Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representative ERIC G. YAP 
EXPLANATORY NOTE 
According to the latest data from the Philippine Statistics Authority, the number of 
Overseas Filipino Workers (OFWs), who worked abroad during the period of April 
to September 2020, was estimated at 1.77 million. Overseas Contract Workers 
(OCWs) or those with existing work contracts, comprised a percentage of 96.4 or 
equivalent to 1.71 million of the total OFWs during the same period. Other OFWs 
who worked abroad without working visa or work permits such as tourist, visitor, 
student, medical, and other types of non-immigrant visas but were presently 
employed and working full time in other countries, had 3.6 percent share. 
The amount of money sent home by Overseas Filipino Workers (OFWs) to their 
families in the Philippines, posted a faster growth of 4.4 percent in June 2022, to hit 
the highest level in six months, according to the Bangko Sentral ng Pilipinas (BSP). 
Considering the large number of our Filipino overseas workers and the great value 
of the remittances they bring into the country. There is no question that they 
continue to contribute significantly to our country's economic growth. Hence, it is 
important that we protect their hard-earned money. 
The purpose of this bill is to protect the rights and interests of the Overseas Filipino 
Worker (OFWs) in relation to their transfer of foreign funds in accordance with the 
government's mandate. 
In view of the foregoing, approval of this bill is earnestly sought. 
HON. ERIC G. YAP 
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July 31, 2025
5:40 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representative ERIC G. YAP 
AN ACT 
PROVIDING FOR PROTECTION OF THE REMITTANCES OF 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 (OFWs) Remittance Protection Act." 
SEC. 2. Declaration of Policy. - The Constitution affirms that labor is the 
primary social economic force and mandates the State to protect the rights of the 
workers and promote their welfare. 
Recognizing the significant contribution of OFWs to the national economy 
through their foreign exchange remittances, the State shall adopt measures to protect 
the hard-earned money they remit home against usurious interest rates and 
exorbitant fees charged by financial institutions that deplete the value of their 
remittances and provide them and their families adequate education and training on 
financial literacy, such as financial planning and management of finances or savings, 
to help ensure a source of livelihood even after their overseas employment. 
SEC. 3. Definition of Terms. – As used in this Act: 
a. Overseas Filipino Worker (OFW) refers to a person who is to be engaged, is
engaged or has been engaged in a remunerated activity in a state of which
the person is not a citizen or on board a vessel navigating the foreign seas
other than a government ship used for military or non-commercial
purposes or on an installation located offshore or on the high seas; to be
used interchangeably with migrant worker.
b. Remittance refers to the foreign exchange earnings sent home by OFWs or
their employers or agents through formal channels.
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c.​ Remittance Fee refers to the service fee or charge imposed by bank and 
non-bank financial intermediaries for sending money of OFWs through 
formal channels. 
 
SEC. 4. Applicability of this Act. - The provisions of this Act shall be 
applicable to all OFW remittances, whether voluntary or mandated by law, orders, 
issuances, or rules and regulations. 
 
SEC. 5. Discount on Remittance Fees and Tax Deduction Granted to 
Establishments. - Bank and non-bank financial intermediaries may impose fees for 
services rendered in sending money of OFWs to their immediate family members, 
subject to a fifty percent (50%) discount. 
 
Bank and non-bank financial intermediaries providing discounts on 
remittance fees may claim the discounts granted as a tax deduction based on the cost 
of services rendered to OFWs. The discounts granted should be treated as an 
ordinary and necessary expense deductible from the gross income of the 
intermediary falling under the category of itemized deductions: Provided, That the 
total deduction from the gross income of establishments providing discounts on 
remittance fees shall not exceed Twenty-four thousand pesos (Php 24,000.00) per 
OFW every taxable year: Provided, Further, that the Secretary of Finance shall, upon 
the recommendation of the Commissioner of Internal Revenue, issue the revenue 
regulation for the purpose 
 
SEC. 6. Requirement of Posting of the Peso Equivalent of the Currency to 
Exchanged. - All bank and non-bank financial intermediaries offering remittance 
services to OFWs shall be required to post in a conspicuous place within the 
establishment's premises the Philippine peso equivalent rate of the foreign currencies 
being transacted. The Philippine peso equivalent of the amount as remitted will be 
the same amount that will be received by the beneficiary of the remittance. 
 
SEC. 7. Prohibition from Raising Remittance Fees. - All banks and non-bank 
financial intermediaries offering remittance services to OFWs are prohibited from 
raising their current remittance fees without prior consultation with the Department 
of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), and the Philippine Overseas 
Employment Administration (POEA). 
 
SEC. 8. Other Prohibited Acts. - The following acts are also prohibited: 
 
a.​ Misappropriation or conversion, to the prejudice of the OFW or 
beneficiary, of foreign exchange remittances received in trust, or on 
commission, or for administration, or under any other obligation 
involving the duty to make delivery of, or to return the same, or by 
denying having received such foreign exchange remittance; 
 
b.​ Taking of foreign exchange remittances without the consent of the OFW 
beneficiary; 
 
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c.​ Imposition of remittance fees in excess of those prescribed under Section 5 
of this Act; 
 
d.​ Failure to post in a conspicuous place of the establishment the Philippine 
Peso rate of the foreign currency being transacted; and 
 
e.​ Failure to conduct consultation with the DOF, BSP, and the POEA before 
raising remittance fees. 
 
SEC. 9. Penalties. -  
 
a.​ Any person who is found guilty of any of the acts described in Section 8 
(a) hereof shall be punished by: 
 
1.​ Imprisonment of four (4) years, two (2) months and one (1) day to eight 
(8) years if the amount of the remittance is over Twelve thousand pesos 
(Php 12,000.00) but does not exceed Twenty-two thousand pesos (Php 
22,000.00); 
2.​ Imprisonment of six (6) years to eight (8) years, adding one (1) year for 
each additional Ten thousand pesos (Php 10,000.00), but not exceeding 
twenty (20) years. If the amount of the remittance is more than 
Twenty-two thousand pesos (Php 22,000.00); 
3.​ Imprisonment of two (2) years and four (4) months to four (4) years 
and two (2) months, if the amount of the remittance is over Six 
thousand pesos (Php 6,000.00) but does not exceed Twelve thousand 
pesos (Php 12,000.00); 
4.​ Imprisonment of four (4) months and one (1) day to two (2) years and 
four (4) months. if the amount of the remittance is over Two hundred 
pesos (Php 200.00) but does not exceed Six thousand pesos (Php 
6,000.00); and 
5.​ Imprisonment of two (2) months and one (1) day to six (6) months, if 
the amount of the remittance does not exceed Two hundred pesos (Php 
200.00)  
 
b.​ Any person who is found guilty of violating Section 8 (b) of this Act shall 
be punished by: 
 
1.​ Imprisonment of six (6) years and one (1) day to ten (10) years, if the 
amount of the remittance is over Twelve thousand pesos (Php 
12,000.00) but does not exceed Twenty-two thousand pesos (Php 
22,000.00); 
2.​ Imprisonment of ten (10) years and one (1) day to twelve (12) years, 
adding one (1) year for each additional Ten thousand pesos (Php 
10,000.00) but not exceeding twenty (20) years, if the amount of the 
remittance exceeds Twenty-two thousand pesos (Php22,000.00); 
3.​ Imprisonment of two (2) years, four (4) months and one (1) day to six 
(6) years, if the amount of the remittance is over Six thousand pesos 
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(Php 6,000.00) but does not exceed Twelve thousand pesos (Php 
12,000.00); and 
4.​ Imprisonment of six (6) months and one (1) day to four (4) years and 
two (2) months. if the amount of the remittance is over Two hundred 
pesos (Php 200.00) but does not exceed Six thousand pesos (Php 
6,000.00); and 
 
c.​ Any person who is found guilty of violating Section 8 (c), (d) and (e) of 
this Act shall be punished by an imprisonment of six (6) months and one 
(1) day to six (6) years and one (1) day and a fine of Fifty thousand pesos 
(Php 50,000.00) but not exceeding Seven hundred fifty thousand pesos 
(Php 750,000.00). 
 
Aside from the criminal liability provided in the preceding paragraphs, 
institutions governed and supervised by the BSP found to have violated the 
provisions of Section 8 of this Act shall be subjected to the necessary fines, penalties, 
and sanctions as provided under the Republic Act No. 7653, or the "New Central 
Bank Act", Republic Act No. 8791, or the "General Banking Law of 2000", and other 
pertinent banking regulations. 
 
In case the violation is committed by a corporation or partnership, the liability 
shall be imposed on the president, managing director or partner, general manager, or 
other responsible officers of the corporation or partnership. 
 
SEC. 10. Mandatory Financial Education for OFWs and their Families. - The 
DOF, together with the BSP, POEA, and other agencies, shall ensure that a 
mandatory financial education program will be provided to OFWs and their 
families. 
 
The program shall include instruction on financial management, budgeting, 
investment options and similar topics, which shall educate the OFWs and their 
families in the handling of their earnings and remittances. 
 
SEC. 11. Liability under the Revised Penal Code and Other Laws. - 
Prosecution under this Act shall be without prejudice to any liability for violation of 
any provision of the Revised Penal Code or other laws. 
 
SEC. 12. Implementing Agency. - The DOF shall, in consultation with the BSP, 
POEA, Overseas Workers Welfare Administration Department of Foreign Affairs, 
Bankers Association of the Philippines, Association of Bank Remittance Officers, Inc., 
Philippine Association of Foreign Exchange Dealers, Money Changers and 
Remittance Agents, Inc., representatives from the placement or recruitment industry, 
non-government organizations advocating the rights and welfare of OFWs, and 
other stakeholders, issue the necessary rules and regulations for the effective 
implementation of this Act, within ninety (90) days after the approval of this Act. 
 
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SEC. 13. Repealing Clause. - All laws, decrees, executive orders, issuances, 
rules and regulations which may be inconsistent with any of the provisions of this 
Act are hereby deemed repealed, amended or modified accordingly. 
 
SEC.14. Separability Clause. - If any provision of this Act is held 
unconstitutional or invalid, such holding shall not affect other provisions not 
affected thereby. 
 
SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,​
 
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