Title
POEA-OWWA Agreement on OFW Contributions
Law
Poea Governing Board No. 01
Decision Date
Apr 3, 1998
The POEA Governing Board Resolution No. 01 establishes a uniform OWWA membership fee of $25 for all overseas contract workers, ensuring adequate welfare programs while exempting returning workers on short-term leave.
A

Scope of Coverage

  • The policy applies to all contract workers deployed overseas, whether landbased or seabased.
  • Workers under renewed or extended contracts, whether these are express or implied, are also subject to the membership fee.

Membership Fee and Payment

  • A uniform membership fee of US $25 or its peso equivalent is to be levied per contract.
  • The peso equivalent is determined based on the applicable conversion rate pursuant to a prior agreement established in OWWA Memorandum of Instruction No. 104, Series of 1991.

Exemptions

  • Workers who are returning on vacation, holidays, emergency leave, or similar reasons and are going back to complete their original contract are exempted from the membership fee.

Implementation and Coordination

  • Efficient collection of membership fees requires the cooperation of the Philippine Overseas Employment Administration (POEA).
  • The POEA Governing Board authorized the POEA Administrator to enter into a Memorandum of Agreement (MOA) with OWWA to implement the membership contribution policy.
  • The MOA is subject to the determination of the policy's viability and legal implications.

Legal Authorization and Formal Resolution

  • The resolution was formally adopted on April 3, 1998, by the POEA Governing Board.
  • Signed by the Secretary of Labor and Employment, who is the Chairman of the Board, and other board members.

Purpose and Rationale

  • The policy aims to provide adequate welfare and protection programs and services to OFWs.
  • It establishes a standardized contribution system ensuring fairness and systematic collection.

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