FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
) 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
Our Overseas Filipino Workers (OFWs), often referred to as "modern day 
heroes," serve as blood support of our economy. From January to October 2007, they 
had remitted a total of US$ 11,865,982, 00 through banks accounting for only 79.3 
percent of the total cash remittances. During the first quarter of this year, remittances 
sent through banks increased by 13.2 percent (US$4,000 000.00) from similar period the 
previous year. For March alone, remittances surged to a record high of 9.4 percent 
equivalent to US$ 1.4 billion. Profits obtained from this vital flow of foreign exchange 
are channeled to programs and activities for the promotion of nation building. 
Moreover, it kept the Philippine economy alive by sustaining the consumption of 
families and cushioning the world-wide economic slowdown through increased 
purchasing power of Filipinos. 
However, a vast majority of our so called "modern day heroes" suffers 
reintegration problems mostly attributed to scarce opportunities for re-employment. 
Also, there is a high failure rate among personal businesses engaged by returning 
OFWs. Though with ready capital, most of them do not possess the necessary skills in 
handling finances and marketing strategies exhibited by a limited few who succeeded. 
The negative effects of the inability to acquire new income sources were further 
magnified by an economy characterized by high unemployment rate and skyrocketing 
prices. 
There is therefore a need to aid our OFWs, particularly those who returned home 
to stay and make a living in the country. Acknowledging the magnitude of their 
positive contribution, it is necessary that we return the favor to our modern day heroes. 
This bill seeks to grant benefits and special privileges to former Overseas Filipino 
Workers. Such privileges include: 
a. 
b. 
C. 
Twenty percent (20%) discount from all transportation services, hotel and 
lodging establishments, restaurants and recreation centers and purchase of 
medicine; 
Twenty percent (20%) discount on admission fees charged by places of 
culture, leisure and amusement; 
Exemption from payment of individual income taxes; 


d. Free medical and dental consultations in private or public hospitals and 
similar establishments; 
e. Priority in existing livelihood programs; and 
f. Priority in national housing programs 
This measure further proposes to establish the Office for Former Overseas 
Filipino Workers (OFOFW), which shall serve as a general information and liaison 
center of OFWs and shall issue nationally uniform identification cards to returning 
OFWs. 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
S E N A T E  
Introduced by Senator Loren Legarda 
AN ACT 
OVERSEAS FILIPINO WORKERS AND FOR OTHER PURPOSES 
GRANTING BENEFITS AND SPECIAL PRIVILEGES TO FORMER 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
SECTION 1. Declavation of Policies and Objectives. - Pursuant to 
Article XIII, Section 3 of the Constitution, the State adopts a policy of giving full 
protection to labor. In addition, Section 18 of the Declaration of Principles and 
State Policies provides that "The State affirms labor as a primary social economic 
force." Consonant with these constitutional principles the following are the 
declared policies of this Act: 
a) to recognize the magnitude of contribution to the economy of overseas 
Filipino workers whose lonely sacrifices in foreign lands bring in a 
considerable amount of foreign exchange; 
b) to motivate and assist former overseas Filipino workers to contribute 
to nation building; 
In accordance with those policies, this Act aims to grant former overseas 
Filipino workers with a package of benefits and incentives. 
SEC. 2. Definition of Terms. - As used in this Act, the term "former 
overseas Filipino worker (OFW)" shall mean any resident citizen of the 
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Philippines at least fifty (50) years old, previously certified by the Department of 
Labor and Employment/PhiIippine Overseas Employment Agency for overseas 
employment purposes and has an income of not more than sixty thousand pesos 
(P60,OOO.OO) per annum subject to review by the National Statistics Coordination 
Board (NSCB) every three (3) years. It covers all nationals who have worked in a 
foreign country under employment contracts for a period not less than 10 years, 
including but not limited to, professionals, seamen, entertainers, domestic 
helpers, regardless of their employment status in the foreign country. 
SEC. 3. Privileges for former OFWs. - Any qualified former OFW as 
determined by the Office for Former Overseas Filipino Workers (OFOFW) shall 
be entitled to the following: 
the grant of twenty percent (20%) discount from all establishments 
relative to utilization of transportation services, hotels and similar 
lodging establishment, restaurants and recreation centers and 
purchase of medicine anywhere in the country: Provided, That 
private establishments may claim the cost as tax credit; 
a minimum of twenty percent (20%) discount on admission fees 
charged by theaters, cinema houses and concert halls, circuses, 
carnivals and other similar places of culture, leisure, and 
amusement; 
exemption from the payment of individual income taxes: Provided, 
That their annual taxable income does not exceed the income level 
as determined by the National Economic and Development 
Authority (NEDA) for that year; 
free medical and dental consultations in private or public hospitals 
and similar establishments anywhere in the country and medical 
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insurance program to be provided by the Philippine Health 
Insurance Corporation (PHIC); 
e) to the extent practicable and feasible, the continuance of the same 
benefits and privileges given by the Government Service Insurance 
System (GSIS), Social Security System (SSS) and PAG-IBIG, as the case 
may be, as are enjoyed by those in actual service; 
f) priority in existing livelihood programs being undertaken by various 
government agencies subject to the guidelines and qualifications by the 
implementing body; and 
g) priority in national housing programs, affordable "pabahay" loans and 
other housing 
opportunities subject to the guidelines 
and 
qualifications set by the National Housing Authority (NHA) or the 
Home Development Mutual Fund (HDMF). 
Such privately-owned establishments shall enjoy tax credits equivalent to 
the discounts extended to former OFWs. 
SEC. 4. Retirement Benefits. - To the extent practicable and feasible, 
retirement benefits from both the Government and the private sectors shall be 
upgraded to be at par with the current scale enjoyed by those in actual service. 
SEC. 5. The Office for Former Overseas Filipino Workers (OFOFW). - 
There shall be established in the Office of the Mayor an OFOFW to be headed by 
a Councilor who shall be designated by the Sangguniang Bayan and assisted by 
the Community Development Officer in coordination with the Department of 
Labor and the Department of Social Welfare and Development. The functions of 
this office are: 
a) 
to maintain and regularly update on a quarterly basis the list of 
former OFWs and to issue nationally uniform individual identification 
cards which shall be valid anywhere in the country; 
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b) 
to serve as a general information and liaison center to cater to the 
needs of former OFWs; and 
c) 
to issue nationally uniform individual identification cards which 
shall be valid anywhere in the country. 
SEC. 6. Municipal Responsibility. - It shall be the responsibility of the 
municipality through the mayor to ensure that the provisions of this Act are 
implemented to its fullest. 
SEC. 7. Penalties. - Any person or company who violates the provision 
of this Act by denying or hindering a former OFW from availing of any of the 
benefits of this Act shall be penalized by a fine of not less than fifty thousand 
pesos (PHP 50, 000.00) for the first violation; one hundred thousand pesos (PHP 
100,000.00) for the second violation; and for two hundred thousand pesos (PHP 
200,000.00) for the third violation. In addition, the said business may be ordered 
closed by the appropriate implementing agency. 
SEC. 8. Implementing Rules and Regulations. - The Secretary of Social 
Welfare and Development, jointly with the Department of Labor and 
Employment, Department of Finance, the Department of Tourism, the 
Department of Health, the Department of Transportation and Communications 
and the Department of Interior and Local Government shall issue the necessary 
rules and regulations to carry out the objectives of this Act. 
SEC. 9. Appropriation. - The necessary appropriation for the operation 
and maintenance of the OFOFW shall be appropriated and approved by the local 
government units concerned. The National Government shall appropriate such 
amount, as may be necessary to carry out the objectives of this Act. 
SEC. 10. Repealing Clause. - All provisions of laws, orders, decrees, 
including rules and regulations inconsistent herewith are hereby repealed 
and/ or modified accordingly. 
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Approved, 
SEC. 11. Sepauability Clause. - If any part or provision of this Act shall 
be held to be unconstitutional or invalid, other provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days 
following its publication in one (1) national newspaper of general circulation. 
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