Title
Placement Fee Guidelines for Landbased Agencies
Law
Poea Memorandum Circular No. 05, S. 1997
Decision Date
Jan 27, 1997
The POEA Memorandum Circular No. 05, S. 1997 establishes a ceiling on placement fees for land-based workers at one month’s salary, outlines allowable documentation and processing costs, and mandates penalties for agencies that violate these guidelines.
A

Documentation Costs (Payable by Worker)

  • Includes expenses for:
    1. Passport
    2. NBI/Police/Barangay clearances
    3. Authentications
    4. Birth Certificate
    5. Medicare
    6. PDOS (Pre-Departure Orientation Seminar)
    7. Trade test (optional)
    8. Inoculation (optional, only if required by destination country)
    9. Medical examination fees
  • Medical exams to be conducted only after interview, trade test, or pre-qualification for a specific approved overseas job order.
  • If agency provides documentation services, worker pays only actual government fees.
  • All payments must be supported by official receipts showing exact amount paid by the worker.

Processing Costs (Payable by Employer)

  • Includes expenses for:
    1. Visa
    2. Airfare
    3. POEA processing fee
    4. OWWA Membership fee

Exclusions and Special Markets

  • Placement fee ceiling and guidelines do not apply to Taiwan and Korea special markets.
  • Department Orders Nos. 2, 17, and 17-A, Series of 1993 and 1994 respectively, govern these markets.

Prohibitions on Additional Charges

  • Only the specified placement fee and documentation costs may be collected from workers.
  • No other charges, regardless of form or purpose, may be imposed without prior POEA approval.

Penalties for Violation

  • Agencies violating the guidelines will be penalized under existing overseas employment laws.
  • Illegal recruitment charges under R.A. 8042 may also be filed.

Encouragement for Non-Fee Charging Agencies

  • Agencies and employers currently not charging placement fees are encouraged to maintain this practice.

Effective Date

  • The Memorandum Circular became effective immediately upon issuance on January 27, 1997.

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