Senator Erwin Tulfo seeks pre-employment assistance for aspiring OFWs

Senator Erwin Tulfo has introduced a bill aimed at easing the financial burden faced by aspiring Overseas Filipino Workers (OFWs) by offering interest-free loans to cover their pre-employment and pre-departure expenses.

Filed as Senate Bill No. 1696, also known as the OFW Pre-Employment Loan Assistance Act, the measure allows qualified applicants with valid overseas employment contracts to borrow up to ₱100,000. The proposal prioritizes first-time OFWs and requires them to undergo financial literacy training before leaving the country.

“OFWs contribute billions of dollars in remittances. They significantly boost not only our economy but also our national morale; yet, they are often left to strive alone to achieve their dreams,” Tulfo, chair of the Senate Committee on Foreign Relations, said.

“In our Action Center, we frequently encounter OFWs who have to scramble for funds—often incurring debts from loan sharks—just to settle their pre-departure fees,” the Senator added.

The bill identifies several typical expenses that overseas workers must shoulder, including placement and processing fees, medical and psychological assessments, training and skills evaluation, airfare, passport applications, visa processing, and work permits.

Once enacted, the program will be implemented by the Department of Migrant Workers, in partnership with the Overseas Workers Welfare Administration.

Under the proposed framework, borrowers will not be charged interest during the first year of repayment. After this period, any interest applied will be capped at prevailing government lending rates, with payments coursed through authorized banking channels. To promote responsibility and accountability, the measure requires a member of the OFW’s immediate family to serve as a co-borrower.

Additional safeguards are also built into the proposal, particularly for first-time OFWs, who will benefit from expedited processing, a longer repayment window of up to 18 months, and mandatory access to free debt management programs.

“It has become a common story among our OFWs that despite earning well abroad, they remain mired in debt because they lack the necessary training in financial management,” Tulfo remarked.

“We want our kababayans, who sacrifice being away from their families, to build a better life that lasts a lifetime. Our ultimate aspiration is that their children, and the generations after them, will no longer be forced to work abroad,” the lawmaker said.

-Paraluman News