QuestionsQuestions (POEA MEMORANDUM CIRCULAR NO. 09, s .1998)
It adopts a uniform placement fee ceiling of one (1) month salary, exclusive of documentation and processing costs, for all landbased workers, including those hired for Taiwan and Korea.
It amends POEA Memorandum Circular No. 5, s. 1997, to extend its application to the special markets of Taiwan and Korea, in line with Department Order No. 34, s. 1996.
Department Order No. 34, s. 1996, which fixed the allowable placement fee a landbased agency may demand and collect from hired workers at a ceiling equivalent to one month salary exclusive of documentation and processing costs.
Department Order No. 34, s. 1996 did not cover Taiwan and Korea; prevailing fees there were higher or structured differently (e.g., Taiwan: one month salary as mobilization plus P5,000 placement; Korea: one month salary as mobilization plus P10,000 engagement plus P5,000 engagement under the Korean Federation of Small Business Scheme).
The one-month salary ceiling applies to placement fees but is exclusive of documentation and processing costs.
It takes effect immediately upon issuance (dated May 08, 1998).
A ceiling equivalent to one (1) month salary, excluding documentation and processing costs.
It regulates and caps fees by setting a maximum allowable placement fee ceiling; it also encourages agencies/employers who are already non-fee charging to continue that practice.
They are encouraged to continue their non-fee charging practice.
It is the authority by which the POEA Governing Board resolved to adopt the uniform placement fee ceiling for all landbased workers, including Taiwan and Korea.
To respond to rapidly changing market conditions and rising deployment and placement costs by setting an applicable fee cap for all landbased overseas Filipino workers.
All landbased workers (including those hired for Taiwan and Korea).
It replaced or standardized those differing market practices by adopting the uniform ceiling of one month salary exclusive of documentation and processing costs for those markets.
To justify the need for amendment/extension through POEA Memorandum Circular No. 09, s. 1998 so the same fee ceiling would apply to all landbased markets, including Taiwan and Korea.
The placement fee is capped at one month salary, while documentation and processing costs are not included in that ceiling (as the ceiling is “exclusive” of such costs).