•. .''' 
' 
SIXTEENTH CONGRESS OF THE 
REI'UBLIC OF THE PHIlLIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
721 
S. No. __ -"-'---'--_ 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
~. 
:.i;r e"n ;_~ t t~ 
'13 
JUL 1 
U~ 
1\1' 
~('2 
n!:J - J_ 
The Constitntion mandates under Section 3 Altic1e XIII on Labor, that "The State shall 
afford full protection to labor, local and overseas, organized and unorganized, and promote full 
employment and equality of employment opportunities for all." 
Securing employment abroad is a widely adopted response to the lack of employment and 
livelihood opportunities in the country. Filipinos brave the separation from family and country, 
among other social costs, for thc economic benefits that working abroad engenders. The 
Philippines has become a major source of migrant labor as professionals, highly-skilled, skilled 
and domestic workers. 
Last year, the 1.12 million land-based and 297,000 sea-based Overseas Filipino Workers 
remitted $12 Band $3.6 B, respectively. They are mostly Household Service Workers, 
Professional Nurses, Bartenders & Waiters, Cleaners, Electrical Wiremen, Caregivers & 
Caretakers, Laborers & General Helpers, Plumbers & Pipe Fitters, Welders & Flame Cutters, 
Housekeeping & Related Services Workers. 
Unfortunately, illegal recruiters and human trafficking syndkates continue to dupe more 
Filipinos and send their victims to situations of distress abroad. In many of these instances, the 
National Government nsed funds entrusted to the OWW A by documented OFWs for activities 
benefiting Filipinos other than the contributors themselves. Thus, a clamor tor a Charter of the 
OWW A gained wide support in order to secure the OWW A Fund for their future. 
According to OFW organizations, the OWW A should be mandated to address OFW 
concerns such as the following: lack of pension plan, lack of savings and investment plans, 
continuing economic dependency of families on the OFW s, lack of reintegration plans and 
increasing social cost on the families of OFWs. They decry the absence of consistent policies on 
the use of the funds being administered by the OWWA that come from their contributions. 
This Bill seeks to provide a Charter to govern the operations of the OWW A, establishes 
clear membership registration and bencfits, creates the OWW A Board of Trustees as the policy-
making body for migrant workers affairs, creatcs the OWW A Fund as a private Fund to be held 
in trust by the OWWA, and, grants benefits ancl services to mcmber-OFWs, as follows: 1) 
Reintegration; 2) Repatriation Assistance; 3) Loan and Credit Assistance; 4) Workers' 
Assistance and On-Site Services; 5) Social Benefits -
Death, Disability and Health Care 
Benefits; and 6) Educational and Training Benefits. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC 011 THE PIIILU'PINES 
First Regular Session 
) 
) 
) 
SENATE 
I' 
S. No. 
721 
Introduced by Senator Ralph G. Recto 
AN ACT 
'13 
,IUl 10 
'\"[1 '(12 
l i __ '\' 
TO GOVERN THE OPERATIONS AND ADMINISTRATION OF THE OVERSEAS 
WORKERS WELFARE ADMINISTRATION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
CHAPTER I 
2 
TITLE AND POLICY 
3 
SECTION 1. Short Title. - This Act shall be known as the "OWWA Act of2.013". 
4 
Sec. 2. Declaration of Policy. - It is the policy of the State to afford full 
5 
protection to labor, local and overseas, organized and unorganized, and promote full 
6 
employment opportunities for all. Towards this end, it shall be the State's responsibility 
7 
to protect the overseas Filipino workers (OFWs). The Overseas Workers Welfare 
8 
Administration (OWW A) shall be one of the plincipal agencies of the State to serve and 
9 
promote the interest and welfare ofthe OFWs and their families. 
10 
CHAPTER II 
11 
NATURE, SCOPE AND FUNCTIONS OF OWW A 
12 
Sec. 3. Nature of OWWA. - The OWW A is a national government agency vested with a 
13 
special function of developing and implementing welfare programs and services that respond to 
14 
the needs of its memher-OFWs and their families. It shall have the powers to administer a trust 
15 
fund. Being a national government agency, the OWW A shall not fall nnder the category of any 
16 
of thc following: Government Instrumentalities with Corporate Powers, Govemment Corporate 
17 
Entities, Government Financial Institutions, Government-Owned Or -Controlled Entities, 
18 
Government Financial Institutions and/or Government-Owned Or -Controlled Corporations. 
19 
The OWW A shall be an attached agency of thc Department of Labor and Employment 
20 
(DOLE). Its officials and cmployees are covered by the Salary Standardization Law. 
21 
Sec. 4. Scope. - This Act shall apply to all OFWs who are duly registered with the 
22 
Philippine Overseas Employment Administration (l'OEA) and those who will avail of the 
23 
voluntary membership program of OWW A. 
24 
Sec. 5. Functions. - The main functions ofOWWA are: 
Page 1 of 18 


1 
a) To protect the interest and promote the welfare of member-OFWs in all phases of 
2 
overseas employment in recognition of their valuable contribution to the overall 
3 
development effort; 
4 
b) To facilitate thc implementation of the provisions of the Labor Code and Republic Act 
5 
No. 8042 as amended, concerning the responsibility of the government to promote the 
6 
well-being of OFWs. Pursuant thereto, and in furtherance thereof, it shall provide legal 
7 
assistance to its members; 
8 
c) To provide social and welfare programs and services to member-OrWs, including but 
9 
not limited to, social assistance, education and training, cultural services, financial 
10 
management, reintegration and entrepreneurial development services; 
11 
d) To provide prompt and appropriate response to global emergency or crisis situations 
12 
affecting OFWs; 
13 
e) To ensure the efficiency of collections and the viability and sllstainability of the Trust 
14 
Fund created herein through sound, judicious and transparent investment and 
15 
management policies; 
16 
t) To undertake studies and research for the enhancement of social, economic and cultural 
17 
well-being ofmember-OFWs; and 
18 
g) To develop, support and finance specific projects for the welfare ofmember-OFWs. 
19 
CHAPTER III 
20 
DEFINITIONS 
21 
Sec. 6. Definition of Terms. - For purposes of this Act, the following terms shall mean: 
22 
a) Overseas Filipino Worker (OFW) - refers to a person who is to be engaged, IS 
23 
engaged, or has been engaged in a renumerated activity in a State of which he or she 
24 
is not a citizen or on board a vessel navigating the foreign seas other than a 
25 
government ship used for military or non-commercial purposes, or Oll an installation 
26 
located offshore or on the high seas; 
27 
b) Dependent - refers to any ofthe following: (a) the legal spouse dependent for support 
28 
upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child, 
29 
including the illegitimate child, who is unmarried, not gainfully employed, not over 
30 
the age of majority, or is over the age of majority but incapacitated and incapable of 
31 
self-support due to a mental or physical disability acquired prior to age of majority; 
32 
and (c) the parents dependent upon the member for suppOli; 
33 
c) Compensation - refers to the basic payor salary received by an employee, pursuant to 
34 
his appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances 
35 
and any other emoluments received in addition to the basic pay which are not 
36 
integratcd into the basic pay under existing laws; 
Page ;1 of 18 


1 
d) Contribution or Membership Fee - refers to the amount payable to OWW A by an 
2 
OFW or the employer in accordance with the provisions of this Act; 
3 
e) OWW A Member - refers to an OFW with a paid contribution or membership fee; 
4 
f) Non-active OWW A member - refers to an OFW whose OWW A membership has 
5 
expired; 
6 
g) Non-Member OFW - refers to an undocumented OFW and who has not availed of the 
7 
voluntary membership of OWW A on-site; 
8 
h) Voluntary OWW A member - refers to an undocumented OFW who has availed of 
9 
the voluntary membership of OWW A on-site. 
10 
CHAPTER IV 
11 
MEMBERSHIP, CONTRIBUTION AND COLLECTION 
12 
Sec. 7. Registration of Membership. - Registration or enrolment of members shall be in 
13 
accordance with the provisions of this Act. Membership in OWW A may be obtained in two (2) 
14 
ways: 
15 
a) By compulsory registration upon processing of employment contracts of OFWs at the 
16 
POEA; and 
17 
b) By voluntary registration of OFW s at job-sites overseas or at the OWW A Regional 
18 
Welfare Offices. 
19 
Sec. 8. Pro(,( of Membership. - All members shall be issued Official Receipt upon 
20 
payment of the required contribution. They shall likewise be issued an OWW A E-Card, 
21 
identification card or other proof of OWW A membership. No additional or extra charges shall be 
22 
levied on members. 
23 
The OWW A is mandated to maintain a database of member-OFWs wbich shall be 
24 
updated regnlarly. 
25 
Sec. 9. Amount of Contribution and Effectivity of Membership. - Membership to the 
26 
OWW A, either through the compulsory or voluntary coverage, shall be effective upon payment 
27 
of membership contribution in the amount of Twenty-Five US Dollars (US $ 25.00) or its 
28 
equivalent in the current foreign exchange rates. Such membership shall be considered active 
29 
until the expiration of the OFW's existing employment contract. 
30 
In case of voluntary members who register on-site, membership coverage shall not 
31 
excccd two (2) years. 
32 
Based on actuarial studies and taking into consideration the welfare and interest of the 
33 
members, the Board may adjust or modify the amount of membership contribution upon 
34 
consultation with OFW organizations. 
35 
Sec. 10. Renewal of Membership . . - Membership shall he renewed upon payment of 
36 
contribution Or contract renewal or issuance of a new contract of employment. In the case of 
Page 3 of 18 


1 
voluntary membership, coverage shall be renewed upon payment of contribution of Twenty-
2 
Five Dollars (US $ 25.00) or its equivalent in the current foreign exchange rates. 
3 
In both instances, there shall be a grace period of two (2) months in the payment of 
4 
contributions, after the expiration ofmembership. 
5 
Sec. 11. Separation of Sea-based and Land-based Workers Contribution. - To effect a 
6 
more eflicient fund management between the two (2) sub-sectoral groups of Land-based and 
7 
Sea-based workers, the collection of membcrship contribution shaH be accounted for in two (2) 
8 
separate books o[ account. 
9 
Sec. 12. Authorized Collecting Officers. -
10 
a) Membership contributions shall be collected by duly authorized OWW A Collecting 
11 
Officers, deputized collecting officers or accredited agents. The collection of 
12 
membership contributions shall be made at the POEA contract processing hub, 
13 
OWW A regional and overseas offices, and other accredited collection centers. 
14 
b) In the case of voluntary members who register on-site, membership contributions 
15 
shall be made directly to OWW A Overseas Offices located in the various diplomatic 
16 
stations, embassies or consulate offices of the Philippines. 
17 
Sec. 13. Reportorial Requirements and Handling of Contributions. - The collecting 
18 
officer, the deputized collecting oUiccr , or the accredited collecting agent shall prepare and 
19 
submit the required monthly reports to the OWW A Central Office in the Philippines. Handling 
20 
of collections and deposits by Collection Officers shall be governed by the usual accounting and 
21 
auditing rules and regulations. 
22 
Sec. 14. Sanctions for Erring Officers. - Corresponding administrative sanctions and 
23 
other disciplinary measures, including but not limited to recall for post/suspension/or separation 
24 
from service, shall he imposed upon any officer who violates the provision of the preceding 
25 
section. 
26 
Sec. 15. Prohibition Against Discrimination on Membership. -- No OFW shall be denied 
27 
membership to the OWW A by reason of age, gender, nationality, religious belief, or political 
28 
opinion Of affiliatioll. The OWWA shall take affirmative steps to enhance the access ofOFWs to 
29 
its programs and services. 
30 
Sec. 16. Payment of Contribution or OWWA Fee by Employer. - Contributions to thc 
31 
OWW A Fund must be paid by the employers/principal, or in their default, the 
32 
recruitment/manning agency in the case of new-hires. The POEA shall ensure that a provision to 
33 
this effect shall be made Hn integral pat1 ofthe overseas employment contract. 
34 
Sec. 17. Penall)' for Violation by Recruitment/Manning Agency. 
~-~ Violation by a 
35 
recruitment/manning agency of the preceding section shall constitute an offense punishable by 
36 
revocation of its license and all its officers and directors shall be perpetually disqlwlified from 
37 
engaging in the business of recruitment/placement of overseas workers. Snch penalty is without 
Page 4 of 18 


1 
prejudice to any other liability that may be imposed on such officcrs and directors under existing 
2 
laws, rules and regulators. 
3 
Sec. 18. Deposit and Remittance ()fCollection. -
4 
a) OWW A Central Office and Regional Offices - the Collecting Officer shall, on a daily 
5 
basis, deposit all OWW A fec contributions to the OWWA Capital Fund Account with 
6 
the Land Bank of the Philippines. For reconciliation and record purposes, bank 
7 
validated deposit slips shall be prepared in triplicate forms to be distributed to the 1) 
8 
servicing bank, 2) OWWA together with the Report of Collections, and to the, 3) 
9 
Collecting Officer. 
10 
b) OWW A Overseas Officers - The Collecting Officer shall, on a daily basis, deposit all 
11 
OWW A fee contributions in the same currency received, to a separate bank account 
12 
for collections in the name of thc "Office of the Labor Attache -
OWW A 
13 
Collections," in the depository bank of the Department of Foreign Affairs (DFA), or 
14 
in the accredited correspondent bank of the Land Bank of the Philippines. 
15 
Accumulated monthly collections shall be remitted to the OWW A Capital Fund 
16 
Account with the Land Bank of the Philippines not later than the 5th day of the 
17 
following month. 
18 
No withdrawals except remittances of collections can be made from the hank accounts 
19 
for collections without prior written approval of the Administrator or his duly authorized 
20 
representative, subject to the policies approved by the Board. 
21 
Overseas Offices shall be authorized to retain the required amount for the beginning and 
22 
maintaining balance of the above-mentioned bank accolmts for collections. 
23 
CHAPTER V 
24 
THE OWWA BOARD OF TRUSTEES 
25 
Sec. 19. The OWWA Board of Trustees. - To carry out the purposes of this Act, the 
26 
OWW A shall be directed and controlled by a Board of Trustees as its PolicY"lllaking body. It 
27 
shall he composed of the following members: 
28 
a) Secretary ofthe Department of Labor and Employment, as Chairperson; 
29 
b) OWW A Administrator, as Vice Chairperson; 
30 
c) Secretary of the Department of Foreign Affairs; 
31 
d) Secretary ofthc Department of Finance; 
32 
e) Secretary of the Department ofl3udget and Management:; 
33 
f) 
PO EA Administrator; 
34 
g) Two (2) representatives of land-based OFWs who are nominated and appointed in 
35 
accordance with the provisions of Republic Act No. 10022, which amended Republic 
36 
Act No. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995; 
Page 5 of 18 


1 
h) One (I) representative of the sea-based OFW s who is nominated and appointed in 
2 
accordance with the provisions of Republic Act No. 1002:2; 
3 
i) 
One (1) representative of the women sector who is nominated and appointed 111 
4 
accordance with the provisions of Republic Act No. 10022; 
5 
j) One (1) representative of the land-based recruitment sector, who is selected fi-om 
6 
among thc various associations of registered overseas placement and recruitment 
7 
agencies based in the Philippines who shall be appointed by the President to serve a 
8 
single tcrm ofthree (3) years; and 
9 
k) One (l) representative of the sea-based manning sector, who is selected from among 
10 
the various associations of registered overseas placement and manning agencies based 
11 
in the Philippines who shall be appointed by the President to scrve a single term of 
12 
three (3) years. 
13 
The Trustees holding office as members of the OWW A Board at the time of the 
14 
effectivity of the Act shall continue to serve until the expiration of their tenu of appointments. 
15 
In case of vacancy in any of the appointive positions in the OWW A Board, the vacancy 
16 
shall be filled by the subsequent nomination by the respective sector concerned in the same 
17 
manner as the selection of the predecessor. Such successor shall hold office for the unexpired 
18 
term only. 
19 
Sec. 20. Per Diem. -
The members of the OWW A Board shall not receive any 
20 
compensation but shall be provided with per diem at rates allowed under existing mles and 
21 
regulations. 
22 
Sec. 21. Responsibilities and Poyvers of the Board afTrustees. - The OWWA board shall 
23 
exercise the following specific powers and duties: 
24 
a) To define the thrusts of the OWW A and adopt broad policy guidelines to ensure their 
25 
implementation; 
26 
b) To preserve the integrity of the OWWA Trust Fund; 
27 
c) To approve programs, projects and the organizational structure of the OWW A 
28 
Secretariat; 
29 
d) To modify or adjust the membership fee and other necessary charges based on 
30 
actuarial studies upon consultation with OFW organizations; 
31 
e) To formulate rules and regulations governing financial transactions and prepare the 
32 
annual budget of the Secretariat for submission to the Department of Budget and 
33 
Management; 
34 
f) To ensure the efficiency of collection and the viability and sustainability of the Fnnd 
35 
through sound and judicious investment and fund management policies; 
Page 6 of 18 


1 
g) To receive and disburse all sUlns as may be provided by law for the support of the 
2 
OWW A to the ends specified by law, and all other sums in the manner it may, in its 
3 
discretion, determine to carry out the pmposes and functions oftbe OWW A; 
4 
h) To authorize the construction or repair of its buildings, machinery, equipment and 
5 
other facilities and the purchase and acquisition of real and personal properties, 
6 
including the necessary supplies, materials and equipment; 
7 
i) To receive in trust legacies, gifts and donations of real and personal property of all 
8 
kinds and to administer and dispose the same when necessary for the benefit of the 
9 
OWW A general membership and subject to the instructions ofthe donor, if any; 
10 
j) To delegate any of its powers to the Chairperson of the OWW A Board, OWW A 
11 
Administrator or any other officials as it may deem necessary; 
12 
k) To prescrihe such general policies, rules and regulation:;, not contrary to law, as are 
13 
consistent with tlie purposes of the OWW A; and 
14 
1) To exercise such powers as may be proper and necessary to carry out the objectives 
15 
of th is Act. 
16 
CHAPTER VI 
17 
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT 
18 
Sec. 22. Schedule o.{Meetings and Quorum of the Board. - The regular mcetings of the 
19 
OWW A Board shall be held every last l'riday of the month. If a change of date becomes 
20 
necessary, the same shall be held at the most convenient time set by the Board. 
21 
Special Board meetings and executive meetings may be scheduled as the need arises. 
22 
Special board meetings may be called upon by the Chairperson 01' by five (5) members of the 
23 
Board. 
24 
Sec. 23. Hoard Proceedings. - The board proceedings shall be guided by the following 
25 
rules: 
26 
a) Notice of Meetings - The Board Secretary shall distribute to all Members of the 
27 
Board the Notice of Meeting together with the discussion materials at least three (3) 
28 
working days prior to the scheduled meetings. 
29 
b) Quorum - In determining the existence of a quorum, the Board shall adopt the simple 
30 
majority rule of one-half plus one of the total filled Board seats. 
31 
c) Voting - For the approval of any policy reqniring the disbursement of (he OWWA 
32 
Fund, an affirmative vote of a majority of all members shall be required. For the 
33 
approval of all other policies, an affirmative vote of a majority of the members 
o 
34 
present constituting a quorum shall be necessary. 
35 
d) Attendance in Board Meetings - Board members are responsible for attending all 
36 
Board meetings. The Ex-Officio members of the Board of Trustees may designate in 
37 
writing their permanent alternate who shall have voting power. 
Page 7 of 18 


1 
e) Presiding Ofticcr - The Chairperson shall preside over meetings of the Board. In the 
2 
absence 0 f the Chair, the Vice-Chailperson shall preside. 
3 
f) Board Resolution .- All decisions of the Board shall be expressed ill the form of 
4 
Resolutions signed hy all the members present. Resolutions may be modified or 
5 
superseded by another resolution. 
6 
Resolutions shall take effect upon adoption and slgnmg by the members present, 
7 
subject to requisite publication. 
8 
g) Records Management and Archiving of Board Documents - The Board Secretary 
9 
shall ensure a complete and thorough recording of all proceedings during a Board 
10 
meeting. The minutes of the previous meeting shall be made available for approval 
11 
during the succeeding scheduled Board Meeting. 
12 
The Minutes of the meeting shall contain the attendance, business arising from the 
13 
minutes, major agreements reached, corresponding resolutions and other items noted 
14 
or discussed and instructions issued by the Board. 
15 
All Minutes of meetings and Bom'd Resolutions, tape recordings and other documents 
16 
pertaining to the business of the Board shall be kept and archived pursuant to standard 
17 
records management systems and procedures. 
18 
CHAPTER VII 
19 
OWWA SECRETARIAT 
20 
Sec. 24. 17w 0 WWA Secretariat. - The OWW A Secretariat is the implementing ann of 
21 
theOWWA. 
22 
Sec. 25. Duties and Responsibilities of OWWA Secretarial. -- The OWWi\ Secretarial 
23 
shall perform and assume the following duties and responsibilities: 
24 
a) To manage programs including the delivery of welfare services locally and overseas 
25 
to its members supported by advocacy and information programs; 
26 
b) To implement Board policies on investment and fund management; 
27 
c) To formulate mcdium .. tcrm development plans responsive to the welfare, needs and 
28 
demands ofmember-OFWs; 
29 
d) To submit work and financial plans for Board consideration; 
30 
e) To provide policy analyses and recommendations for Board consideration; 
31 
t) To conduct continuing researches and studies, including impact evaluation, in aid of 
32 
policy and program development; 
33 
g) To regularly monitor and conduct assessment and evaluation of organizational 
34 
performance; 
35 
h) To establish and maintain an on line management information system,· to include 
36 
database on mcmhership; 
Page 8 of 18 


1 
i) To establish a1ld maintain linkages and networks with local and iuternational social 
2 
and institutional partners; 
3 
j) To conduct annual planning, budgeting and organizational performance assessment 
4 
and render the report to the Board; 
5 
k) To submit annual reports to the Board, Congress and the President 
6 
I) To submit written quarterly reports on the assessment and evaluation of programs, 
7 
projects and services and such other reports as may be required by the Board; 
8 
m) To undertake the periodic review of programs, standards, thrusts and policies; 
9 
n) To perform other functions as may be instructed by the Board; and 
10 
0) To adopt internal rules of procedure consistent with the provisions of this Act. 
11 
Sec. 26. The 0 WWA Administrator. - The administration of the OWW A is vested in the 
12 
Administrator. As the Chief Executive Officer of the Secretariat, the Administrator shall exercise 
13 
general supervision and control of all OWW A personnel and resources, and assume full 
14 
responsibility and accountability thereof. 
15 
The Administrator must possess good leadership and managerial skills. The 
16 
Administrator shall be appointed by the President. The Administrator shall report 10 the President 
17 
through the Secretary of DOLE and shall perfonnthe duties and functions stated in this Act and 
18 
all the usual, necessary and related functions of the office of the Administrator, subject to the 
19 
policies and rules prescribed by the OWW A'Board. 
20 
Sec. 27. The Deputy Administrators. - Two (2) Deputy Administrators shall assist the 
21 
Administrator in the administration and supervision of operations of OWW A. They shall be 
22 
appointed by the Board upon the recommendations of the Administrator. Thcy must also possess 
23 
good leadership and managerial skills. The Board may assign speei tic fUllctional responsibilities 
24 
to the Deputy Administrators. 
25 
Sec. 28. Regional on-Site We!!are Officers. - OWW A shall maintain Regional Offices 
26 
and on-site Welfare Offices under the Philippine Overseas Labor Offices of the Department of 
27 
Labor and Employment. 
28 
CHAPTER VIII 
29 
PERSONNEL AND STAFFING PATTERN 
30 
Sec. 29. New Structure and Staffing Pattern. -
31 
a) Upon effcctivity of this Act, the officers and employe()s of the OWW A shall, in a 
32 
holdover capacity, continue to perform their respective duties and responsibilities and 
33 
receive thc corresponding sahu'ies and benefits unless in the meantime they are 
34 
separated from the service. The new structure and staffing pattern for the OWW A 
35 
shall be prescribed by the OWWA Board and approved by the Department of Budgct 
36 
and Management. The salaries and benefits of all personnel shall be in accordance 
37 
with existing compensation Jaws. 
Page 9 of 18 


, ' 
1 
b) Those incumbents whose positions are not included therein or who are not 
2 
reappointed shall be deemed separated from the service, Those separated from the 
3 
service shall receive the retirement benefits to which they may be entitled under 
'I 
existing laws, rules and regulations, 
5 
Sec. 30, Qualifications Upgrading Program. ~ Pursuant to the provision of paragraph (1) 
6 
of the immediately preceding section, the OWW A Board shall design and estahlish a 
7 
qualifications upgrading program for thc staffing of the OWWA, in coordination with the DOLE 
8 
and the Civil Service Commission (CSC), within one hundred twenty (120) days from the 
9 
effectivity of this Act: Provided, That those who are already in the service from the effectivity of 
10 
this Act shall have, not lakr than five (5) years, to obtain the required academic degree and/or 
11 
qualification counted from the implementation of the qualifications upgrading program: 
12 
Provided, further, That those who are already in the service from the effectivity of this Act shall 
13 
have, not later than one (l) year, to obtain the necessary CSC qualification required for the 
14 
position they are currently holding: Provided, finally, That said personnel has obtained at least a 
15 
Satisfactory performance rating. 
16 
Sec. 31. Authority to Reorganize the Administration. ~ Notwithstanding the provisions of 
17 
existing laws, the OWW A Board shall conduct a management audit, prcpare and submit to the 
18 
DBM a proposed reorganization plan of the OWW A not later than onc (1) year, subject to the 
19 
limitations nndcr this Act and based on the following criteria, 
20 
a) Increased OWW A visibility ti'om the Head Office to the various Regional Offices and 
21 
by the appointment and assignment of personnel to positions which are purely 
22 
administrative, technical, clerical or menial in nature and other positions which are 
23 
not directly related to its operation and administration; anel 
24 
b) Efficient and optimized delivery of OWW A services to the OFW s and their 
25 
respective families. 
26 
Sec. 32. General Qualifications for Appointment. -The general qualifications for 
27 
appointment of OWW A personnel shall be in accordance with the minimum requirements set by 
28 
the Civil Service Commission (esC). The OWW A may hire consultants who aTe experts in 
29 
actuarial stndies, information technology, finance and investment, and such other fields as may 
30 
bc deemed neccssary in the implementation of programs and services. 
31 
CHAPTER IX 
32 
OWWA BENEFITS AND SERVICES 
33 
Sec. 33. Guiding Principles. ~ Pursnant to its mandate, OWW A shall provide reintegration 
34 
programs, repatriation assistance, loan and credit assistance, workers assistance on-site, dcath 
35 
and disability bene tits, health care benefits, education and skills training, social services, family 
36 
welfare assistance, and other appropriate programs that provide timely social and economic 
37 
services. 
Page 10 of 18 


1 
Nothing in this Act shall be construed as a limitation or denial of the right of the OFW to 
2 
avail of any benefit plan which may be adopted in the employmcnt contact, or offered voluntarily 
3 
by employers, or by the laws of the receivillg cOlll1try which are over and above those provided 
4 
under this Act. 
5 
Sec 34. Belle/ils and Services to OFWs, -
6 
A. Reintegration ofOPWs. Reintegration ofOFWs shall bc one of the core programs of 
7 
OWWA 
8 
To be able to sustain the viability of this program, not le:ss than ten percent (10%) of 
9 
OWW A's collection of contribution for the immediately preceding year shall be 
10 
allocated annually for reintegration program. 
11 
B. Repatriation Assistance. Consistent with the provisions of R. A, No. 8042, as 
12 
amended, members shall be provided with all the services necessary for repatriation. 
13 
C. Loan and Credit Assistance, OWW A shall provide low-interest loans to membcr-
14 
OFWs. It shall have the authority to hire consultants who are experts in finance or 
15 
banking to assist in the conceptualization and implementation of the said loan 
16 
programs, 
17 
D. Workers Assistance and On-site Services, OWWA shall provide assistance to orws 
18 
in 'all its Overseas and Regional Offices, Services shall include information regarding 
19 
the names, occupation/job category and addresses of OFW, providing guidance, 
20 
developing materials for the Pre-Departure Orientation Seminars, conducting psycho-
21 
social counselling, conciliation services and outrcach missions, among others, On 
22 
behalf of the OFW, the OWW A may provide appropriatc representation with 
23 
employer, agents and host government anthorities, including, but not limited to 
24 
assisting OFWs to regain unpaid wages, 
25 
E. Social Benefits. A member-OFW shall be covered with the following social benefits: 
26 
1, Death and Disability Benefits. 
27 
a. Death Benefits. A member shall be covered with life insurance for the 
28 
duration of one's employment contract. The coverage shall include One 
29 
Hundred Thousand Pesos (1'100,000,00) for natural death and Two Hundred 
30 
Thousand Pesos (P200,000.00) for natural death and Two Hundred Thousand 
31. 
Pesos (1'200, 000.00) [or accidental death. 
32 
b, Disability and Dismemberment Benefits. A member shall be entitled to 
33 
disability/dismemberment benefits as a rider provision of one's life insurance 
34 
as provided for in the impediment schedule contained in the Manual of 
35 
Systems and Procedures. The coverage is within the range of Two Thousand 
36 
Pesos (1'2, 000,(0) to fifty thousand Pesos (1'50,000.00). 
Page 11 of IS 


1 
c. Total Disability Benefit. In case of Iota I permanent disability, a member shall 
2 
be entitled to One Hundred Thousand Pesos (PIOO,OOO.OO). 
3 
d. Burial Benefit. A burial benefit of Twenty Thousand Pesos (1'20,000.00) shall 
4 
be provided in case ofthe member's death. 
5 
Based on actuarial studies, the Board may increase the amount of the above-
6 
mentioned benefits. 
7 
2. Health Care Benefits. Within two (2) years from the efTectivity of this Act, 
8 
OWW A is mandated to develop and implement health care programs for the 
9 
benefit of member-OFW s and their families. 
10 
F. Education and Training Benefits. A member or a designated benefiGiary may avail of 
11 
the following scholarship programs, subject to a selection process and accreditation of 
12 
participating institutions. Annual scholarship lists shall b,~ submitted to the Board. 
13 
1. Skills-ror-Employment Scholarship Program. -
For technical or vocational 
14 
training scholarship. 
15 
2. Education for Development Scholarship Program. - For baccalaureate programs. 
16 
3. Seafarers' Upgrading Program. - To ensure the competitive advantage of Filipino 
17 
seafarers in meeting International Maritime Organization (lMO) competency 
18 
standards, sea-based members shall be entitled to one upgrading program for 
19 
every three (3) membership contributions. 
20 
Sec 35. Development and Assessment of Programs. - OWW A shall continue to develop 
21 
and implement new programs to meet new OFW needs and reqnirements as they arise, and to 
22 
assess the effectiveness of existing services and benefits in serving OFW welfare. 
23 
OWW A shall also maintain an interactive website to collcct OFW feedback, comments, 
24 
suggestions and complaints on existing programs and services. 
25 
Sec. 36. Extension (If Services to Non-members. - OWWA may also extend appropriate 
26 
programs or services to nOll-members as may be determined by the Board. 
27 
CHAPTER X 
7.8 
THE OWW A TRUST FUND 
29 
Sec. 37. OWWA Fund. - The OWW A Fund is a private fund held in trust by OWW A. 
30 
The OWW A Fund, being a trust fund, is not government money. No portion thereof or any of its 
31 
income, dividends or earnings shall accrue to the General Fund of the National Government. 
32 
Neither shall any amount or portion thereof be conjoined with the govemment money, nor revert 
33 
to the National Governmcnt. In the salllc manner, it is exempted from the "one fund doctrine" of 
34 
tbe govcrnment. 
35 
Sec. 38. Purpose of the OWWA Fund. - The OWW A Fund can only be used for the 
36 
purposes for which it was created, that is, to exclusively serve the welfare of member-OFWs and 
Page 1,2 of 18 


-------- --- -------------
1 
their families. The Fund is to be used exclusively to finance the core programs and services of 
~ 
theOWWA. 
3 
Sec. 39. Reporting of the Fund. - Within fifteen (15) days after receipt of audited repOIis 
4 
from the Commission on Audit, the OWW A Board of Trustees shall submit to the President and 
5 
Congress a report showing the total collections of and the disbursements from the OWW A Fnnd. 
6 
Sec. 40. Disbursement ofOWWA Fund. - Any provision of existing law to the contrary 
7 
notwithstanding, all incomes generated by the OWW A shall, upon their collection, be retained 
8 
by the OWW A and disbursed by the Board for the general welfare and other benefits of the 
9 
OWW A general membership and thc OWW A Secretariat personnel; for the acquisition, 
10 
construction, maintenance and rcpair of urgently needed auxiliary facilities, equipment, buildings 
11 
and other infrastructure; and for expenses necessary for the attainment of its purposes under the 
12 
approved program of expenditures. 
13 
No fund shall bc withdrawn from the OWW A Fund to respond, aid, supplement, or in 
14 
any manner augment any required expenditure by other government agencies. 
15 
Scc. 41. Source of the OWWA Fund. - The OWW A Fund is the sum total or the amounts 
16 
under the managemcnt and fiscal administration of the OWW A Board and the Secretariat, 
17 
including the US $25 contributions that shall accrue to the Fund as fees, investment and interest 
18 
income, and income from other sources. 
19 
Sec. 42. 71'ustees of the Fund. - The OWW A Board is designated as the trustee of the 
20 
OWW A Fund. It shall be bound by a fiduciary duty to manage the Fund with extra-ordinary 
21 
diligence and with utmost skill, care and judiciousness. 
22 
Sec. 43. Transparency. - the OWW A Fund shall be managed with full transparency and 
23 
full public disclosure. It shall make available all records of how thc fnnds are utilized, disbursed 
24 
and invested in accordance with existing laws. 
25 
CHAPTER Xl 
26 
INVESTMENT ADMINISTRATION: SAFEGUARDS 
27 
Scc. 44. Safeguards of the OWWA Fund, Acquired Assets, Unredeemed Investments. -
28 
a) The OWW A Trust Fund shall be managed and expended in accordance with the 
29 
purposes of the Fund and safeguarded against any possible loss and misuse. 
30 
The OWW A shall ensure an appropriate growth rate in the fund sufficient to sustain 
31 
the growing needs of OFW members. It shall ensure that all investment instruments 
32. 
are periodically inventoried and properly kept at a goverument bank under a 
33 
cllstodianship agreement. 
34 
A monthly report on all investment schedules showing the interest rates, yields, 
35 
discount rates and other relevant data shall be submitted to the Board. 
Page 13 of 18 


1 
b) The OWWA shall administer all properties, acquired or foreclosed. To ensure that the 
2 
properties are safeguarded and preserved, the same must be properly accounted for 
3 
and documented, re-inspccted, re-appraised and insured with taxes paid. 
4 
An asset development/disposal plan shall be submitted by the Administrator for the 
5 
consideration ofthe Board. 
6 
Foreclosed propcrties shall be registered as OWW A assets within one (1) month after 
7 
foreclosure. 
s 
c) Unredeemed investments and other receivables shall be inventoried semi-annually 
9 
and corresponding redemption plan shall be submitted to the Board. All receivables 
10 
shall be supported by documents appropriately acknowledged by the accountable 
11 
party. 
12 
Sec. 45. General 1I11'e81I11eI11 Policy. - The fnnds of the OWW A which are not needed to 
13 
meet the current obligations may be invested nnder such terms and conditions and rules and 
14 
regulations as may be prescribed by the Board: Provided, That investments shall satisfy the 
15 
requirements of liquidity, safety/security and yield in order to ensure the aetuarial solvency of 
16 
the funds of the OWWA: Provided, further, That the OWW A shall submit an annual report on 
17 
all investments made to both I·louses of Congress of the Philippines, to wit: 
18 
(a) In intercst-bearing bonds or securities or other evidence of indebtedness of the 
19 
Oovernment o[the Philippines; and 
20 
(b) In foreign mutual funds and in foreign currency deposits or foreign currency-
21 
denominated debts, non-speculative equities and other financial instruments or other 
22 
assets issued in accordance with existing laws of the countries where such financial 
23 
instruments are issued: Provided, That these instruments or assets are listed in 
24 
bourses of the respective countries where these instruments or assets are issued: 
25 
Provided, filrliler, That the issuing company has proven track record of profitability 
26 
over the last three (3) years and payment of dividends at least once over the same 
27 
period: Provided, finally, That not more than Twenty Percent (2.0%) of the above-
28 
mentioned funds shall be invested abroad. 
29 
Portfolio management of investible funds shall be outsourced to government financial 
30 
institutions (Oris). 
31 
Sec. 46. Ewmination and Valuation of the Funds. - The OWW A shall make a periodic 
32 
actuarial examination and valuation of its funds in accordance with accepted actuarial principles. 
33 
CHAPTER XII 
34 
FISCAL AND BUDGET POLICY: MANAGEMENT 
35 
Sec. 47. Operative Budget. - The operative budget must be sufficient to support full 
36 
protection of the OFW welfare. The budget shall be reviewed annually by the Board with 
37 
emphasis on adequate funding for scrvi(;cs and agency efficiency. 
Page 1.4 of 18 


1 
The Board shall approve by a majority vote of all its members, the operating budget 
2 
which shall support the planncd work programs and administrative costs to include bnt shall not 
3 
be limited to personal services, transportation, office rentals, office supplies, equipment, 
4 
technological support, communications and utilities, requirements for personal services, and 
5 
capital outlays: Pl'Ovided, That appropriations for Personal Services (PS) and its regular 
6 
Maintenance and Other Operating Expenses (MOOE) shall not exceed Twenty Percent (20%) of 
7 
the total member contributions realized in the immediately preceding year. 
8 
The approved operating budget shall be drawn from the OWW A Trust Fnnd. 
9 
Sec. 48. Ben~fits and Services Budget. - The annual budget shall include all benefits and 
10 
services to OFWs. The budget shall prioritizc protecting OFW welfare. The amount necessary to 
11 
defray the cost ofthesc benefits and services shall be drawn !l'om the OWWA Trust Fund. 
12 
Sec. 49. Budget PrCjJaratio/1 and Approval. - In preparing the annual budget, OWW A 
13 
shall follow the national government budget system, format and eycle as may be prescribed by 
14 
the Department of Budget and Management. 
15 
Sec. 50. Work and Financial Plans. - All cost centers/ offices/ units of OWW A shall 
16 
submit their annual work and financial plans (WFP), which should correspond to the approved 
17 
budget. The Directors shall cndorse the WFP of their rcspective units for approval of the 
18 
Administrator. The consolidated OWW A-WFP shall be reported to the Board. 
19 
Sec. 51. Budget Realignment. - Realignment of funds inclllding adjustments in targets 
20 
shall bc submitted to the Board for approval. Similarly, in the event that extra-ordinary 
21 
circumstances may occur which require additional fllnds beyond the coverage of the approved 
22 
budget, the same shall be submitted for approval by the Board subject to the existing budget 
.23 
rules and regulations. 
24 
Sec. 52. Branch Accounting System; Financial Reports; Auditing Procedures; Annual 
25 
Reports. - The OWW A Regional Units shall maintain their respective books of account which 
26 
shall be consolidated by the Central Office. 
27 
The OWW A shall install sound internal control and monitoring systems and submit 
28 
quarterly prescribed Financial Statements to COA such as income statement, halance sheet, and 
29 
cash flow as prcscribed in post auditing reports by the COA. 
30 
The OWW A Secretariat is mandated to submit a monthly fund utili2ation report to the 
31 
Board, copies of which shall be made available to Congress. It is further mandated to submit an 
32 
Annual Report on its overall performance for the previous year within the first sixty (60) days of 
33 
the following Y('8r to the OWW A Board, Congress and the President, through the Department of 
34 
Budget and Management (DBM). 
35 
Sec. 53. Chart of Accounts. - the OWW A shall adopt the appropl~ate and standard chart 
36 
of accounts as prescribed by the COA. 
Page 15 of18 


1 
Sec. 54. Appropriations .fi-om the National Government. -- Nothing in this Aet shall 
2 
prevent the National Governmcnt from allocating funds for the operation or implementation of 
3 
any of the programs of services stated herein, including the budget for maintenance and other 
4 
operating expenses. 
5 
CHAPTER XIII 
6 
MISCELLANEOUS PROVISIONS 
7 
Sec. 55. Rebates fiJI' Long-time Members. - In recognition of the contribution of long-
S 
time members on the OWW A Trust Fund, OWW A is mandated to develop and implement a 
9 
program for the grant of rebates or some form of financial assistance to OFWs who have been 
10 
members of OWW A for at least five (5) ycars and who have not availed of any services or 
11 
benefits, including their families, from OWW A. 
12 
Sec. 56. Procurement System. - The OWW A procurement system shall be governed by 
13 
Republic Act No. 9184, also known as "Government Procurement Reform Act." 
14 
Sec. 57.implemenfing Rules and Regulations. - The present OWW A Board shall, within 
15 
sixty (60) days from effectivity of this Act, formulate the necessary rules and regulations for its 
16elfectivc implementation. 
17 
Sec. 58. Separabilizy Clause. - If, for any reason, any provision of this Act or any part 
18 
thereof shall be held unconstitutional and invalid, the other parts or provisions of this Act, which 
19 
arc not affected thercby, shall rcmain in full force and effect. 
20 
Sec. 59. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts 
21 
thereof inconsistent with any of the provisions of this Act art~ hereby repealed, amended Of 
22 
modified accordingly. 
23 
Sec. 60. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete 
24 
publication in the Oflicial Gazellc or at least two (2) newspapers of general circulation. 
25 
Approved, 
Page 16 of 18