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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
s. No. 2383
23 AUGH PI :38
RHCEIVLD B\
Introduced by Senator MANUEL "LITO" M. LAPID
ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF 
OVERSEAS FILIPINO WORKERS
EXPLANATORY NOTE
The financial support from Overseas Filipino workers (OFWs) in the form of 
remittances has been helping their families and sustaining the economy. The inflow 
of remittances contributes to increased dollar earnings, which in turn supports a 
healthy balance of payments for the national economy. Over the years, the Philippines 
has experienced economic growth and GDP development. Among various industries, 
foreign remittances have remained a significant component that contributes to poverty 
eradication, job creation, increased investments, and the promotion of startups and 
small businesses. A continued rise in remittances signifies further growth for the 
country as a whole1.
Personal remittances, encompassing net compensation of employees, personal 
transfers, and capital transfers between households, accounted for 8.9 percent of the 
country's gross domestic product (GDP) and 8.4 percent of the gross national income 
(GNI)2. In December 2022 alone, the total remittances from OFWs reached a new
1 https://acemoneytransfer.com/blog/impact-of-remittances-on-the-philippines-economy
2 https://www.philstar.eom/business/2023/02/16/2245201/remittances-hit-record-high-361-billion- 
2022#:~:text=Personal%20remittances%20- 
%20the%20surn%20of,gross%20national%20income%20(GNI).


monthly record of USD 3.49 billion, culminating in an annual total of USD 36.14 
billion—an increase of 3.6% and the highest recorded figure3.
Recognizing the significance of OFW remittances on families and the national 
economy, it is crucial to safeguard their hard-earned money from excessive interest 
rates and exorbitant fees imposed by financial institutions, which unfortunately 
diminish the value of their remittances. Thus, this bill aims to establish a limit on 
remittance fees and charges imposed by intermediaries, including both bank and non­
bank financial Institutions. It suggests granting up to a fifty percent (50%) discount 
to OFWs who send money to their immediate family members. To safeguard the 
welfare of these intermediaries, the discounts provided will be considered as ordinary 
and necessary expenses, deductible from their gross income when calculating payable 
taxes.
Additionally, it is essential to encourage OFWs and their families to effectively 
manage their finances by saving and investing their money. Thus, this bill also 
mandates relevant government agencies to conduct financial literacy education 
programs for OFWs and their families, covering topics such as financial management, 
budgeting, and investment options.
To further protect the remittances of OFWs, the bill requires bank and non­
bank intermediaries offering remittance services to ensure that the exchange rate 
being implemented is readily accessible to their clients. Furthermore, these 
Intermediaries are prohibited from raising their current remittance fees without prior 
consultation with the Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), 
and the Department of Migrant Workers (DMW).
In view of the foregoing, early passage of this bill is earnestly requested.
MANUEL "LITO" M. LAPID
Senator
https://www.pna.gov.ph/articles/1195298#:~:text="OFW%20remittances%20at%20new%20record, 
economic%20growth%2C"%20he%20added.
2


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No. 2383
of tije trctarjp
23 AUG “1 PI :38
RECEIVE D3V9
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
PROVIDING FOR PROTECTION OF THE REMITTANCES OF
3 
OVERSEAS FILIPINO WORKERS
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
4 
SECTION 1. Short Title. -This Act shall be known as the "Overseas Filipino
5 
Workers (OFWs) Remittance Protection Act."
6 
SECTION 2. Declaration of Policy. - The Constitution affirms that labor is the
7 
primary social economic force and mandates the State to protect the rights of the
8 
workers and promote their welfare.
9 
Recognizing the significant contribution of OFWs to the national economy
10 
through their foreign exchange remittances, the State shall adopt measures to protect
11 
the hard-earned money they remit home against usurious interest rates and exorbitant
12 
fees charged by financial institutions that deplete the value of their remittances, and
13 
provide them and their families adequate education and training on financial literacy,
14 
such as financial planning and management of finances or savings, to help ensure a
15 
source of livelihood even after their overseas employment.
16 
SECTION 3. Definition of Terms. - As used in this Act:
17 
(a) Overseas Filipino Worker (OFW) refers to a person who is to be engaged,
18 
is engaged or has been engaged in a remunerated activity in a state of which the
1


person is not a citizen or on board a vessel navigating the foreign seas other than a 
government ship used for military or non-commercial purposes or on an installation 
located offshore or on the high seas; to be used interchangeably with migrant worker.
4 
(b) Remittance refers to the foreign exchange earnings sent home by OFWs
5 
or their employers or agents through formal channels.
6 
(c) Remittance Fee refers to the service fee or charge imposed by bank and
7 
non-bank financial intermediaries for sending money of OFWs through formal
8 
channels.
9 
SECTION 4. Applicability of this Act - The provisions of this Act shall be
10 
applicable to all OFW remittances, whether voluntary or mandated by law, orders,
11 
issuances, or rules and regulations.
12 
SECTION 5. Discount on Remittance Fees and Tax Deduction Granted to
13 
Establishments. - Bank and non-bank financial intermediaries may impose fees for
14 
services rendered in sending money of OFWs to their immediate family members,
15 
subject to a fifty percent (50%) discount granted to the OFWs.
16 
Bank and non-bank financial intermediaries providing discounts on remittance
17 
fees may claim the discounts granted as a tax deduction based on the cost of services
18 
rendered to OFWs. The discounts granted should be treated as an ordinary and
19 
necessary expense deductible from the gross income of the intermediary falling under
20 
the category of itemized deductions: Provided, That the total deduction from the gross
21 
income of establishments providing discounts on remittance fees shall be determined
22 
by the Secretary of Finance upon the recommendation of the Commissioner of Internal
23 
Revenue who shall issue the appropriate revenue regulation for the purpose.
24 
SECTION 6. Requirement of Posting of the Peso Equivalent of the Currency
25 
to be Exchanged. - All bank and non-bank financial intermediaries offering remittance
26 
services to OFWs shall be required to post In a conspicuous place within the
27 
establishment's premises, their official websites, and their social media pages, the
28 
Philippine peso equivalent rate of the foreign currencies being transacted. The


1 
Philippine peso equivalent of the amount as remitted will be the same amount that
2 
will be received by the beneficiary of the remittance.
3 
SECTION 7. Prohibition from Raising Remittance Fees. - All banks and non-
4 
bank financial intermediaries offering remittance services to OFWs are prohibited from
5 
raising their remittance fees without prior consultation with the Department of Finance
6 
(DOF), Bangko Sentral ng Pilipinas (BSP), and the Department of Migrant Workers
7 
(DMW).
8 
SECTION 8. Financiai Literacy Education for OFWs and their Famiiies. - The
9 
DMW shall ensure that financial literary education programs are made available and
10 
promoted to OFWs and their families.
11 
The program shall include instruction on basic banking, financial management,
12 
budgeting, investment options and similar topics, which shall educate the OFWs and
13 
their families in the handling of their earnings and remittances.
14 
SECTION 9. Impiementing Ruies andReguiations. - Within ninety (90) days
15 
after the approval of this Act, the DMW shall, in consultation with appropriate
16 
government agencies and stakeholder representatives, shall Issue the necessary rules
17 
and regulations for the effective implementation of this Act.
18 
SECTION 10. Repeaiing Cause. - All laws, decrees, executive orders,
19 
issuances, rules and regulations which may be inconsistent with any of the provisions
20 
of this Act are hereby deemed repealed, amended or modified accordingly.
21 
SECTION 11. Separabiiity Cause. - If any provision of this Act is held
22 
unconstitutional or Invalid, the other provisions not affected shall remain in full force
23 
and effect.
24 
SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days after its
25 
publication in the Official Gazette or in a newspaper of general circulation.
26
Approved,