TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
v;T'
A SU'itr of t!jf & ■' 
;'?■
25 AUG-5 P2 :06
S. No.
SENATE
896
RLCEIVED BY:
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PENALIZING CERTAIN ACTS IN THE IMPOSITION OF EXCESSIVE 
PLACEMENT FEES AGAINST OVERSEAS FILIPINO WORKERS
EXPLANATORY NOTE
The number of overseas Filipino workers (OFWs) who worked abroad was 
estimated at 2.16 million1 in 2023. Their contributions to their families and keep the 
economy afloat are undeniable.
In 2024, OFWs remittances totaled $38.34 billion, a 3% increase from the 
previous year, and represented 8.3% of the country gross domestic product.
While many Filipinos decide to go abroad to seek for greener pastures, they 
face challenges when it comes to pre-employment expenses, including exorbitant and 
arbitrary placement fees.
This bill proposes a fixed placement fee and prohibits collecting or "advancing" 
the placement fees before any job availability abroad. Also, appropriate official receipts 
shall be issued to the OFW concerned and it mandates the refund if a job does not 
materialize.
1 https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos
1


Moreover, it shall be prohibited to force an OFW to issue post-dated checks to 
guarantee the payment of the placement fee and it shall be unlawful to force an OFW 
to borrow money only from designated persons or lending institutions which the 
agency may have connections with.
This measure is part of ongoing effort to protect the welfare of OFWs and 
ensure fair labor practices before they get deployed aboard.
In view of the foregoing, the approval of this measure is earnestly sought.
NGGQY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 AUG-5 P2-.06
SENATE 
S. No. 896
RECEIVED BY
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PENALIZING CERTAIN ACTS IN THE IMPOSITION OF EXCESSIVE 
PLACEMENT FEES AGAINST OVERSEAS FILIPINO WORKERS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Fair Placement Fees for
2 
Overseas Filipino Workers (OFWs) Act'.
3 
Sec. 2. Statement of Policy. - It Is hereby declared the policy of the State of
4 
prioritize the dignity and human rights of OFWs, ensure their safety and welfare, and
5 
promote full employment. Towards this end, OFWs are protected from exploitation by
6 
regulating placement fees charged by recruitment agencies. This policy ensures that
,7 
placement fees do not exceed a certain limit, prohibits premature collection of fees,
8 
and requires agencies to disclose fees to OFWs. The law also penalizes agencies that
9 
engage in illicit practices, such as deceptive methods to force OFWs to pay fees.
10 
Sec. 3. Definition of Term. - For purposes of this Act, placement fee shall refer
11 
to the amount charged by a Private Recruitment and Placement Agency (PRPA) or any
12 
person from a recruit as payment for placement services which shall not exceed the
13 
equivalent of one (1) month salary of the job for which an OFW has been recruited.
14 
Sec. 4. Prohibited Acts. - The following acts committed by any person involving
15 
and relating to the imposition of placement fees against OFWs, are hereby prohibited:
16 
a) Collecting placement fee above the legitimate placement fee fixed and
17 
determined by the Philippine Overseas Employment Agency (POEA) without
18 
prejudice to Section 5 hereof;
1


1 
b) Collecting placement fee in advance of the job's availability overseas;
2 
c) Not issuing the appropriate receipts for any placement fee collected;
3 
d) Not returning any placement fee collected when deployment does not
4 
materialize;
5 
e) Forcing an OFW to issue post-dated checks to guarantee payment of any
6 
placement fee; and
7 
f) Forcing an OFW to borrow money only from designated persons or lending
8 
institutions.
9 
Sec. 5. Penalties. - Commission of any of the following acts in the immediately
10 
preceding Section shall be punished by six (6) years imprisonment or a fine of One
11 
hundred thousand pesos (PIOO^OOO.OO) to Five hundred thousand pesos
12 
(P500,000.00), or both, at the discretion of the court.
13 
The penalties herein provided shall be treated as separate and distinct from
14 
any liability arising from the same punishable acts in Section 4 hereof.
15 
If any of the acts in Section 4 is committed by a corporation, its officers and
16 
directors shall be made liable in the same manner as the employee or person related
17 
in any capacity to the corporation who actually committed the same.
18 
Moreover, if any of the acts is committed by a licensed recruitment agency, its
19 
agent or representative, such agency's license shall be automatically revoked with
20 
finality and no longer eligible for reinstatement.
21 
Sec. 6. Implementing Rules and Regulations. - The POEA is hereby mandated
22 
to promulgate the schedule of placement fees abroad together with the implementing
23 
rules and regulations within thirty (30) days from the effectivity of this Act.
24 
Sec. 7. Separability Clause. - If any provision or part hereof is held invalid or
25 
unconstitutional, the remainder of the law or the provision not otherwise affected shall
26 
remain valid and subsisting.
27 
Sec. 8. Repealing Clause. - All laws, presidential decrees, executive orders,
28 
proclamations and/or administrative regulations which are inconsistent with the
29 
provisions of this Act are hereby amended, modified, superseded or repealed
30 
accordingly.


1 
Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days from its
2 
publication in the Official Gazette or at least three (3) newspapers of general
3 
circulation.
Approved,