VP Binay Suspended Pag-ibig Contributions of OFWs

Vice President and Housing and Urban Development Coordinating Council (HUDCC) Chair Jejomar ‘Jojo’ Binay suspended the implementation of the order mandating the six-month advance contribution of Overseas Filipino Workers (OFWs) to the Home Development Mutual (Pag-ibig) Fund.

Vice Pres. Binay also ordered the Pag-ibig and the Philippine Overseas Employment Administration (POEA) 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 a six-month 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. 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.

Pursuant to the order of Vice Pres. Binay, POEA issued a statement last August 16 stating that the POEA is set to meet with Pag-ibig officials immediately to conduct further studies and consultations on the issue and discuss a more facilitative mechanism to implement the coverage of workers under the Fund.

In the meantime, in accordance to Republic Act 9679 which makes PAG-IBIG membership compulsory to OFWs, all overseas workers can pay their contributions directly through any PAG-IBIG office nationwide. POEA also said that required insurance coverage for OFWs, as provided under Republic Act 10022, will be implemented only after the Insurance Commission issues its guidelines on the matter.

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

When the memorandum was issued, it was immediately met with retaliation from various labor groups such as Migrante International, who called it as a “legalized kotong.”

Trabaho.com. thanks its following sources:
Housing and Urban Development Coordinating Council. VP Binay Orders Freezing Of Order Mandating Advance Pag-ibig Payment For OFWs. Retrieved August 31, 2010 from
http://www.hudcc.gov.ph/index.php?p=88&type=2&sec=29&aid=259

POEA News Release. POEA stops collection of Pag-ibig fees (Posted August 16, 2010) Retrieved August 31, 2010 from
http://www.poea.gov.ph/news/2010/PR_Aug2010_%20PAG-IBIG.pdf

Lee-Brago, Pia, The Philippine Star. Binay suspends Pag-ibig membership for OFWs (Posted August 13, 2010) Retrieved August 31, 2010 from
http://www.philstar.com/Article.aspx?articleId=602177&publicationSubCategoryId=65

Migrante International. Mandatory contribution legalizes ‘kotong’ from OFWs (Posted August 7, 2010) Retrieved August 31, 2010 from
http://migranteinternational.org/?p=769

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