VP BINAY ORDERS FREEZING OF ORDER MANDATING ADVANCE PAG-IBIG PAYMENT FOR OFWS (August 12, 2010)

                  Vice President Jejomar C. Binay today directed the Home Development Mutual (PAG-IBIG) Fund and the Philippine Overseas Employment Administration to suspend the implementation of the order mandating the six-month advance contribution of Overseas Filipino Workers (OFWs) to the housing fund.

                  Binay, as chair of the Housing and Urban Development Coordinating Council (HUDCC), chairs the Board of Trustees of PAG-IBIG Fund.

                  Binay also ordered the two agencies to conduct a thorough study and more consultations with the affected sectors. He said there is a need to review the legal basis and propriety of compelling OFWs to pay in advance the equivalent of six months contribution, or P600, as precondition to their departure.

                  “What is important is that government should assist our OFWs and should not be seen as further imposing burdens on them," he 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 said.

"There are benefits to be derived from Pag-ibig membership and this should be explained fully to our OFWs," he added.

 

                  POEA Memorandum Circular No. 06, Series of 2010 issued last July 7, mandates all out-bound OFWs to pay six-months worth of PAG-IBIG membership contribution. They will not be able to get their Overseas Employment Certificate (OEC) and leave the country unless they have paid the said amount.

                  As head of PAG-IBIG Board of Trustees, Binay assured the OFWs that the matter will be given priority by his office. He also said the government will continue providing assistance to the OFWs instead of being a burden to them.

                  Concerned migrant workers groups, among them Migrante and the Ople Policy Center, as well as associations of labor exporters, have questioned the directive.​