Read also: Understanding the Rights and Reliefs of Overseas Filipino Workers
EO 857 mandates every Filipino contract worker abroad to remit regularly a portion of his foreign exchange earnings to his beneficiary in the Philippines through the Philippine banking system.
This mandatory remittance is imposed to protect the welfare of families, dependents and beneficiaries of Filipino workers abroad and to ensure that the foreign exchange earnings of these workers are remitted through authorized financial institutions of the Philippine Government in line with the country’s economic development program
The mandatory remittance requirement are as follows:
| Nature of Job | Foreign Exchange Remittance (% of Basic Salary) |
| a. Seamen or Mariners: | Eighty percent (80%) of the basic salary. |
| b. Workers of Filipino contractors and construction companies: | Seventy (70%) percent of the basic salary. |
| c. Doctors, engineers, teachers, nurses and other professional workers whose employment contracts provide for free board and lodging facilities: | Seventy (70%) percent of the basic salary |
| d. All other professionals whose employment contracts do not provide free board and lodging facilities: | Fifty (50%) percent of the basic salary. |
| e. Domestic and other service workers: | Fifty (50%) percent of the basic salary. |
| f. All other workers not falling under the aforementioned categories: | Fifty (50%) percent of the basic salary. |
Proof of Compliance:
Proof of compliance with the mandatory remittances requirement may consist of any of the following documents or such alternatives as may be approved by the Central Bank of the Philippines showing that the contract workers had in fact effected aforesaid remittance and had caused the surrender of the same for pesos through the Philippine banking system:
- Confirmed bank remittance form; or
- Certification from employer duly authenticated that remittance has been effected; or
- Bank certification or credit/payment advice evidencing sale for pesos to the Philippine banking system; or
- Central Bank official receipt covering foreign exchange sold in the Philippines to authorized agent banks or authorized foreign exchange dealers; or
- Receipt of International Postal Money Order.
Effect of Failure to Remit:
Contract workers who fail to comply with the requirements of this Order shall be suspended or excluded from the list of eligible workers for overseas employment. In cases of subsequent violations, he shall be repatriated from the job site at the expense of the employer or at his expense, as the case may be.
Filipino or foreign employers and/or their representatives who fail to comply shall be excluded from the overseas employment program. In the case of local private employment agencies and entities, failure to comply, shall be a ground for cancellation of their license or authority to recruit workers for overseas employment, without prejudice to their liabilities under existing laws and regulations.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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Praise God for this,,
So as per EO 857 local and foreign entities are subject to follow the stated remittances of an OFW to his/her beneficiaries in the Philippines, 70% of the basic salary sa ma dated by existing Philippines law.
Thanks for your information and guidance, can you confirm thru email below?
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