Retirement system for OFWs, Filipinos in UAE: What we know so far

At the Ninoy Aquino International Airport.

PHOTO BY ARCHIVE

Retirement system for OFWs, Filipinos in UAE: What we know so far

The Philippines is mulling over a proposed measure to establish a retirement system for Overseas Filipino Workers (OFWs) around the world, including the UAE.

The Commission on Human Rights (CHR) on Thursday (September 14) expressed support for House Bill 00176 or the Overseas Filipino Workers Retirement System Act and House Bill 8574 or the Kabayan OFW Pension Act.

“To this end, the proposed bills – HB 00176 and HB 8574 – are seen as steps toward fulfilling the government’s obligation to uphold the people’s right to social security,” according to CHR.

“The bills’ proponents also stress that current schemes do not respond to the unique circumstances and vulnerabilities that OFWs face. The Social Security System, for example, is voluntary in nature and only matures at the age of 60 and does not allow for early retirement nor voluntary separation benefits,” the CHR added.

House Bill 00176 seeks to implement a retirement system that provides OFWs retirement benefits, dependent’s pension, voluntary separation benefits, and a set retirement fund to support these benefits and similar gratuities.

House Bill 8574 seeks to “promote social justice and provide adequate protection to the OFWs and their dependents against the risks of old age, disability, sickness, death, unemployment, and other contingencies.” The House Bills are awaiting approval by both houses and the President of the Philippines in order to pass into law.

Representative Ron Salo filed the Kabayan OFW Pension Act in July. The new House bill filed aims for a “unique” pension and social security system for OFWs.

Under House Bill No. 8574, the government will draw guidelines for a system covering OFW’s retirement benefits, monthly pension, death benefits, permanent disability benefits, and funeral benefits.

Salo said a separate social security and pension system would create a retirement fund that would secure OFWs financially in their old age and would serve as the safety net for them and their families in the event of job loss, disability or death.

He also proposed that the system provide other benefits to the migrant workers “as long as financially viable.” ICA/PNA/Expat Media

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