Philippine legislators are pushing emergency measures to shield the earnings of the country’s 10 million overseas workers from mounting fees and international taxes that threaten to drain billions of pesos from remittance-dependent families.
The House of Representatives is advancing the OFW Remittance Protection Act, which would cap excessive transfer charges, mandate full disclosure of exchange rates and fees by banks and money-transfer companies, and impose steep penalties—up to six years in prison and fines of 750,000 pesos—on financial institutions that engage in predatory practices. Representative Bryan Revilla, the bill’s sponsor, said the legislation reflects an urgent national responsibility, given that nearly all remittances sent home are used for food and household necessities.
In the Senate, lawmakers are targeting a different vulnerability. Senator Erwin Tulfo has filed the OFW Pre-employment Loan Assistance Act, which would provide interest-free loans of up to 100,000 pesos to first-time overseas workers to cover placement fees, medical exams, skills training, airfare, and visas. The loans would remain interest-free for 18 months, with repayment terms capped at government lending rates thereafter, shielding aspiring migrants from loan sharks who have long exploited workers before they even board their flights.
The legislative push comes as the Philippine government braces for fallout from a new U.S. federal tax on cash-based remittances. Signed into law by President Donald Trump as part of the One Big Beautiful Bill Act, the 1 percent tax took effect January 1, 2026, and applies to money orders, cashier’s checks, and other physical payment methods, though digital and bank-to-bank transfers are exempt. The Philippine Department of Finance has estimated the tax could reduce remittance inflows by roughly 100 million dollars this year, a modest fraction of the country’s overall receipts but a potentially serious blow to low-income communities that rely heavily on money from abroad.
Migrant-rights advocates say the twin bills, along with planned financial literacy programs, represent the most comprehensive effort yet to protect workers’ incomes across the entire migration cycle—from recruitment costs to transfer fees to eventual reintegration.
