Title
Mandatory Pag-IBIG Coverage for Land-Based OFWs
Law
Poea Memorandum Circular No. 07
Decision Date
Jul 27, 2010
All land-based Overseas Filipino Workers (OFWs) are now mandated to contribute to the Pag-IBIG Fund as part of their employment documentation, ensuring their coverage under the Home Development Mutual Fund.

Questions (POEA MEMORANDUM CIRCULAR NO. 07)

All land-based Overseas Filipino Workers (OFWs) are covered.

No. The circular expressly covers land-based OFWs.

The OFW shall pay an advance Pag-IBIG Fund contribution equivalent to six (6) months or the duration of the employment contract, whichever is lower.

It is the lower of (1) six (6) months contribution or (2) the employment contract duration.

It is paid as part of the OFW’s documentation cost.

It cites Section 3, Rule V, Part II of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land-based overseas Workers.

OFWs processed through the POEA Name Hire Facility, the Government Placement Branch, and the Balik-Manggagawa Center.

The recruitment agency must submit the individual Pag-IBIG Member Data Form of the OFW to the POEA.

The OFW must submit the Pag-IBIG Member Data Form and pay the required contribution for processing and issuance of the POEA exit clearance/OEC.

The agency must submit, together with its report of processing and deployment, proof of payment of the required Pag-IBIG contribution.

It applies to all covered land-based OFWs, regardless of processing channel; payment is required for POEA exit clearance/OEC processing whether via name hire facilities, agencies, or in-house processing.

It is for the processing of documents and issuance of the POEA exit clearance/OEC.

Issuances inconsistent with the circular are repealed and modified accordingly.

Compliance is effective immediately.

It conditions the processing and issuance of the POEA exit clearance/OEC on submission of the Pag-IBIG Member Data Form (as applicable) and payment/proof of payment of the required Pag-IBIG contribution.


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