DEC.

4, 2014

NR # 3670B

Free PhilHealth premium contributions for OFWs

A lawmaker is pushing for an additional incentive to first time Overseas Filipino Workers
(OFWs) by waiving the first year of Philhealth premium contributions for first time overseas
domestic or household workers.
Rep. Roy V. Seeres, Sr. (Party List, OFW FAMILY), author of House Bill 5200, said waiving
of Philhealth premium payments for the first year of deployment of first-time overseas workers
employed in the domestic or household service abroad will ease the stress on the part of the workers.
The bill seeks to amend Republic Act 10606 also known as the National Health Insurance Act
of 2013.
As recognition to the contribution to the Philippine economy, the government has provided
incentives to the OFWs, such as no tax on income earned abroad, no travel tax, no airport terminal
fee, and more recently, no documentary stamp tax on remittances, Seeres said.
The particular category of workers, considering first time domestic or household workers
need to pay numerous fees for their overseas employment and their relatively low wages, the
measure will lighten the burden of the domestic or household worker, Seeres said.
Seeres said the growth of remittances from OFWs remains supportive of economic activity
with cash remittances accounting for 8.4 percent of the countrys gross domestic product in 2013.
These cash transfers from OFWs are the biggest source of foreign exchange for the country,
ensuring the ample supply of dollars and other currencies that the economy needs for doing business
with the rest of the world, Seeres said.
BSP also said that remittances are also the major driver of domestic consumption, which
makes up about two-thirds of GDP. The countrys economy as measured by GDP grew by 7.2 percent
in 2013 beating government estimates and the second highest in Asia after China, Seeres said.
The measure, also known as the First-Time Overseas Workers Exemption in PhilHealth
Premium Payment Act for the First Year, shall not require first time domestic OFWs to pay
PhilHealth premium contributions for a year.
The domestic or household overseas workers and their dependents are covered by the social
health insurance under the National Health Insurance Program (NHIP) and may avail of the benefits
accorded to all qualified members of PhilHealth.
Prior to the lapse of the one-year PhilHealth coverage, OFWs should ensure continued
payment of their Philhealth premium contribution in accordance with National Health Insurance Act
of 2013. (30) jc