Question & AnswerQ&A (POEA MEMORANDUM CIRCULAR NO. 05, S. 1997)
The maximum placement fee a landbased agency may charge is equivalent to one month salary of the worker, exclusive of documentation and processing costs.
Documentation costs include expenses for passport, NBI/Police/Barangay clearance, authentications, birth certificate, Medicare, PDOS, optional trade tests and inoculations (when required), and medical examination fees.
Medical examinations shall be conducted only after the agency and/or its principal have interviewed, trade tested or pre-qualified the worker for an overseas position covered by an approved job order.
The employer is responsible for paying the processing costs, which include visa fees, airfare, POEA processing fee, and OWWA membership fee.
No, the placement fee limits do not apply to Taiwan and Korea. Department Orders No. 2, Series of 1993 and No. 17 and 17-A, Series of 1994 remain applicable to these markets.
No, the Circular applies only to land-based workers, excluding Overseas Performing Artists.
No, workers who have been pre-qualified, signed contracts, or made payments prior to the Circular's effectivity are not covered by these rules.
Agencies charging unauthorized fees may face penalties according to existing rules and may be subject to illegal recruitment charges under R.A. 8042.
Yes, agencies and employers who are currently non-fee charging are encouraged to continue this practice.
The worker must be given official receipts indicating the correct amount paid for documentation costs based on government fees.