Payroll System faces ire

The Overseas Filipino Workers (OFWs) organisations are criticising the proposal to bring back the Marcos era payroll system which compels an OFW to remit up to 70 per cent of his monthly salary through the banking channels. They are calling this system ‘dictatorial’ and unjustified. These organisations are instead demanding a ‘free remittance system’.


In the early 80s, President Ferdinand Marcos had signed the law Executive order 857 (Forced Remittance Law) which forced the migrant workers to remit 70 percent (for land based migrants) and 100 per cent (for sea based migrants) of their earnings through overseas employment. Non banking channels were strictly prohibited and as a result it faced widespread protests in the Middle East, Honk Kong, Japan and Europe.


Migrante feels the pay rolling system is a failure among the Arab employers who are not keen on spending more time to arrange for the remittance of an OFWs salary. Many also feel that the recruitment agencies could take advantage of such a situation. They feel the very fact that the proposal was made by a recruiter who earns a lot of money through the OFWs makes it clear that the OFWs’ interests would be put on hold for the benefit of the recruitment agencies.


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