OFW remittance fee slashing eyed

A lawmaker is aiming to cut remittance fees charged to overseas Filipino workers (OFWs) in half, arguing that high costs “diminish” the value of the income sent to families in the Philippines.

This comes as Senator Joel Villanueva — who also chairs the Senate Committee on Banks — filed Senate Bill No. 181, or the Overseas Filipino Workers Remittance Protection Act, which seeks increased transparency and accounting of remittance charges.

The senator argued that high fees “diminish the value of OFWs’ money and reduce effectively its ability to provide a better means of living for their respective families left behind” in the Philippines.

“We must remember that OFW remittances are a lifeline for their families, which supports their basic needs,” Villanueva said.

“We think that our proposed legislation today would 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 added.

Globally, the average cost for sending small remittances is about 6.49 percent of the amount sent.

According to Bangko Sentral ng Pilipinas (BSP) data, OFW remittances totaled $19.9 billion from January to July 2025 alone. For the entire year of 2024, remittances reached $34.5 billion, accounting for 8.3 percent of the country’s gross domestic product.