Category: OFW Interest

According to the Merriam-Webster dictionary, insurance is “a coverage by contract whereby one party undertakes to guarantee or indemnify another against loss by a specified peril or contingency.” In other words, insurance can be your form of guarantee if something happens to you.

Admit it. Insurance may be the last thing on your mind right now. With the expenses back home and the pressure to save for the rainy days, getting an insurance is not your priority. Believe it or not, there is a facility called Agency-Hired OFW Compulsory Insurance (OCI) and here’s what you need to know about it:

1. Also known as Compulsory Insurance Coverage for Agency-Hired Migrant Workers, this facility is made available by law in order to provide protection in the form of insurance to Overseas Filipino Workers.

2. This insurance coverage is mandatory for all agency-hired OFWs or OFWs who availed of the service of a recruitment agency authorized by the Department of Labor and Employment. An Overseas Employment Certificate (OEW) will not be issued without an insurance proof cover. Nonetheless, re-hired, direct-hired, and name-hired OFWs can avail of insurance coverage.

3. There is no need for you to apply for this type of insurance. Your recruitment agency applies this kind of insurance coverage on your behalf.

4. Below are the benefits you can avail of if you have Agency-Hired OCI: 5. Here’s how to file a claim for Agency-Hired OFW Compulsory Insurance:

• OFW, the beneficiary, or OFW’s recruitment agency must notify the Agency-Hired OFW Compulsory Insurance provider. The telephone number of the insurance provider can be found in the OFW’s contact card or proof of cover.
• The recruitment agency must assist the OFW in processing the claims.
• Fill out the Claim Form provided by the insurance provider.
• Submit the necessary documents to the insurance company. This could be Death Certificate, Medical Certificate, Medical Report, Police Report, and government-issued IDs necessary.
• The insurance company will evaluate the claim and establish the amount due.
• The insurance company must pay the OFW/beneficiary within 10 days from filing of complete documents.

6. The Insurance Code does not specify a minimum or maximum amount of insurance premium. This encourages competition among insurance companies for bigger savings and better insurance services.

7. The recruitment agency should pay for the insurance premiums and not the OFW. The OFW should not, in any way, pay for the insurance premium whether directly or as salary-deduction.

Being single and in your 20s may be the best time of your life. You can do anything you want and not worry about anything. Apparently, if you are one of the thousands of Filipinos working overseas to help provide a better life for your family, then being single and in your 20s calls for bigger responsibilities. In fact, you hold the title of being the “breadwinner,” who constantly have to send money for your siblings’ tuition fee or your father’s medication.

The question is this: do you really have to work abroad for the rest of your life to sustain your family?

Here are money-management tips you need to remember to help you thrive and succeed:

1) Set a deadline for your OFW life. 

There is nothing wrong with being an Overseas Filipino Worker. Still, this doesn’t mean you have to be one forever. Therefore, think long-term and set a deadline for yourself, regardless if you plan to settle down abroad. This will give you a sense of urgency to work harder, mind your expenses, and start investing to grow your money.

2) Always leave something for savings. 

This may seem like a broken record, but always have room for savings. Set aside a portion of your monthly earnings for savings, which you can use for emergency situations. You will never know what will happen in the future and having a savings account can help you get back up in case you got a call to go back home.

Consequently, save for yourself. Being a breadwinner in the family entails a lot of responsibilities, but this doesn’t mean you shouldn’t set aside something for yourself.

3) Spend wisely.  

These two words often go together – all the time. Earning in dollars can be a big deal and tempting at the same time, but this doesn’t mean you should splurge on the latest gadgets or send a big chunk of your salary to your family back home. Keep in mind that the future is uncertain and learning how to spend wisely can help you adjust in case these uncertainties decided to knock on your door.

In line with spending wisely, make sure you eat, breathe, and embrace budgeting. Be firm to your family when you say that you can only send this certain amount every month. You need to save up for the future and you and your family must agree on how much you can spend every month.

4) Explore your investment choices. 

There are tons of investment choices available (learn more about it here). Before you say yes to UITF or stock market, make sure you educate yourself first and know what options are available for you. Research and learn about the ups and downs of each investment choices you can try then decide the best option for you and your family.

5) Don’t be scared to say “No.” 

Admit it. Despite alloting certain amount for your savings, you often find yourself sending money to your family back home. Your tito felt short with his monthly amortization and your brother needs to pay for the graduation fee. They’re family, so how can you say no, even if it means working double shifts or taking another job just to make up for it.

The truth is you should learn to say no – and it’s okay. Earning in a different currency doesn’t mean you always have excess cash on hand. Every centavo equates to your hard work and sacrifice, which your family has to understand. Otherwise, you might be forced to look for other means just to keep them happy.

6) Remember yourself. 

At the end of the day, you are working not just for your family but also for yourself. There’s nothing wrong with helping family, but you should also teach them how to help themselves. Don’t forget that you have your needs and your future to worry about. After all, you can’t work abroad forever.

Working overseas is also a privilege. Make the most out of it by employing wise money decisions and being conscious with your spending. You do want to settle down in the Philippines, don’t you?

How many times will you hear OFWs say that the reason why they work overseas is to provide a better life or future for their families? The reasons may vary, but one thing is for sure: you are really after the good and secured life.

Working overseas allows you to earn more than what you can earn in the Philippines. Unfortunately, this “capacity to earn in dollars” will only be as good as your contract. Before your employment contract expires, you should be able to find additional means to grow your money and make sure you can use something for the rainy days.

Check out these best investment options you can try: Mutual Fund

This is the simplest form of investment you can try. For starters, you can invest P5,000 and a professional fund manager will handle your account. He will place your money in  pooled investments, which will then be invested in various securities like shares of stocks, government bonds, and other investment options,

This is a good investment because it requires little time and effort, thereby taking the work out of your hands. BPI, Security Bank, PNB, and Sunlife are some of the financial institutions that offer mutual funds.

Unit Investment Trust Fund (UITF) 

This type of investment is similar to mutual funds where professional fund managers handle your money. The difference is that UITFs involve per unit investment as opposed to mutual fund’s shares.

This is a good investment because you don’t need to exert time and effort to grow your money. It is readily available, poses lesser risk, and yields higher rates compared to time deposits. UITFs are also offered in major banks like BPI, BDO, Metrobank, PNB, and EastWest Bank .

Bonds 

Bonds are debt instruments where you can lend money to either the government (treasury bonds) or corporation (corporate bonds). Bonds also have fixed maturity dates and allow you to earn bigger profits. This also allows you to diversify your investment portfolio.

This is a good investment because of the minimal risk. Whatever happens, the issuers of bonds are obligated to pay you in both principal plus interests. Payments are also made on a semi-annual basis – and you are sure you can get that. Metrobank, PNB, and BPI are some of the banks that sell bonds.

Stocks 

If you are willing to take a risk, investing in stocks can be a good option. Investing in the right companies also allows you to grow your money by at least 50 percent, especially when you do it right.

This is a good investment because you are able to keep track of your investment online even if you are working overseas. You can also expect higher annual returns and issuance of dividends at least once a year. Investing in stock market can be intimidating, but the good news is there are various workshops, books, and articles online that will help you better understand how it works. COL Financial Group, BPI Securities, and First Metro Securities are among the accredited brokers of the Philippine Stock Exchange.

Owning a Franchise 

This is another risky investment, but if you are willing to try it, the results could pay off. This is because franchising allows you to learn and understand how a business works using a tried-and-tested system. Franchise fee could range from P35,000 to as much as a million, depending on your franchise.

This is a good investment because it allows you to earn additional income and at the same time, provides livelihood for your family. This will teach the family members the importance of money and earning as you work overseas.

Real Estate

It may require a higher amount, but many OFWs prefer investing in real estate for future family home or for the sake of having a property. There is higher risk as well because you need to make sure that you will be able to pay the amortization. Nonetheless, nothing beats the joy of having a property you can call your own.

This is a good investment because the property has a potential of providing you bigger returns. Generally, the value of a property appreciates too. Just make sure that in buying a property, you think long term, consider the location, and the possibilities you can do should you decide to come back to the Philippines for good.

OFWs have many options when it comes to investing hard-earned money. Don’t just settle with your monthly salary since you will never know what will happen. Choose the best investment option for you and you will start saying hello to earnings in no time.

 

Every Overseas Filipino Worker has their reason for leaving the country. At the end of the day, it all boils down to providing a better and more secure future for the family. That is because sadly, working abroad, could help you provide a better life.

Here’s the thing: earning in dollars does not guarantee a good life. In fact, there are (many) cases when OFWs have little to no money left once the contract has expired.

Don’t let this happen to you and your family by remembering these money-savvy tips: 

1. Set a goal. What is your reason for working abroad? Whatever the reason is, it is important to set a goal to help you keep your eyes on the prize. You can start with “I want to save P100,000 by the end of the year so your family can start a sari-sari store” to get you motivated. This leads you to the next tip.

2. Always set a budget. This is the problem with many OFWs. Since you are earning more than what you can earn in the Philippines, you tend to be complacent and send a big chunk of your salary to your family. That shouldn’t be the case. Instead, set aside portions of your salary for savings, remittance, and daily expenditures – and make sure to stick to it. Allocating your money will help you keep track of your earnings and at the same time, put your money into good use. If it’s possible, set up different bank accounts for specific purposes.

3. Needs over wants. It’s easy to give in to the request of your family. Being away from them makes you feel guilty; hence you shower them with material things to make up for the time lost. The problem with this is that material things don’t last and you might end up spending more than saving. Prioritize needs over wants and don’t feel bad if you are unable to buy the latest phone or tablet for your kids.

4. Don’t be afraid to invest. Does the term “stock market” or “investment” scare you? Financial literacy is not common among Filipinos, but this doesn’t mean you should join the bandwagon. Read about various investment options available and find out which one you are more comfortable with. All it takes is an initiative to invest, no matter how small, and you will be growing your money in no time.

5. Know who really needs your hard-earned money. As the person working overseas, you are often tasked to help people other than your immediate family in times of emergency. After all, you are earning in dollars and it won’t hurt if you pay for your nephew’s tuition, which they promised to pay you back when able. Go back to your goals and remind yourself why you are working abroad. Money may come easily, but this doesn’t mean you should carry the burden of providing for everyone. You don’t want the culture of laziness and apathy grow in the family, and prioritizing your expenses could stop that.

6. Stop the culture “over-giving.” Your hard-earned money is precious. While giving pasalubong to your immediate family is fine, you are not obliged to give something to the whole clan. This could be a buzzkill, but set aside a budget for gifts when you get home and don’t feel bad if you are unable to give something to your barangay captain.

At the end of the day, remember your goal on why you are working overseas. This will help you get back on track and remind you of the needs of your family.

Have you seen the Filipino TV series On the Wings of Love? There was a scene there when a man went to Clark’s (portrayed by James Reid) apartment and demanded for money. Threats were even made in case Clark is unable to pay on time.

Believe it or not, that scene happens in real life, especially in the lives of OFWs. Difficult times and immediate need for money will lead migrant workers to people known as loan sharks to be able to send money back in the Philippines or finance certain expenses.

The good news is you can avoid that – and save yourself from stress and harassment. Who are Loan Sharks?

Loan sharks can be a person or entity that allows you to borrow a certain amount of money and charge with higher interest rate, usually above established legal rates. They are also illegal financing companies that usually targets people who are in desperate need of money.

Apparently, sky-high interest rate is just one thing you have to deal with. When you borrow money, say P10,000, you can’t get the entire amount. Interest rates are already deducted at the beginning of the transaction. If you are unable to pay on time, loan sharks often harass you through blackmail, intimidation, and threats.

How to Deal with Loan Sharks

Let’s say you are really in need of cash and loan sharks are your best option at that moment. Here are tips on how to deal with them:

• Try your best to repay them as soon as you can. It is still your responsibility to pay what you owe and at the same time,  save you from their harassment and threats.
• Know your rights not just as a consumer but also as a person – and make sure you let them loan sharks know that you are aware of such rights.
• Seek help from authorities in case you or your family’s well-being is being affected.

Tips to Avoid Borrowing from Loan Sharks

Thankfully, there are ways available to help you avoid dealing with loan sharks. Here’s what you can do:

• Always set a budget for everything – your daily expenses, money to be sent to the Philippines, and savings – and make sure to stick to it.
• Try your best to save. You will never know what will happen and in case of emergencies, you have something to use for you or your family.
• If borrowing money is needed, check the licensed and reputable lenders near you, compare their rates and payment terms, and determine which of them is more helpful.
• Consider borrowing from a credit union or closest friends – and make sure you pay them back as soon as you can.
• Encourage your family to save instead of spending. Set up a savings account and make sure the funds in it will only be used for emergency purposes.
• Grow your money through various investment channels. It can be time deposit, UITF, mutual fund, or stock market.

The bottom line is with proper money management, you will have enough for the rainy days in case something happens.

According to POEA’s latest OFW statistics, more than 1.8 million workers were deployed in 2015, which is higher compared to 2014. With millions of workers working overseas and earning in dollars for a living, how come more and more Filipinos are willing to seek for greener pastures and leave the country for better employment?

There are various factors for this phenomenon and one of this is poor money management. Blame it on the “culture,” but not all OFW families are able to put remittances in savings or investments.

Here are common money mistakes committed by OFWs – plus tips on how to avoid it: 1. Over-remitting

Most OFWs do their best to minimize spending and send a big chunk of their salaries to their families back home. Unfortunately, you don’t know where the money is going and yet, you keep on sending. In case something happened to you, you only have little left on your savings since almost everything is sent to your family.

How to solve it: Set a budget for yourself, your savings, and remittances – and stick to it. Don’t feel obligated to cover the medical or educational expenses of your mother’s cousin’s daughter. More importantly, encourage your family to invest the money or put up a small business you can all manage to reduce your remittances.

2. Keeping up with the Joneses

Working overseas increases your purchasing power. You are earning more than what you can earn in the Philippines, which means a new pair of sneakers or buying that watch you’ve been eyeing for years won’t make a big dent in your salary. Unfortunately, this mentality will lead you nowhere and before you know it, you are unable to save something for yourself.

How to solve it: Take it easy on your spending even if you are earning more. You don’t need a new pair of shoes or send Balikbayan boxes full of signature brands to your family every month. Remember, budgeting is key, so make sure you stick to that.

3. The pasikat mentality

Every time you go home, it’s a celebration. All your family, friends, and relatives will show up and ask you about life abroad. The harm starts when you always pay for everything – restaurant bills, tickets, and shopping with the family.

How to solve it: Being man of the hour is great, but you don’t need to answer for all the expenses while you’re in the Philippines. Go back to setting a budget before going home and make sure that all expenses are accounted for. You don’t need to treat everyone just because they get to see every two years only.

4. Wrong investment choices

Putting your money in a savings account is fine since cash is readily available. Nonetheless, placing your hard-earned money in savings alone will not yield extra income.

How to solve it: Don’t put all eggs in one basket. Explore various investment options such as UITF, real estate, or stock market, and know the corresponding risks and returns to help you find out the best ones for your money.

Remember that life as an Overseas Filipino Worker will not last forever. Take note of these mistakes and make sure you follow the how to avoid tips to help you save for the rainy days.

According to the Bangko Sentral ng Pilipinas, OFW remittances in 2016 amounted to $2.4 billion. This is why the government is continuously providing programs and services that could make their lives and that of their families better, including OWWA Loan.

The good news is there are other financial institutions that offer various loan facilities specifically for Overseas Filipino Workers. Whether it is a business loan, a personal loan, home loan, or car loan, these banks are willing to extend their helping hands to you:

1. Bank of the Philippine Islands (BPI)

BPI offers variety of loan facilities for both land-based and sea-based migrant workers. This includes Personal Loan up to P1 million, Housing Loan, and Auto Loan designed for OFWS.

To apply, you must be a Filipino citizen and 21 years old and above and not more than 60 years at the time of loan maturity. You must also submit government-issued IDs and your latest and unexpired POEA contract or current employment contract with boarding date.

Visit www.bpiloans.com to apply online.

2. BDO Unibank (BDO)

BDO established the Asenso Kabayan Program to provide financial assistance to OFWs who wish to apply for a home, auto, or personal loan.

BDO bank loan requirements are: borrower must be at least 25 years old but not more than 65 years by the time your loan matures and employed for at least two and three years for skilled workers and domestic helpers, respectively.

You can also download BDO application form for loan on their website, www.bdo.com.ph

3. Chinabank 

Chinabank offers Overseas Kababayan Services, which provides secure, reliable, and competitive products that allow you to manage your remittances, investments, and personal needs. This includes home loan, car loan, and personal loans as well.

To apply for China Bank OFW loan, requirements include age of borrower between 21 and 65 years old upon maturity of loan and should not have any adverse credit findings like unpaid loans, cancelled credit cards, or bouncing checks among others.

Visit www.chinabank.ph for more information about their loan facilities.

4. Philippine National Bank (PNB) 

“You First” is PNB’s tagline. True to its promise, PNB came up with Global Filipino program for OFWs. They offer auto loan and home loan for your family and avail of any of the facilities even when you are working overseas through their branches outside the Philippines.

Similar to other banks, you must be at least 21 years old to avail of any of the loan facilities and must not exceed 65 years old at the time of maturity. You must also be working abroad for at least two years to qualify.

Know more about PNB’s Global Filipino program here.

5. Philippine Savings Bank (PSBank)

PSBank is also committed in providing overseas Filipino workers with facilities that could enhance your life. Aside from the savings account and remittance facilities, PSBank also has home and car loan products for OFWs.

Apart from the basic requirements such as age and term of employment, don’t forget to submit your Job Contract, proof of remittances for at least three months, and consularized Certificate of Employment.

Check out PSBank’s loan facilities in their website.

6. RCBC Savings Bank (RCBC) 

Whether it is a housing loan, car loan, personal loan, or a loan to help you start your business, RCBC got you covered. They provide flexible terms as well to make payment easier and more convenient for you.

You can learn more about RCBC’s consumer loans by checking out their website.

Check the loan facilities offered by various banks and ask about their interest rates and payment terms to help you decide which bank is the best one for you.

 

Every year, thousands of Filipino workers are deployed in various countries around the world to provide and render services according to their set of skills. At the same time, the promise of a better life and better future for their family became their driving force to work overseas.

Below are key trends and overseas employment statistics according to POEA for 2015:

Documentation

In 2015, there are 2,343,692 Overseas Filipino Workers whose contracts were processed by POEA. This number is lower by almost 50,000 compared to the processed contracts in 2014.

Out of the contracts processed, land-based workers still got the biggest slice of pie with 1,823,715, with 1,208,967 rehires and 614,748 new or first time workers. Consequently, there are 519,977 documented sea-based workers, which is higher compared to 2014’s 517,972.

Nonetheless, not all documented workers were all deployed.

 

Type of Hiring

In total, there were 1,844,406 migrant workers deployed in 2015, a number higher compared to the previous year.

There were more land-based workers deployed with 515,217 new hires and 922,658 re-hires. Likewise, 406,531 sea-based workers were deployed in 2015, which is also higher than 2014’s numbers.

 

Deployment of Land-based OFWs

 Land-based migrant Filipino workers still hold the highest percentage of OFWs deployed. Below are the key numbers based on certain categories:

 

According to Major World Group

 Middle East still holds the higher number of deployed land-based workers with a total of 913,958 or a 3.21 percent change than 2014. Middle East is followed by Asia with 399,361 land-based workers deployed, Europe with 29,029, Americas with 17,234, Africa with 18,226, and Trust Territories with 4,777 deployed. The number of land-based workers decreased in Oceania at 18,850 while there are 36,440 Filipino workers deployed in other territories not mentioned.

According to Major Occupational Group for New Hires

 There are 10 major occupational groups according to the International Standard Classification of Occupations 2008. For the new hires, there are 39,740 deployed professionals and 27,830 technicians and associate professional working overseas. 58,422 new hires were deployed as service and sales workers while elementary occupations can be accounted for 273,167 new hires.

Aside from this, there are 55,059 craft and related trades workers, 21,893 plant and machine operators and assemblers, and 1,262 skilled agricultural, forestry, and fishery new hires are working abroad. 8,293 new hires are working as clerical support workers while 2,918 are managers. Five new hires took armed forces occupations and there are 26,628 more working abroad whose occupation is not classified.

Compared to 2014, there are more new hires deployed in 2015, recording a 5.76 percent increase.

 

According to Skills for New Hires

 The POEA classified the top 10 skills based on the newly hired land-based workers deployed for 2015.

Household service workers took the top spot for new hires with 194,835 workers deployed, which is also a 7.5 percent increase from 2014. This is followed by manufacturing laborers with 41,038, 22,175 nursing professionals, 18,352 waiters, and 14,116 cleaners and helpers in offices and hotels.

There are also 10,181 deployed home-based personal care workers, 8,156 welders and flamecutters, 7,286 civil engineer laborers, 6,629 plumbers and pipe fitters, and 5,870 working in building constructions.

 

Top 10 Destinations for Land-Based OFWs

In terms of destination, Saudi Arabia is still the top choice of many migrant workers, with 406,089 working in the said country. This is followed by United Arab Emirates (UAE), Singapore, Qatar, Kuwait, Hong Kong, Taiwan, Malaysia, Oman, and Bahrain. Nonetheless, there are 225,866 land-based workers elsewhere around the world.

For new hires, Saudi Arabia is also the top spot, with 189,001 new hires deployed. Other destinations for new hires are as follows: Kuwait, Qatar, Taiwan, UAE, Hong Kong, Singapore, Malaysia, Japan, and Bahrain.

The case is the same with rehires with 217,088 still heading to Saudi Arabia. Nonetheless, re-hires are going to other countries such as Italy with 13,997 rehires workers deployed.

The succeeding sections will tell you more about the seafarers.

Deployment of Filipino Seafarers

Out of the 406,531 seafarers deployed, 93,993 of them were officers, 148,283 were categorized as “Rating,” and 161,480 were non-marine.

In terms of skills, able seaman took the top spot with 58,994 deployed. It is followed by oiler (31,563), ordinary seaman (28,556), chief cook (15,634), bosun (15,020), second mate (14,864), third engineering officer (13,228), messman (11,753), third mate (11,743), and waiter / waitress (10,859).

When it comes to flag registry, Panama took the top spot with 69,502 seafarers deployed. This is followed by Bahamas, Liberia, Republic of Marshall Islands, Malta, Singapore, Bermuda, Italy, Norway, and Netherlands.

In terms of the type of vessels, many seafarers are working in a bulk carrier with 94,668. Seafarers also worked in vessels such as passengers, container, oil/product tanker, tanker, chemical tanker, general cargo, supply vessel, pure car carrier, and tugboat.