A migrant group said that the Philippine Overseas Employment Administration’s (POEA) new mandatory insurance scheme will do more harm than good for overseas Filipino workers (OFWs).
United Filipinos in Hong Kong (Unifil-Migrante-HK) Chairman Dolores Balladares-Pelaez said the POEA Governing Board (GB) Resolution 4 may push employers to avoid hiring Filipinos due to the additional cost of mandatory insurance when hiring OFWs, reported Business Mirror.
“The new mandatory insurance order will just add to the list of expenses that employers are made to pay for and will merely increase friction between the employer and worker. This new fee might even lead to domestic workers losing their jobs,” Pelaez said.
The resolution issued by the POEA states that employers must provide an insurance coverage to new and returning OFWs. It further states that all OFWs must register with POEA and provide a passport valid for at least 6 months, a valid working visa, and a certificate of insurance coverage.
Employers who will not follow the new scheme will be sanctioned by the POEA.
POEA Administrator Bernard B. Olalia, however, clarified that the resolution will not be implemented yet and will undergo consultations with their stakeholders.
