By Leonel Abasola, Philippine News Agency
This will provide regulators with a working framework to achieve the significant reduction of remittance fees so OFW families could benefit more from the hard work and sacrifice of their loved ones overseas. (Pexels photo)
MANILA – Senator Joel Villanueva on Monday pushed to cut remittance fees for overseas Filipino workers (OFWs) by half, and also called for greater transparency and accountability in how these charges are imposed.
“These high fees diminish the value of our OFWs’ money and reduce effectively its ability to provide a better means of living for their respective families left behind here in our country,” Villanueva said in a committee hearing.
He said this will provide regulators with a working framework to achieve the significant reduction of remittance fees so OFW families could benefit more from the hard work and sacrifice of their loved ones overseas.
He also reiterated his call to approve his proposed Senate Bill No. 181 titled “Overseas Filipino Workers Remittance Protection Act”.
Villanueva said resource persons from the Department of Migrant Workers (DMW) and Bangko Sentral ng Pilipinas (BSP) expressed support for the legislative proposal, saying it would “strengthen their existing programs”.
Data from the BSP shows a total remittance of US$19.9 billion or around PHP1.16 trillion from January to July 2025 alone.
For the entire year of 2024, remittances totaled US$34.5 billion or PHP2.01 trillion, the BSP said. This amount accounted for 8.3 percent of the country’s Gross Domestic Product, making OFW remittances a stable growth driver of the Philippine economy.
As to the cost of sending remittances, globally, the average for small amounts is about 6.49 percent of the amount sent.
Aside from the reduction in remittance charges and the mandatory disclosures on its structure, the bill also prohibits BSP-supervised institutions from raising current levels of remittance fees without prior consultation with the BSP, DMW, and the Department of Finance.
In the same hearing, DMW Secretary Hans Leo Cacdac expressed support for the proposed law, saying: “Facilitating the wider use of digital remittance platforms will enhance efficiency, transparency, and financial inclusion for OFWs and their families.”
Cacdac explained that financial literacy topics are integrated into their mandatory orientations and seminars for OFWs before deployment and subsequent reintegration once they decide to return for good.
