Senator Villanueva welcomes Senate OK of OFW remittance reform bill

Senator Joel Villanueva on Monday welcomed the Senate’s approval of a measure for reforming the remittance system for Overseas Filipino Workers (OFWs), saying it addresses long-standing issues that have reduced the earnings of migrant workers and their families.

The proposed law, Senate Bill No. 1917 or the Overseas Filipino Workers’ Remittance Protection Act, was principally authored and sponsored by Villanueva in his capacity as chair of the Senate committee on banks, financial institutions, and currencies.

It seeks to simplify remittance fees, enforce transparency in fee structures, and require consultations with stakeholders before any fee adjustment is implemented. The bill also bans abrupt, unilateral changes in charges and imposes penalties on violators.

"Many OFWs remain trapped in an outdated remittance system — one that quietly chips away at their hard-earned income through excessive fees, hidden charges, and unclear foreign exchange practices," Villanueva said. "These are not abstract concerns. These are real burdens borne by real families who depend on every peso to survive."

In addition to regulating fees, the measure directs the Department of Migrant Workers (DMW) and the Overseas Workers Welfare Administration (OWWA) to roll out financial literacy programs for OFWs and their families, with the goal of helping them turn remittances into sustainable financial security instead of short-term support.

Villanueva clarified that the bill is not meant to disadvantage businesses in the remittance sector.

"This bill is not anti-business. It advances a balanced system — one that allows fair returns for service providers, while ensuring strong protection for those whose only capital is their labor, time, and sacrifice," he pointed out.

The senator also cited the ongoing tensions in the Middle East, where many Filipinos are employed, as a reason for the urgency of the measure. He noted that Ferdinand Marcos Jr. had likewise emphasized the need to safeguard remittance flows from the region and had instructed government agencies to reduce financial pressures on OFWs amid the instability.

"Our responsibility does not end with the deployment or rescue of OFWs. It extends to ensuring that the fruits of their labor reach their families with dignity and fairness."

Villanueva expressed gratitude to fellow lawmakers for backing the bill and acknowledged the contributions of the Bangko Sentral ng Pilipinas, the Department of Finance, the DMW, the OWWA, and various OFW advocacy groups during the legislative process.

He added that the measure forms part of a broader effort to eventually create enough local opportunities so that Filipinos would no longer feel compelled to work abroad.

"The passage of this bill brings us one step closer to a more just and protective system for our OFWs. Yet, it is also a reminder of our continuing responsibility to create opportunities here at home, so that one day, no Filipino will be compelled to leave the country in search of livelihood," Villanueva said.