EXECUTIVE ORDER NO. 857 December 13, 1982
GOVERNING THE REMITTANCE TO THE PHILIPPINES OF FOREIGN EXCHANGE EARNINGS OF FILIPINO WORKERS ABROAD AND FOR OTHER PURPOSES
WHEREAS, existing laws and regulations governing remittances of foreign exchange earnings of overseas Filipino workers to their families, dependents and/or beneficiaries have not been fully effective in ensuring that they are coursed through official financial institutions of the Philippine Government or their authorized agents;
WHEREAS, it is necessary to protect the welfare of families, dependents and beneficiaries of Filipino workers abroad and to ensure that the foreign exchange earnings of these workers are remitted through authorized financial institutions of the Philippine Government in line with the country's economic development program;
WHEREAS, non-compliance with these aforesaid laws and regulations and recourse to the use of unauthorized and unofficial financing institutions has led to the detriment of the country's balance of payments and economic development program;
WHEREAS, it is imperative that the mandatory remittance requirement be fully complied with by all concerned through the institution of appropriate remittance facilities and the...
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Executive Orders
Governing the Remittance to the Philippines of Foreign Exchange Earnings of Filipino Workers Abroad and for Other Purposes
Executive Order No. 857
Summary of Executive Order No. 857
Mandatory Remittance of Foreign Exchange Earnings of Filipino Workers Abroad
- It shall be mandatory for every Filipino contract worker abroad to remit regularly a portion of his foreign exchange earnings to his beneficiary in the Philippines through the Philippine banking system. (Sec. 1)
- Employment contracts and agency agreements must contain a proviso making it mandatory for workers to remit the following portions of their earnings:
• Seamen or mariners: 70% of basic salary (Sec. 2a)
• Workers of Filipino contractors and construction companies: 70% of basic salary (Sec. 2b)
• Doctors, engineers, teachers, nurses and other professional workers with free board and lodging: 70% of basic salary (Sec. 2c)
• All other professional workers without free board and lodging: 50% of basic salary (Sec. 2d)
• Domestic and other service workers: 50% of basic salary (Sec. 2e)
• All other workers not falling under the aforementioned categories: 50% of basic salary (Sec. 2f)
Passport Validity and Renewal
- Passports issued to Filipino contract workers shall have an initial period of validity of one year, subject to adjustment by the Ministry of Foreign Affairs. (Sec. 3)
- Passports shall be renewable every year upon submission of proof of compliance with the remittance requirement. (Sec. 3)
- The Ministry of Foreign Affairs shall not extend or renew the passport of any contract worker unless proof of compliance with the mandatory remittance requirement is submitted. (Sec. 3)
Employment Contract and Agency Agreement Renewal
- The Ministry of Labor and Employment shall not approve the renewal of employment contracts and agency or service agreements unless proof of remittance of foreign exchange earnings is submitted. (Sec. 4)
Proof of Compliance
- Proof of compliance with the mandatory remittance requirement may consist of: (Sec. 5)
• Confirmed bank (foreign) remittance form (Sec. 5a)
• Certification from employer, duly authenticated, that remittance has been effected (Sec. 5b)
• Certification as to the surrender for pesos to the Philippine banking system (Sec. 5c)
• Receipt of International Postal Money Order (Sec. 5d)
Remittance Channels
- Remittances of foreign exchange earnings may be undertaken individually by the contract worker or collectively through the employer under a payroll deduction scheme, in accordance with Central Bank regulations and applicable guidelines. (Sec. 6)
- As a prerequisite for accreditation by the Ministry of Labor and Employment, an employer shall commit to provide facilities to effect the remittances and monitoring of foreign exchange earnings of Filipino workers in his employ. (Sec. 7)
- The Central Bank of the Philippines shall cause necessary arrangements to be made with the appropriate financing institutions to handle the remittances. (Sec. 8)
- In the absence of appropriate banking facilities, the Embassy or Consulate nearest to the job site may act as the channel for remittance of foreign exchange earnings, in accordance with local laws and regulations. (Sec. 8)
Sanctions and Penalties
- Contract workers who fail to comply with the requirements of this Order shall be suspended or excluded from the list of eligible workers for overseas employment. In cases of subsequent violations, he shall be repatriated from the job site at the expense of the employer or at his expense, as the case may be. (Sec. 9)
- Filipino or foreign employers and/or their representatives who fail to comply with the requirements under this Order shall be excluded from the overseas employment program. (Sec. 9)
- In the case of local private employment agencies and entities, failure to comply with the provisions hereof shall be a ground for cancellation of their license or authority to recruit workers for overseas employment, without prejudice to their liabilities under existing laws and regulations. (Sec. 9)
Implementation
- The Ministries of Labor and Employment and Foreign Affairs and the Central Bank of the Philippines shall draw up the necessary rules and procedures for the proper implementation of this Order within ten (10) days from the signing hereof. (Sec. 10)
- All provisions of existing orders, rules and regulations inconsistent herewith are hereby repealed. (Sec. 11)
- This Order shall take effect thirty (30) days after the promulgation of implementing rules and procedures. (Sec. 12)
Mandatory Remittance of Foreign Exchange Earnings of Filipino Workers Abroad
- It shall be mandatory for every Filipino contract worker abroad to remit regularly a portion of his foreign exchange earnings to his beneficiary in the Philippines through the Philippine banking system. (Sec. 1)
- Employment contracts and agency agreements must contain a proviso making it mandatory for workers to remit the following portions of their earnings:
• Seamen or mariners: 70% of basic salary (Sec. 2a)
• Workers of Filipino contractors and construction companies: 70% of basic salary (Sec. 2b)
• Doctors, engineers, teachers, nurses and other professional workers with free board and lodging: 70% of basic salary (Sec. 2c)
• All other professional workers without free board and lodging: 50% of basic salary (Sec. 2d)
• Domestic and other service workers: 50% of basic salary (Sec. 2e)
• All other workers not falling under the aforementioned categories: 50% of basic salary (Sec. 2f)
Passport Validity and Renewal
- Passports issued to Filipino contract workers shall have an initial period of validity of one year, subject to adjustment by the Ministry of Foreign Affairs. (Sec. 3)
- Passports shall be renewable every year upon submission of proof of compliance with the remittance requirement. (Sec. 3)
- The Ministry of Foreign Affairs shall not extend or renew the passport of any contract worker unless proof of compliance with the mandatory remittance requirement is submitted. (Sec. 3)
Employment Contract and Agency Agreement Renewal
- The Ministry of Labor and Employment shall not approve the renewal of employment contracts and agency or service agreements unless proof of remittance of foreign exchange earnings is submitted. (Sec. 4)
Proof of Compliance
- Proof of compliance with the mandatory remittance requirement may consist of: (Sec. 5)
• Confirmed bank (foreign) remittance form (Sec. 5a)
• Certification from employer, duly authenticated, that remittance has been effected (Sec. 5b)
• Certification as to the surrender for pesos to the Philippine banking system (Sec. 5c)
• Receipt of International Postal Money Order (Sec. 5d)
Remittance Channels
- Remittances of foreign exchange earnings may be undertaken individually by the contract worker or collectively through the employer under a payroll deduction scheme, in accordance with Central Bank regulations and applicable guidelines. (Sec. 6)
- As a prerequisite for accreditation by the Ministry of Labor and Employment, an employer shall commit to provide facilities to effect the remittances and monitoring of foreign exchange earnings of Filipino workers in his employ. (Sec. 7)
- The Central Bank of the Philippines shall cause necessary arrangements to be made with the appropriate financing institutions to handle the remittances. (Sec. 8)
- In the absence of appropriate banking facilities, the Embassy or Consulate nearest to the job site may act as the channel for remittance of foreign exchange earnings, in accordance with local laws and regulations. (Sec. 8)
Sanctions and Penalties
- Contract workers who fail to comply with the requirements of this Order shall be suspended or excluded from the list of eligible workers for overseas employment. In cases of subsequent violations, he shall be repatriated from the job site at the expense of the employer or at his expense, as the case may be. (Sec. 9)
- Filipino or foreign employers and/or their representatives who fail to comply with the requirements under this Order shall be excluded from the overseas employment program. (Sec. 9)
- In the case of local private employment agencies and entities, failure to comply with the provisions hereof shall be a ground for cancellation of their license or authority to recruit workers for overseas employment, without prejudice to their liabilities under existing laws and regulations. (Sec. 9)
Implementation
- The Ministries of Labor and Employment and Foreign Affairs and the Central Bank of the Philippines shall draw up the necessary rules and procedures for the proper implementation of this Order within ten (10) days from the signing hereof. (Sec. 10)
- All provisions of existing orders, rules and regulations inconsistent herewith are hereby repealed. (Sec. 11)
- This Order shall take effect thirty (30) days after the promulgation of implementing rules and procedures. (Sec. 12)