) To establish and maintain an on-line management information system, which 
8 
shall include a database on membership; 
9 
10 
(i) To establish and maintain linkages and networks with social and institutional 
11 
partners, both local and international; 
12 
13 
(j) To subrnit written quarterly reports on the assessment and evaluation of 
14 
programs, projects and services, and such other reports as may be required by 
15 
the Board; 
16 
17 
(k) To conduct an annual planning, budgeting and organizational performance 
18 
assessment, and render the corresponding report to the Board; 
19 
20 
(I) To submit annual reports to the Board, the Congress and the President of the 
21 
Philippines; 
22 
23 
(m)To undertake a periodic review of programs, standards, thrusts, and policies; 
24 
25 
(n) To perform other functions as may be instructed by the Board; and 
26 
27 
(0) To adopt internal rules of procedure consistent with the provisions of this Act. 
28 
29 
SEC. 27. The OWWA Administrator. - The management and supervision 
30 
of the OVWI/A shall be vested in the Administrator. As the Chief Executive Officer of 
31 
the Secretariat, the Administrator shall oversee the overall operations of the 
32 
Secretariat, which shall include the general supervision and control of all its 
33 
personnel and 
resources, 
and the assumption of full 
responsibility and 
34 
accountability thereof. 
35 
36 
The Administrator must possess good leadership and managerial skills, and 
37 
shall be appointed by the President of the Philippines. The Administrator shall report 
38 
to the President, through the Secretary of the DOLE, and shall perform the duties 
39 
and functions stated in this Act and all the necessary and related functions of the 
40 
office of the Administrator, subject to the policies and rules prescribed by the OVWI/A 
41 
Board. 
42 
43 
SEC. 28. The Deputy Administrators. - Two (2) Deputy Administrators shall 
44 
assist the Administrator in the management and supervision of operations of the 
45 
OVWI/A. They shall also be appointed by the President upon the recommendation of 
46 
the Administrator. They must also possess good leadership and managerial skills. 
47 
The Board 
may assign 
specific functional 
responsibilities i to the Deputy 
.48 
Administrators. 
49 
10 


1 
SEC. 29. Regional and On-site Welfare Offices. -
The OWWA shall 
2 
maintain Regional Offices and On-site Welfare Offices under the Philippine 
3 
Overseas labor Offices (POlOs) of the DOLE. 
4 
5 
6 
7 
8 
CHAPTER VIII 
PERSONNEL AND STAFFING PATTERN 
9 
SEC. 30. Authority of the Board to Reorganize the Administration. -
10 
Notwithstanding the provisions of existing laws, the OWWA Board shall conduct a 
11 
management audit, and submit to Congress a proposed reorganization plan of the 
12 
OWWA not later than one (1) year after the audit, subject to the limitations 
13 
provided under this Act and based on the following criteria: 
14 
15 
(a) Increased OWWA visibility from the head office to the various regional offices, 
16 
and by the appointment and assignment of personnel to positions that are 
17 
purely administrative, technical, clerical in nature, and other positions that are 
18 
not actually and directly related to its operation and administration; and 
19 
20 
(b) Efficient and optimized delivery of OWWA services to the OFWs and their 
21 
respective families. OWWA shall endeavor to assign its representatives in 
22 
every foreign post of the Philippines to, among others, ensure the provision of 
23 
services to member-OFWs and the promotion of voluntary membership to non-
24 
members. 
25 
26 
SEC. 31. Qualifications Upgrading Program. - The OWWA Board shall 
27 
design and establish a qualifications upgrading program for the staffing of the 
28 
OWWA, in coordination with the DOLE and the Civil Service Commission (CSC), 
29 
within one hundred twenty (120) days from the effectivity of this Act: Provided, That 
30 
those who are already in the service from the effectivity of this Act shall have, not 
31 
later than five (5) years, obtained the required academic degree and/or qualifications 
32 
counted from the implementation of the qualifications upgrading program: Provided, 
33 
further, That those who are already in the service from the effectivity of this Act shall 
34 
have, not later than one (1) year, obtained the necessary CSC qualification required 
35 
for the position they are currently holding: Provided, finally, that said personnel has 
36 
obtained at least a Satisfactory performance rating. 
37 
38 
SEC. 32. New Structure and Staffing Pattern. -
39 
40 
(a) The new structure and staffing pattern for the OWWA shall be prescribed by 
41 
the OWWA Board and approved by the President of the Philippines. The salaries 
42 
and benefits of all personnel shall be in accordance with existing compensation 
43 
laws. 
44 
45 
(b) The current officials and employees of the OWWA, as organized under letter 
46 
of Instruction No. 537 and Presidential Decree No. 1694, as amended by 
47 
Presidential Decree No. 1809, and renamed under Executive Order No. 126, 
48 
series of 1987, shall be appointed, re-appointed, or transferred to the appropriate 
49 
unit in the new OWWA organizational structure, as determined by the Board. 
11 


1 
There shall be no demotion in ranks and positions and no diminution in salaries, 
2 
benefits, allowances and emoluments of all OWWA personnel. 
3 
4 
SEC. 33. General Qualifications for Appointment. -
The general 
5 
qualifications for appointment of OWWA personnel shall be in accordance with the 
6 
minimum requirements set by the CSC. The OWWA may hire experts in actuarial 
7 
studies, information technology, finance and investment, and such other fields as 
8 
may be deemed necessary in the implementation of programs and services. 
9 
10 
11 
12 
13 
CHAPTER IX 
OWWA BENEFITS AND SERVICES 
14 
SEC. 34. Guiding Principles. - Pursuant to its mandate, the OWWA shall 
15 
provide reintegration programs, repatriation assistance, loan and credit assistance, 
16 
on-site workers assistance, death and disability benefits, health care benefits, 
17 
education and skills training, social services, family welfare assistance, and other 
18 
appropriate programs that provide timely social and economic services. 
19 
20 
Nothing in this Act shall be construed as a limitation or denial of the right of an 
21 
OFW to avail of any benefit plan which may be adopted in the employment contract, 
22 
or offered voluntarily by employers, or by the laws of the receiving country, over and 
23 
above those provided under this Act. 
24 
25 
SEC. 35. Benefits and Services to OFWs. -
26 
27 
(a) Reintegration of OFWs. - The reintegration of OFWs shall be one of the 
28 
core programs of the OWWA. In this regard, and for purposes of policy and 
29 
program coordination, the National Reintegration Center for OFWs created under 
30 
Republic Act No. 10022 shall be an attached agency of the OWWA. It shall be 
31 
headed by an Executive Director who shall be under the supervision of the OWWA 
32 
Administrator. 
33 
34 
To be able to sustain the viability of this program, at least ten percent (10%) of 
35 
OWWA's collection of contribution for the immediately preceding year shall be 
36 
allocated annually for the reintegration program. 
37 
38 
(b) Repatriation Assistance. - Consistent with the provisions of Republic Act 
39 
No. 8042, as amended, OWWA shall assist the DFA in providing OFWs with 
40 
services necessary to facilitate repatriation, as may be required. 
41 
42 
(c) Loan and Other Credit Assistance. - All member-OFWs may avail of a 
43 
loan of not more than fifty thousand pesos (P50,000.00) from the OWWA for any of 
44 
the following purposes: (1) to defray the living expenses of the member's family 
45 
during the first months of absence; and/or (2) to pay for recruitment expenses 
46 
including placement fees, documentation costs, and plane tickets: Provided, That 
47 
any member of the OFW's family not otherwise disqualified by law shall be a co-
48 
borrower and shall execute the necessary documentation to that effect: Provided, 
49 
further, That the loan shall be granted and released by the OWWA upon proper 
50 
evaluation and submission of the employment contract and plane ticket, duly certified 
12 


1 
to in writing by the recruitment agency or direct hirer as to their authenticity and 
2 
properly verified by the POEA. 
3 
The aforementioned maximum amount of fifty thousand pesos (P50,OOO.OO) 
4 
specified herein may be increased by the OWWA, taking into account inflation and 
5 
other relevant factors, through a resolution duly approved by the OWWA Board of 
6 
Trustees. The loan shall be covered with a loan redemption insurance from any 
7 
private insurance provider duly registered with, and accredited by, the Insurance 
8 
Commission, the premium of which shall be paid by the member-OFW borrower. The 
9 
loan shall be paid in twelve (12) equal monthly installments at a preferred interest 
10 
rate not to exceed six percent (6%) per annum. 
11 
The OWWA shall provide other low-interest loans to member-OFWs. It shall 
12 
have the authority to hire experts in finance or banking to assist in implementing the 
13 
said loan programs. 
·14 
15 
(d) Workers Assistance and On-site Services. - The OWWA shall sustain 
16 
and maintain assistance to member-OFWs in all its overseas and regional offices. 
17 
Services shall include information regarding the names, occupation/job categories 
18 
and addresses of the member-OFWs; providing guidance; developing materials for 
19 
the Pre-Departure Orientation Seminars; conducting psycho-social counseling; 
20 
conciliation services; and outreach missions, among others. The OWWA shall 
21 
likewise make competent representations with employers, agents, and host 
22 
government authorities to assist member-OFWs in obtaining relief from grievances 
23 
and work-related issues, including claims for unpaid wages. 
24 
25 
(e) Social Benefits. - A member-OFW shall be covered with the following 
26 
social benefits: 
27 
28 
(1) Death and Disability Benefits. 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
(i) Death Benefits. - A member shall be covered with life insurance for 
the duration of his or her employment contract. The coverage shall include 
one hundred thousand pesos (P100,OOO.OO) for natural I death and two 
hundred thousand pesos (P200,OOO.OO) for accidental deathr 
(ii) 
Disability 
and 
Dismemberment 
Benefits. 
-Disability 
and 
dismemberment benefits shall be included in a member's life insurance 
policy, as provided for in the impediment schedule contained in the OWWA 
Manual of Systems and Procedures. The coverage is within the range of two 
thousand pesos (P2,OOO.OO) to fifty thousand pesos (P50,OOO.OO). 
41 
(iii) Total Disability Benefit. -
In case of total permanent disability, a 
42 
member shall be entitled to one hundred thousand pesos (P100,OOO.OO). 
43 
44 
(iv) Burial Benefit. -
A burial benefit of twenty thousand pesos 
45 
(P20,OOO.OO) shall be provided in case of the member's death. 
46 
47 
Based on actuarial studies, the Board may increase the amount of the 
48 
abovementioned benefits. 
49 
13 


1 
(2) 
Health Care Benefits. - Within two (2) years from the effectivity of this 
2 
Act, the OWWA shall develop and implement health care programs for the 
3 
benefit of member-OFWs and their families. 
4 
(3) Education and Training Benefits. -
A member, or the member's 
5 
designated beneficiary, may avail any of the following scholarshIp programs, 
6 
subject to a selection process and accreditation of participating institutions: 
7 
8 
(i) Skills-for-Employment Scholarship Program. -
For technical or 
9 
vocational training scholarship; 
10 
(ii) Education 
for 
Development 
Scholarship 
Program. 
For 
11 
baccalaureate programs; and 
12 
(iii) Seafarers' 
Upgrading Program. -
To ensure the competitive 
13 
advantage of Filipino seafarers in meeting competency standards, as 
14 
required 
by 
the 
International 
Maritime 
Organization 
(IMO), 
15 
International Labor Organization (ILO) conventions, treaties and 
16 
agreements, sea-based members shall be entitled to one upgrading 
17 
program for every three (3) membership contributions. 
18 
19 
20 
21 
The annual scholarship lists of all these programs shall be submitted to 
the Board. 
22 
SEC. 36. New Programs, Interactive Website and Extension of Services. 
23 
- The OWWA shall continue to develop and implement new programs to meet new 
24 
OFW needs and requirements as they arise, and to assess the effectiveness of 
25 
existing services and benefits in serving the welfare of OFWs. 
26 
27 
The OWINA shall also maintain an interactive website to collect OFW 
28 
feedback, comments, suggestions, and complaints on existing programs and 
29 
services. 
30 
31 
The OWWA may also extend appropriate programs or services to non-
32 
members, as may be determined by the Board. 
33 
34 
35 
36 
37 
CHAPTER X 
THE OWWA TRUST FUND 
38 
SEC. 37. The OWWA Fund. - The Welfare Fund for Overseas Workers 
39 
created under Letter of Instruction No. 537 and Presidential Decree No. 1694, as 
40 
amended by Presidential Decree No. 1809, is hereinafter referred to as the OWWA 
41 
Fund. The OWWA Fund is a private fund held in trust by the OWWA. Being a trust 
42 
fund, no portion thereof or any of its income, dividends or earnings shall accrue to 
43 
the general fund of the National Government. Neither shall any amount or portion 
44 
thereof be conjoined with government money, nor revert to the National 
45 
Government. In the same manner, it is exempted from the "one fund doctrine" of the 
46 
government. 
47 
48 
SEC. 38. Purpose of the OWWA Fund. - The OWWA Fund can only be 
49 
used for the purposes for which it was created, that is, to exclusively serve the 
14 


1 
welfare of member-OFWs and their families which shall include the financing of core 
2 
programs and services of the OWWA. 
3 
4 
No funds shall be withdrawn from the OWWA Fund to respond, aid, 
5 
supplement, or in any manner augment any required expenditure by other 
6 
government agencies. 
7 
8 
SEC. 39. Source of the OWWA Fund. - The OWWA Fund is the sum total 
9 
of the amounts under the management and fiscal administration of the OWWA 
10 
Board and the Secretariat, including the twenty-five US Dollars (US$25) 
11 
contributions that shall accrue to the Fund as fees, investment and interest income, 
12 
and income from other sources . 
. 13 
14 
SEC. 40. Disbursement of the OWWA Fund. - Any provision of existing 
15 
law to the contrary notwithstanding, all incomes generated by the OWWA shall, 
16 
upon their collection, be retained by the OWWA and disbursed at the discretion of 
17 
the Board for the general welfare and other benefits of the OWWA general 
18 
membership 
and 
the 
OWWA Secretariat personnel; 
for the 
acquisition, 
19 
construction, maintenance and repair of urgently needed auxiliary facilities, 
20 
equipment, buildings and other infrastructure; and for expenses necessary for the 
21 
attainment of its purposes under its approved program of expenditures. 
22 
23 
SEC. 41. Trustees of the Fund. - The Board is designated as the trustee of 
24 
the OWWA Fund. It is bound by a fiduciary duty to manage the Fund with extra-
25 
ordinary diligence and with utmost skill, care and judiciousness. 
26 
27 
SEC. 42. Transparency. - The OWWA Fund shall be managed with full 
28 
transparency and full public disclosure. The OWWA shall make available all records 
29 
of how the funds are utilized, disbursed, and invested, in accordance with existing 
30 
laws. 
31 
32 
SEC. 43. Reporting of the OWWA Fund Col/ection and Utilization. -
'33 
Within fifteen (15) days after receipt of audited reports from the Commission on Audit 
34 
(COA), the OWWA Board of Trustees shall submit to the Congress and the 
35 
President of the Philippines a report showing the total collections of, and the 
36 
disbursements from, the OWWA Fund and shall publish the electronic copy of the 
37 
report and make them available online, in a format that is searchable, accessible and 
38 
useful to the public. 
39 
40 
41 
42 
43 
CHAPTER XI 
INVESTMENT ADMINISTRATION: SAFEGUARDS. 
44 
SEC. 
44. 
Safeguards of the 
OWWA 
Fund; 
Acquired Assets; 
45 
Unredeemed Investments. -
46 
47 
(a) The OWWA Fund shall be managed and expended in accordance with the 
48 
purposes stipulated in this Act and safeguarded against any possible loss and 
49 
misuse. 
50 
15 


1 
The OWWA shall ensure an appropriate growth rate in the Fund sufficient to 
2 
sustain the growing needs of member-OFWs. It shall periodically conduct an 
3 
inventory of its investment instruments and ensure that they are properly kept 
4 
at a government bank under a custodianship agreement. 
5 
6 
A monthly report on all investment schedules showing the interest rates, 
7 
yields, discount rates, and other relevant data, shall be submitted to the 
8 
Board. 
9 
10 
(b) The OWWA shall administer all properties, acquired or foreclosed. 
11 
12 
To ensure that the properties are safeguarded and preserved, the same must 
13 
be properly accounted for and documented, re-inspected, re-appraised, and 
14 
insured with taxes paid. 
15 
16 
An asset development/disposal plan shall be submitted by the Administrator for 
17 
the consideration of the Board. 
18 
19 
20 
21 
'22 
23 
24 
25 
26 
Foreclosed properties shall be registered as OWWA assets within one (1) 
month after foreclosure. 
I 
(c) Unredeemed investments and other receivables shall be inventoried semi-
annually and corresponding redemption plan shall be submitted to the Board. 
All receivables shall be supported by documents appropriately acknowledged 
by the accountable party. 
27 
SEC. 45. General Investment Policy. - Upon approval of the Board, all 
28 
OWWA investments shall be placed only in government securities and bonds which 
29 
provide optimum earnings, 
liquidity and protection of the Fund. 
Portfolio 
30 
management of investible funds shall be outsourced to Government Financial 
31 
Institutions (GFls). 
32 
33 
SEC. 46. Examination and Valuation of the Funds. - The OWWA shall 
34 
make a periodic actuarial examination and valuation of its funds in accordance with 
35 
accepted actuarial principles. 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
CHAPTER XII 
FISCAL AND BUDGET POLICY: MANAGEMENT 
SEC. 47. Operative Budget. - The operative budget of thel OWWA must be 
sufficient to support full protection of the welfare of OFWs. The budget shall be 
reviewed annually by the Board with emphasis on adequate funding for services 
and agency efficiency. 
The Board shall approve, by a majority vote of all its members, the operative 
budget which shall support the planned work programs and administrative costs, 
to include, but shall not be limited to, salaries, emoluments, and transportation 
expenses for the OWWA personnel, office rentals, office supplies, equipment, 
technological support, communications and utilities, requirements for personal 
16 


1 
services, and maintenance: Provided, That appropriations for personal services 
2 
(PS) and regular maintenance and other operating expenses (MOO E) coming 
3 
exclusively from the OWWA Fund shall not exceed twenty percent (20%) of the 
4 
total member contributions realized in the immediately preceding year. 
5 
6 
SEC. 48. Benefits and Services Budget. - The annual budget shall include 
7 
all benefits and services to OFWs and shall prioritize the protection of the welfare of 
8 
OFWs. 
9 
10 
SEC. 49. Budget Preparation and Approval. -
In preparing the annual 
11 
budget, the OWWA shall follow the national government budget system, format and 
12 
cycle. 
13 
14 
SEC. 50. Re-enacted Budget. - In case the proposed annual budget sourced 
15 
from the OWWA Fund has not been approved by the Board at the start of the year, 
16 
the OWWA shall operate within the budget level of the previous year allocated on a 
17 
month-to-month basis. All savings realized in the previous year shall be deducted 
18 
from the current year's budget. 
19 
20 
SEC. 51. Work and Financial Plans. - All cost centers/offices/units of the 
21 
OWWA shall submit their annual work and financial plans (WFP) , which should 
22 
correspond to the approved budget. The Directors shall endorse the WFP of their 
23 
respective units for approval of the Administrator. The consolidated OWWA-WFP 
24 
shall be reported to the Board. 
25 
26 
SEC. 52. Budget Realignment. - Realignment of funds sourced from the 
27 
OWWA Fund including adjustments in targets shall be submitted to the Board for 
28 
approval. Similarly, in the event that extra-ordinary circumstances may occur which 
29 
require sourcing of additional funds from the OWWA Fund beyond the coverage of 
30 
the approved budget, the same shall be submitted to the Board for approval. 
31 
32 
SEC. 53. Branch Accounting System; Financial Reports; Auditing 
33 
Procedures; Annual Reports. - The OWWA Regional Units shall maintain their 
34 
respective books of accounts which shall be consolidated by the central office. 
35 
36 
The OWWA shall install sound internal control and monitoring systems and 
37 
submit quarterly prescribed Financial Statements to the e~A, such as income 
38 
statement, balance sheet, and cash flow as prescribed in post auditing reports by 
39 
the eOA. 
40 
41 
The OWWA Secretariat shall submit a monthly fund utilization report to the 
42 
Board, copies of which shall be made available to Congress. It shall also submit an 
43 
Annual Report on its overall performance for the previous year within the first sixty 
44 
(60) days of the following year to the OWWA Board, the Congress and the 
45 
President of the Philippines, through the Department of Budget and Management 
46 
(DBM). 
47 
48 
SEC. 54. Chart of Accounts. - The OWWA shall adopt the appropriate and 
49 
standard chart of accounts as prescribed by the eOA. 
50 
17 


1 
SEC. 55. Appropriation from the National Government. - Congress shall 
2 
annually appropriate the necessary amount to meet the funding requirement for 
3 
personal services (PS) and the maintenance and other operating expenses (MOOE) 
4 
of OWWA. Nothing in this Act shall prevent the National Government from allocating 
5 
funds for the operation or implementation of any of the programs or services stated 
6 
herein, including the budget for capital outlay (CO). 
7 
8 
9 
10 
11 
CHAPTER XIII 
MISCELLANEOUS PROVISIONS 
12 
SEC. 56. Rebates for Long-time Members. -
In recognition of the 
13 
contribution of long-time members to the OWWA Fund, the OWWA shall develop 
14 
and implement a program for the grant of rebates or some form of financial 
15 
assistance to OFWs who have been members of the OWWA for at least five (5) 
16 
years and who, along with their families, have not availed of any service or benefit 
17 
from the OWWA. The provision and the amount of rebates shall be based on 
18 
actuarial study commissioned by the OWWA for this purpose. 
19 
20 
SEC. 57. Procurement System. - The OWWA procurement system shall be 
21 
governed by Republic Act No. 9184, also known as the "Government Procurement 
22 
Reform Act". 
23 
24 
SEC. 58. Exemption from Tax, Legal Process and Lien. -- All laws to the 
25 
contrary notWithstanding, the OWWA and all its assets and properties, all 
26 
contributions collected and all accruals thereto and income or investment earnings 
27 
therefrom as well as all supplies, equipment, papers or documents shall be exempt 
28 
from any tax, assessment, fee, charge, or customs or import duty. All benefit 
29 
payments made by the OWWA shall likewise be exempt from all kinds of taxes, fees 
30 
or charges, and shall not be liable to attachments, garnishments, levy or seizure by 
31 
or under any legal or equitable process, either before or after receipt by the person 
32 
or persons entitled thereto, except to pay any debt of the member to the OWWA. No 
33 
tax measure of whatever nature enacted shall apply to the OWWA, unless this 
34 
section is expressly, specifically and categorically revoked or repealed by law and a 
35 
provision is enacted to substitute or replace the exemption referred to herein. Any 
36 
tax assessment imposed against the OWWA shall be null and void. 
37 
38 
SEC. 59. Transitory Provision. - All facilities, equipment, supplies, records, 
39 
files, appropriations and funds under the OWWA, as organized under Letter of 
40 
Instruction No. 537 and Presidential Decree No. 1694, as amended by Presidential 
41 
Decree No. 1809, and renamed under Executive Order No. 126, series of 1987, 
42 
shall remain with the OWWA. 
43 
44 
SEC. 60. Implementing Rules and Regulations. - Within ninety (90) days 
45 
from the effectivity of this Act, the present OWWA Board, shall promulgate the rules 
46 
and regulations implementing the provisions of this Act. The implementing rules and 
47 
regulations issued pursuant to this section shall take effect fifteen (15) days after its 
48 
publication in two (2) newspapers of general circulation. 
49 
18 


1 
SEC. 61. Separability Clause. -
If any provision of this Act is declared 
2 
unconstitutional, the remainder of this Act or any provision not affected thereby 
3 
shall remain in full force and effect. 
4 
5 
SEC. 62. Repealing Clause. -
Letter of Instruction No. 537, Presidential 
6 
Decree No. 1694 and Presidential Decree No. 1809 are hereby repealed. All other 
7 
laws, decrees, executive orders, rules and regulations inconsistent with the 
8 
provisions of this Act are likewise repealed. 
9 
10 
SEC. 63. Effectivity. - This Act shall take effect fifteen (15) days after its 
11 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
19