MANILA, 22 December 2007 — The Philippine Overseas Workers Welfare Administration’s (OWWA) Board of Trustees has approved a mechanism adopting a flexible exchange rate for OFW membership fee beginning Jan. 1.
It also finalized its decision to collect P1,050 from Filipino workers leaving for jobs abroad from Dec. 21 up to 31 this year. Beginning Jan. 1, 2008, the conversion rate for the $25 OWWA dues will be based on the previous month’s average exchange rate as posted on the Bangko Sentral ng Pilipinas (Central Bank) website.
The reduced OWWA dues from Dec. 21 to 31 will be based on the peso-dollar rate of P42:$1, from P51:$1.
In approving OWWA Board Resolution No. 38, OWWA has finally provided a mechanism for determining the peso equivalent of the $25 membership fee.
“We recognize the volatility of the peso-dollar exchange rate so starting Jan. 1 we would be using a flexible rate based on the preceding month’s average,” Roque explained.
“This means that OWWA on Jan. 1 will be recognizing the monthly average dollar exchange rate in December 2007 as basis in the collection of fees,” Roque added.
Roque said the OWWA resolution also provides a mechanism that would extend for three months the insurance coverage for overseas workers who were overcharged by P225.
“Instead of refunding the P225, OWWA decided to extend the insurance coverage to members for three months, which means they are entitled to a credit of 27 months insurance coverage,” he said.
Roque clarified the credit system would benefit only the OFWs whose contracts were processed from Jan. 1 to Dec. 20, 2007 and who paid the membership fee based on the P51 to a dollar exchange rate.
A member of OWWA is covered with life insurance for the duration of his employment contract.
The coverage includes P100,000 for natural death and P200,000.00 for accidental death. The member is also entitled to disability and dismemberment benefits ranging from P2,000 to P50,000; total disability benefits of P100,000; and, burial benefit of P20,000.
