Binay orders stoppage of advance payment of Pag-IBIG for OFWs

Published by rudy Date posted on August 13, 2010

VICE President Jejomar Binay on Thursday has ordered two government agencies to suspend the implementation of the order that mandates the six-month advance contribution of overseas Filipino workers (OFWs) to the Home Development Mutual (Pag-IBIG) Fund. In a statement, Binay directed both the Pag-IBIG and the Philippine Overseas Employment Administration (POEA) “to conduct a thorough study and more consultations with the affected sectors.”

He said that there is a need to review the legal basis and propriety that compels OFWs to pay in advance the equivalent of their supposed six months worth of contribution, amounting to P600.

At present, the advance six-month payment is said to be a precondition for Filipino workers going abroad to work.

“What is important is that government should assist our OFWs and should not be seen as further imposing burdens on them,” Binay, chairman of the Housing and Urban Development Coordinating Council and the Pag-IBIG Fund board of trustees, said.

“Aside from reviewing the legal basis for the order, the concerned government agencies should hold more consultations with the affected sectors. There should be transparency in the process,” he added. “There are benefits to be derived from Pag-IBIG membership and this should be explained fully to our OFWs.”

On July 7, POEA issued memorandum circular 06, which mandates all outbound OFWs to pay six months worth of Pag-IBIG membership contributions.

Based on the circular, OFWs cannot be able to get their overseas employment certificate and leave the country unless they have paid the said amount.

As head of the Pag-IBIG Fund board of trustees, Binay assured OFWs that the matter would be given priority under his office. He added that the government would continue extending assistance to the OFWs “instead of being a burden to them.”

According to the statement, concerned migrant workers groups—Migrante, the Blas F. Ople Policy Center and associations of labor exporters—have questioned the POEA directive. –BERNICE CAMILLE V. BAUZON, Manila Times

April 2025

World Day for Safety and Health at Work
“Safety and health at work every day!”

Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

Monthly Observances:

March – Women’s Role in History Month
April – Month of Planet Earth

Weekly Observances:
Last Week of March: Protection and Gender Fair Treatment of the Girl Child Week
Last Week of April – World Immunization Week

Daily Observances:
Mar 25 – International Day of Remembrance of the Victims of Slavery and the Transallantic Slave Trade
Mar 27– Earth Hour
Apr 21 – Civil Service Day
Apr 22 – World Earth Day
Apr 28 – World Day for Safety and Health at Work

Categories