The House of Representatives approved on third and final reading of House Bill 10914, also known as the “Free OFW Financial Education Act” on Tuesday, 19 November.

The proposed legislation aims to provide overseas Filipino workers (OFWs) and their families with free financial literacy training to help them manage their finances more effectively.

Several studies have highlighted the financial challenges faced by OFWs, including low financial literacy and the accumulation of debt.

A 2022 study by Ateneo de Davao University students, titled “Saving and Spending Habits of Overseas Filipino Workers (OFWs) and Their Families in Region XI, Philippines,” found that these issues are prevalent among OFWs.

A study by Migrasia in the same year, “Indebted Before Departure: Information Arbitrage and Financial Exploitation by Philippine Migration Intermediaries,” also shed light on how many OFWs incur significant debts to finance their migration.

The study revealed that 58 percent of its respondents paid medical fees above legal limits, with some amounts reaching over P2,500, further exacerbating their financial challenges.

The measure received strong support in the chamber, passing with 179 votes in favor.

Under the bill, financial literacy seminars will be integrated into the Pre-Departure Orientation Seminars and Post-Arrival Training Seminars required for overseas workers. The program will also offer optional financial training for Filipino seafarers at their points of hire or upon their return to the Philippines.

Families of OFWs will also have access to financial education through online seminars and other accessible platforms that cover topics including consumer protection, credit management, and financial products including stocks, insurance, and avoidance of high-interest loans and scams.

The Department of Migrant Workers, in coordination with other government agencies, will implement the initiative.

Authors of the bill include Representatives Joey Salceda, Salvador Pleyto, Ralph Wendel Tulfo, Jocelyn Tulfo, Erwin Tulfo and others. Supporters of the measure view it as a “step toward addressing the financial challenges” faced by OFWs and their families.

Once enacted, the law is expected to boost the financial resilience of OFWs, who contribute significantly to the Philippine economy through remittances.