OFW means “Overseas Foreign Worker” the general term used for our millions of kababayans earning a living overseas. We hear our politicians hailing OFW’s as “bagong bayani” or new breed of heroes. But sometimes, we read news about distressed workers stranded abroad who are undocumented and therefore considered by our labor authority as non- OFW’s. Who are really considered as OFW’s?
I went into the POEA website (http://www.poea.gov.ph/) for research and found a link to a regulation issued by the Bureau of Internal Revenue titled “Revenue Regulations No. 1-2011 – Tax Treatment of Income Earnings and Money Remittances of an Overseas Contract Worker (OCW) or Overseas Filipino Worker”. The regulation defined who are considered as OCW or OFW for taxation purposes, reprinted below:
Definition of an OCW
OCW refer to Filipino citizens employed in foreign countries, commonly referred to as OFWs, who are physically present in a foreign country as a consequence of their employment thereat. Their salaries and wages are paid by an employer abroad and is not borne by any entity or person in the Philippines
Seafarers or seamen are Filipino citizens who receive compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade. To be considered as an OCW or OFW they must be duly registered as such with the Philippine Overseas Employment Administration (POEA) with a valid Overseas Employment Certificate (OEC) with a valid Seafarers Identification Record Book (SIRB) or Seaman’s Book issued by the Maritime Industry Authority (MARINA).
What is an OEC or Overseas Employment Certificate. How does one obtain such certificate to be considered as OFW? I really didn’t give much importance to the OEC which I obtain from POEA everytime I come to the Philippines
GUIDELINES ON THE REGISTRATION OF WORKER-ON-LEAVE / BALIK MANGGAGAWA
1. Who is a Worker-on-leave or Balik-Manggagawa?
A worker-on-leave (WOL) or Balik-Manggagawa (BM) shall refer to an overseas Filipino Worker
(OFW) who is on vacation or on leave and is returning to the same employer.
What is a POEA travel exit clearance?
It is a clearance issued by POEA to OFWs who exit from the Philippines
OFWs with working visas/employment contracts will be allowed to leave the Philippines
a. Overseas Employment Certificate(OEC) – issued in the different POEA regional offices/ regional extension units/satellite offices, POEA deputized OWWA Offices and Philippine Overseas Labor Offices. It is also issued during manual processing of BMs at the POEA Central Office.
b. E-receipt – issued for computerized processing at the POEA Central Office and POEA Regional Offices. It is an integrated receipt for payments of POEA, OWWA, and Philhealth fees.
c. Multiple Travel Exit Clearance(MTEC) The multiple travel exit clearance is a set of two or more clearances issued to a worker-on-leave/Balik manggagawa for use as an exit document within a period of twelve months from date of issuance. It allows the worker-on-leave/balik manggagawa who exits from the Philippines
POEA EXIT CLEARANCE FOR OFWS
The exit clearance come in the form of an E-Receipt (electronic receipt) or an Overseas Employment Certificate (OEC) certifying to the regularity of a workers recruitment and documentation and ensures exemption from travel tax and airport terminal fee. It is presented at the POEA Labor Assistance Center (LAC) and the Bureau of Immigration (BI) counter at the airports, prior to departure.
The E-Receipt or OEC serves as the worker’s guarantee that he/she is covered by government protection and benefits.
All overseas Filipino workers leaving on employment visa / work or equivalent document (such as no objection certificate [NOC], employment pass, gainful occupation permit, confirmation of the right to labor activity, work visa guaranty) shall be required to secure an exit clearance from the POEA or its deputized offices.
What are the uses of a POEA travel exit clearance?
a. It serves as travel exit pass for OFWs at the airports.
b. It serves as an exemption certificate from payment of Travel Tax and airport terminal fee upon
presentation to the airline counter and airport terminal fee counter.
c. It serves as a worker’s guarantee that he is covered by government protection and benefits;
Pursuant to Section 35, Migrant Workers and Overseas Filipinos Act 1995 (Republic Act 8042), OFWs shall be exempted from the payment of travel tax and airport terminal fee upon
presentation of the POEA exit clearance.
What are the documents needed to get a POEA exit clearance (e-receipt/OEC/MTEC)?
a. Valid original passport
b. Valid re-entry visa, work permit or any equivalent document
c. Others:
- Any proof that OFW is returning to the same employer (such as : company ID, employment certificate, pay slip, etc). for WOL/BMs with newly issued documents and visas or if OFW has no record on file at POEA
- Copy of employment contract (for MTEC issuance)
What are the fees in securing the POEA travel exit clearance?
The prescribed fees are:
P 100.00 – POEA Processing Fee
P 900.00 – Philhealth Premium (payment valid for one year)
US$ 25.00 or its peso equivalent – OWWA Membership Fee (payment valid per contract
duration at a maximum of 2 years)
A Worker-on-Leave with valid OWWA membership and Philhealth coverage shall only pay Php
100.00 for issuance of travel exit clearance.
In short,
Vacationing OFW’s must secure a travel exit clearance from POEA before returning to their place of work. The OFW will have to pay Php 100 processing fee, Php 900 Philhealth (every year), $25 or Php1125 OWWA membership fee (every 2 years or about Php 560/year). Newly added to these payments is mandatory contribution by OFWs to Pag-ibig Fund of Php100/month or Php1,200 per year. So an OFW who goes for vacation once a year has to shell-out about Php2,760 to get an OEC. Translate that to about 2-3 million overseas Filipinos working abroad, not a small amount that goes to government coffers every year!! whewww!
