QuestionsQuestions (POEA GOVERNING BOARD Resolution NO. 04 S. 1992)
It adopted a policy on recruitment and placement fee/expenses specifically for the Taiwan labor market to address the limited participation of pre-qualified agencies and the exceptionally high costs of doing business in Taiwan, thereby maximizing the Philippines’ share of the Taiwan labor market.
Memorandum Circular No. 5, s. 1985 fixed general placement and documentation fees for OCWs. Resolution No. 04, s. 1992 created a special expense and fee policy unique to the Taiwan market that authorized additional/modified collection to cover Taiwan-specific costs.
Authorized agencies for Taiwan—meaning lead agents (pre-screened and pre-qualified by DOLE) and their limited number of co-agents pre-qualified to participate in the Taiwan program.
It refers to costs specifically attributable to operations in Taiwan, including but not limited to market development costs, broker’s fees, and Philippine and Taiwan office overhead.
The agency could collect an amount equivalent to one month’s salary of the worker on a monthly installment basis.
In no case shall it be less than ₱12,000.
The worker must pay the placement fee prior to departure to the jobsite, capped at “at most” ₱5,000.
It is collected on a monthly installment basis.
It stated that the terms and conditions in Taiwan are comparatively superior in terms of wages and worker protection, and that Filipino workers are covered by Taiwan’s labor laws.
It cited the high costs of doing business in Taiwan, which resulted in an exceptionally high cost of placing Filipino workers there.
The resolution noted that Taiwan requires an employer security deposit to ensure compliance with worker protection mechanisms, implying that the overall program involves costs and compliance requirements that justify Taiwan-specific expense coverage.
It stated that only fifteen (15) Philippine recruitment agencies were strictly pre-screened and pre-qualified as lead agents, with lead agents assigned a limited number of co-agents pre-qualified by DOLE, to comply with Taiwan’s participation limits.
The fifteen (15) Philippine recruitment agencies that were pre-screened and pre-qualified as lead agents to address the needs of Taiwan employers.
It indicates that while the amount and general scheme (monthly installments; minimum ₱12,000) were set, the detailed payment schedule and mechanics were left to POEA/administration to determine.
No. Regardless of equivalency to one month salary, the resolution expressly sets a minimum threshold: it shall not be less than ₱12,000.
(1) Taiwan market expenses equivalent to one month salary collected monthly installments, with a minimum of ₱12,000 (timing through monthly installments as determined by the administration); and (2) a placement fee of at most ₱5,000 paid prior to departure to the jobsite.
It supports the policy by acknowledging that Filipino workers benefit from Taiwan’s labor law coverage and worker protection mechanisms, while also recognizing that the Philippines still must regulate recruitment and placement costs and practices to comply with program requirements.