Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Second Regular Session

House Bill 8846

Introduced by Representative Camille A. Villar

AN ACT
CREATING AN ASSISTANCE AND LIVELIHOOD PROGRAM FOR RETURNING
OVERSEAS FILIPINO WORKERS (OFWs), MAKING THEM PART OF THE
COVERAGE OF SMALL BUSINESS CORPORATION AND FOR OTHER
PURPOSES

Explanatory Note

Overseas Filipino Workers (OFWs) have time and again been referred to and honored
as our modem day heroes. This is because OFWs provide huge amount of money to the
economy in the form of remittance.

The Philippines has one of the largest diasporas in the world. There is an estimated 10
ion Filipinos abroad, roughly a tenth of the country’s population, working for the promise
of higher wages and better opportunities for themselves and for their families back home. In
2019, remittances from OFWs reached a record high of $ 33.9, equivalent to about 10 percent
of the country’s gross domestic product (GDP).

The situation has changed because of the pandemic. It resulted in unemployment, loss
of opportunities and income, and hardships to the Filipino family especially those who are
dependent or those whose breadwinners are working abroad.

Since the onset of the coronavirus disease 2019 or COVID-19 pandemic, many
overseas Filipino workers (OFW) have been left with no choice but to return to the country
after losing their jobs abroad temporarily or permanently.

As of October 2020, over 230,000 OFWs have been repatriated since the pandemic
began representing about one-tenth of workers overseas. The Department of Labor and
Employment (DOLE) indicated that there is a substantial number to be still repatriated.

Considering that these OFWs have no more jobs to return to or it may take a while to
find new work abroad, the Department of Labor and Employment (DOLE) and other
concerned government agencies have been preparing alternative sources of livelihood for
them, The National Reintegration Center for OFWs (NRCO) is implementing reintegration
and livelihood programs for both documented and undocumented OFWs.


Accordingly, the NRCO has a P30-million budget for the implementation of the
livelihood programs for undocumented OFWs this year.

The credit facilities envisioned under this legislation is expansive. Under this bill, a
prospective OFW who has a valid contract as certified by the Philippine Overseas Employment
Administration (POEA) may avail of a fifty thousand peso loan from the Overseas Worker
Welfare Administration to defray the living expenses of his family during the first few months
of his absence as well as other expenses incurred during his pre-employment.

In view of the foregoing, the approval of this bill is earnestly sought.

Wan
ILLE A. VILLAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

House Bill 8846

Introduced by Representative Camille Villar

AN ACT
CREATING AN ASSISTANCE AND LIVELIHOOD PROGRAM FOR RETURNING
OVERSEAS FILIPINO WORKERS (OFWs), MAKING THEM PART OF THE
COVERAGE OF SMALL BUSINESS CORPORATION 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. Title - This Act shall be known as the "Tulong Sa Bayaning OFW Act
of 2021”

SECTION 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) and their return to the country because of loss of employment and other
opportunities abroad as a result of the pandemic by providing them access to find facilities, re-
tooling and reacquisition of news kills as they re-connect and re-established home and family
in the country.

SECTION 3. There is hereby created a Program of Assistance for Returning Overseas
Filipino Workers - 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 placement fees, documentation
costs and plane tickets. Provided, that any one of the member 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 certified to in writing
by the recruitment agency with corresponding authentication and properly certified/verified by
the POEA.

3.1. Employment Contract
3.2. Plane ticket; and
3.3. Bank account


SECTION 4. On top of the available and existing loan programs for Overseas Filipino
Workers, the Small Business Corporation as created in Republic Act 6977, as amended, is
mandated to create a loan program and window for the OFWs. Their program shall include
but not limited to reintergration, skill acquisition and re-skilling, providing financial assistance
and credit program, training and retraining, business mentoring, among others.

SECTION 5. Establishment of Bank Account - Overseas workers availing of the
released and credited, and where monthly remittances of salaries and wages abroad payments
on the loan shall be made. It shall be the obligation of the overseas worker-borrower to remit
his earnings abroad only I through the said bank account.

SECTION 6. Payment of Loan - The loan shall be paid in twelve (12) equal monthly
installments or more but not exceeding twenty four (24) months at a preferred interest rate not
to exceed six percent (6%) per annum through the bank account to be established under the
immediately preceding Section. For the purpose, the applicant shall execute the necessary
authority for the bank to withhold the monthly loan amortization from his remittances.

SECTION 7. Implementing Rules - The OWWA, in consultation with organized labor
groups and the relevant sectors, shall issue rules and regulations for the effective
implementation of this Act. The IRR shall include provisions that will address nonpayment of
loans provided under this Act and the corresponding penalties that may be imposed, collection
and administration of loans, and other issues of significance relevant to this Act.

SECTION 8. Appropriation - The amount needed to implement the provisions of this
Act shall be appropriated out of the Overseas Welfare Fund and the available funds of Small
Business Corporation.

SECTION 9. Repealing Clause. - Any other provisions of law or rules and regulations
inconsistent to the provisions of this Act are hereby repealed, amended or modified
accordingly.

SECTION 10. Effectivity - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers general circulation.

Approved,