Senator Joel Villanueva on Monday urged the government to cut remittance fees for overseas Filipino workers (OFWs) by half and ensure greater transparency in how these charges are imposed.
“These high fees diminish the value of our OFWs’ money and reduce effectively its ability to provide a better means of living for their respective families left behind here in our country,” Villanueva said during a committee hearing.
He said this move would help regulators create a framework to significantly lower remittance costs, allowing OFW families to fully benefit from their loved ones’ hard work abroad. Villanueva also renewed his call for the passage of Senate Bill No. 181, or the Overseas Filipino Workers Remittance Protection Act.
According to Villanueva, representatives from the Department of Migrant Workers (DMW) and Bangko Sentral ng Pilipinas (BSP) backed the proposed measure, saying it would “strengthen their existing programs.”
BSP data showed that from January to July 2025, OFWs sent US$19.9 billion (around PHP1.16 trillion) in remittances. In 2024, total remittances reached US$34.5 billion or PHP2.01 trillion, equivalent to 8.3 percent of the country’s GDP.
Globally, the average remittance cost for small amounts is around 6.49 percent of the total sent. Villanueva’s bill aims to reduce these charges, require mandatory disclosures on remittance structures, and prohibit BSP-supervised institutions from increasing fees without prior consultation with the BSP, DMW, and the Department of Finance.
DMW Secretary Hans Leo Cacdac expressed support for the bill, saying, “Facilitating the wider use of digital remittance platforms will enhance efficiency, transparency, and financial inclusion for OFWs and their families.”
Cacdac added that financial literacy topics are already part of DMW’s mandatory orientations and reintegration seminars for OFWs.