Recognizing that overseas Filipino workers' (OFWs) remittances are a key driver of economic growth, Senator Jinggoy Estrada filed a measure seeking to slash remittance fees by 50 percent.

Senate Bill No. 1074, or the proposed “Overseas Filipino Workers (OFWs) Remittance Protection Act,” aims to safeguard OFWs' hard-earned money from excessive charges, unfair practices, and financial exploitation.

Under the proposal, banks and non-bank financial intermediaries granting the mandatory 50 percent discount on remittance fees may claim the amount as a tax deduction on their operational costs, creating what Estrada described as a “win-win solution” for both OFWs and service providers.

“This is a win-win situation for our OFWs and their families, as well as for banks and remittance centers,” Estrada said.

In 2024, OFWs sent a record $38.34 billion in remittances to the Philippines, a three percent increase from the $37.21 billion they sent in 2023. These remittances accounted for 8.3 percent of the country’s gross domestic product and 7.4 percent of gross national income, highlighting their importance to the local economy.

“For every hour our OFWs spend away from their families, they make irreplaceable sacrifices and time that no dollar can compensate for. Therefore, our law must ensure that their income is protected and utilized—income that also fuels our economy,” Estrada said.

“The least we can do is make sure that every peso sent home reaches their loved ones with its full value intact, and not eaten up by excessive or unfair charges,” he added.

The proposed measure also mandates full transparency from banks and financial intermediaries by requiring the clear posting of peso-equivalent exchange rates in remittance centers to prevent hidden charges.

It strictly prohibits the misappropriation of funds, unauthorized deductions, excessive fees, and any increase in remittance charges without prior consultation with concerned government agencies. Violators may face penalties of up to six years in prison, fines ranging from P50,000 to P750,000, and additional sanctions under existing banking laws. Institutions that deny receipt of remittances may also be penalized.

The measure further provides OFWs and their families with education and training on financial literacy, covering budgeting, savings, investments, loans, consumer protection, and safeguards against scams and online fraud, in coordination with the Department of Migrant Workers, Overseas Workers Welfare Administration, Bangko Sentral ng Pilipinas, and Department of Finance.

Estrada stressed that the measure goes beyond economics and is ultimately about dignity and fairness.

“OFWs are not just remitters—they are breadwinners, parents, and pillars of our economy. Protecting their money is protecting their families’ future.”