Congress of the Philippines 
) 
Thirteenth Congress  
) 
First Regular Session  
) 
 
 
HOUSE OF REPRESENTATIVES 
 
 
HB NO.  1357 
 
 
Introduced by Rep. Roseller L. Barinaga 
 
 
AN ACT 
TO PROVIDE FOR AN OWWA CHARTER TO GOVERN THE OPERATION AND 
ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE 
ADMINISTRATION, PRESCRIBE FOR PUBLIC ACCOUNTABILITY ON THE 
OWWA ADMINISTRATORS AND OFFICIALS THEREOF AND FOR OTHER 
PURPOSES 
 
 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
 
 
PART I 
 
GENERAL PROVISIONS 
 
 
Article I 
Title, Policy And Objectives 
 
SECTION 1. Title. This Act shall be known as the “OWWA Charter Act of 2004”. 
 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the State to protect 
and promote the welfare of the overseas Filipino workers and to uplift the their respective 
families' living standards consistent with the separate provisions of Republic Act No. 7111, 
otherwise known as the "Overseas Workers' Investment (OWI) Fund Act", Republic Act 
8042, otherwise known as the “Overseas Filipinos and Migrant Workers’ Act of 1995” and 
the UN Convention on the Rights of Migrant Workers. Pursuant to this, the State shall 
endeavor to regulate the operation of the Overseas Workers Welfare Administration 
(OWWA) and ensure that the benefits and programs it provides to its members are trickled 
down to the greatest number of its clienteles. 
 
SEC. 3. Scope. This Act shall apply to all overseas Filipino workers, who are duly 
registered with the Philippine Overseas Employment Administration (POEA), and their 
beneficiaries in the Philippines: Provided, That the additional benefits as enumerated in 


Section 8 of Republic Act No. 7111 shall not apply to migrant Filipinos who have already 
acquired immigrant status in their host countries as defined in Section 2 of Batas Pambansa 
Blg. 79, notwithstanding the enactment of the Dual Citizens Law of the Philippines.  
 
 
 Article II 
Definitions 
 
SEC. 4. Definition of terms. For purposes of this Act, the following terms shall mean:  
 
 
a) Bonafide OWWA Member refers to any person who fulfills the conditions to be 
employed or engaged in a productive employment overseas and who has paid the required 
annual membership fee through the Philippine Overseas Employment Administration 
(POEA).  This term includes the overseas seafarers serving on foreign maritime offshore 
units. 
 
b) Dependents refer either of the following: (a) the legitimate spouse dependent for 
support upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child, 
including the illegitimate child, who is unmarried, not gainfully employed, not over the age 
of majority, or is over the age of majority but incapacitated and incapable of self-support due 
to a mental or physical defect acquired prior to age of majority; and (c) the parents dependent 
upon the member for support; 
 
c) Compensation refers to the basic pay or salary received by an employee, pursuant 
to his election/appointment, excluding per diems, bonuses, overtime pay, honoraria, 
allowances and any other emoluments received in addition to the basic pay which are not 
integrated into the basic pay under existing laws; 
 
d) Contribution refers to the amount payable to the OWWA by a bonafide OFW and 
the employer in accordance with the provisions of this Act; 
 
e) Disability refers to any loss or impairment of the normal functions of the physical 
and/or mental faculty of a member which reduces or eliminates his/her capacity to continue 
with his/her current gainful occupation or engage in any other gainful occupation; 
 
f) DOLE refers to the Department of Labor and Employment 
 
g) GSIS refers to the Government Service Insurance System created by 
Commonwealth Act No. 186;  
 
h) Pensioner refers to any bonafide OFW receiving old-age permanent total disability 
pension or any bonafide OFW who has received the lump sum excluding one receiving 
survivorship pension benefits as defined under this Act; 
 
i) Primary beneficiaries refer to the legal dependent spouse until he/she remarries and 
the dependent children; 
 
j) Secondary beneficiaries refer to the dependent parents and, subject to the 
restrictions on dependent children, the legitimate descendants; 
 


k) SSS refers to the Social Security System; 
 
l) OWWA refers to the Overseas Workers Welfare Administration; 
 
m) POEA refers to the Philippine Overseas Employment Agency created under 
Executive Order No. 797; 
 
m) Total Disability refers to the complete incapacity to continue with his present 
employment or engage in any gainful occupation due to the loss or impairment of the normal 
functions of the physical and/or mental faculties of the member; 
 
 
Chapter I 
Membership 
 
Article I 
Contribution and Collection 
 
SEC. 5. Registration of membership. Registration/enrollment and recording of 
members shall be in accordance with the provisions of this Act.  Enrollees must meet the 
following requirements in order to be considered bonafide members:  
 
a) Those enrolling while within the country  
 
1. have submitted properly accomplished enrollment form;  
 
2. enrollment papers were processed thru POEA or its duly designated 
processing centers; 
 
3. have paid corresponding premiums.  
 
b) On the job-site  
 
1. have submitted properly accomplished registration form to OWWA or its 
duly designated collection center;  
 
2. have paid corresponding premiums. (Rule II, Sec. 2 (a) & (b), IRR of EO No. 
195) 
 
All bonafide members shall be issued Official Receipt and OWWA E-Card upon 
payment of the required contribution.  No extra charges shall be levied on bonafide members 
upon the issuance of the OWWA E-Card.  The POEA and the OWWA are mandated to 
maintain an updated database of bonafide OFWs. 
 
SEC. 6. Effectivity of Membership. Membership to the OWWA, either through the 
compulsory or voluntary coverages, shall be effective upon payment of membership 
contribution in the amount of Twenty-five US Dollars (US$25.00) or its equivalence in the 
current foreign exchange rates.  Such membership shall be considered active until the 
expiration of the OFWs’ existing employment contract.  
 


In case of voluntary members who register on-site, membership coverage shall not 
exceed two (2) years. 
 
The membership contribution shall be collected on a per contract basis. (modified 
from OWWA Omnibus Policies) 
 
SEC. 7. Renewal of Membership. Membership shall be renewed upon payment of 
contribution on contract renewal/issuance of new contract.  In the case of voluntary 
membership, coverage shall be renewed upon payment of contribution of Twenty-five US 
Dollars (US$25.00) or its equivalence in the current foreign exchange rates. (Modified from 
OWWA Omnibus Policies) 
 
SEC. 8. Separation of Sea-based and Land-based Workers Contributions. To effect a 
more efficient fund management between the two (2) sub-sectoral groups, the collection of 
membership contribution shall be accounted for in two (2) separate books of account. 
(OWWA Omnibus Policies) 
 
SEC. 9. Authorized Collecting Officers. a) Membership contributions shall be 
collected by duly authorized OWWA Collecting Officers, deputized collecting officers or 
accredited agents. 
 
The collection of membership contributions shall be made at the Philippine Overseas 
Employment Administration (POEA) contract processing hub, OWWA regional and overseas 
offices, and other accredited collection centers. 
 
Upon payment of OWWA membership contribution, the designated Collecting 
Officer shall issue an Official Receipt. (Modified from OWWA Omnibus Policies) 
 
b) In case of voluntary members who register on-site, membership contributions shall 
be made directly to the OWWA Overseas Offices located in the various diplomatic stations or 
embassies or consulate offices of the Philippines.   
 
Upon payment of OWWA membership contribution, the designated Collecting 
Officer shall issue an Official Receipt. (New) 
 
 
Article II 
Other Provisions 
 
SEC. 10. Reportorial Requirements. The Collecting Officer/deputized collecting 
officer, or the accredited collecting agent shall prepare and submit the required monthly 
reports to the OWWA Office in the Philippines. (Modified from OWWA Omnibus Policies) 
 
SEC. 11. Sanctions. Handling of collections and deposits by Collection Officers shall 
be governed by the usual accounting and auditing rules.  Corresponding administrative 
sanctions and other disciplinary measures shall be imposed, including recall from 
post/suspension/or separation from service. (OWWA Omnibus Policies) 
 
SEC. 12. Prohibition against discrimination on membership to the OWWA. No 
bonafide OFW shall be denied admission to the OWWA by reason of age, gender, nationality, 


religious belief, or political opinion or affiliation. The OWWA shall take affirmative steps to 
enhance the access of overseas Filipinos and migrant Filipino workers to its programs and 
services. (New) 
 
 
Chapter II 
OWWA Board of Trustees 
 
Article I 
Composition, Honoraria and Powers and Responsibilities 
 
SEC. 13. The OWWA Board of Trustees. The administrative operation of the OWWA 
is vested in the Board of Trustees known as the “OWWA Board of Trustees” which is 
constituted of: 
 
a) Secretary of Labor and Employment; (Existing) 
 
b) OWWA Administrator; (Existing) 
 
c) POEA Administrator; (Existing) 
 
d) The Chairperson of the Senate Committee on Labor and Employment, as ex oficio 
member; (New) 
 
e) The Chairperson of the House Committee on Labor and Employment, as ex oficio 
member; (New) 
 
f) A Representative from the management sector, who is selected from among the 
various associations of registered overseas placement and recruitment agencies based in the 
Philippines and nominated by the President, to serve for a term of two (2) years; 
 
g) Two (2) Land-based OFW Trustees, who has rendered at least five (5) years of 
productive employment overseas, selected and nominated by registered OFW organizations 
or associations, to serve for a term of two (2) years; (New) 
 
h) Two (2) Sea-based OFW Trustees, who has rendered at least five (5) years of 
productive employment overseas, selected and nominated by registered OFW organizations 
or associations, to serve for a term of two (2) years; (New) 
 
i) Two (2) Trustees from the OFW-women Sector, who has rendered at least five (5) 
years of productive employment overseas, selected and nominated by registered OFW 
organizations or associations, to serve for a term of two (2) years; (New) 
 
The Trustees holding office as members of the OWWA Board at the time of the 
effectivity of this Act shall continue to serve until the expiration of their term of 
appointments. 
 
In case of vacancy in the OWWA Board of any appointive position, such vacancy 
shall be filled by the subsequent selection and nomination by the respective sector concerned.  


The successor shall be chosen in the same manner as provided for the predecessor and such 
successor shall hold office for the unexpired term. 
 
Members of the Board shall serve without compensation other than actual and 
necessary expenses incurred in attendance of meetings of the Board or other official business 
authorized by the Board. (New) 
 
SEC. 14. Honoraria, per diem, and other emoluments. The members of the OWWA 
Board shall not receive any compensation but shall be provided with honoraria, per diem, and 
other emoluments as may be allowed by accounting and auditing rules and procedures.  
He/she shall also be entitled to reimbursements of personal expenses incurred during actual 
performance of his/her official functions. (New) 
 
SEC. 15. Responsibilities and Powers of the Board of Trustees. The Board shall 
exercise the following specific powers and duties: 
 
a) To define the thrusts of the OWWA and adopt broad policy guidelines to ensure 
their implementation; 
 
b) To preserve the integrity of the OWWA Trust Fund; 
 
c) To fix the membership fee and other necessary charges, as the Board may deem 
proper to impose;  
 
d) To ensure the efficiency of collection and the viability and sustainability of the 
fund through sound and judicious investment and fund management policies; 
 
e) To receive and appropriate all sums as may be provided by law for the support of 
the OWWA to the ends specified by law, and all other sums in the manner it may, in its 
discretion, determine to carry out the purposes and functions of the OWWA; 
 
f) To authorize the construction or repair of its buildings, machinery, equipment and 
other facilities, and the purchase and acquisition of real and personal properties, including the 
necessary supplies, materials and equipment; 
 
g) To receive in trust legacies, gifts and donations of real and personal property of all 
kinds and to administer and dispose the same when necessary for the benefit of the OWWA 
general membership and subject to the instructions of the donor, if any; 
 
h) The provisions of law to the contrary notwithstanding, to authorize any of its Board 
member to travel abroad for certain specific purpose relative to his/her functions: Provided, 
That such travel is within the scope and functions of the mandate of OWWA, as prescribed 
herein; 
 
i) To exercise the general powers set out in the Corporation Code; 
 
j) To delegate any of its powers to the Chairperson of the OWWA Board or any other 
officials or officers as it may deem necessary; 
 


k) To prescribe such general policies, rules and regulations, not contrary to law, as are 
consistent with the purposes of the OWWA; and 
 
l) To exercise such powers as may be proper and necessary to carry out the objectives 
of this Act. (Overhauled; New) 
 
 
Article II 
Meetings, Proxies, and Records Management 
 
SEC. 16. Schedule of Meetings and Quorum of the Board of Trustees. The regular 
meetings of the Board shall be held every last Friday of the month.  If a change of date 
becomes necessary, the same shall be held at the most convenient time set by the Board.  
Special Board meetings and executive meetings may be scheduled as the need arises. 
 
A simple majority of all members of the Board holding office at the time the meeting 
is called shall constitute a quorum. (modified from OWWA Omnibus Policies) 
 
SEC. 17. Attendance of Proxies. Members of the Board may designate their 
permanent alternate representative in writing subject to the acceptance of the Board.  The 
designated alternate shall have voting rights.  His decision shall be deemed the decision of 
his/her principal. 
 
The alternate representative cannot further delegate such representation.  However, in 
the event that the member and his permanent alternate representative are absent, any 
representative sent shall be on observer status. (OWWA Omnibus Policies) 
 
SEC. 18. Procedures in the Board. All decisions of the Board shall be expressed in 
the form of Resolutions signed by all members present.  The Resolution shall be sequentially 
numbered and dated.  Resolutions may be modified or superseded by another resolution.  
Resolutions shall take effect upon adoption and signing by the members present, subject to 
requisite publication. (OWWA Omnibus Policies) 
 
SEC. 19. Records Management and Archiving of Board Documents. The Board 
Secretary shall ensure a thorough recording of all proceedings during a Board meeting. The 
minutes of the previous meeting shall be made available for approval during the scheduled 
Board Meeting. (OWWA Omnibus Policies) 
 
The Minutes of the Meeting shall basically contain the attendance, business arising 
from the minutes, major agreements reached, corresponding resolutions, and other items 
noted or discussed, and instructions issued by the Board. (OWWA Omnibus Policies) 
 
All minutes, tapes, and other documents pertaining to the business of the Board shall 
be kept and archived pursuant to standard records management systems and procedures and 
shall be made open to public at any time. (New) 
 
 
 
 
 


Article III 
Presiding Officer and Secretariat 
 
SEC. 20.  The Secretary of DOLE. The Secretary of the DOLE is the ex officio 
chairperson of the OWWA Board.  As such, he/she shall exercise the powers specifically 
provided for in this Act, those determined by the Board, and those which are related or 
necessary to its functions.  (New) 
 
The Chairperson of the OWWA Board shall preside over meetings of the Board.  In 
the absence of the Chair, a duly designated representative, with a rank of an Undersecretary, 
shall preside. The Administrator acts as the Vice Chairman. (modified from OWWA Omnibus 
Policies) 
 
The Chairperson of the OWWA Board shall not receive any compensation but shall 
be provided with honoraria, per diem, and other emoluments as may be allowed by 
accounting and auditing rules and procedures.  He/she shall also be entitled to 
reimbursements of personal expenses incurred during actual performance of his/her official 
functions. (modified from OWWA Omnibus Policies) 
 
SEC. 21. The OWWA Secretariat and of the Board of Trustees. The OWWA 
Secretariat shall also function as the Secretariat of the Board.  As such, it shall keep records 
of the OWWA Board as may be designated.  As the OWWA Secretariat, the Secretariat shall 
likewise function as the implementing arm of OWWA. (Modified from the OWWA Omnibus 
Policies) 
 
SEC. 22. Duties and Responsibilities of the OWWA Secretariat. The OWWA 
Secretariat shall perform and assume the following duties and responsibilities: 
 
a) To manage programs and the delivery of welfare services locally and overseas to its 
members, supported by advocacy and information programs; 
 
b) To implement Board policies on investment and fund management;  
 
c) To formulate medium term development plans responsive to the welfare, needs and 
demands of member-OFWs;  
 
d) To submit work and financial plans for Board consideration; 
 
e) To provide policy analyses and recommendations for Board consideration; 
 
f) To conduct continuing researches and studies, including impact evaluation, in aid of 
policy and program development; 
 
g) To regularly monitor and conduct assessment and evaluation of organizational 
performance;  
 
h) To establish and maintain an on line management information system, to include 
database on membership; 
 


i) To establish and maintain linkages and networks with local and international social 
and institutional partners;  
 
j) To conduct annual planning, budgeting and organizational performance assessment 
and render the report to the Board. 
j) To submit written quarterly reports on the assessment, and evaluation of programs, 
projects and services and such other reports as may be required by the Board; 
 
k) To render annual report to the President; 
 
l) Undertake the periodic review of programs, standards, thrusts and policies;  
 
m) To perform other functions as may be instructed by the Board; and 
 
n) Adopt internal rules of procedure consistent with the provisions of this Act. 
(Overhauled; New) 
 
 
Article IV 
Administrator 
 
SEC. 23. The OWWA Administrator. The administration of the OWWA is vested in 
the Administrator insofar as authorized by the Board and the Secretary of DOLE.  As the 
Chief Executive Officer of the Secretariat, the administrator administers the overall 
operations of the Secretariat. He exercises general supervision and control of all its personnel 
and resources, and assumes full responsibility and accountability thereof. (modified from the 
OWWA Omnibus Policies) 
 
The Administrator of the OWWA shall be nominated by the President.  The 
Administrator shall report to the President through Secretary of DOLE, and shall perform the 
duties and functions elsewhere stated in this Act, and all the usual, necessary and related 
functions of the office of the administrator, subject to the policies and rules prescribed by the 
Board. The Board shall determine the term and compensation of the Administrator. (New) 
 
SEC. 24. The Deputy Administrator. The Deputy Administrator shall assist the 
Administrator in the administration and supervision of operations. The Board may assign 
specific functional responsibilities to the Deputy Administrator. (modified from the OWWA 
Omnibus Policies) 
 
 
Article V 
Personnel and Staffing Pattern (New) 
 
SEC. 25. New Structure and Pattern. (a) Upon effectivity of this Act, the officers and 
employees of the OWWA shall, in a holdover capacity, continue to perform their respective 
duties and responsibilities and receive the corresponding salaries and benefits unless in the 
meantime they are separated from the service.  The new structure and staffing pattern for the 
OWWA shall be approved and prescribed by the OWWA Board, not later than one (1) year 
from the effectivity of this Act and the authorized staff positions created thereunder shall be 
filled with regular appointments by the OWWA Board. (New) 


  
(b) Those incumbents whose positions are not included therein or who are not 
reappointed shall be deemed separated from the service.  Those separated from the service 
shall receive the retirement benefits to which they may be entitled under existing laws, rules 
and regulations.  Otherwise, they shall be paid the equivalent of one-and-a-half month salary 
for every year of service, or fraction thereof, computed on the basis of the highest salary 
received, but in no case shall such payment exceed the equivalent of twelve (12) months 
salary. (New) 
 
SEC. 26. Qualifications Upgrading Program. Pursuant to the provision of paragraph 
(1) of the immediately preceding section, the OWWA Board shall design and establish a 
qualifications upgrading program for the staffing of the OWWA, in coordination with the 
DOLE and the Civil Service Commission (CSC), within one hundred twenty (120) days from 
the effectivity of this Act: Provided, That those who are already in the service from the 
effectivity of this Act shall have not later than five (5) years to obtain the required academic 
degree and/or qualification counted from the implementation of the qualifications upgrading 
program: Provided, further, That those who are already in the service from the effectivity of 
this Act shall have  not later than one (1) year to obtain the necessary CSC qualification 
required for the position they are currently holding. (New) 
 
SEC. 27. Authority of the Board to Reorganize the Administration. Notwithstanding 
the provisions of existing law, the OWWA Board shall conduct a management audit, and 
prepare and submit to Congress a proposed reorganization plan of the OWWA not later than 
one (1) year, subject to the limitations provided under this Act and based on the following 
criteria:  
 
a) increased OWWA visibility from the head office to the various regional offices and 
by the appointment and assignment of personnel to positions which are purely administrative, 
technical, clerical or menial in nature and other positions which are not actually and directly 
related to its operation and administration; and 
 
b) efficient and optimized delivery of OWWA services to the OFWs and their 
respective families. (New) 
 
SEC. 28. General qualifications for appointment. No person shall be appointed as 
staff or personnel of the OWWA unless he/she possesses the following minimum 
qualifications:   
 
a) a citizen of the Philippines; 
 
b) a person of good moral conduct;  
 
c) must have passed the psychiatric/ psychological, drug and physical tests to be 
administered by the PNP-accredited government hospital for the purpose of determining 
physical and mental health;  
 
d) must possess a formal baccalaureate degree from a recognized institution of 
learning;  
 
e) must be eligible in accordance with the standards set by the OWWA Board; 


 
f) must not have been dishonorably discharged from any private employment or 
dismissed for cause from any civilian, police or military position in the government; and 
 
g) must not have been convicted by final judgment of an offense or crime involving 
moral turpitude. (New) 
 
SEC. 29. Adherence to Attrition Law. Pursuant to the provisions of Republic Act No. 
7430, otherwise known as the Attrition Law, which gives highest priority to measures that 
promote morale, efficiency, integrity, responsiveness, progressiveness and the optimum 
utilization of personnel in the civil service,   
 
no appointment shall be made to fill vacated positions at the OWWA as a result of the 
implementation of this Act or as a result of resignation, retirement, dismissal, death or 
transfer to another office of an officer or employee within five (5) years from the effectivity 
of this Act: Provided, however, That this prohibition shall not apply in the following 
instances:  
 
(a) Where the position is head of a primary organic unit such as chief of division;   
 
(b) Where the position is the lone position in the organizational unit and it 
corresponds to a particular expertise that is intrinsic to the desired basic capability of 
the unit concerned;  
 
(c) Where the positions are basic positions for the initial operations or where 
the positions are vital and necessary for the continued and efficient operation of said 
agencies;  
 
(d) Where the positions are difficult to fill considering the qualifications required 
therefor;  
 
(e) Appointments or designations extended by the President; and  
 
(f) Where the replacement come from existing employees.  
 
Provided, further, That exemptions from this prohibition shall require authorization 
by the OWWA Board and concurred by the CSC: Provided, finally, That no appointment 
shall be issued by the appointing authority nor approved by the Civil Service Commission 
without said authorization.  
 
Appointments made in violation of this Act shall be null and void. (New) 
 
SEC. 30. Rationalized Promotion System. Within one (1) year after the effectivity of 
this Act, the OWWA Board shall establish a system of promotion for OWWA personnel and 
staff which shall be based on merits and on the availability of vacant positions in the OWWA 
staffing pattern. Such system shall be gender fair and shall ensure that women personnel shall 
enjoy equal opportunity for promotion. (New) 
 
SEC. 31. Status of Personnel and Staff. The personnel and staff of the OWWA shall 
be considered employees of the OWWA as a government-controlled institution and shall 


draw their salaries therefrom.  They shall have the same salary grade level as that prescribed 
in the Salary Standardization Law: Provided, That they may be paid financial incentive by 
the OWWA Regional Office concerned subject to the availability of funds. (New) 
 
SEC. 32. Early Retirement Program. Within three (3) years after the effectivity of 
this Act, any OWWA personnel and staff may retire and be paid separation benefits 
corresponding to one-and-a-half month salary for every year of service, or fraction thereof, 
computed on the basis of the highest salary received, but in no case shall such payment 
exceed the equivalent of twelve (12) months salary subject to the following conditions:  
 
a) that, at the time when a personnel or staff applies for retirement, he/she has already 
rendered at least ten (10) years of continuous service at the OWWA; 
 
b) the applicant is not scheduled for separation or retirement from the OWWA service 
due to the attrition system or separation for cause; 
 
c) the applicant has no pending administrative or criminal case; and 
 
d) the applicant has at least three (3) more years in the service before reaching the 
compulsory retirement age and at least a year before his/her maximum tenure in position. 
(New) 
 
SEC. 33. Rationalization of Retirement and Separation Benefits. The OWWA Board 
shall formulate a rationalized retirement and separation benefits schedule and program within 
one (1) year from the effectivity of this Act for approval by Congress: Provided, That the 
approved schedule and program shall have retroactive effect in favor of personnel or staff and 
officers retired or separated from the time specified in the law, unless the retirement or 
separation is for cause and the decision denies the grant of benefits. (New) 
 
 
 
TITLE II 
THE OWWA TRUST FUND 
 
Chapter I 
Fiscal Management 
 
Article I 
Nature, Source, and Administration 
 
SEC. 34. Nature of the Fund. The OWWA Fund shall remain as the private funds of 
the OFWs and shall be utilized exclusively for their benefit.  
 
All funds of the OWWA Trust Fund shall, upon collection thereof, be immediately 
deposited, interest free, by the OWWA with the bank acquired for the benefit of the OFWs 
under such terms and conditions as will insure that said bank can service in full the credit 
requirements of the OFWs. (New) 
 
SEC. 35.  The OWWA Trust Fund, Source. Pursuant to Section 2 of PD No. 1694, all 
monetary contributions, fees and other charges imposed pursuant to the provisions of the 


Letter of Instructions No. 537 issued on May 1, 1977 and its related issuances shall be 
accrued to the OWWA Trust Fund, as defined under this Title.  The said fund shall be used to 
finance the legitimate benefits and programs administered by the OWWA under this Act, 
including providing social and welfare services to OFWs such as, but not limited to, 
insurance coverage, legal assistance, placement assistance, and remittance services.  The 
OWWA shall maintain the required reserves to guarantee the fulfillment of its obligations 
under this Act. (New) (PD No. 1694; modification of Sec. 34, GSIS Act) 
 
The OWWA Trust fund is a single trust fund composed of membership contributions 
of land-based and sea-based workers, investment and interest income, and income from other 
sources. 
 
Out of the membership contribution of Twenty-five US Dollars (US$25.00) per 
overseas employment contract, P165.00 shall be allocated as Insurance Benefit Program Fund 
to service all insurance claims. (Modified from the OWWA Omnibus Policies) 
 
SEC. 36. Administration. The OWWA Trust Fund shall be administered by the 
OWWA Board of Trustees.  No disbursements from said Fund shall be made except those 
which have passed the approval of the Board. (New) 
 
Transactions in the OWWA Trust Fund shall be subject to such rules and regulations 
as may be formulated by its Board of Trustees consistent with the provisions of this Act. The 
Board of Trustees shall fix the yearly appropriation of the Secretariat. (Sec. 5, PD No. 1694 
as amended by PD No. 1809) 
 
The annual budget of the OWWA, including the compensation of OWWA personnel 
and the operating expenses of the secretariat shall be charged to the OWWA Fund and 
incorporated in the annual General Appropriations Act, subject to the approval by the 
Congress. (New) 
 
The OWWA Trust Fund shall not be used for purposes other than what are provided 
for under this Act.  No portion of such Fund or income thereof shall accrue to the General 
Fund of the national government and its political subdivisions, instrumentalities and other 
agencies including government-owned and controlled corporations except as may be allowed 
under this Act. (modification of Sec. 34, GSIS Act) 
 
SEC. 37. Reporting of the Fund. Within thirty (30) days after the end of each calendar 
year, the OWWA Board of Trustees shall submit to the President a statement showing the 
total collections of, and the disbursements from, the OWWA Trust Fund, copies of which 
report shall be furnished to Congress. (New) 
 
SEC. 38. Declaration of Dividends. Pursuant to Section 1 of Presidential Decree No. 
270, the OWWA is hereby mandated to declare and distribute the excess profits as dividends 
to stockholders, pursuant to such rules and regulations as the Securities and Exchange 
Commission (SEC), which is hereby authorized to promulgate, may issue with the approval 
of the Department of Trade and Industry (DTI). (Sec. 1, PD No. 270) (New) 
 
SEC. 39. Disbursement of OWWA Collection. Any provision of existing law to the 
contrary notwithstanding, all incomes generated by the OWWA shall, upon their collection, 
be retained by the OWWA and disbursed at the discretion of the Board for the general 


welfare and other benefits of the OWWA general membership and the OWWA Secretariat 
personnel; for the acquisition, construction, maintenance and repair of urgently needed 
auxiliary facilities, equipment, buildings and other infrastructure; and for expenses necessary 
for the attainment of its purposes under its approved program of expenditures. 
 
Fees and charges charged to any OWWA members shall constitute the special trust 
funds and shall be deposited in any authorized government depository bank.  Any and all 
interests that shall accrue therefrom shall form part of the same funds for the use of the 
Insurance Benefit Program Fund, as prescribed herein. 
 
 
SEC. 40. Establishment of the OFW Bank. Subject to the approval of the Congress, an 
OFW Bank that is solely owned by the OFWs may be established to provide credit, 
commercial, development and savings banking facilities at reasonable terms to the overseas 
Filipino workers which shall have its principal places of business in every province. 
 
 
TITLE III 
TENURE AND TERMINATION OF OVERSEAS EMPLOYMENT 
 
 
Chapter I 
Computation of Tenure of Service 
 
Article I 
Effects of Termination  
of Overseas Employment 
 
SEC. 41. Computation of Service. The computation of service for the purpose of 
determining the amount of benefits payable under this Act shall be from the date of first and 
original membership to the OWWA, including periods of employment, whether contracted 
directly or hired through the POEA accredited placement agency or those overseas agencies 
that may be prescribed by the POEA.  
 
All service credited for retirement, resignation or separation for which corresponding 
benefits have been awarded under this Act or other laws shall be excluded in the computation 
of service in case of reinstatement in the service of an employer and subsequent retirement or 
separation which is compensable under this Act.  
 
For the purpose of this section, the term service shall include full-time service with 
compensation: Provided, that contract-based services or employment with compensation may 
be included under such rules and regulations as may be prescribed by the OWWA. 
(modification of Sec. 10, Republic Act 8291) 
 
SEC. 42. Separation from Employment. a) When the overseas employment of a 
bonafide OWWA member ceases he/she may elect to continue his/her Medicare Membership 
by giving a written notice to the OWWA and paying the same annual contribution. 
 
b) The option to continue membership shall be allowed when exercised not later than 
within six (6) months following the lapse of his/her last annual Medicare coverage. If he/she 


fails to exercise the option within said period, the option is forfeited. (Rule VIII, Sec. 1, IRR 
of EO No. 195) 
 
SEC. 43. Transfer of Membership. When an OFW accepts a local private or 
government employment after termination of his/her overseas work, his/her medical care 
coverage under OWWA shall continue for the unexpired period corresponding to his/her 
premium payment.  In case of dual membership, whatever medical care benefits available to 
him/her as a result of his/her GSIS/SSS membership must first be applied before applying the 
OWWA Medicare Program benefits. The OFW shall notify the OWWA of such change of 
employment. (Rule VIII, Sec. 2, IRR of EO No. 195) 
 
 
Article II 
Benefits and Services 
 
SEC. 44. Benefits and Services for OWWA Members. a) The OWWA shall provide 
for social insurance benefits, loan assistance, education and training, social services and 
family welfare assistance subject to the qualification requirements and availability of OWWA 
funds. All benefits and services shall be over and above the provisions of the employment 
contract, offer of employers, or the laws of the receiving country.  
 
b) A bonafide OWWA member shall be entitled to the following benefits and 
services: 
 
1) Insurance and Health-Care Benefits (New) 
 
i) Involuntary Separation Benefits  
 
ii) Permanent Disability Benefits  
 
iii) Temporary Disability Benefits  
 
iv) Survivorship Benefits  
 
v) Funeral Benefits 
 
vi) Life Insurance 
 
2) Loan Guarantee Fund 
 
i) Pre-Departure Loan 
 
ii) Family Assistance Loan 
 
3. Education and Training Benefits 
 
i) Skills-for-Employment Scholarship Program  
 
ii) Education for Development Scholarship Program 
 


iii) Seafarers’ Upgrading Program 
 
4. Social Services and Family Welfare Assistance 
 
i) Repatriation Program 
 
ii) Reintegration Program 
 
5. Workers Assistance and On-Site Services (modified Secs. 1 & 2, OWWA Omnibus 
Policies) 
 
 
Article 1II 
Insurance and Health-Care Benefits (New) 
 
A. Involuntary Separation Benefits 
 
SEC. 45. Unemployment or Involuntary Separation Benefits. A bonafide OFW 
member shall be entitled to apply for loan from the OWWA Funds in case of involuntary 
separation from overseas employment.  Unemployment benefits in the form of monthly cash 
payments equivalent to fifty percent (50%) of the average monthly compensation shall be 
made to a bonafide OFW member who is involuntarily separated from employment due to 
permanent disability: Provided, That he/she has been paying integrated contributions for at 
least two (2) full years prior to separation.  Unemployment benefits shall be paid in 
accordance with the following schedules: 
 
                              Contributions Made                          
Benefit Duration  
                   2 years but less than 3 years   
 
 
       2 months 
                   3 years or more but less than 6 years 
 
       3 months 
                   6 years or more but less than 9 years 
 
       4 months 
                   9 years or more but less than 11 years        
       5 months 
                 11 years or more but less than 15 years 
 
       6 months  
 
The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) 
waiting period shall be imposed on succeeding monthly payments. 
 
All accumulated unemployment benefits paid to the employee during his/her entire 
membership with the OWWA shall be deducted from voluntary separation benefits.  
 
The OWWA shall prescribe the detailed guidelines in the operationalization of this 
section in the rules and regulations implementing this Act. (modification of Sec. 12, Republic 
Act 8291) 
 
SEC. 46. Conditions for Entitlement. A member who is involuntarily separated from 
overseas employment shall be entitled to the involuntary separation benefits enumerated in 
the preceding section hereof: Provided, That:  
 
1) he/she has rendered the annual contributions to the OWWA at least two (2) full 
years, either as a regular member or  voluntarily; and 
 


2) he/she is not receiving a monthly pension benefit from permanent total disability.  
 
 
B. Permanent Disability Benefits 
 
SEC. 47. General Conditions for Entitlement. A bonafide OWWA member who 
suffers permanent disability for reasons not due to his grave misconduct, notorious 
negligence, habitual intoxication, or willful intention to kill himself or another, shall be 
entitled to the benefits provided for under the immediately following sections, subject to the 
corresponding conditions thereof. (see Sec. 15, Republic Act 8291) 
 
SEC. 48. Permanent Total Disability Benefits. a) If the permanent disability is total, 
he shall receive a monthly income benefit for life equal to the basic monthly pension 
effective from the date of disability: Provided, That:  
 
1) he/she is productively employed as an OFW at the time of disability; or  
 
2) if separated from overseas employment, he/she has paid at least thirty-six 
(36) monthly contributions within the five (5) year period immediately preceding 
disability, or has paid a total of at least one hundred eighty (180) monthly 
contributions, prior to his/her disability: Provided, further, That if at the time of 
disability, he/she was in the service and has paid a total of at least one hundred eighty 
(180) monthly contributions, in addition to the monthly income benefit, he/she shall 
receive a cash payment equivalent to eighteen (18) times his/her basic monthly 
pension: Provided, finally, That a member cannot enjoy the monthly income benefit 
for permanent disability and the old-age retirement simultaneously. 
 
b) If a member who suffers permanent total disability does not satisfy conditions (1) 
and (2) in paragraph (a) of this section but has rendered at least three (3) years of service at 
the time of his/her disability, he/she shall be advanced the cash payment equivalent to one 
hundred percent (100%) of his/her average monthly compensation for each year of service 
he/she paid contributions, but not less than Twelve thousand pesos (P12,000.00) which 
should have been his/her separation benefit.  
 
c) Unless the member has reached the minimum retirement age, disability benefit 
shall be suspended when:  
 
1) he/she is reemployed; or 
 
2) he/she recovers from his disability as determined by the OWWA, whose 
decision shall be final and binding; or 
 
3) he/she fails to present himself/herself for medical examination when 
required by the OWWA. 
 
d) The following disabilities shall be deemed total and permanent: 
   
1) complete loss of sight of both eyes; 
 
2) loss of two (2) limbs at or above the ankle or wrist; 


 
3) permanent complete paralysis of two (2) limbs; 
 
4) brain injury resulting in incurable imbecility or insanity; and 
 
5) such other cases as may be determined by the GSIS. (modification of Sec. 
16, Republic Act 8291) 
 
SEC. 49. Permanent Partial Disability Benefits. a) If the disability is partial, he/she 
shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by 
the OWWA: Provided, That he/she satisfies either conditions (1) or (2) as stipulated in the 
prior section  
 
b) The following disabilities shall be deemed permanent partial:  
 
1) complete and permanent loss of the use of:  
 
i) any finger  
 
ii) any toe 
 
iii) one arm 
 
iv) one hand 
 
v) one foot 
 
vi) one leg 
 
vii) one or both ears 
 
viii) hearing of one or both ears 
 
ix) sight of both eyes 
  
2) such other cases as my be determined by the OWWA. 
 
SEC. 50. Entitlement benefit for total permanent disability. In case of total permanent 
disability, a bonafide OWWA member shall be entitled to P100,000.00. (Adopted from the 
OWWA Omnibus Policies) 
 
SEC. 51. Entitlement benefit for partial disability/dismemberment. A member shall be 
entitled to partial disability/dismemberment benefits as a rider provision of his life insurance 
as provided for in the impediment schedule contained in the Manual of Systems and 
Procedures. The coverage is within the range of P2,000.00 to P50,000.00. (Adopted from the 
OWWA Omnibus Policies) 
 
 
C. Temporary Disability Benefits 
 


SEC. 52. Temporary Total Disability Benefits. a) A bonafide OWWA member who 
suffers temporary total disability for reasons not due to any of the conditions enumerated in 
the preceding section hereof shall be entitled to seventy-five percent (75%) of his/her current 
daily compensation for each day or fraction thereof of temporary disability benefit not 
exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick 
leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier 
than the fourth day of his temporary total disability: Provided, That:  
 
1) he is in the service at the time of his disability; or  
 
2) if separated, he has rendered at least three (3) years of service and has paid 
at least six (6) monthly contributions in the twelve-month period immediately 
preceding his disability. 
 
Provided, however, That a member cannot enjoy the temporary total disability benefit 
and sick leave pay simultaneously: Provided, further, That if the disability requires more 
extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the 
temporary total disability benefit may be extended by the OWWA but not to exceed a total of 
two hundred forty (240) days.  
 
b) The temporary total disability benefit shall in no case be less than Seventy pesos 
(P70.00) a day.  
 
c) The notices required of the member and the employer, the mode of payment, and 
the other requirements for entitlement to temporary total disability benefits shall be provided 
in the rules and regulations to be prescribed by the OWWA.  
 
SEC. 53. Non-scheduled Disability. For injuries or illnesses resulting in a disability 
not listed in the schedule of partial/total disability provided herein, the OWWA shall 
determine the nature of the disability and the corresponding benefits therefor.  
 
 
D. Survivorship Benefits 
 
SEC. 54. Survivorship Benefits. When a bonafide OFW member, the beneficiaries 
shall be entitled to survivorship benefits provided in the immediately following sections 
hereunder subject to the conditions therein provided for. The survivorship pension shall 
consist of:  
 
1) the basic survivorship pension which is fifty percent (50%) of the basic 
monthly pension; and 
 
2) the dependent children’s pension not exceeding fifty percent (50%) of the 
basic monthly pension. 
 
 
SEC. 55. Death of a Member. a) Upon the death of a member, the primary 
beneficiaries shall be entitled to:  
 
1) survivorship pension: Provided, That the deceased:  


 
(i) was in the service at the time of his death; or  
 
(ii) if separated from the service, has at least three (3) years of service 
at the time of his death and has paid thirty-six (36) monthly contributions 
within the five-year period immediately preceding his death; or has paid a total 
of at least one hundred eighty (180) monthly contributions prior to his death; 
or 
 
2) the survivorship pension plus a cash payment equivalent to one hundred 
percent (100%) of his average monthly compensation for every year of service: 
Provided, That the deceased was in the service at the time of his death with at least 
three (3) years of service; or 
 
3) a cash payment equivalent to one hundred percent (100%) of his average 
monthly compensation for each year of service he paid contributions, but not less than 
Twelve thousand pesos (P12,000.00): Provided, That the deceased has rendered at 
least three (3) years of service prior to his death but does not qualify for the benefits 
under item (1) or (2) of this paragraph. 
 
b) The survivorship pension shall be paid as follows:  
 
1) when the dependent spouse is the only survivor, he/she shall receive the 
basic survivorship pension for life or until he/she remarries;  
 
2) when only dependent children are the survivors, they shall be entitled to the 
basic survivorship pension for as long as they are qualified, plus the dependent 
children’s pension equivalent to ten percent (10%) of the basic monthly pension for 
every dependent child not exceeding five (5), counted from the youngest and without 
substitution; 
 
3) when the survivors are the dependent spouse and the dependent children, 
the dependent spouse shall receive the basic survivorship pension for life or until 
he/she remarries, and the dependent children shall receive the dependent children’s 
pension mentioned in the immediately preceding paragraph hereof. 
 
c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled 
to:  
 
1) the cash payment equivalent to one hundred percent (100%) of his average 
monthly compensation for each year of service he paid contributions, but not less than 
Twelve thousand pesos (P12,000.00): Provided, That the member is in the service at 
the time of his death and has at least three (3) years of service; or  
 
2) in the absence of secondary beneficiaries, the benefits under this paragraph 
shall be paid to his legal heirs. 
 
d) For purposes of the survivorship benefits, legitimate children shall include legally 
adopted and legitimated children. 
 


SEC. 56. Death of a Pensioner. Upon the death of an old-age pensioner or a member 
receiving the monthly income benefit for permanent disability, the qualified beneficiaries 
shall be entitled to the survivorship pension defined herein, subject to the provisions of 
paragraph (b) of the preceding section hereof. When the pensioner dies within the period 
covered by the lump sum, the survivorship pension shall be paid only after the expiration of 
the said period.  
 
 
E. Funeral Benefits 
 
SEC. 57. Funeral Benefits. The amount of the funeral benefits shall be determined 
and specified by the OWWA in the rules and regulations but shall not be less than Twenty 
thousand pesos (P20,000.00): Provided, That it shall be increased to at least twenty-five 
thousand pesos (P25,000.00) after five (5) years and shall be paid upon the death of:  
 
a) an active bonafide OWWA member as defined under this Act; or  
 
b) a bonafide OWWA member who has been separated from overseas employment, 
but who may be entitled to future benefit pursuant to the provisions of this Act; or 
 
c) a pensioner, as defined under this Act; or 
 
d) a retiree who at the time of his/her retirement was of pensionable age under this 
Act. (New) 
 
 
F. Life Insurance Benefits 
 
SEC. 58. Compulsory Life Insurance. All bonafide OWWA members shall, under 
such terms and conditions as may be promulgated by the OWWA, be compulsorily covered 
with life insurance, which shall automatically take effect as follows:  
 
1) for those employed after the effectivity of this Act, their insurance shall 
take effect on the date of their employment; 
 
2) for those whose insurance will mature after the effectivity of this Act, their 
insurance shall be deemed renewed on the day following the maturity or expiry date 
of their insurance; 
 
3) for those without any life insurance as of the effectivity of this Act, their 
insurance shall take effect following said effectivity. (New) 
 
SEC. 59. Insurance Benefit Program Fund. Any bonafide OWWA member, as 
defined herein this Act, shall pay his/her contribution to the Insurance Benefit Program Fund 
anytime, Provided that, at the time of payment the maximum required contribution is paid to 
the OWWA Trust Fund.  The amount of One hundred sixty-five pesos (Php 165.00) from the 
Twenty-five US Dollars (US$25.00) contribution to the OWWA Trust Fund shall be applied 
to the Insurance Benefit Program Fund. (New) 
 


Any bonafide OWWA may continue paying the contribution under the OWWA Trust 
Fund even after the termination of his/her overseas employment to be able to enjoy 
corresponding benefits as provided for under the schedule of the Insurance Benefit Program 
Fund. However, the grant of such benefits under the Insurance Benefit Program Fund shall 
cease upon filing of a final claim under the regular OWWA program. (New) 
 
SEC. 60. Insurance Benefits. A bonafide OWWA member shall be covered with life 
insurance for the duration of his employment contract. The coverage shall include 
P100,000.00 for natural death and P200,000.00 for accidental death. (New) 
 
SEC. 61. Dividends. An annual dividend may be granted to all bonafide members of 
the OWWA whose life insurance is in force for at least one (1) year in accordance with a 
dividends allocation formula to be determined by the OWWA. (New) 
 
SEC. 62. Optional Insurance. Subject to the rules and regulations prescribed by the 
OWWA Board, a bonafide OWWA member may apply for insurance and/or pre-need 
coverage embracing life, health, hospitalization, education, memorial plans, and such other 
plans as may be designed by the OWWA, for himself/herself and/or his/her dependents. Any 
employer may likewise apply for group insurance coverage for its employees. The payment 
of the premiums/installments for optional insurance and pre-need products may be made by 
the insured or his/her employer and/or any person acceptable to the OWWA. (New) 
 
SEC. 63. Reinsurance. The OWWA may reinsure any of its interests or part thereof 
with any private company or reinsurer whether domestic or foreign: Provided, That the 
OWWA shall submit an annual report on its reinsurance operations to the Insurance 
Commission. (New) 
 
 
Article IV 
Loan Guarantee Fund 
 
SEC. 64. Loan Guarantee Fund. In compliance with Article III, Section 21 of RA 
8042, the OWWA shall provide Pre-Departure Loan (PDL) and Family Assistance Loan 
(FAL), in coordination with government financing institutions (GFIs) in the amount of 
P100,000,000.00 as a revolving Loan Guarantee Fund. The loan shall not exceed P40,000.00. 
 
The PDL shall service ready-to-leave newly hired OFWs whose employers or agents 
have already paid the compulsory membership contribution to OWWA. The loan is designed 
to assist members in their pre-departure needs such as payment of placement fees, clothing 
requirements, pocket money, and other pre-departure expenses.  
 
The FAL is available for emergency and other family needs as endorsed by the 
member. (Adopted from the OWWA Omnibus Policies) 
 
 
Chapter 2 
Programs and Benefits for OFWs 
 
Article I 
Education and Training 


 
SEC. 65. Education and Training Benefits. A member may avail for himself or his 
duly designated beneficiary any of the following scholarship program, subject to a selection 
process and accreditation of participating institutions. Annual scholarship lists shall be 
submitted to the Board. 
 
1) Skills-for-Employment Scholarship Program. The OWWA shall allocate 
P6M annually for technical or vocational training scholarship.  
 
2) Education for Development Scholarship Program. The OWWA shall 
allocate one hundred (100) baccalaureate slots annually. A maximum of P10,000.00 
for school fees and P20,000.00 for allowances per semester shall be provided.  
 
3) Seafarers’ Upgrading Program. An annual amount of P10M shall be 
allocated for this program. To ensure the competitive advantage of Filipino seafarers 
in meeting International Maritime Organization (IMO) competency standards, sea-
based members shall be entitled to one upgrading program for every three (3) 
membership contributions. Qualified grantees shall be provided with training 
assistance from P 1,200.00 to a maximum of P 7,500.00.  
 
 
Article II 
Social Services and Family Welfare Assistance 
 
SEC. 66. Social Services and Family Welfare Assistance.  
 
1) Repatriation Program. – Consistent with the provisions of RA No. 8042, bonafide 
OWWA members shall be repatriated and provided with services necessary to facilitate 
repatriation.  
 
2) Reintegration Program. – A Reintegration Program shall be implemented 
by the DOLE through the OWWA in coordination with the LGUs and NGOs.  
 
Community organizing, capability-building and other social preparations shall be 
incorporated in this program.  
 
Livelihood loans shall be made available to bonafide OWWA members subject to the 
policies formulated by the Board. 
 
An annual budget for the Reintegration Program shall be approved by the Board. 
(modified from the OWWA Omnibus Policies) 
 
 
Article III 
Workers Assistance and On-Site Services 
 
SEC. 67. Workers Assistance and On-site Services. The OWWA shall sustain and 
maintain assistance to its bonafide members in all its regional and overseas offices. Services 
shall include locating the OFW, providing information and guidance, developing materials of 
the Pre-Departure Orientation Seminars, conducting psycho-social counseling, conciliation 


services, medical and legal assistance, and outreach missions, among others. On behalf of the 
OFW, the OWWA may provide appropriate representation with employers, agents, and host 
government authorities. (modified from the OWWA Omnibus Policies) 
 
 
 
Article IV 
OWWA Medicare Program Fund 
 
SEC. 68. The Fund. The fund shall be known as the OFW Medicare Program Fund 
which shall consist of all contributions and accrual to said fund including the seed money 
provided for this Program. The OFW Medicare Program Fund shall be kept distinct and 
separate from other funds administered by the OWWA.   
 
Deposit, disbursement and investment of the fund shall be in the same manner and 
under the same conditions, requirements and safeguards applicable to the other funds being 
administered by the OWWA.  
 
The fund shall be used for claims payments and operating expenses. The annual 
operating expenses shall not exceed 12% of the collection and accruals for the year. (Rule VI, 
Sec. 1 (a) & (b), IRR of EO No. 195) 
 
SEC. 69. Compulsory Coverage. The OWWA Medicare Program Fund created under 
Executive Order No. 195 shall compulsorily cover the following: 
 
a) Filipinos recruited for employment abroad, herein referred to as Overseas Filipino 
Workers (OFWs) or members; and ( Sec. 1, EO No. 195) 
 
b) Dependents of OFWs. (Sec. 2, EO No. 195) 
 
The compulsory coverage shall not apply to Filipino Overseas Contract Workers with 
existing coverage of the Philippine Medical Care Program acquired thru the SSS voluntary 
basis coverage pursuant to Section 9(b) of R.A. 1161, as amended, known as the SSS Law. 
(Sec. 4, EO No. 195) 
 
SEC. 70. Amount of Contributions. All bonafide OWWA members shall pay a 
uniform amount of Nine Hundred pesos (P900.00) only for a one (1) year program coverage.  
For initial payments, the amount shall cover the Medicare coverage of each member and his 
legal dependents starting the first day of the fourth month after payment. In the case of 
renewals of membership, the coverage of succeeding annual payments shall commence on 
the first day after expiration of the immediately preceding coverage, provided payment is 
made before said expiration. If payment is made after expiration, the rule on initial payments 
shall apply. Option to pay more than one (1) year of coverage shall be allowed, provided 
payment shall be made on an annual basis. The corresponding period of coverage shall be 
reflected in the Medicare Eligibility Certificate to be issued for the purpose. (Rule V, Sec. 1, 
IRR of EO No. 195) 
 
SEC. 71. Collection. a) Enrollment or renewal of membership to the Program shall be 
a pre-requisite to the processing of OFWs’ employment documents and issuance of OEC.  
 


b) OFWs on site shall pay their annual premium contributions directly to the OWWA 
or its designated collection centers; 
 
c) Succeeding annual premium contributions shall be paid by the member or his 
dependent directly to the OWWA or its designated collection centers. (Rule V, Sec. 2 (a), (b) 
& (c), IRR of EO No. 195) 
 
SEC. 72. Premium Contributions. Pursuant to Executive Order No. 195, the premium 
contributions and benefits of the OFWs and their dependents shall be the same as those 
provided for SSS members under Program I of the Philippine Medical Care Plan. (Sec. 3, EO 
No. 195) 
 
SEC. 73. Benefits. The benefits under the OFW Medicare Program Fund shall consist 
of the benefits prescribed Executive Order No. 195 and defined under Rule III of the 
Implementing Rules and Regulations of EO No. 195. (see Rule III, IRR of EO No. 195) 
 
 
TITLE IV 
 
LEGAL REMEDIES OF OFW CASES 
 
 
Chapter I 
Adjudication 
 
Article I 
Claims And Disputes 
 
SEC. 74. Prescription. Claims for benefits under this Act except for life and 
retirement shall prescribe after four (4) years from the date of contingency.  
 
SEC. 75. Facility of Payment. The OWWA shall prescribe rules and regulations to 
facilitate payment of benefits, proceeds, and claims under this Act and any other laws 
administered by the OWWA.  Payments made by the OWWA prior to its receipt of an 
adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not 
bar the legal and eligible recipient to his/her right to demand the payment of benefits, 
proceeds, and claims from the OWWA, who shall, however, have a right to institute the 
appropriate action in a court of law against the ineligible recipient.  
 
SEC. 76. Settlement of Disputes. The OWWA shall have original and exclusive 
jurisdiction to settle any disputes arising under this Act and any other laws administered by 
the OWWA.  
 
The OWWA Board may designate any member of the Board, or official of the 
OWWA who is a lawyer, to act as hearing officer to receive evidence, make findings of fact 
and submit recommendations, together with all documentary and testimonial evidence to the 
Board within thirty (30) working days from the time the parties have closed their respective 
evidence and filed their last pleading. The Board shall decide the case within thirty (30) days 
from the receipt of the hearing officer’s findings and recommendations. The cases heard 


directly by the Board shall be decided within thirty (30) working days from the time they are 
submitted by the parties for decision. 
 
SEC. 77. Appeals. Appeals from any decision or award of the Board shall be 
governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme 
Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That pending cases 
and those filed prior to July 1, 1997 shall be governed by the applicable rules of procedure: 
Provided, further, That the appeal shall take precedence over all other cases except criminal 
cases when the penalty of life imprisonment or death or reclusion perpetua is imposable.  
 
The appeal shall not stay the execution of the order or award unless ordered by the 
Board, by the Court of Appeals or by the Supreme Court and the appeal shall be without 
prejudice to the special civil action of certiorari when proper.  
 
SEC. 78. Execution of Decision. When no appeal is perfected and there is no order to 
stay by the Board, by the Court of Appeals or by the Supreme Court, any decision or award 
of the Board shall be enforced and executed in the same manner as decisions of the Regional 
Trial Court. For this purpose, the Board shall have the power to issue to the city or provincial 
sheriff or its appointed sheriff such writs of execution as may be necessary for the 
enforcement of such decision or award, and any person who shall fail or refuse to comply 
with such decision, award, writ or process after being required to do so shall, upon 
application by the OWWA, be punished for contempt.  
 
SEC. 79. Oaths, Witnesses, and Production of Records. When authorized by the 
Board, an official or employee of the OWWA shall have the power to administer oath and 
affirmation, take deposition, certify to official acts, and issue subpoena ad testificandum and 
subpoena duces tecum to compel the attendance of witnesses and the production of books, 
papers, correspondences, and other records deemed necessary as evidence in connection with 
any question arising under this Act. Any case of contumacy shall be dealt with in accordance 
with the provisions of Section 580 of the Revised Administrative Code.  
 
 
TITLE IV 
 
FUND MANAGEMENT AND INVESTMENT POLICY 
 
 
Chapter I 
Investment Administration 
 
Article I 
Safeguards 
 
SEC. 80. Safeguards of OWWA Trust Fund; Acquired Assets: Unredeemed 
Investments and Other Receivables. a) The OWWA Trust Fund shall be managed and 
expended in accordance with the purpose of the Fund and safeguarded against any possible 
loss and misuse. (modified Art. VI, OWWA Omnibus Policies) 
 
The OWWA shall ensure an appropriate growth rate in the fund sufficient to sustain 
the growing needs of OFW members.  It shall ensure that all investment instruments are 


periodically inventoried and properly kept at a government bank under a custodianship 
agreement.  (Secs. 6 & 7, Art. VI, OWWA Omnibus Policies) 
 
A monthly report on all investment schedules showing the interest rates, yields, 
discount rates, and other relevant data, shall be submitted to the Board. (Sec. 8, Art. VI, 
OWWA Omnibus Policies) 
 
b) The OWWA shall administer all properties, acquired or foreclosed. To ensure that 
the properties are safeguarded and preserved, the same must be properly accounted for and 
documented; re-inspected, re-appraised, and insured with taxes paid. 
 
An asset development/disposal plan shall be submitted by the Administrator for the 
consideration of the Board. 
 
Foreclosed properties shall be registered as OWWA assets within one (1) month after 
foreclosure. (Sec. 9, Art. VI, OWWA Omnibus Policies) 
 
c) Unredeemed investments and other receivables shall be inventoried semi-annually 
and corresponding redemption plan shall be submitted to the Board. All receivables shall be 
supported by documents appropriately acknowledged by the accountable party. (Sec. 10, Art. 
VI of the OWWA Omnibus Policies) 
 
 
Article II 
General Investment Policy 
 
SEC. 81. General Investment Policy. As a Trust Fund, all OWWA investments shall 
be placed in government securities which provide optimum earnings, liquidity and protection 
of the Fund. The Board shall provide the policies and approve all investment decisions.  
(OWWA Omnibus Policies) 
 
Portfolio management of investible fund shall be outsourced to government financial 
institutions (GFIs).  (Modified from Sec. 3, Art. VI of the OWWA Omnibus Policies) 
 
The Administrator may, upon the approval of the Board, roll-over time deposits 
and/or re-invest matured securities/placements, provided that the original types of 
securities/placements are not altered. The Administrator shall advise the Board in writing 
prior to and after such actions. (Modified from Sec. 3, Art. VI of the OWWA Omnibus 
Policies) 
 
 
Article III 
Determination of Investible Fund 
 
SEC. 82. Determination of Investible Fund. This Fund shall refer to the net amount 
available for investment after deducting the projected monthly operating, program, and 
contingency fund allocations. (Art. VI, OWWA Omnibus Policies) 
 
A portion of the OWWA Trust Fund which are not needed to meet the current 
obligations may be invested under such terms and conditions and rules and regulations as 


may be prescribed by the OWWA Board: Provided, That investments shall satisfy the 
requirements of liquidity, safety/security and yield in order to ensure the actuarial solvency of 
the OWWA Trust Fund: Provided, further, That the OWWA shall submit an annual report on 
all investments made to both Houses of Congress of the Philippines, to wit:  
 
a) in interest-bearing bonds or securities or other evidence of indebtedness of the 
Government of the Philippines; 
 
b) in interest-bearing deposits or securities in any domestic bank doing business in the 
Philippines: Provided, That in the case of such deposits, there shall not exceed at any time the 
unimpaired capital and surplus or total private deposits of the depository bank, whichever is 
smaller: Provided, further, That the said bank has prior designation as a depository for the 
purpose by the Monetary Board of the Central Monetary Authority; 
 
c) in direct housing loans to members and group housing projects secured by first 
mortgage, giving priority to the low income groups and in short and medium term loans to 
members such as salary, policy, educational, emergency stock purchase plan and other 
similar loans: Provided, That no less than forty percent (40%) of the investible fund of the 
OWWA Fund shall be invested for these purposes; 
 
d) in bonds, securities, promissory notes or other evidence of indebtedness of 
educational or medical institutions to finance the construction, improvement and maintenance 
of schools and hospitals;  
 
e) in real estate property including shares of stocks involving real state property and 
investments secured by first mortgages on real estate or other collaterals acceptable to the 
OWWA: Provided, That such investment shall, in the determination of the OWWA Board, 
redound to the benefit of the OWWA and its bonafide members; 
 
f) in debt instruments and other securities traded in the secondary markets; 
 
g) in loans to, or in bonds, debentures, promissory notes or other evidence of 
indebtedness of any solvent corporation created or existing under the laws of the Philippines; 
 
h) in common and preferred stocks of any solvent corporation or financial institution 
created or existing under the laws of the Philippines listed in the stock exchange with proven 
track record of profitability over the last three (3) years and payment of dividends at least 
once over the same period; 
 
i) in domestic mutual funds including investments related to the operations of mutual 
funds; and 
 
j) in foreign mutual funds and in foreign currency deposits or foreign currency-
denominated debts, non-speculative equities and other financial instruments or other assets 
issued in accordance with existing laws of the countries where such financial instruments are 
issued: Provided, That these instruments or assets are listed in bourses of the respective 
countries where these instruments or assets are issued: Provided, further, That the issuing 
company has proven track record of profitability over the last three (3) years and payment of 
dividends at least once over the same period. (modification of Sec. 36, GSIS Act) 
 


SEC. 83. Investment Plan and Strategy. The OWWA shall formulate medium-term 
investment and asset management plan that shall include projected yield sufficient to sustain 
program and service delivery, and programmed growth for capital formation. An annual plan 
shall be developed to support the investment plan and strategy. Any change in the plan shall 
require the approval from the Board. (modified Art. VI, OWWA Omnibus Policies) 
 
 
Article IV 
Records and Reports of Investments 
 
SEC. 84. Records and Reports. The OWWA shall keep and cause to keep such 
records as may be necessary for the purpose of making actuarial studies, calculations and 
valuations of the OWWA Funds including such data needed in the computation of rates of 
disability, mortality, morbidity, separation and retirement among the members and any other 
information useful for the adjustment of the benefits of the members. The OWWA shall 
maintain appropriate books of accounts to record its assets, liabilities, income, expenses, 
receipts and disbursement of funds and other financial transactions and operations. 
(modification of Sec. 37, GSIS Act) 
 
 
Article V 
Others 
 
SEC. 85. Examination and Valuation of the Funds. The OWWA shall make a 
periodic actuarial examination and valuation of its funds in accordance with accepted 
actuarial principles. (modification of Sec. 38, GSIS Act) 
 
SEC. 86. Exemption from Tax, Legal Process and Lien. It is hereby declared to be the 
policy of the State that the actuarial solvency of the OWWA Funds shall be preserved and 
maintained at all times and that contribution rates necessary to sustain the benefits under this 
Act shall be kept as low as possible in order not to burden existing OWWA members and 
other prospective members. Taxes imposed on the OWWA tend to impair the actuarial 
solvency of its funds and increase the contribution rate necessary to sustain the benefits of 
this Act.  
 
Notwithstanding any laws to the contrary, the OWWA, its assets, revenues including 
all accruals thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, 
charges, or duties of all kinds. These exemptions shall continue unless expressly and 
specifically revoked and any assessment against the OWWA as of the approval of this Act is 
hereby considered paid. 
 
All laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or 
in derogation of this provision are hereby deemed repealed, superseded and rendered 
ineffective and without legal force and effect.  
 
Moreover, these exemptions shall not be affected by subsequent laws to the contrary 
unless this section is expressly, specifically and categorically revoked or repealed by law and 
a provision is enacted to substitute or replace the exemption referred to herein as an essential 
factor to maintain or protect the solvency of the fund, notwithstanding and independently of 
the guaranty of the national government to secure such solvency or liability.  


 
The funds and/or the properties referred to herein as well as the benefits, sums or 
monies corresponding to the benefits under this Act shall be exempt from attachment, 
garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies 
or administrative bodies including Commission on Audit (COA) disallowances and from all 
financial obligations of the members, including his pecuniary accountability arising from or 
caused or occasioned by his exercise or performance of his official functions or duties, or 
incurred relative to or in connection with his position or work except when his monetary 
liability, contractual or otherwise, is in favor of the OWWA. (modification of Sec. 39, GSIS 
Act) 
 
 
 
TITLE V 
 
FISCAL AND BUDGET POLICY 
 
Article I 
Management 
 
SEC. 87. Fiscal and Budget Policy. The OWWA Secretariat shall prepare its annual 
budget for operational requirements and estimated claims on insurance following the national 
government budget system. 
 
The operating budget shall support planned work programs and priorities for the year. 
It shall include the requirements for personal services, maintenance and other operating 
expenses, commitments, and capital outlay. 
 
The Board shall set the annual budget at a level sufficient to meet the needs of 
membership obligations to be appropriated from the OWWA Trust Fund.  The proposed 
budget for any given year shall observe annual allocation pattern where the cost of service 
provision shall not exceed the cost of programs, claims and benefits. 
 
A budget cap for an incoming year shall be determined by the Board to ensure fund 
viability. The budget cap will be reviewed annually with the end in view of achieving 
comparative efficiency levels of other similar agencies. (modified Secs. 1, 2, 3, 4 & 5, Art. 
VII, OWWA Omnibus Policies) 
 
SEC. 88. Automatic Appropriation. In case the proposed annual budget has not been 
approved by the Board at the start of the year, OWWA shall operate within the budget level 
of the previous year allocated on a month to month basis. All savings realized within a 
previous year shall be deducted from a current year’s budget. (Sec.6, Art. VII, OWWA 
Omnibus Policies) 
 
SEC. 89. Work and Financial Plans. All cost centers/offices/units of OWWA shall 
submit their annual work and financial plans (WFP), which should correspond to the 
approved budget. The Directors shall endorse the WFP of their respective units for approval 
of the Administrator. The consolidated OWWA-WFP shall be reported to the Board. (Sec.7, 
Art. VII, OWWA Omnibus Policies) 
 


SEC. 90. Budget Realignment. Realignment of funds including adjustments in targets 
shall be submitted to the Board for approval. Similarly, in the event that extra ordinary 
circumstances may occur which require additional funds beyond the coverage of the 
approved budget, the same shall be submitted for approval by the Board. (Sec.8, Art. VII, 
OWWA Omnibus Policies) 
 
SEC. 91. Branch Accounting System; Financial Reports; Auditing Procedures; 
Annual Reports. The OWWA Regional Units shall maintain their respective books of account 
which shall be consolidated by the central office.  
 
The OWWA shall install sound internal control and monitoring systems and submit 
quarterly prescribed Financial Statements to COA such as income statement, balance sheet, 
and cash flow as prescribed in post auditing reports by the COA. 
 
The OWWA Secretariat is mandated to submit a monthly fund utilization report to the 
Board.  It is further mandated to render an Annual Report on its overall performance for the 
previous year within the first sixty (60) days of the following year. Copies of the said report 
shall be submitted to the Board and the President. (Secs 11, 12, 13, 14 & 15, Art. VII, OWWA 
Omnibus Policies) 
 
 
Article II 
Miscellaneous Provisions 
 
SEC. 92. Auditing of Accounts. All accounts and disbursements of the University 
shall be audited by the Commission on Audit. 
 
SEC. 93. Institutional Autonomy. To provide greater flexibility to the OWWA, it shall 
be treated in a manner consistent with its institutional requirements insofar as this Charter 
prescribes. 
 
SEC. 94. Rules of Construction. No statutory or other issuances shall diminish the 
powers, rights, privileges, and benefits accorded to the OWWA under this Act or enjoyed at 
present by the OWWA under other issuances not otherwise modified or repealed under this 
Act, unless subsequent legislation expressly provides for their repeal, amendment or 
modification. Any case of doubt in the interpretation of any of the provisions of this Charter 
shall be resolved in favor of the benefits of the OFWs. 
 
 
TITLE VI 
 
FINAL PROVISIONS 
 
SEC. 95. Penalty. (a) Any person found to have participated directly or indirectly in 
the commission of fraud, collusion, falsification, or misrepresentation in any transaction with 
the OWWA, whether for him or for some other persons, shall suffer the penalties provided 
for in Article 172 of the Revised Penal Code. 
 
(b) Whoever shall obtain or receive any money or check invoking any provision of 
this Act or any agreement thereunder, without being entitled thereto with the intent to defraud 


any member, the OWWA, or any third party, shall be punished by a fine of not less than 
Twenty-five thousand pesos (P25,000.00) nor more than Fifty thousand pesos (P50,000.00) 
or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, 
at the discretion of the court.  
 
(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules 
and regulations adopted by the OWWA, shall be punished by a fine of not less than Twenty-
five thousand pesos (P25,000.00) nor more than Fifty thousand pesos (P50,000.00) or 
imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at 
the discretion of the court.  
 
d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other 
official or employee who fails to include in the annual budget the amount corresponding to 
the employer and employee contributions, or who fails or refuses or delays by more than 
thirty (30) days from the time such amount becomes due and demandable, or to deduct the 
monthly contributions of the employee shall, upon conviction by final judgment, suffer the 
penalties of imprisonment from six (6) months and one (1) day to six (6) years, and a fine of 
not less than Ten thousand pesos (P10,000.00) but not more than Twenty thousand pesos 
(P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding 
public office and from practicing any profession or calling licensed by the government.  
 
e) Any employee or member who receives or keeps fund or property belonging, 
payable or deliverable to the OWWA and appropriates the same, or takes or misappropriates 
or uses the same for any purpose other than authorized by this Act, or permits another person 
to take, misappropriate or use said fund or property by expressly consenting thereto, or 
through abandonment or negligence, or is otherwise guilty of the misappropriation of said 
fund or property, in whole or in part, shall suffer the penalties provided in Article 217 of the 
Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification from 
holding public office and from practicing any profession or calling licensed by the 
government.  
 
f) Any employee who, after deducting the monthly contribution or loan amortization 
from a member’s compensation, fails to remit the same to the OWWA within thirty (30) days 
from the date they should have been remitted, shall be presumed to have misappropriated 
such contribution or loan amortization and shall suffer the penalties provided in Article 315 
of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification 
from holding public office and from practicing any profession or calling licensed by the 
government.  
 
g) OWWA officers and personnel stationed in other countries who are involved in the 
collection of premium contributions, loan amortization and other accounts due the OWWA 
who shall fail, refuse or delay the payment, turnover, remittance or delivery of such accounts 
to the OWWA within thirty (30) days from the time that the same shall have been due and 
demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of 
not less than one (1) year nor more than five (5) years and a fine of not less than Ten 
thousand pesos (P10,000.00) nor more than Twenty thousand pesos (P20,000.00), and in 
addition, shall suffer absolute perpetual disqualification from holding public office and from 
practicing any profession or calling licensed by the government.  
 


h) The officers and/or personnel referred to in paragraph (g) of this section shall be 
liable not only criminally but also civilly to the OWWA or to the employee or member 
concerned in the form of damages, including surcharges and interests.  
 
i) For the charges or complaints referred to in paragraph (g) of this section, the 
liabilities therein set forth shall be construed as waiver of the State of its immunity from suit, 
hence, the above-mentioned officials and/or personnel may not invoke the defense of non-
suability of the State.  
 
j) Failure of the members of the OWWA Board, including the chairperson and the 
vice-chairperson (OWWA Administrator), to collect or recover all indebtedness, liabilities 
and/or accountabilities, including unpaid premiums or contributions in favor of the OWWA 
arising from any cause or source whatsoever, due from obligors, whether public or private, 
shall subject them to imprisonment of not less than six (6) months nor more than one (1) year 
or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand pesos 
(P10,000.00) without prejudice to any civil or administrative liability which may also arise 
therefrom.  
 
k) Criminal actions arising from violations of the provisions of this Act may be 
commenced by the OWWA or by the aggrieved member, either under this Act or, in 
appropriate cases, under the Revised Penal Code.  
 
SEC. 96. Implementing Rules and Regulations. The implementing rules and 
regulations to carry out the provisions of this Act shall be adopted and promulgated by the 
OWWA not later than ninety (90) days after the approval of this Act. 
 
SEC. 97. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, 
Functions and Activities. Nothing in this Act shall be construed to repeal, amend or limit any 
provision of existing laws, Presidential Decrees and Letters of Instructions, not otherwise 
specifically inconsistent with the provisions of this Act. 
 
SEC. 98. Exclusiveness of Benefits. Whenever other laws provide similar benefits for 
the same contingencies covered by this Act, the member who qualifies to the benefits shall 
have the option to choose which benefits will be paid to him.  However, if the benefits 
provided by the law chosen are less than the benefits provided under this Act, the OWWA 
shall pay only the difference.  
 
SEC. 99. Separability Clause. Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this Act. 
 
SEC. 100. Repealing Clause. All Board Resolutions, Administrative Orders, 
Memoranda of Instructions, Special Orders, and other issuances, or part/s thereof, which are 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 
 
SEC. 101. Effectivity. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in any newspaper of general circulation in the Philippines. 
 
Approved.