REPUBLIC OF THE PHILIPPINES 
) 
FOURTEENTH CONGRESS 
) 
Second Regular Session 
) 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
Modern heroes are what we call them. Overseas Filipino Workers, whose 
hard-earned dollars are responsible for buoying up our economy to levels that 
have allowed us to achieve growth as a nation, and industrialization along with 
modernization as a country. 
It is with great pleasure, honor and urgency that the passage of this 
legislation is earnestly sought as this will allow the Overseas Filipino Workers to 
feel the rewards of their hard work, and reap the benefits, which, once upon a 
time, during the prime of their lives, they strived hard to achieve. 
For this reason, assistance in the form of discounts in establishments, 
medical assistance, enjoyment of benefits granted by the respective social 
service systems, even housing programs, shall be extended to them, all matters 
of expressing our debt of gratitude to them, because we as a nation can only 
move forward if we know how to look back from where we came from. 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
SENATE 
/ 
Introduced by Senator Manny Villar 
AN ACT 
GRANTING BENEFITS AND SPECIAL PRIVILEGES TO FORMER 
OVERSEAS FILIPINO WORKERS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled: 
SECTION 1. Declaration of Policies and Objectives. - Pursuant to the 
Constitution, the State hereby adopts a policy of giving full protection to labor, 
and affirms labor as a primary social economic force. Consonant with these 
constitutional principles the following are the declared policies of this Act: 
a) to recognize the magnitude of contribution to the economy of overseas 
Filipino workers whose lonely sacrifices in foreign lands bring in a 
considerable amount of foreign exchange; 
b) to motivate and assist former overseas Filipino workers to contribute to 
nation building; 
In accordance with those policies, this Act aims to grant former overseas 
Filipino workers with a package of benefits and incentives. 
SEC. 2. Definition of Terms. - As used in this Act, the term "former 
overseas Filipino worker" shall mean any resident citizen of the Philippines at 
least fifty (50) years old, previously certified by the Department of Labor and 
Employment Philippine Overseas Employment Agency for overseas employment 
purposes and has an income of not more than sixty thousand pesos 
(P60,OOO.OO) per annum subject to review by the National Statistics Coordination 
Board (NSCB) every three (3) years, It covers all nationals who have worked in a 
foreign country under employment contracts for a period not less than I O  years, 
including but not limited to, professionals, seamen, entertainers, domestic 
helpers, regardless of their employment status in the foreign country. 
SEC. 3. Privileges for former O m s .  - Any qualified former OFW as 
determined by the Office for Former Overseas Filipino Workers (OFOFW) shall 
be entitled to the following: 
a) the grant of twenty percent (20%) discount from all establishments 
relative to utilization of transportation services, hotels and similar 
lodging establishment, restaurants and recreation centers and 
purchase of medicine anywhere in the country: Provided, That private 
establishments may claim the cost as tax credit; 
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a minimum of twenty percent (20%) discount on admission fees 
charged by theaters cinema houses and concert halls, circuses, 
carnivals and other similar places of culture, leisure and amusement. 
exemption from the payment of individual income taxes: Provide, That 
their annual taxable income does not exceed the income level as 
determined by the National Economic Development Authority (NEDA) 
for that year; 
free medical and dental consultations in private or public hospitals and 
similar establishments anywhere in the country and medical insurance 
program to be provided by the Philippine Health Insurance Corporation 
(PH IC); 
to the extent practicable and feasible, the continuance of the same 
benefits and privileges given by the Government Service Insurance 
System (GSIS), Social Security System (SSS) and PAG-IBIG, as the 
case may be, as are enjoyed by those in actual service. 
priority in existing livelihood programs being undertaken by various 
government agencies subject to the guidelines and qualifications by 
the implementing body; and 
priority in national housing programs, affordable "pabahay" loans and 
other housing opportunities subject to the guidelines and qualifications 
set by the National Housing Authority (NHA) or the Home Development 
Mutual Fund (HDMF). 
Such privately-owned establishments shall enjoy tax credits equivalent to 
the discounts extended to former OFWs. 
SEC. 4. Retirement Benefits. - To the extent practicable and feasible, 
retirement benefits from both the Government and the private sectors shall be 
upgraded to be at par with the current scale enjoyed by those in actual service. 
SEC. 5. The Office of Former Overseas Filipino Workers (OFOFW) - 
There shall be established in the Office of the Mayor an OFOFW to be headed by 
a Councilor who shall be designated by the Sangguniang Bayan and assisted by 
the Community Development Officer in coordination with the Department of 
Labor and the Department of Social Welfare and Development. The functions of 
this office are: 
a) to maintain and regularly update on a quarterly basis the list of former 
OFWs and to issue nationally uniform individual identification cards 
which shall be valid anywhere in the country: 
b) to service as a general information and liaison center to serve the 
needs of former OFWs; and 
c) to issue nationally uniform individual identification cards which shall be 
valid anywhere in the country 
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SEC. 6. Municipal Responsibility. - It shall be the responsibility of the 
municipality through the mayor to ensure that the provisions of this Act are 
imdemented to its fullest. 
SEC. 7. Penalties. - Violation of any provision of this Act for whlch no 
penalty is specifically provided under any other law, shall be punished by 
imprisonment not exceeding one (1) month or a fine not exceeding 
One 
thousand pesos (P 1,000.00) or both. 
SEC. 8. lmplementing Rules and Regulations. - The Secretary of 
Social Welfare and Development, jointly with the Department of Labor and 
Employment, Department of Finance, the Department of Tourism, the 
Department of Health, the Department of Transportation and Communications 
and the Department of Interior and Local Government shall issue the necessary 
rules and regulations to carry out the objectives of this Act. 
SEC. 9. Appropriation. - The necessary appropriation for the operation 
and maintenance of the OFOFW shall be appropriated and approved by the local 
government units concerned. The National Government shall appropriate such 
amount, as may be necessary to carry out the objectives of this Act. 
SEC. I O .  Repealing Cause. - All provisions of laws, orders, decrees, 
including rules arid regulations inconsistent herewjth are hereby repealed and/or 
modified accordingly. 
SEC. 11. Effectivity. -This Act shall take effect fifteen (15) days following 
its publication in a newspaper of general circulation. 
Approved, 
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