Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 3658

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

There are approximately Ten (10) million Overseas Filipino Workers
(OFWs). This huge number translates to substantial remittances to the country
which in turn translate to economic growth. Considering that OFWs greatly
contribute to the nation’s economic development, this Bill is intended to
encourage OFWs to contribute to a sovereign fund which will be beneficial to
both OFWs and the government.

‘The OFW Sovereign Fund is intended to provide a safe alternative for OFWs
and their immediate family members in investing their hard-earned income to
be used for significantly urgent national government and private projects with
strong emphasis on productive and job-generating industrial or agricultural
projects. Through the OFW Sovereign Fund, the government is able to provide
an avenue for OFWs to better utilize their monies while simultaneously
contributing to the creation of programs and plans that are of national
importance. In view of the foregoing, the passage of this Bill is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 3§58

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT CREATING THE OVERSEAS FILIPINO WORKERS (OFW)
SOVEREIGN FUND

Be it enacted in 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 “Overseas Filipino
Workers (OFWs) Sovereign Fund Act of 2025”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of
the State to create a system that will help generate revenue in order to improve
and create programs which shall be beneficial to its contributors as well as the
government.

SECTION 3. Investment Program. - The Bureau of the Treasury shall
create a program specifically designed to encourage all OFWs, their immediate
family members and other Filipino citizens overseas, to invest their monies or
remittances with the government, defining guidelines therefor, including the
minimum amount acceptable for investment, terms of the investment and
interest rates therefor.

SECTION 4. Overseas Filipino Workers as Investors. - This Act shall
cover all current and former OFWs and their immediate family members. If the
OFW is unmarried, this Act shall also cover their siblings. Other Filipinos
overseas are also covered by this Act as long as they remain citizens of the
Philippines during their participation in the investment program.

SECTION 5. Proof of Identification and Prohibitions thereon. - Those
under the coverage of this Act as defined in Section 4 hereof shall be required to


show proof of their identity as such through their Overseas Employment
Certificates (OECs), birth certificates, marriage contracts, proof of Filipino
citizenship and other verifiable authentic documents. The use of dummies by
persons, corporations or other entities who are otherwise unqualified to be
investors under this Act, in order to avail the benefits of this program shall be
punished according to existing laws.

SECTION 6. Creation of OFW Sovereign Fund. - For the purpose of
proper monitoring of the investments made by OFWs and its use, the Bureau of
the Treasury shall create a separate special fund to be referred to as the OFW
Sovereign Fund, where all investments made by all OFWs, their immediate family
members and other Filipino citizens overseas, under the program herein created
shall be initially lodged, until it is utilized by the government for its select key
projects.

The proceeds of all the investments lodged in the OFW Sovereign Fund
shall be used solely by the national government to finance significantly urgent
national government and private projects with strong emphasis on productive
and job-generating industrial or agricultural projects, as may be directed by the
President. The significantly urgent national government projects referred to
herein shall include the purchase or establishment by the government of strong
cash-generating private corporations or government-owned and controlled
corporations, respectively, in enterprises related to the downstream petroleum
industry, electric power generation, transmission and distribution industry,
information and communications technology industry, and other enterprises
that shall dissuade the government away from heavy reliance on taxes and fees
as its main source of revenues.

The infrastructure and government offices to be built through the income
generated for such funds can be supplemented by other funds of the government.

No amount from the OFW Sovereign Fund shall be released for current
needs of government like personal services, maintenance and other operating
expenses nor for any capital outlay inconsistent with the aforementioned
projects.

The Bureau of the Treasury, shall, in coordination with the Department of
Budget and Management and the Commission on Audit, make an accounting of
all the receipts and disbursements from the OFW Sovereign Fund. It shall
prepare an annual report to be submitted to the Senate and the House of
Representatives not later the 30th of April of the succeeding year.

SECTION 7. Tax Exemption of Interest Income and other Earning
from Investment in the OFW Sovereign Fund. - The earnings of OFWs and
former OFWs, their immediate family members and their siblings, if unmarried,
and other Filipino citizens overseas, from their investments in the bonds or other


debt or investment instruments that the government shall issue in the
implementation of this Act, shall be exempted from any and all kinds of taxes.

SECTION 8. Strong Information Drive. - To ensure the success of this
Act, the Bureau of the Treasury is directed to regularly adopt a strong
information drive, with assistance from relevant agencies of government it may
deem appropriate, that shall help notify and educate all OFWs about the
program, the creation and purpose of the OFW Sovereign Fund and how
investment in the fund will be mutually-beneficial to the OFW and the
government.

SECTION 9. Implementing Rule and Regulations. - The Treasurer of
the Philippines, in consultation with other concerned government agencies,
including the House Committee on Overseas Workers Affairs and the Senate
Committee on Labor, Employment and Human Resources Development shall,
within ninety (90) days from the effectivity of this Act, promulgate such rules and
regulations necessary to implement this Act.

SECTION 10. Separability Clause. - If any provision of this Act is
declared unconstitutional or otherwise invalid, the validity of the other
provisions shall not be affected thereby.

SECTION 11. Repealing Clause. - All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette newspaper of general circulation.

Approved,