Title
Overseas Workers Welfare Admin Act
Law
Republic Act No. 10801
Decision Date
May 10, 2016
The Overseas Workers Welfare Administration Act is a Philippine law that governs the operations and administration of the Overseas Workers Welfare Administration (OWWA), providing protection and welfare assistance to Overseas Filipino Workers (OFWs) and their families through various programs and services.

OWWA: nature, attachments, scope, functions

  • Section 4 provides that the OWWA is a national government agency with the special function of developing and implementing welfare programs and services responsive to its member-OFWs and their families.
  • Section 4 endows the OWWA with powers to administer a trust fund called the OWWA Fund.
  • Section 4 classifies the OWWA as a chartered institution and states that it shall not fall under categories of GICPs, GCEs, GFIs, and/or GOCCs.
  • Section 4 provides that the OWWA is an attached agency of the Department of Labor and Employment (DOLE).
  • Section 4 provides that OWWA officials and employees are covered by the Salary Standardization Law.
  • Section 5 covers: the OWWA, the OWWA Secretariat, the OWWA Fund, its member-OFWs, those who will avail of the voluntary membership program, and overseas recruitment/manning agencies/employers duly registered with the Philippine Overseas Employment Administration (POEA).
  • Section 6 requires the OWWA to protect the interest and promote welfare of member-OFWs in all phases of overseas employment.
  • Section 6 directs the OWWA to facilitate implementation of the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and the Migrants Workers and Overseas Filipinos Act of 1995 (Republic Act No. 8042, as amended) concerning government responsibility for OFW well-being, including provision of legal assistance to member-OFWs.
  • Section 6 mandates OWWA to provide social and welfare programs and services including social assistance, education and training, cultural services, financial management, reintegration, and entrepreneurial development services.
  • Section 6 requires prompt and appropriate response to global emergencies or crisis situations affecting OFWs and their families.
  • Section 6 requires OWWA to ensure efficient collections and viability and sustainability of the OWWA Fund through sound, judicious, and transparent investment and management policies.
  • Section 6 requires studies and research to enhance social, economic, and cultural well-being of member-OFWs and families and to develop, support, and finance welfare projects.
  • Section 6 requires implementation of all laws and ratified international conventions within OWWA jurisdiction.

Core definitions and membership terms

  • Section 7(a) defines “Compensation” as the basic pay or salary received by an OWWA officer or employee pursuant to the official appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances, and other emoluments not integrated into basic pay under existing laws.
  • Section 7(b) defines “Contribution or membership fee” as the amount paid to the OWWA by the employer or by an OFW in accordance with this Act.
  • Section 7(c) defines “Dependent” to include:
    • (1) the legal spouse;
    • (2) a child (legitimate, illegitimate, legitimated, and legally adopted), unmarried, not gainfully employed, and not over the age of majority, or over majority but incapacitated and incapable of self-support due to mental or physical defect; and
    • (3) the parents who rely primarily on the member-OFW for support.
  • Section 7(d) defines “Non-active OWWA member” as an OFW whose OWWA membership has expired.
  • Section 7(e) defines “Non-OWWA member” as an undocumented OFW who has not availed of the voluntary membership program of the OWWA.
  • Section 7(f) defines “OWWA member” as an OFW with a paid contribution or membership fee.
  • Section 7(g) defines “Overseas Filipino Worker (OFW)” as a person engaged or to be engaged in a remunerated activity in a state where the person is not a citizen, or on board a vessel navigating foreign seas other than a government ship used for military or noncommercial purposes, or on an installation located offshore or on the high seas.
  • Section 7(h) defines “Voluntary OWWA member” as an OFW who availed of voluntary membership at job sites or through electronic registration.

Membership registration and contribution rules

  • Section 8 allows OWWA membership in two ways: compulsory registration upon processing of employment contracts of OFWs at the POEA, and voluntary registration of OFWs at job sites or through electronic registration.
  • Section 9 sets the membership contribution at US$ 25.00 or its equivalent in prevailing foreign exchange rates.
  • Section 9 provides that membership is active until the expiration of the OFW’s existing employment contract or after two (2) years from contract effectivity, whichever comes first (for compulsory coverage).
  • Section 9 provides that for voluntary registration, membership is active until the expiration of the OFW’s existing employment contract or after two (2) years from the date of voluntary registration, whichever comes first.
  • Section 9 authorizes the OWWA to collect a subsequent membership contribution from the member-OFW only after every two (2) years from the last membership contribution.
  • Section 10 authorizes the OWWA Board, based on actuarial studies and considering welfare and interest of member-OFWs, to adjust or modify membership contribution.
  • Section 11 requires OWWA, upon payment of required contribution, to issue an official receipt, OWWA E-Card, identification card, or other proof of membership.
  • Section 11 prohibits additional or extra charges levied on the member-OFW.
  • Section 11 requires the OWWA to maintain a comprehensive database of member-OFWs updated regularly.
  • Section 12 requires separate accounting of land-based and sea-based members’ contributions in two (2) separate books of accounts.

Collection system, reports, remittance, sanctions

  • Section 13(a) allows collection of membership contributions by duly authorized OWWA collecting officers, deputized collecting officers, or accredited collecting agents.
  • Section 13(a) specifies collection sites: the POEA contract processing hub, OWWA regional and overseas offices, and other accredited collection centers.
  • Section 13(b) requires that for voluntary members registering at job sites, membership contributions are paid directly to OWWA Overseas Offices located in respective foreign service posts of the Philippines.
  • Section 14 requires collecting officers, deputized collecting officers, or accredited collecting agents to prepare and submit required monthly reports to the OWWA Central Office in the Philippines.
  • Section 15 requires OWWA to ensure handling, deposit, and remittance of collections comply with existing rules and regulations of the Commission on Audit (COA), Department of Budget and Management (DBM), and other concerned agencies.
  • Section 16 mandates administrative sanctions and other disciplinary measures—including recall from post, suspension, or separation from service—for officers who violate Sections 14 and 15.
  • Section 17 prohibits discrimination in membership by reason of age, gender, religious belief, or political affiliation.
  • Section 17 requires the OWWA to take affirmative steps to enhance OFW access to its programs and services.
  • Section 18 requires contributions to the OWWA Fund be paid by employers or principals, or in their default, by the recruitment/manning agency in the case of new hires.
  • Section 18 requires the POEA to ensure this stipulation is integrated as an integral part of the overseas employment contract.
  • Section 19 provides that a recruitment/manning agency’s violation constitutes an offense punishable by revocation of its license, and that all its officers and directors are perpetually disqualified from engaging in recruitment/placement of overseas workers.
  • Section 19 states the penalty is without prejudice to other liabilities the officers and directors may have under existing laws, rules, and regulations.

OWWA Board governance and meetings

  • Section 20 establishes an OWWA Board of Trustees as the policy-making body directing and controlling the OWWA.
  • Section 20 sets Board composition, including: the Secretary of Labor and Employment (Chairperson), OWWA Administrator (Vice Chairperson), Secretary of Foreign Affairs, Secretary of Finance, Secretary of Budget and Management, and POEA Administrator, plus OFW and sector representatives:
    • Two (2) land-based OFW representatives nominated and appointed under Republic Act No. 8042, as amended by Republic Act No. 10022;
    • Two (2) sea-based OFW representatives nominated and appointed under Republic Act No. 8042, as amended by Republic Act No. 10022;
    • One (1) women sector representative nominated and appointed under Republic Act No. 8042, as amended by Republic Act No. 10022;
    • One (1) land-based recruitment sector representative selected from associations of registered agencies based in the Philippines and appointed by the President for a single term of three (3) years; and
    • One (1) sea-based manning sector representative selected from associations of registered manning agencies based in the Philippines and appointed by the President for a single term of three (3) years.
  • Section 20 provides that trustees holding office at the Act’s effectivity continue serving until expiration of their term.
  • Section 20 provides that vacancies are filled by subsequent nomination in the same manner as selection, and the successor holds office for the unexpired term.
  • Section 21 provides Board members shall not receive compensation but shall be provided per diem at rates allowed under existing rules and regulations.
  • Section 22 grants the Board these specific powers and duties, including defining OWWA thrusts and adopting policy guidelines; preserving OWWA Fund integrity; approving programs/projects/organizational structure; modifying membership contribution and other necessary charges subject to periodic reviews and actuarial studies and due consultation with OFWs or NGOs advocating OFW rights and welfare.
  • Section 22 empowers the Board to formulate rules on financial transactions and budgets for DBM submission; rules for conduct and discipline of officials/employees consistent with civil service rules; ensure collection efficiency and Fund sustainability through sound investment and management; receive and appropriate all sums to carry out OWWA purposes; and authorize construction/repair and purchase/acquisition of properties and facilities.
  • Section 22 allows the Board to receive legacies, gifts, and donations in trust and administer/dispose them for OWWA membership benefits subject to donor instructions; delegate powers to the Chairperson or Administrator during national emergency affecting OFW rights and welfare; prescribe general policies and regulations consistent with law after due consultation with OFWs or NGOs; and exercise proper and necessary powers to carry out Act objectives.
  • Section 23 requires regular Board meetings on the last Friday of the month, with date changes set by the Board.
  • Section 23 allows special and executive meetings as needed, called by the Chairperson or by at least five (5) members of the Board.
  • Section 24 provides Board proceedings rules:
    • Notice: Board Secretary distributes meeting notice and materials at least three (3) working days before the meeting.
    • Quorum: simple majority or one-half (1/2) of total filled seats plus one (1).
    • Voting: for policies requiring disbursement of at least PHP 100,000,000.00 of the OWWA Fund, an affirmative vote of the absolute majority of all members is required; for other policies, affirmative vote of a majority of members present constituting quorum is required.
    • Attendance: members attend all meetings; ex officio members may designate in writing a permanent alternate with voting power; the Board installs teleconferencing facilities to muster quorum.
    • Presiding: Chairperson presides; Vice Chairperson presides when Chairperson absent.
    • Resolutions: all decisions are in Resolutions effective upon adoption and signing by all members present, subject to publication requirements under existing laws/rules.
    • Records: Board Secretary records proceedings; minutes contain attendance, matters from previous meeting, agreements, resolutions, other items, and instructions; minutes and Board records (including tape recordings) are kept, archived, and made accessible to the public at all times.

OWWA Secretariat, Administrator, deputies, offices

  • Section 25 provides that the OWWA Secretariat is the implementing arm of the OWWA.
  • Section 26 requires the Secretariat to implement Board decisions and policies including investment and fund management.
  • Section 26 requires the Secretariat to manage programs and deliver welfare services to members local and overseas, supported by advocacy and information campaign programs.
  • Section 26 requires the Secretariat to formulate medium-term development plans responsive to welfare needs and demands of member-OFWs and to submit work and financial plans for Board consideration.
  • Section 26 requires policy analyses and recommendations, continuing research including impact evaluation, and regular monitoring and assessment of organizational performance.
  • Section 26 requires the Secretariat to establish and maintain an on-line management information system including a database on membership.
  • Section 26 requires linkages and networks with social and institutional partners locally and internationally.
  • Section 26 requires written quarterly reports on assessment and evaluation of programs/projects/services and other reports as required by the Board.
  • Section 26 requires an annual planning, budgeting, and organizational performance assessment with report to the Board.
  • Section 26 requires annual reports to the Board, the Congress, and the President of the Philippines.
  • Section 26 requires periodic review of programs, standards, thrusts, and policies, and performance of other functions instructed by the Board, and adoption of internal rules of procedure consistent with the Act.
  • Section 27 vests management and supervision in the Administrator as Chief Executive Officer of the Secretariat with full responsibility and accountability over operations, including supervision and control of personnel and resources.
  • Section 27 requires the Administrator to possess good leadership and managerial skills and to be appointed by the President; reporting is to the President through the Secretary of DOLE.
  • Section 28 provides for two (2) Deputy Administrators: one for Administration and Fund Management, and one for Operations; both are appointed by the President upon recommendation of the Administrator, must have good leadership and managerial skills, and may receive assigned functional responsibilities.
  • Section 29 requires OWWA to maintain Regional and On-site Welfare Offices under DOLE’s Philippine Overseas Labor Offices (POLOs).

Staffing audit, upgrading, and protections

  • Section 30 requires the OWWA Board, despite existing laws, to conduct a management audit within one hundred twenty (120) days from the Act’s effectivity.
  • Section 30 requires the Board to submit a proposed reorganization plan to DBM not later than one (1) year after the audit.
  • Section 30 ties reorganization criteria to increased OWWA visibility and assignment of personnel for administrative/technical/clerical roles not purely directly related to operation and administration, and to efficient and optimized delivery of services.
  • Section 30 requires OWWA to endeavor to assign representatives in every foreign post to ensure service provision and promotion of voluntary membership to non-members.
  • Section 31 requires the Board to design and establish a qualifications upgrading program within one hundred twenty (120) days from the Act’s effectivity in coordination with DOLE and the Civil Service Commission (CSC).
  • Section 31 requires personnel already in service at effectivity to obtain the required academic degree/qualifications within five (5) years from implementation of the upgrading program.
  • Section 31 requires those already in service to obtain necessary CSC qualification required for their current position within one (1) year.
  • Section 31 requires satisfaction of at least a satisfactory performance rating for the personnel referenced.
  • Section 32 requires the OWWA Board to prescribe the new structure and staffing pattern and submit it to the Secretary of DBM for approval.
  • Section 32 provides that salaries and benefits of all personnel follow existing compensation laws.
  • Section 32 directs appointment, reappointment, or transfer of current officials and employees as organized under Letter of Instruction No. 537, Presidential Decree No. 1694 (as amended by Presidential Decree No. 1809), renamed under Executive Order No. 126, series of 1987, and OWWA Board Resolution No. 001, series of 2004, into appropriate units as determined by the Board, subject to qualifications under Section 31.
  • Section 32 prohibits gender discrimination, demotion in ranks/positions, and diminution in salaries, benefits, allowances, and emoluments for OWWA personnel.
  • Section 33 provides that general qualifications for OWWA personnel appointments comply with minimum qualification standards set by the CSC.
  • Section 33 authorizes OWWA to hire experts in actuarial studies, information technology, finance and investment, and other necessary fields.

Guiding principles and OWWA benefits

  • Section 34 requires gender-responsive reintegration programs, repatriation assistance, loan and credit assistance, on-site workers assistance, death and disability benefits, health care benefits, education and skills training, social services, family welfare assistance, programs for women migrant workers, and other programs providing timely social and economic services.
  • Section 34 preserves the right of an OFW to avail of benefit plans under employment contracts or offered voluntarily by employers or provided by laws of the receiving country over and above those under the Act.
  • Section 35(a) makes reintegration a core OWWA program, taking into account women migrant workers’ needs.
  • Section 35(a) provides that the National Reintegration Center for OFWs created under Republic Act No. 10022 is an attached office of OWWA headed by an Executive Director under supervision of the OWWA Administrator.
  • Section 35(a) requires annual allocation for reintegration: not less than ten percent (10%) of OWWA’s collection of contribution for the immediately preceding year.
  • Section 35(b) requires OWWA to assist the Department of Foreign Affairs in providing services to facilitate repatriation consistent with Republic Act No. 8042, as amended.
  • Section 35(c) requires OWWA to provide low-interest loans to member-OFWs and to have authority to hire finance or banking experts to implement loan programs.
  • Section 35(d) requires OWWA to sustain assistance to member-OFWs in all overseas and regional offices and provide gender-responsive services including:
    • information on names, occupation/job categories, and addresses;
    • legal assistance guiding protection of migrant rights including prevention of gender-based violence;
    • materials for predeparture orientation seminars;
    • psycho-social counseling services;
    • conciliation services;
    • appropriate services and intervention for victims of gender-based violence; and
    • outreach missions.
  • Section 35(d) requires OWWA to make competent representations with employers, agents, and host government authorities to help obtain relief from grievances and work-related issues, including claims for unpaid wages and illegal recruitment cases.
  • Section 35(e)(1)(i) provides death benefits through life insurance during the employment contract: PHP 100,000.00 for natural death and PHP 200,000.00 for accidental death.
  • Section 35(e)(1)(ii) provides disability and dismemberment benefits through life insurance using the impediment schedule in the OWWA Manual of Systems and Procedures, within PHP 2,000.00 to PHP 50,000.00.
  • Section 35(e)(1)(iii) provides total permanent disability benefits of PHP 100,000.00.
  • Section 35(e)(1)(iv) provides burial benefits of PHP 20,000.00 in case of a member’s death.
  • Section 35(e)(1) authorizes the Board, based on actuarial studies, to increase the amounts of the benefits stated in death, disability, total disability, and burial provisions.
  • Section 35(e)(2) requires OWWA, within two (2) years from Act effectivity, to develop and implement health care programs for member-OFWs and families, taking into account health care needs of women under Republic Act No. 9710.
  • Section 35(e)(3) authorizes education and training scholarships for a member or designated beneficiary subject to selection and accreditation of participating institutions, including:
    • Skills-for-Employment Scholarship Program for technical or vocational training;
    • Education for Development Scholarship Program for baccalaureate programs; and
    • Seafarers’ Upgrading Program granting one upgrading program for every three (3) membership contributions for sea-based members to meet IMO/ILO competency standards.
  • Section 35(e)(3) requires annual scholarship lists of all these programs be submitted to the Board.
  • Section 36 requires continuation of development and implementation of new programs as OFW needs arise and assessment of effectiveness of existing services.
  • Section 36 requires OWWA to maintain an interactive website to collect OFW feedback, comments, suggestions, and complaints on existing programs and services.
  • Section 36 authorizes OWWA to extend appropriate programs or services to non-members as determined by the Board.

OWWA Fund: trust nature, purposes, sources, use

  • Section 37 identifies the OWWA Fund as the Welfare Fund for Overseas Workers created under Letter of Instruction No. 537 and Presidential Decree No. 1694 (as amended by Presidential Decree No. 1809).
  • Section 37 provides that the OWWA Fund is a private fund held in trust by the OWWA.
  • Section 37 provides that no portion of the OWWA Fund or its income, dividends, or earnings accrues to the general fund of the National Government.
  • Section 37 prohibits conjoining OWWA Fund money with government money and prohibits reversion to the National Government.
  • Section 37 exempts the OWWA Fund from the “one fund doctrine” of the government.
  • Section 38 limits use of the OWWA Fund to purposes for which it was created: to serve welfare of member-OFWs and their families, including financing core programs and services of OWWA.
  • Section 38 prohibits withdrawal of funds to respond, aid, supplement, or augment required expenditure by other government agencies.
  • Section 39 provides that the OWWA Fund consists of amounts managed and administered by OWWA Board and Secretariat, including the US$ 25.00 contributions accruing to the Fund as fees, plus investment and interest income, and income from other sources.
  • Section 40 provides that all incomes generated by OWWA, upon collection, are retained by OWWA and disbursed at the Board’s discretion for services and benefits of OWWA general membership and their families, notwithstanding contrary provisions of existing law.
  • Section 41 designates the Board as trustee of the OWWA Fund and requires it to manage the Fund with extraordinary diligence and utmost skill, care and judiciousness.
  • Section 42 requires full transparency and full public disclosure and requires making available records of how funds are utilized, disbursed, and invested in accordance with existing laws.
  • Section 43 requires that within 15 days after receipt of audited COA reports, the Board submit to Congress and the President a report showing total collections and disbursements and publish an electronic copy searchable, accessible, and useful to the public.

Investments, safeguards, valuation, monthly/annual reporting

  • Section 44(a) requires the OWWA Fund be managed and expended according to Act purposes and safeguarded against loss and misuse.
  • Section 44(a) requires an appropriate growth rate sufficient to sustain growing needs of member-OFWs and requires periodic inventory of investment instruments, properly kept at a government bank under a custodianship agreement.
  • Section 44(a) requires a monthly report to the Board on all investment schedules showing interest rates, yields, discount rates, and other relevant data.
  • Section 44(b) requires administration of acquired or foreclosed properties with proper accounting and documentation, including reinspection, reappraisal, and insurance; requires an asset development/disposal plan by the Administrator for Board consideration.
  • Section 44(b) requires foreclosed properties be registered as OWWA assets within one (1) month after foreclosure.
  • Section 44(c) requires unredeemed investments and other receivables be inventoried semi-annually, and requires corresponding redemption plans submitted to the Board; requires receivables supported by documents appropriately acknowledged by the accountable party.
  • Section 45 requires, upon Board approval, investments be placed only in government securities and bonds providing optimum earnings, liquidity and protection of the Fund.
  • Section 45 requires outsourcing portfolio management of investible funds to GFIs.
  • Section 46 requires periodic actuarial examination and valuation of funds in accordance with accepted actuarial principles.

Budget cycle and financial reporting requirements

  • Section 47 provides that the annual budget for benefits and services to OWWA members and their families shall be sourced from the OWWA funds.
  • Section 48 requires annual budget preparation follow the national government budget system, format, and cycle.
  • Section 48 requires the Board to approve the annual budget by a majority vote of all its members.
  • Section 49 provides a reenacted operating budget rule: if the proposed annual budget sourced from the OWWA Fund is not approved at the start of the year, OWWA operates at the previous year’s allocated budget level on a month-to-month basis, and savings from the previous year are deducted from the current year’s budget.
  • Section 50 requires budget realignment submissions to the

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