QuestionsQuestions (EXECUTIVE ORDER NO. 857)
To govern the remittance to the Philippines of foreign exchange earnings of Filipino workers abroad, ensuring mandatory remittance through official/authorized Philippine financial institutions and imposing sanctions for non-compliance.
Every Filipino contract worker abroad must remit regularly a portion of foreign exchange earnings to beneficiaries in the Philippines through the Philippine banking system; licensed recruitment agencies/employment contractors authorized to recruit Filipino workers abroad are also required to remit their workers’ earnings as provided in the Order.
Seventy percent (70%) of basic salary.
Fifty percent (50%) of basic salary.
Those whose contracts provide free board and lodging must remit seventy percent (70%); those without free board and lodging must remit fifty percent (50%) of basic salary.
Fifty percent (50%) of basic salary.
Passports initially have a validity of one year; they are renewable yearly only upon submission of proof of compliance with the mandatory remittance requirement. The DFA shall not extend or renew unless such proof is submitted.
DOLE shall not approve renewal unless proof of remittance of foreign exchange earnings is submitted.
Any of: (a) confirmed bank (foreign) remittance form; (b) authenticated employer certification that remittance has been effected; (c) certification as to surrender for pesos to the Philippine banking system; or (d) receipt of an International Postal Money Order—subject to Central Bank-approved alternatives.
Remittances may be done individually by the contract worker or collectively through the employer via a payroll deduction scheme, in accordance with Central Bank regulations and applicable guidelines.
Employers must commit to provide facilities to effect the remittances and monitoring of foreign exchange earnings of Filipino workers they employ.
The nearest Philippine Embassy or Consulate nearest to the job site, in accordance with local laws and regulations, may act in the interim as the channel for remittance; the DFA shall inform the BSP and the funds shall be remitted to the Central Bank.
They shall be suspended or excluded from the list of eligible workers for overseas employment; in cases of subsequent violations, they shall be repatriated from the job site at the expense of the employer or at the worker’s expense, depending on the circumstances stated in the Order.
They shall be excluded from the overseas employment program; for local private employment agencies/entities, failure is a ground for cancellation of their license/authority to recruit workers, without prejudice to liabilities under existing laws and regulations.
DOLE, DFA, and BSP must draw up necessary rules/procedures within ten (10) days from signing; the Order takes effect thirty (30) days after the promulgation of implementing rules and procedures.