Category: OFW Interest

Every time you open an account or apply for a loan, lenders, both banks and private financing companies will ask you this one important document: your Overseas Employment Contract. 

Aside from being a mandatory requirement, this piece of paper, also known as OEC, contains crucial and pertinent information about your job abroad, including duration of the contract, basic monthly salary, and employer’s information.

What exactly is OFW’s Overseas Employment Contract? What information should it contain?

Read on to find out.

The Contents of an Overseas Employment Contract

This is crucial. OFW’s Overseas Employment Contract may vary, depending on your employer, but it should contain the following details (minimum provisions) as set forth by the Philippine Overseas Employment Administration or POEA:

• Your employer’s information, including name of the company and address overseas.
• Your information, such as name and address.
• The agency or employer’s representative in the Philippines who hired you.
• Site of employment or the country where you will be assigned.
• The duration of the contract, starting from your departure in the Philippines to the arrival in the country where you will work. OEC must also include how long your job contract will be.
• Your position or nature of work
• Basic monthly salary in accordance with the prescribed standards or guiding rates.
• Working hours for how many days per week, which should be eight hours per day and not more than six days a week. The contract must also specify your designated rest day,
• Offsetting benefits such as free food, free transportation to and from the worksite, and accommodation.
• Pay for services rendered during regular holidays, overtime work, and work rendered even during rest days.
• Employee benefits such as vacation leaves, sick leaves, medical and dental insurance, and compensation in case of sickness, accidents, injuries, or death.
• Personal life accident insurance, which is without cost to the OFW.
• Repatriation clause in case of death.
• Just causes for termination.

Things to Remember about Your OEC

• Request for a translated (Filipino) version in case the employment contract is written in foreign language.
• Read and understand all of the contents before signing. Ask questions if you need to clarify something. Once you sign the contract, you are already bound by it because you agreed to the terms written.
• Ask for a copy of the employment contract and make sure you give a copy of the same to your family. Use it as your reference or guide, especially when you will file a complaint against your employer due to unjust practices.
• Know your rights and benefits as a worker. Take note that the terms are based in the labor laws of the host country or agreement between the Philippines and the host country.
• Beware of employment contract scam. Some employers will force you to sign a different contract  from what you previously signed, which contains terms not favorable to you. This is usually done either before boarding/departure or upon arrival from the site. Assert your rights as a worker.

Your Overseas Employment Contract is important. Take note of the minimum requirements set forth by POEA and remember the tips mentioned to ensure that your rights as OFW is protected.

There are various ways you can invest your money. Aside from savings, you can also try other investment options like time deposit, mutual funds, UITF, or if you are willing to take that risk, stocks.

Apparently, most OFWs stick to savings account only because it is easier to open and maintain, coupled with remittance features. One of the investment options often overlooked by OFWs is life insurance.

“Ayoko magbayad ng premium. Hindi ko naiintindihan yan,” you might say.

Before you close your doors, here’s what you need to know about life insurance and whether or not it is worth it.

What is life insurance?

Life insurance is a form of protection against financial loss as a result of premature death of the insured. This means the beneficiary of the insured will receive the proceeds of the policy in order to provide financial security in exchange of the premium paid.

There are different types of life insurance available in the Philippines:

• Endowment – This type of life insurance is for people who are looking for maturity benefits at the end of the specified period. This is ideal if you are after shorter terms in order to fulfill periodic financial goals and to secure the financial future of your dependents. In case of death prior to the maturity of the term, the insurance company will offer lump sum amount to the beneficiary.
• Whole Life – This is bought for lump sum benefits upon death of the insured and to be given to the beneficiaries. It also offers lifetime coverage at low premium payments. This type of life insurance is recommended if you want to buy an insurance coverage early and pay the premiums during your productive years.
• Term Insurance –  This is the most popular form of life insurance because your beneficiary pays for the face amount only upon death. If you cannot invest in endowment or whole life insurance plan, then term insurance is highly recommended because of low premium payments.
• Variable Universal Life (VUL) – This type of life insurance is where the premiums you paid will be invested by fund managers into market-linked instruments like stocks, with the investments administered as a separate account. This is recommended because there is no maturity, death component is not limited to the face amount, and there is a possibility of growing your money.

The Benefits of Life Insurance

Why get a life insurance? There are variety of reasons, which includes the following:

• A form of financial protection for your family since the lump sum amount can help your beneficiaries to cover up for the sudden loss of income.
• Works as your savings and investment tool, especially if you go for the Variable Universal Life policy.
• Serves as your retirement income since life insurance products come with long-term maturity.
• Helps settle immediate financial needs as a result of sudden death of the insured.

Tips in Choosing Life Insurance Policy

• Educate yourself about life insurance. Read reviews, watch videos, attend seminars (if time permits), and talk to registered financial planners or insurance agent, if possible. Don’t be afraid to ask questions about concepts you don’t understand. The more informed you are, the better the decision-making will be.
• Shop around, request for a quotation, and then compare before you say yes.
• Always go for reputable and legitimate insurance companies.
• Look for an insurance policy with online facility. This way, you can still avail of a policy even if you are abroad.
• Think about your family’s future. This should be your guide to help you decide on what to get.

Should you get a life insurance? 

If your budget permits, then go ahead and get an insurance policy. Keep in mind that the OFW life is not forever. In fact, it will always be full of uncertainties and you’ll never know what will happen in the future. It’s better to be prepared than feel sorry in the end.

Applying for a loan is one thing. Getting approved and paying for that loan is another story, especially if you have several under your belt. Although getting a loan can help augment certain finances, you need to make sure that you can pay off those loans as soon as possible and start saving up for the rainy days.

The question is how.

Here are tips on how to easily repay your loans and get back to saving as soon as you can:

Tip No. 1: Know how much you owe.

This is the first thing you need to do if you want to get out of debt. List down all of your debts, including the amount, interest rate, monthly amortization, and due date for each loan. This way, you can easily see which loan you should prioritize.

Tip: There are two options when paying off a debt. You can go for the loan with the highest interest rate OR start paying off the smallest loan amount to make it easier for you to reduce the number of debts you have.

Tip No. 2: Try negotiating with your creditors. 

Let’s say you have multiple loans with almost similar interest rate. What you can do is to go to your lender and request for a possible consolidation of loan. By doing so, you will be able to reduce your loan to one with one interest rate and due dat.

Consequently, you can negotiate changes in your interest rate to lower your monthly amortization. When you do this, back this request with sufficient amount of savings and a good credit score to make it easier for the lender to approve it.

Tip No. 3: Allocate a bigger amount for “Loan Repayment” in your budget. 

Budgeting is crucial in every OFW’s money-saving strategy.  This is also why we stress the importance of keeping it flexible to make sure you can accommodate sudden expenses such as loan repayment.

What should give way to accommodate additional funds for repayment of your loan? Start with negotiable expenses such as shopping or eating out. Simple lifestyle changes can make a difference in your budget. If you allocated a specific amount for savings (and we assume that you have), reduce the amount first so you can pay off existing debts.

Avoid shouldering the expenses of your relatives or giving in to their demands. You’re working hard for that money. Don’t just give it away as if you are an ATM machine.

Tip No. 4: Don’t fall for easy cash schemes. 

It’s tempting to sign up for those schemes that promise “instant cash” or “double your money after five days.” Not only you are wasting your time but also increasing the possibility of losing that money dedicated specifically for loan repayment. You are so much wiser than that.

Tip No. 5: Be wise on your spending. 

Remittance will always be part of your budget (and so does loan repayment). If you have extra cash left, make sure you spend that money wisely.

There are variety of options. Aside from letting go of wants, you can start a micro-business for additional income, wherein the fruits of which can be used to pay off your loans. You can also invest your money through different investment products to help it grow.

Once you are able to pay off your debts, you can now start the saving process. After all, you’ll never know what will happen in the future, so it’s better to be prepared.

Admit it. No matter how much or how big you earn working overseas, it seems like the money you receive at the end of the month will never be enough. You will always feel responsible for all the expenses back home, which explains why you have to take an extra job to make ends meet.

Here’s the thing: family expenses should NOT be your sole responsibility. Your spouse, in case you’re married, should also be helping you in managing the money you send. Your kids must also take part in helping you manage the family’s finances. One of the best things to make that happen is to make them responsible for something such as managing a small business.

You’ll never know what will happen in the coming days. This is why it is important to save up for it – and these micro-small business ideas can help you and your family get started:

Sari-sari store

This is one, if not the most common business started by not just OFW families but by many Filipinos. It is simple, easy to set up and manage, and requires little capital.

Your home is an ideal location, especially if you live in areas with high foot traffic or within a residential area. If there are other stores in the neighborhood, make sure to check what they are selling and how much their prices are for their goods. Doing an inventory is also a must, so you will know what items are saleable and to check if you are actually earning.

Samalamig / Palamig Business

If you want to skip the inventory, then this business can be good for you. People will always crave for something cool to drink, which is why opening your own palamig business is also recommended. It is easy to prepare and maintain too.

Pisonet Business

Living the OFW life means Internet is crucial. You need to be constantly in touch with your family whenever you can, which is why Pisonet business is in these days. All you need is a desktop, a good Internet connection, and a small space outside your home and you’re good to go.

With P20,000 (or less) capital, you can encourage your family to start a pisonet business where people can drop P1.00 for four minutes of Internet connection. Once you noticed that business is booming, you can add few more units.

Cellphone Loading Business

Cellphone load is crucial in every OFW family. Despite the availability of WiFi access these days, it is easy to reach out to their loved ones through text and phone call instead of waiting for the Internet connection. The best part is unlike other goods, cellphone load doesn’t expire, unless you already passed it on.

Choose which network provider you want to focus on (or you can have all to give customers more options).

Arts and Crafts

Calligraphy. Painting. Crafting. Making accessories. Thanks to social media, arts and crafts is a booming business these days because it is easier to market.

Take advantage of your family member’s artistic side and make money out of it. Who knows, this could lead to something bigger.

Online Shop

This is another “easy money” business you can try with little company. Since the advent of social media, people can easily access gods and services without leaving the comfort of their homes. Grab the opportunity and put up your own online store.

What should you sell? Preferably something that is not available in the Philippines. You can start with goods sold in the country where you’re working and send it back home. This will set you apart from tons of online sellers in the digital world.

It doesn’t matter if the business doesn’t give you millions at the end of the year. Money earned (and saved!) is still money earned, especially if you know how to use it wisely. How can you say no to that?

Do you have a medical insurance? If none, do you plan on getting one?

Many OFWs are wary of getting an insurance because either they don’t see the need to get one or they just don’t understand how it works. Sadly, there is a thing called “unfortunate incident” that could send you back home – and make it harder for you to go back to work again.

You can always turn to your savings, but what if you don’t have one or what you saved is not enough? In that case, you can turn to OWWA for help.

Get to Know MEDplus a Little Bit More

Sometime September 2015, the OWWA Board of Trustees approved a program allowing Overseas Filipino Workers to receive additional medical assistance from OWWA. On June 2, 2016, OWWA and Philhealth signed a Memorandum of Agreement (MOA) implementing the Supplemental Medicinal Assistance Program for OFWs or MEDplus.

What is MEDplus?

This program aims to provide one-time medical or financial assistance for OFWs, thereby supplementing the benefits provided for by Philhealth. It is available to active OWWA and Philhealth members who are diagnosed with or subsequently hospitalized as a result of a dreaded disease, whether in the Philippines or in the country where you are working.

This program will be implemented throughout the 18 regional offices all over the Philippines. It can be availed of by OFWs themselves or qualified dependent/s in the Philippines in case of death or OFW is still abroad.

What can you get from MEDplus?

• The amount for financial assistance will not exceed P50,000 per member for one dreaded disease.
• Supplements the existing benefits of Philhealth and shall cover medical and surgical procedures for such dreaded disease. This means aside from what you can get from Philhealth, you can get an additional P50,000 medical assistance.
• Subsequent availment of financial assistance is allowed, as long as it doesn’t exceed the P50,000 limit and it will be used for the same dreaded disease originally applied for.

How can you apply for MEDplus?

You must submit the following requirements at the nearest OWWA Regional Office:

• Duly accomplished MEDplus application form
• Original copy of Philhealth Benefit Payment Notice (BPN), which shows actual payments made by Philhealth regarding your confinement or availment
• One passport-size picture
• Proof of OWWA membership contribution
• Waiver from the claimant allowing OWWA to access Philhealth records for MEDplus purposes
• Medical record and Statement of Account in case OFW is confined overseas
• Special Power of Attorney (SPA) executed by OFW if OFW is abroad and the claimant is next-of-kin.
• If OFW is dead, claimant must submit authenticated Death Certificate of OFW and marriage or birth certificate to prove relationship to the OFW

Take note of the requirement, dreaded disease. This means your condition must be categorized as a dreaded disease in order to avail of this benefit.

The MEDplus can be a good way to help you augment medical bills. Still, take note that claiming this benefit may take some time. This is why it is advisable to save as much as you can to make sure you have something to rely on in case of emergency or give us a call and let’s talk about how Balikbayad can help you with your cashflow needs.

Did you know that Filipinos are among the least financial literate countries in the world? This means many Filipinos are not aware of the concept of investment, savings, and even as simple as managing your own money. This explains why most Filipinos don’t have savings account and most of your money go to remittance back home.

As an OFW, you might say, “Wala naman yan” or “Hindi ko naiintindihan ang financial literacy na yan.” 

Don’t worry. Building financial literacy may not happen overnight, but these five questions will help you not just understand financial investments but also promote and encourage you to start building your financial security:

Question No. 1: Do you have savings? 

This is the first question you need to answer when starting to build your financial literacy. Savings is crucial because it not only prepares you for the rainy days but also gives you a chance to bounce back in case of financial difficulty and an edge by the time you reach retirement age.

Saving is a continuous process. Set aside a portion of your monthly income, say $10 or $20 and place it in a fund, preferably a bank account. When you do this consistently, you might be surprised with how much money you were able to save and it will feel good.

Question No. 2: Do you have a financial plan? 

Investopedia defined financial plan as a comprehensive evaluation of one’s current and future financial state using known variables to help predict future asset values, cash flow, and withdrawal plan. To make it simple, what are your short-term and long-term goals.

Your financial plan must lay your specific, realistic, and time-bound goals given the money you are earning. For example, you plan to buy a car below P1 million after five years or at least P100,000 in your Emergency Fund after three years.

Question No. 3: Do you have insurance? 

Not many people believe in insurance, which comes in different types, for three reasons: (a) they don’t know how it works; (b) the premium is too high; (c) they simple don’t trust insurance companies.

Here’s the thing: having an insurance may come in handy during tough times. Invest in life or health and medical insurance because (knock on wood), you’ll never know what could happen if you are abroad.

Question No. 4: Do you have any passive income? 

Passive income is earnings you gained from any enterprise without being materially involved. In other words, you don’t have to work hard for it and yet, you get to earn something from it at the end of the month. Examples of these are the earnings you get from rentals, investment, or limited partnership.

This should be your goal. Apart from your monthly income, look for other ways you can earn and grow your money even without exerting too much effort. Explore your options. Read about investments. Educate yourself as much as you can to boost your learning.

Question No. 5: Do you use loans properly? 

Loans can be helpful, especially during times of need. Unfortunately, there are instances when cash isn’t enough; hence the need to apply for a loan. The question now is how do you use the proceeds of your loan to make it work to your advantage. Consequently, how well do you handle it.

Don’t be among the many Filipinos who borrow money to sustain their lavish lifestyle, only to find themselves buried in debt later on. Borrow only when needed and with an amount that is necessary.

Given these five questions, how many of them did you answer yes? If you have one or two “Yes” answers, then read up, educate yourself, and learn more about the ins and outs of managing your finances.

In an OFW-Filipino setting, the husband works abroad while the wife stays at home to look after the kids. Apart from that, you, the housewife, are also left with an equally important task: budgeting your husband’s income. 

Apparently, many housewives will say that their husband’s income is “sapat lang” or just enough to last them through the month, or at times, not even enough. Then here comes emergency situations like your child getting sick or payment of school fees. Apparently, your husband can’t immediately send money, thereby forcing you to borrow from other people.

You have several options:

• Family or friends, common and cheaper since there is no interest charged, although there is no assurance that they will lend you money.
• Pawnshop, especially if you have valuable items you can pawn, but there will always be a risk of losing them.
• Loan sharks, otherwise known as 5-6 who charge with higher interest rate.
• Licensed lenders, which you will learn more about below.

Among these options, borrowing from licensed lenders can be your best bet. It is legitimate, safe, and you are sure that the interest charged is competitive and according to the existing rates.

Here’s the bigger question: Can housewives, whose main source of “income” comes from remittances, apply for a loan?

The answer is yes, and it is called allottee loan. 

All about Allottee Loan 

An allottee loan is a type of unsecured loan that allows qualified individuals to borrow even without collateral. This means the housewife (yes, you) will file the loan application and submit required documents to prove that you are a beneficiary of an OFW.

As soon as you submitted the documents, the lenders may grant (or reject) you a credit according to your capacity to pay. The loan will also be payable within three to six months, or more, depending on your relationship with the lender.

Below are the basic requirements you need to submit when applying for this type of loan:

• Latest OFW contract with POEA validation
• Husband’s valid and latest Overseas Employment Certificate (OEC)
• Valid passport
• Working visa (for land-based workers) or Seaman’s Book (for seafarers)
• Allotment certificate bearing your name as an allottee
• Proof of relationship to the OFW, which in this case, a Marriage Certificate
• Proof of billing
• Valid government-issued ID

Some lenders may require you to submit more documents apart from what was enumerated above. Make sure to ask for a list of requirements first so you can prepare the documents before submitting your loan application.

Does Balikbayad offer Allottee Loan? 

Unfortunately, we don’t.

The danger of applying for an allottee loan is that some OFWs were surprised that their spouses applied for a loan without their consent. This could create trouble for their family as it creates both a strain in their relationship and their financial standing. At the same time,  it creates trouble for us, lenders, because we have to demand payment for this type of obligation while understanding your family’s financial capacity.

Nonetheless, we allow existing borrowers to apply for a loan even if the OFW is abroad as long as we are able to get a consent from the OFW himself, allowing such loan.

Tips to Remember when Applying for an Allottee Loan 

• Think before you submit, the loan application that is.
• Determine whether there is really a need to borrow or perhaps, you can postpone the expense.
• Inform your husband about your intent to apply for a loan. This will avoid the element of surprise and possible strain and financial trouble in the family.
• Prepare the necessary documents. This will make loan processing easier and faster.
• Make sure to pay on time. This will prevent any negative effect on your credit history.

Being a single parent will never be easy. Aside from playing the role of both father and mother, you also have to ensure your kids’ future. Sometimes, you are forced to accept a job offer overseas in order to provide a better life for them. While being a single parent is not easy, being a single OFW parent will never be a walk in the park as well.

Apparently, it’s not enough that you send money back home. Being an OFW is not a guarantee of a good life unless you know how to plan your cards (and opportunities available) well. To make sure you sustain the good life, you can try the following money-saving tips:

1) Start your month (or week) with a budget plan. 

Creating a budget plan can be tricky and tedious, especially if you don’t know where to start. Nonetheless, you need one to be able to track your expenses, make room for adjustments, and ensure that you still have something left to fill up your savings account. Eventually, budgeting could create a cycle of self-discipline and instill the habit of saving.

Don’t know where to start with budgeting? Check out this post and use it as your guide.

2) Open a savings account for your child/ren. 

And make sure it will serve its purpose, which is specifically for your kid/s.

Your kid/s’ future is something you cannot predict. Still, it is best to prepare for it, no matter how good or bad it will turn out. This is why you should open a savings account for your kids as early as possible. All you need is as little as P500 and you are off to a good start. Then, make a commitment to deposit every month, which must also be included in your budget.

The key here is consistency. Instead of shopping for them, save the money because you will never know what will happen. You will surely be motivated to save more once you see that your kid/s’ savings account is increasing.

3) Always pay bills on time. 

Whether it’s a credit card bill, an existing loan, or any utilities expense, it is important that you pay them on time. Otherwise, you might find yourself paying for additional interest and penalty fee, which you can supposedly use on other equally important things, say savings. Worse, past due accounts reflect on your credit data, thereby creating a negative impact on your credit score.

4) Get a side job. 

Who doesn’t want extra money? Being a single mom means you shoulder all of the finances and a side job can be helpful not only to make end meets but also save something extra.

If time permits, consider getting a side job to boost your savings. Know your skills and fix your schedule to find out which sideline is best for you. You can also check this list to help you decide what side job you can take. The money you can earn from your side job may not be that much, but it could help pay the bills.

5) Teach your kid/s to save. 

You can teach your kid/s a lot of things and life lessons, and one of this is the value of saving. Even if you are earning in dollars, this doesn’t mean you should give in to your family’s demands and worry about savings later.

As early as not, instill the importance of saving. Be a perfect example to your kids that happiness is not about the material things you own. Instead of imposing, make sure to explain your financial situation in a manner they will understand so they can help you save. Start with piggy bank, depositing P5 everyday then slowly introduce the concept of bank and savings account.

At the end of the day, what matters is your family’s financial security. Earning your first million may take time, but you will get there as long as you handle your money wisely.

Have you invested in a family car? If yes, what are your major considerations and the things you did before buying your car a family (and share them in the comments section below)?

If not, then this one is for you.

In a previous post, we shared six things to remember before you buy a car for your family. This is because aside from earning more by working as an OFW, buying a car is one of the major purchases you will make as a product of your hard work and sacrifices to provide a better life and brighter future for your family.

Apparently, buying a car is not a walk in the park. There are many things you need to consider to make sure you land a good deal and get the car that is most suitable to your family. This is why you need to avoid these mistakes to make sure you get the right car for you:

1) Not doing sufficient research 

This is in terms of buying the right car to finding the best lender to help you finance your purchase. In fact, not doing enough research in general is the worst mistake you could do when making purchases.

Keep in mind that there are tons of vehicles available that comes in different sizes and features. Know what you want for your family car and then maximize the World Wide Web to find out the type of car that will suit your needs. Take some time to read and watch car reviews to help you decide.

Apart from the car itself, you also have to do enough research about lenders, especially if you plan to take out a car loan. There are tons of lenders out there that offers competitive rates and features to entice buyers like you to obtain a loan from there. Shop around and compare before you say yes.

2) Unsure of the type of car you want to purchase

Research is imperative when buying a car. This is why it is strongly advisable to determine your needs and identify the features you want for your car to maximize its use while staying on budget. You also need to decide whether to purchase a brand-new car or previously-owned vehicle.

Don’t join the bandwagon. Just because Toyota Fortuner is selling like hotcakes, it doesn’t mean you should buy one. Look around and identify what your family needs to help you decide.

3) Not setting a budget

“May car loan naman, eh.” 

Lenders may give special treatment to OFWs, but this doesn’t mean you should rely on them at all times, especially for major purchases like car. Aside from the features that will suit your family’s needs, you also need to set a budget for this type of purchase. Set the amount and make sure you’ll stick to it.

Keep in mind that working overseas is not forever. Think long-term and make sure you have sufficient funds to cover for the monthly amortization even if you are no longer working abroad.

4) Focusing on the car itself

It’s not enough that you identified the features you want for your family car. You also need to consider the car’s mileage and cost of repair (if you’re buying a second-hand car) and maintenance costs. Parking space is another important consideration you need to remember, so make sure your car has a space in your home (and not in the streets). If you’ll avail of financing, take note of the interest rate and term of loan to help you adjust your budget.

In other words, take a holistic approach instead on focusing on one aspect only.

4) Impulse buying

Would you believe that buying the perfect car is also about perfect timing?

This is why it is important to shop around and explore your options first instead of buying a car according to impulse. Car is a major purchase and requires proper planning. Otherwise, you might find yourself buried in debt and your car taken away from you because you are unable to pay on time – and you don’t want that to happen.

5) Not reading the contract’s fine print

Lenders, especially loan sharks can be sneaky. They could put catchy terms in the front page and unfavorable conditions at the back against you.

Before you sign any document, make sure to read everything, no matter how small the print is. Don’t be afraid to ask questions and clarify terms unclear to you. You need to protect your interest too and you can do so by reading the terms of the contract.

6) Not consulting the rest of the family

It’s a family car, which means it is intended for everyone. In buying a car, make sure you consult your family and ask them about their opinion as well. Don’t buy a car with manual transmission if your spouse cannot drive one. Buying a sedan is also not advisable if you have six kids since everyone won’t fit in.

At the end of the day, the car is for your family. Keep them in mind and what will be more comfortable to everyone else to make the most out of your purchase.

It’s never easy to work abroad. Apart from the competition where thousands of workers are vying for the same position, you are faced with the gruesome fact that you have to pay for fees before you can actually be deployed abroad.

What exactly are these fees that you need to pay?

Read on to find out – and help you prepare for them in case you plan to work overseas:

1) Placement Fee

This is a fee collected by recruitment agencies from deployed OFWs. Placement fee is necessary for recruitment agencies since the nature of their business is risky. The fee paid to them is placed in a fund, which can be used in case something happens to the deployed worker. More importantly, recruitment agencies are responsible for extending help to OFWs they deployed abroad.

How much should this cost? POEA-licensed recruitment agencies are required to collect an equivalent to or less than one month worth of salary. Nonetheless, there are instances when placement fee is waived, which means you don’t have to pay for it. These instances include:

• Working in US, UK, Japan, Netherlands, Ireland, Norway, New Zealand, and Cabnada
• Working as a seafarer, caregiver, or household service worker

Important Tip: Placement fee will only be paid once you signed your employment contract bearing the job you applied for. Make sure to ask (or demand!) for an Official Receipt (OR). It should state the date of payment and the purpose of such payment.

2) Training Fee

There are many jobs abroad that require special skills. If you want to increase your chances of getting hired, then consider getting necessary training with corresponding certificate to prove completion.

You might be worried about the fees. Some trainings require you to pay a fee upfront, but if you want to save on this, TESDA offers trainings that are either free or for minimal amount only. Take advantage of those and who knows, you can use it to your advantage.

3) Processing and Other Related Fees

Apart from placement fee, you might also be asked to pay for processing fees.

How are processing fees different from placement fee?

Processing fee is the cost your employer spent for your deployment abroad. This includes yearly contribution to social services like Philhealth and PAG-IBIG, visa fee, airfare, compulsory insurance, OWWA membership, PDOS, and POEA processing fee among others.

Nonetheless, you are not required to pay for all of these costs. You are only mandated to pay for Philhealth and PAG-IBIG, although PAG-IBIG is no longer mandatory. The rest of the costs must be paid by your employer.

4) Documentation Fee 

Documents are crucial when applying for a job overseas. You need to prove that you are not convicted on any criminal or civil liability and that your records are clear.

Some of the documents you need to submit wherein the costs for obtaining those documents will be shouldered by you are:

• Barangay Clearance
• Police Clearance
• Birth Certificate
• Passport
• NBI Clearance
• Medical examination fee

There are recruitment agencies that offer documentation services, which is convenient for you. The fees may be higher than just getting your own documents. If you wish to avail, make sure to ask for an official receipt reflecting the costs for each document.

The fees may vary, but the bottom line is you need to be prepared for these fees if you plan to work overseas. This way, you don’t have to borrow money to cover these fees because let’s face it, not all lenders are willing to lend money for this purpose.