POEA Taiwan Placement Fees and Expenses Policy

Memorandum Circular No. 5, Series of 1985 fixed placement fees at P5,000 for private employment agencies and documentation fees at P1,500 for agencies and contractors.
These fees were set prior to the specific conditions found in the Taiwan labor market.

The Philippine Overseas Employment Administration (POEA) created a Special Hiring Program to respond to Taiwan's labor market opening.
Participation limited to 15 strictly pre-screened and pre-qualified Philippine recruitment agencies acting as lead agents.
Lead agents were assigned a limited number of co-agents, also pre-qualified by the Department of Labor and Employment (DOLE).

Employment terms in Taiwan are comparatively superior regarding wages and worker protection.
Filipino workers deployed to Taiwan are covered by Taiwan's labor laws.
The Taiwan government requires employers to post a security deposit ensuring compliance with worker protection mechanisms.

The costs of doing business in Taiwan are exceptionally high, resulting in high placement costs for Filipino workers.
This necessitated the adoption of a responsive and sound policy to maximize the Philippines' share in the Taiwan labor market.

Authorized agencies servicing Taiwan are allowed to collect an amount equal to one month’s salary of the worker deployed, but not less than P12,000.
Collection is to be made on a monthly installment basis, with the payment scheme to be determined by the POEA administration.
This amount covers expenses unique to the Taiwan market such as market development, broker’s fees, and office overhead in both the Philippines and Taiwan.
In addition, a placement fee of up to P5,000 must be paid by the worker prior to departure to the jobsite.

The POEA Governing Board is the body that officially approved and resolved the fee structure and related policies.
The resolution balances the regulatory needs of labor deployment with the economic challenges of servicing the Taiwan labor market.