Exchange rate for overseas workers scheme revised

Saturday, Dec 22, 2007

Gulf News

Manila: An overseas workers welfare agency has effected a peso-dollar exchange rate correction in the membership fees it charges on employment contracts of Overseas Filipino Workers (OFW).

The Overseas Workers Welfare Administration (OWWA) board meeting on Friday decided that the appreciation of pesos to 42 a dollar would reflect in fees collected from January 1, 2007.

"The excess payments made to OWWA this year prior to the implementation of this order, based on a 51 pesos to a dollar rate shall be credited in the name of the member OFW," said Labour and Employment Secretary Arturo Brion.

"It means that a credit memorandum shall be issued in their names that entitles them to an extended OWWA membership coverage for a period of three months beyond the two years or the 24 months entitlement to OWWA programmes and services," he added.

The OWWA fees are charged from OFWs as a form of insurance to the migrant workers.

The board met amid protests over the alleged overcharging because of the fees based on an exchange rate of 51 pesos to the dollar.

Brion said the board agreed that the reference exchange rate for peso payment at the beginning of each month shall be the average dollar/peso exchange rate of the immediately preceding month as determined by Bangko Sentral ng Pilipinas.

He said that on-site payments may be made in the local currency of the worksite country at the average exchange rate of the preceding month.