Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTII CONGRESS
Second Rf gular Sesston
HouseBi||No.9562
INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO,
]OCELYN P. TULFO, ERWIN T. TULFO, EDVIC G. YAP, AND ERIC G0 YAP
AN ACT ENIIANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO
WORKERS, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Financial illiteracy is one of the perennial problems of Filipinos that leads to
improper money management and financial endeavors. Recent reports show that the
Philippines is ranked 30 out of 144 countries in terms of financial literacy.1
The Bangko Sentral ng Pilipirms reports that,  in May 2023, 2.78 billion US
dollars had been remitted by Overseas Filipinos, both land-based and sea-based.2 This
demonstrates that Overseas Filipino Workers (OFWs) have always been crucial to
nation-building and strengthening the Philippine economy, mainly through their
renrittances.
The Philippine Statistics Authority reports that 2.3 million OFWs made cash
remittances amounting to 8.9% of the country's gross domestic product in 2022.3 In
view of the large amount Of money being sent by OFWs back home, it becomes
imperative for the State to aid them in developing their financial literacy and equip
them with the necessary skills to manage their money. This is in line with its mandate
provided in Article 11, Section 18 of the 1987 Constitution, to wit:
``Seetion 18. The State affirms labor as a primary social economic
force. It shall protest the rights of workers and promote their welfare."
1 Crismundo, Kris . "BSP Bridges Financial Literacy Gap among Filipinos." Pfu./1.pi„.me Ncaps AgrHay,
Philippine News Agency, 21 July 2023, www.pna.gov.ph/articles/1206091. Accessed 20 Sept. 2023.
2 "Bangko Sentral Ng Pilipinas Media and Research." l^fat7@tJ.bay.gozJ.pfa,
www.bsp.gov.ph/Sitepages/MediaAndResearch/MediaDisp.aspx?Itemld=6793#:~:fexF%E2%80%8
Bpersonal%20remittances%20from%200verseas.
3 Rivas, Ralf. "OFW Remittances Hit New High in 2022 amid Surging Inflation." RAPPL£R, 15 Feb,
2023, www. rappler.com/ business/ ofw-remittances-januaryrdecember-2022/ . Accessed 22 Sept. 2023.


Financial literacy involves the knowledge of appropriate spending, saving, and
budgeting of financial resources. A study entitled ``Effeets of Financial Literacy on the
Remittance Behavior of Filipino EPS Workers in South Korea" shows that those who
have undergone Financial Literacy Education were able to reduce remittance-sending
costs and to channel remittance spending to productive investhents, including higher
savings.4 This proves that, with proper orientation and training in managing financial
resources, OFWs can be more financially intelligent and efficient.
This bin mandates free and consistent financial literacy training seminars for
OFWs. Specifically, a He-Departure Chientation Seminar and a series of Post-Arrival
Training Seminars will be administered with the help Of the Department of Finance
(DOF), Department of Migrant Workers (DMW), and the Overseas Workers Welfare
Administration (OWWA) as part of the OFWs' financial management education.
ERIC GO Yap
ACT-CI S Partytist
Representative
Lone Di.strict Of Benguet
4 BANAGUI, Leah 8. ``Effects of Financial Literary on the Remittance Behavior of Fhipino EPS Workers
in South Korea." £tofro.ac.tr, Feb. 2019, https:/ / dspace.ewha.ac.kr/handle/2015.oak/ 248835.
2


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Marula
NINErEm`ITII coNGREss
Second Reguidr Session
HouseBfl|No.9562
INTRODUCED BY REPRESENTATIVES RAI,PH VVENDEL P. TULFO,
]OCELYN P. TULFO, ERVIN T. TULFO, EDVIC G. YAP, AND ERIC GO YAP
AN ACT ENHANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO
WORKERS, AND FOR OTHER PURPOSES
Be it er.ac.ted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
9          SEerl0N 1. Sftorf Ti.fke. -This Act shall be known as the "OFWs Financial Literacy
10      EnhancementAct".
11
12           SEC.  2.  Decharflfro#  a/ PoJf.ey.  -The  State  shall  have  the  continuous  duty  to
13      acknowledge the valuable contributions of overseas rmpino workers (OFWs), land-
14      based   or  sea-based,   to  the  national   economy  through  their  foreign  exchange
15      remittances. With that being said, the state sham take appropriate measures to ensure
16     0FWs' financial and economic weu-being by enhancing their firuncial literacy through
17      education and proper training that will provide them with the necessary skins to protect
18      all matters regarding their assets and liabilities such as their resources, investments,
19      debts, credits, and other financial transactions.
20
21          SBC. 3. Mandatory Financial Literacy Training seminar. -A110FWs shall ulergo
22      mandatory financial literacy training seminars which sha]] become an integral part of
23      the  Pre-Departure  Chientation  Seminar  0?DOS).  Moreover,  Post-Arrival  Training
24      Seminars a?ATS) on financial literacy shall likewise be required of OFWS within a
25      reasonable tine upon their arrival in a country of destination on their first employment
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26     contract or those who transfer from one place of work to another without stopping by
27      thephhippines.
28
29          SEC. 4. Pflrfu.ci.pef!.#g Agencies. -The mandatory financial fiteracy training senins
30      shall be primarily conducted by the Department of Firrmce (DOF), as the lead agency,
31      in  coordination  with  the  Department  of  Migrant  Workers  (DMW),  the  Civerseas
32     Workers welfare Administration (OWWA), and accredited pDOs providers across the
33      country, including the embassies or consulates, whichever may be available, if done in
34      the country of destination.
35
36          As the lead agency, roF is tasked to formulate training modules on financial literacy;
37      initiate and conduct training programs on financial management and responsibility,.
38      apprise OFWs on financial opportunities and its pitfalls among others; errsure the
39      accessibility of qualified online financial and economic advisers and/or cotusenors;
4o     and disseminate knowledgeexpanding activities that promote fimncial literacy among
41      0FWs and their dependents.
42
43          SEC. 5. Free Finneial Literary Training progrums. -Trairing programs ndertaken
44      under this Act shall be free of charge.
45
46          The  roF,  with  the  OWWA,  shall  educate  OFWs  on  the  budgets  and  actual
47      expenditures of government institutions, provide credit information on micro- and
48      small-scale enterprises to prospective lenders, and prioritize the lieus on real estate and
49      movable collaterals used to secure loans. Financial literacy should include education on
50      financial products aike stCh=ks, bonds, insurance, and mutual funds) available in the
51      market.
52
53           SEC. 6. Pc#flz prorJisi.ous. -Any person or corporation who shall defraud an OFW
54     by any of the means mentioned in Article 315 of the Revind Perul Code shall be
55      considered as qualified estafa and will carry a penalty as provided therein.
56
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SEC 7. Implementing Rules and Regulations. ~ Within rinety (90| days from the
approvalOfthisAct,theSecretaryoftheDOF,incousultationwiththeSecretaryOfthe
DepartmentofI.aborandEmployment(COLE)andtheAdministratorOfOWWA,shall
promulgatethenecessaryrulesandregulatiousfortheeifectiveimplementationofthis
Act.
SEC. 8. Squ¢flfl[be.JI.ty ChauscL - If any provision of this Act is held uncoustitutional or
invalid, the remaining provisions that are not affected thereby shall continue to be in
full force and effect.
SEC. 9. Reycozt.#g Chause  - All other laws, decrees, executive orders, rules and
regulations, and other issuances, or parts thereof, contrary to or inconsistent with this
Act, are hereby modified, amended, or repealed accordingly.
SEC. 10. £#ech.I".ty. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
Approved,
5