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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL14 P4:19
SENATE
rr o o
S. No.
RECEIV j
Introduced by Senator MARK A. VILLAR
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS
FILIPINO WORKERS
EXPLANATORY NOTE
We can never surmise the immense importance of Overseas Filipino Workers 
(OFWs) to our country. They are modern-day heroes who contribute to the economic 
development of the country, all the while being outside of its geographic borders. To 
this day, OFWs have been continuously seeking opportunities outside of the 
Philippines to provide for their families, carrying the hopes for a better future for their 
loved ones as they traverse unfamiliar territories.
In recent data, there are estimated 2.16 million OFWs working across different 
parts of the globe in 2023. These OFWs have sent remittances totaling 239 billion 
pesos in the said year alone. During the period of April to September 2023, the average 
remittance sent by every OFW was Php 123 thousand which is higher than the average 
remittance of Php 111,000.00 sent during the same period in 2022.
In 2024, OFW remittance accounted for a significant portion of the Philippine 
economy, representing 8.3% of the Gross Domestic Product (GDP) and 7.4% of the 
Gross National Income (GNI).
This pattern of growth signifies that OFWs will continuously play a substantial 
role in the country's economic development.
In recognition of their valuable contribution, and with the aim to augment 
financial support to their hard work, this bill proposes the creation of a credit 
assistance program for OFWs.


Under this proposal, a prospective OFW with a valid employment may avail of 
a loan of not more than Php 50,000 from the Overseas Worker and Welfare 
Administration (OWWA), to defray the living expenses of his family during the first few 
months of absence, as well as other expenses incurred during the pre-employment 
period.
Therefore, urgent approval of this bill is earnestly sought.
MARK A. VILLAR wO


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
S. No. nHP
of I i. i-:
25 JUL 14 P4:19
RECEIVjJbV.
Introduced by Senator MARK A. VILLAR
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS
FILIPINO WORKERS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Overseas Filipino 
Workers Credit Assistance Act of2025."
Sec 2. Declaration of Policies. - Consistent with the State policy that the State 
affirms labor as a primary economic force and that it shall protect the rights of workers 
and promote their welfare, It is hereby declared that the government and its 
Instrumentalities must promote and carry out programs geared towards advancing 
the interest of the Overseas Filipino Workers (OFWs) by providing them access to 
credit facilities even before their departure.
Sec 3. Loans. - An overseas contract worker with a valid employment contract 
as certified by the Philippine Overseas Employment Administration (POEA) may avail 
of a loan of not more than Fifty Thousand Pesos (P50,000.00) from the Overseas 
Worker and Welfare Administration (OWWA), to defray the living expenses of his 
family during the first three months of absence, as well as recruitment expenses, 
including piacement fees, documentation costs, and plane tickets.
Provided, that anyone of the members of his family not otherwise disqualified 
by law shall participate in the loan as co-borrower, and execute necessary 
documentation to that effect. Provided, further, that the loan shall be granted and 
released by the OWWA upon proper submission of the following documents, duly


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certified to in writing by the recruitment agency with corresponding authentication
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and properly certified/verified by the POEA:
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3.1. Employment Contract;
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3.2. Plane ticket; and
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3.3. Bank account.
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Sec 4. Establishment of Bank Account - Overseas workers availing credit
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assistance under this Act shall open a bank account in which payments for the loan
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shall be made.
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Sec 5. Payment of Loan. -The loan shall be paid in twelve (12) equal monthly
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installments or more but not exceeding twenty-four (24) months at a preferred interest
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rate not to exceed six percent (6%) per annum through the bank account to be
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established under the immediately preceding Section. For the purpose, the applicant
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shall execute the necessary authority for the bank to withhold the monthly loan
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amortization from his remittances.
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Sec 6. Implementing Rules and Regulations. -The OWWA, In consultation with
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organized labor groups and the relevant sectors, shall issue Implementing Rules and
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Regulations (IRR) for the effective implementation of this Act, within ninety (90) days
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after its effectivity. The IRR shall include provisions that will address non-payment of
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loans provided under this Act and the corresponding penalties that may be imposed,
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collection and administration of loans, and other issues of significance relevant to this
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Act.
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Sec 7. Appropriations. - The amount necessary to implement the provisions of
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this Act shall be appropriated out of the Overseas Workers Welfare Fund.
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Sec 8. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in force and effect.
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Sec 9. Repealing Clause. - Any law, presidential decree or issuance, executive
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order, letter of instruction, rule or regulation inconsistent with the provisions of this
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Act is hereby repealed or modified accordingly.
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Sec 10. Effectivity. - This Act shall take effect fifteen (15) days following its
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complete publication in a newspaper of general circulation.
Approved,