Connect with us

Hi, what are you looking for?


Rep bats for OFW pension system

A LAWMAKER has filed a bill seeking to create a pension system for overseas Filipino workers (OFWs).

House Bill No. 8574 or the Kabayan OFW Pension Act aims to provide a social security and retirement system for land- and sea-based working Filipinos abroad.

The establishment of a separate system provides OFWs with a much-needed safety net, shielding them from the risks associated with their overseas employment,KABAYAN Party-list Rep. Ron P. Salo said in the bills explanatory note.

The proposed system will operate as a government-owned and -controlled corporation.

It will have a board of trustees with the Migrant Workers and Finance secretaries as ex-officio chair and vice chair, respectively. The board will also have representatives from land- and sea-based overseas workers, the manning and recruitment agency sector, and the actuarial or finance industry.

An OFW must be a member of the Social Security System to avail of the systems benefits. Non-documented OFWs may avail of the coverage on a voluntary basis.

According to the measure, on every last day of the month, the employer will deduct and withhold from the OFWs monthly salary, wage, compensation or earnings their contribution based on their monthly salary credits, schedule and contribution rate as determined by the board.

Employers will also pay a compulsory contribution.

Member-OFWs may also avail of benefits for maternity leave, repatriation, dependents pension and unemployment or involuntary separation benefits,

death, permanent disability, and funeral.

Funds will be sourced from fees charged at Philippine and foreign recruitment agencies as well as the Overseas Employment Certificate of the Department of Migrant Workers (DMW), and net income from the OFW Bank.

It will also tap savings from the Assistance to Nationals fund of the Foreign Affairs department and the DMWs Aksyon Fund, grants or bequests from donors, and from the national government, which is expected to contribute P100 million as initial capital.

Benefits under the Kabayan OFW pension are separate from other benefits that OFWs receive from the government, Mr. Salo noted.

Cash remittances sent by OFWs stood at $2.48 billion in April, higher than $2.4 billion in the same month in 2022 or up by 3.7% year on year.

The DMW projects that OFW deployment will surpass the 1.2 million recorded in 2022. Beatriz Marie D. Cruz

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



AIRCRAFT pilots, software developers, and mathematicians were among the top-paying jobs in 2022, data from the Philippine Statistics Authority (PSA) showed. In the 2022...


By Miguel Hanz L. Antivola, Reporter MANY FILIPINOS have fallen victim to the fanfare of play-to-earn games enabled by cryptocurrency due to a lack of...


Top 5 cybersecurity mistakes endangering your startup and how to resolve them Simon Hughes – VP and General Manager for the UK arm of...


The government’s borrowing bill was lower than expected last month as falling inflation and bumper tax revenues helped improve public finances. Figures from the...


Watford is to become the unlikely new home for Batman and Superman after Warner Bros confirmed that it is to go ahead with a...


The First Atkins Group continues its commitment to promoting food sufficiency as it unveils plans for its 8th cold storage facility. First Atkins Holdings...

You May Also Like

Top News

As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...


The Toto site’s user-friendly interface makes it easy for both beginners and experienced gamblers to navigate through the various features. “¸ÔÆ¢Æú¸®½º site is a...


Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...


The number of small businesses planning to increase prices to their customers is set to rise dramatically this quarter, further fuelling inflationary pressures. A new quarterly analysis of...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.