Question & AnswerQ&A (EXECUTIVE ORDER NO. 857)
Every Filipino contract worker abroad and licensed agencies or authorized entities recruiting Filipino workers for overseas employment are required to remit a portion of their foreign exchange earnings to their beneficiaries in the Philippines.
Seamen or mariners must remit at least seventy percent (70%) of their basic salary.
Domestic and other service workers must remit at least fifty percent (50%) of their basic salary.
They must contain a proviso mandating workers to remit to the Philippines the specified portions of their foreign exchange earnings according to their category.
They shall be suspended or excluded from the list of eligible workers for overseas employment and in case of repeated violations, repatriated at the expense of the employer or the worker.
Proof may include confirmed bank foreign remittance forms, employer certifications authenticated to confirm remittance, certifications of surrender for pesos to the Philippine banking system, and receipts of International Postal Money Order.
Renewal or extension of the passport requires submission of proof of compliance with the mandatory remittance requirements as specified in the Order.
Employers must commit to providing facilities to effect remittances and monitor foreign exchange earnings of Filipino workers they employ.
Remittances may be made individually by the contract worker or collectively through the employer under a payroll deduction scheme, following Central Bank regulations and guidelines.
The Central Bank is responsible for coordinating necessary arrangements with financing institutions to handle remittances and approving alternative proof of compliance documents.
They will be excluded from the overseas employment program, and local private employment agencies may have their license to recruit workers canceled along with other legal liabilities.
It will take effect thirty (30) days after the promulgation of implementing rules and procedures.
The Ministries of Labor and Employment and Foreign Affairs and the Central Bank of the Philippines.