TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1141
,(.Offirr of li.c
25 AUG-7 P4 38
RKEiVED BV:
Introduced by Senator JV Ejercito
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS 
FILIPINO WORKERS
EXPLANATORY NOTE
Overseas Filipino Workers (OFWs) are considered the nation's economic heroes 
for boosting the local economy, especially through remittances, which represent 
around 10% of the Philippine Gross Domestic Product (GDP).1 From the 2.16 million 
Filipinos who worked abroad from April to September 2023, the total remittances 
reached 238.63 billion pesos.2
Aside from sustaining their families, OFWs also invest in family start-ups and 
other businesses to grow their finances and gradually build their financial security once 
they retire and return home. These businesses not only provide extra income for their 
families but also open job opportunities.
However, the loved ones left behind are the cost of pursuing better salaries in 
foreign countries. Every day, OFWs face challenges of isolation, cultural differences, 
exhaustion, and, despite all the hard work — financial distress.
1 Albert, Jose Ramon G. et al. (2023). Long-Term Effects of Labor Migration in the Philippines: "Napakasakit,
Kuya Eddie!", PIDS Discussion Paper Series, No. 2023-17, Philippine Institute for Development Studies 
(PIDS), Quezon City
2 2023 Overseas Filipino Workers (Final Results). Philippine Statistics Authority. (2024, September 13).
https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos


The tedious application process to become an OFW requires effort and 
resources. On top of submitting requirements and finding a legitimate recruitment 
agency, thousands of pesos should also be allotted for fees and payments. Prior to 
approval, a fortune has already been spent out of their pockets.
Hence, OFWs tend to have financial troubles even before starting to work. 
While settling their financial circumstances, they need to secure living expenses and 
are sometimes expected to provide money for their families immediately. This 
experience is more difficult, as they are also adapting to the economic demands of 
the foreign country.
Furthermore, this bill proposes to allow qualified OFWs to avail of not more 
than Fifty Thousand Pesos (Php 50,000) worth of loan from the Overseas Worker and 
Welfare Administration (OWWA). This amount shall cover expenses for their 
recruitment process, other expenses, including air transportation and placement fees, 
and their families' living expenses during the first three (3) months of absence.
The sacrifices of our "bagong bayani"ha\je fed families, paid tuition fees, built 
homes, and filled balikbayan boxes. In support of our migrant workers, this measure 
seeks to offer an option to alleviate their financial difficulties.
In view of the foregoing, the passage of this legislation is earnestly sought.
JV EJERCITO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1141
'Of..:-!’ Oc li '
25 AUG-7 P4 38
ft
RliCtiVcu o,:
Introduced by Senator JV Ejercito
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS 
FILIPINO WORKERS
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -This Act shall be known as the "Overseas Filipino Workers
2 
Credit Assistance Act of 2025."
3 
Sec. 2. Declaration of Policy. - Consistent with the State policy that the State
4 
affirms labor as a primary economic force and that it shall protect the rights of workers
5 
and promote their welfare. It is hereby declared that the government and its
6 
instrumentalities must promote and carry out programs geared towards advancing the
7 
interest of the Overseas Filipino Workers (OFWs) by providing them access to credit
8 
facilities even before their departure and/or deployment.
9 
Sec. 3. Loans. - An overseas contract worker with a valid employment contract
10 
as certified by the Philippine Overseas Employment Administration (POEA) may avail
11 
of a loan of not more than Fifty Thousand Pesos (Php 50,000.00) from the Overseas
12 
Worker and Welfare Administration (OWWA) to defray the living expenses of his family
13 
during the first three (3) months of absence as well as recruitment expenses including
14 
placement fees, documentation costs and plane tickets. Provided, That any one of the
15 
members of his family not otherwise disqualified by law shall participate in the loan
16 
as co-borrower and execute necessary documentation to that effect. Provided, further,
17 
That the loan shall be granted and released by the OWWA upon proper submission of


1 
the following documents, duly certified to in writing by the recruitment agency with
2 
corresponding authentication and properly certified/verified by the POEA:
3 
a. Employment Contract;
4 
b. Plane ticket; and
5 
c. Bank account.
6 
Sec. 4. Establishment of Bank Account. - Overseas workers availing of the credit
7 
assistance under this Act shall open a bank account in which payments for the loan
8 
shall be made.
9 
Sec. 5. Payment of Loan. - The loan shall be paid in twelve (12) equal monthly
10 
installments or more but not exceeding twenty-four (24) months at a preferred
11 
interest rate not to exceed six percent (6%) per annum through the bank account to
12 
be established under the immediately preceding Section. For the purpose, the
13 
applicant shall execute the necessary authority for the bank to withhold the monthly
14 
loan amortization from his remittances.
15 
Sec. 6. Implementing Rules and Regulations (IRR). - The OWWA, in consultation
16 
with organized labor groups and the relevant sectors, shall issue rules and regulations
17 
for the effective implementation of this Act. The IRR shall include provisions that will
18 
address non-payment of loans provided under this Act and the corresponding penalties
19 
that may be imposed, collection and administration of loans, and other issues of
20 
significance relevant to this Act.
21 
Sec. 7. Appropriation. - The amount needed to implement the provisions of this
22 
Act shall be appropriated out of the Overseas Workers Welfare Fund.
23 
Sec. 8. Repealing Clause. - Any other provisions of law or rules and regulations
24 
inconsistent to the provisions of this Act are hereby repealed, amended, or modified
25 
accordingly.
26 
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
27 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,