Placement Fee Ceiling for Taiwan and Korea

Governing Board Resolution No. 02, series of 1998 adopts a uniform placement fee ceiling of one month salary exclusive of documentation and processing costs.
Department Order No. 34, series of 1996 fixed the allowable placement fee ceiling of one month salary exclusive of documentation and processing costs for landbased workers.
POEA Memorandum Circular No. 5, series of 1997 implements Department Order No. 34, series of 1996 and is amended to cover Taiwan and Korea.
POEA Memorandum Circular No. 09, s. 1998 is issued pursuant to Governing Board Resolution No. 2, series of 1998.

The Governing Board resolves to adopt a placement fee ceiling that is applicable to all overseas Filipino landbased workers.
The uniform fee ceiling is intended to be responsive to rapidly changing market conditions and the rising cost of deployment and placement of workers.
The circular is issued to address markets where prevailing fees include additional mobilization and placement/engagement amounts for Taiwan and Korea.

The ceiling applies to all landbased workers.
The ceiling covers landbased workers hired for the Taiwan and Korean markets.
Placement fee regulation under the circular applies to landbased agencies/employers that demand and collect placement fees from its hired workers.
The ceiling is a cap that governs what a landbased agency may demand and collect as placement fees.

The circular adopts a uniform placement fee ceiling of one month salary.
The one month salary ceiling is exclusive of documentation and processing costs.
The ceiling is adopted for all landbased workers, including those hired for Taiwan and Korea.
The circular amends Memorandum Circular No. 5, series of 1997 to extend coverage to the Special Markets of Taiwan and Korea.

Agencies and employers that are presently non-fee charging are encouraged to continue that practice.