THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
175 
S. No. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
In 2003, Bangko Sentral ng Pilipinas data showed that the Overseas 
Filipino Workers' (OFW) remittances amounted to US$ 7.6 billion. In the first four 
months of this year, it reached US$ 2.6 billion. OFW remittances are considered 
a vital flow of foreign exchange into the financial system that provides support for 
the peso. Also, it spurs investment, cushions the impact of worldwide economic 
recession when private capital dries up and helps alleviate poverty. 
With the magnitude of contribution of OFWs to the economy of the 
country, it is but fair to recognize this contribution by granting them a package of 
benefits and special privileges to returning OFWs when they decide to retire or 
go back to their homeland. Every OFW is expected to return to the country after 
his contract abroad expires. Some return fix other reasons such as unbearable 
homesickness, abuse, or emergency situations in the host countries. The 
numbers are expected to increase as the world continues to experience the 
economic recession that many analysts predict will continue for a long time. 
A study conducted by non-government organizations also showed that a 
vast majority or around 70-80% of the returning OFWs still lack enough savings 
for their future after decades of overseas employment. And many come home to 
realities that remain unchanged, including the dependence on dole-outs by their 
own families and relatives and an economy that is suffering from a high 
unemployment rate and cannot accommodate them. With a labor market that 
gives priority to younger applicants, returning OFWs have a problem competing 
with other applicants due to their advanced age. This bill seeks to address those 
issues, thus, the urgent need for the government to create the best and viable 
measures toward the reintegration program for the returning OFWs. 
In view of the foregoing, approval of this bill is earnestly requested 
~ERGIO OSMENA 111 
Senator 


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*04 SEP -6 
/\!I :23 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S. No. 
lntroduced by Senator S. R. Osmefia 111 
AN ACT 
GRANTING BENEFITS AND SPECIAL PRIVILEGES TO FORMER 
OVERSEAS FILIPINO WORKERS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
SECTION 1. Declaration of Policies and Objectives. - Pursuant to 
Article XIII, Section 3 of the Constitution, the State adopts a policy of giving full 
protection to labor. In addition, Section 18 in the Declaration of Principles and 
State Policies provides: "The State 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 
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SEC. 2. Definition of Terms. - As used in this Act, the term "former 
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overseas Filipino worker (OFW)" 
shall mean any resident citizen of the 
Filipino workers with a package of benefits and incentives. 


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Philippines at least fifty (50) years old, previously certified by the Department of 
Labor and EmploymentlPhilippine Overseas Employment Agency for overseas 
employment purposes and has an income of not more than sixty thousand pesos 
(P60,OOO.OO) 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 for former OFWs. - Any qualified former OFW as 
determined by the Office for Former Overseas Filipino Workers (OFOFW) shall 
be entitled to the following: 
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; 
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; 
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 and Development 
Authority (NEDA) for that year; 
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); 


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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; 
9 priority in existing livelihood programs being undertaken by various 
government agencies subject to the guidelines and qualifications by 
the implementing body; and 
g) (9 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' for 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 
to issue nationally uniform individual identification cards which shall 
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be valid anywhere in the country 


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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 fullest. 
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 (I) month or a fine not exceeding One thousand 
pesos (PI ,000.00) or both. 
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 
goverhment units concerned. The National Government shall appropriate such 
amoupt, as may be necessary to carry out the objectives of this Act. 
SEC. 10. Repealing Clause. - 
All provisions of laws, orders, decrees, 
including rules and regulations inconsistent herewith are hereby repealed and/or 
modified accordingly. 
SEC. 11. Separability Clause. - 
If any part or provision of this Act shall 
be held to be unconstitutional or invalid, other provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days 
following its publication in one (1) national newspaper of general circulation. 
Approved,