‘Government must strengthen labor migration policies, improve OFW social protection’

MANILA, Philippines — The government will need to strengthen labor migration policies as well as improve social protection programs to support overseas Filipino workers (OFWs) who play an important role in the economy, according to state think tank Philippine Institute for Development Studies (PIDS).

In a discussion paper that looked at the long-term effects of labor migration in the Philippines, PIDS senior research fellow Jose Ramon Albert and Aubrey Tabuga, supervising research specialist Jana Flor Vizmanos, research analysts Mika Muñoz and Angelo Hernandez, and Philippine Tax Academy chancellor Teresa Habitan said OFW remittances have become a major contributor to the economy, representing around 10 percent of the gross domestic product.

While remittances support OFWs’ families and consumer spending, the authors said labor migration can also cause emotional strain, with families divided and having complex transnational relationships.

It is in this context that the recommendations on strengthening labor migration policies and improving social protection programs for OFWs were made.

“Recent legislation has led to the establishment of the Department of Migrant Workers, but continuous reinforcement of legal frameworks is essential,” the authors said, noting the need to focus on addressing concerns like wage theft, contract breaches and workplace exploitation.

Given the incidence of inhumane employment practices, they said more robust measures should be in place to safeguard OFWs and address abuse cases effectively.

“Simultaneously, fostering economic growth and expanding job opportunities within the Philippines is vital in reducing the reliance on labor migration,” the authors said.

The study also cited the need to improve social protection programs and other forms of support including health insurance, pension schemes and unemployment benefits for OFWs and their families.

“Furthermore, addressing mental health and providing essential social support to both OFWs and their families is equally vital. OFWs are at a higher risk of developing mental health problems due to the stress of working abroad and separation from their families,” the authors said.

As remittances are mainly allotted for consumption, the authors also recommended the promotion of financial literacy programs to educate OFWs on how to manage their earnings, savings and investments.