SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES
H.B.No.__ 3197

INTRODUCED BY HONORABLE MARK A. VILLAR

EXPLANATORY NOTE

Overseas Filipino Workers are not only called modern-day heroes,
they contribute immensely to the economic development of the country.
According to World Bank report in 2012, their remittances have reached
at around $24 Billion per year.

The number of overseas Filipino workers (OF W) being deployed to
other countries has been constantly increasing for the past 3 decades,
as per Country Migration Report of the International Organization for
Migration (1OM).

In 1975, 36,035 Filipinos left the country to work abroad. A decade
later in 1985, the numbers were already at 372,784 — more than 10
times the 1975 figures. In 2012, the Philippines deployed a total of
1,802,031 workers.

Deployment data from the Philippine Overseas Employment
Administration (POEA) showed that the occupational distribution has
diversified throughout the years, although most OFWs still opt to become
domestic workers. The following data show the number of deployed
newly-hired, land-based workers by major occupational category in
2012, to wit: (1) Service workers (Domestic workers) - 222,260; (2)
Production workers (factories) - 146,448; (3) Professional and technical
workers (Dancers, singers, nurses) - 54,617; (4) Clerical workers -
13,893; (5) Sales workers - 9,346; (6) Administrative and managerial -
3,241; (7) Agricultural workers - 1,563.'

' htto://www.rappler.com/nation/32361-ph-migration-report-ofws


The study also showed that the Middle Eastern countries remain
the primary destinations for over 67% of OFWs. The Kingdom of Saudi
Arabia remained as the top destination for many workers. Data revealed
that 70% of OFWs go to the top 5 destination countries. The percentage
of OFWs in the 5 countries in 2012 are as follows: (1) Saudi Arabia -
24.4%; (2) United Arab Emirates - 18.8%; (3) Singapore - 10.2%; (4)
Hong Kong, China - 7.9%; (5) Qatar - 7.8%.”

The report also showed that the number of seafarers increased by
75% in the past 10 years. Filipinos constitute 20-25% of all international
seafaring crews.”

In recognition of their valuable contribution, this bill creating an
OFWs credit assistance program is proposed. 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.

LA___

MARK A. VILLAR

* Ibid
ia


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

HOUSE BILL NO.

INTRODUCED BY HONORABLE MARK A. VILLAR

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR
OVERSEAS FILIPINO WORKERS

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 "Overseas Filipino Workers
Credit Assistance Act of 2013."

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) by providing them access to
credit facilities even before their departure.

SECTION 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 placement fees, documentation costs and plane tickets. Provided, that
anyone
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 OWW A 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:

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

SECTION 4. Establishment of Bank Account - Overseas workers availing of
the credit assistance under this Act shall open a bank account in which payments for
the loan shall be made.

SECTION 5. 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 6. 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 non-
payment 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 7. Appropriation - The amount needed to implement the provisions
of
this Act shall be appropriated out of the Overseas Workers Welfare Fund.

SECTION 8. 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 9. 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, whichever comes earlier.

Approved,