If you look at the Philippine Insurance Company or PhilHealth’s latest Facebook posts, you will see that the most prevalent reaction to them is the hot-headed angry emoticon. This may be caused by the recent uproar about its circular, which takes effect today, that mandates overseas Filipino workers (OFWs) earning a monthly income of P10,000 to P60,000 to pay three percent of their monthly salary, from a previous 2.75 percent in 2019.

Under PhilHealth Circular No. 2020-0014 published Apr. 2, the “premium of overseas Filipinos shall be computed based on their monthly income, to be paid in Philippine peso equivalent, in accordance with the terms of payment and corresponding due dates as prescribed by the corporation.”

And that’s not all. This rate hike is progressive and is set to reach five percent by 2025 for OFWs earning P10,000 to P100,000. Any missed payments after the due date shall be paid with a monthly compounded interest.

Currently, one of the payables for an OFW is an initial P2,400 required by PhilHealth before leaving for abroad. The balance of the premium contribution is payable through quarterly payments within a year.

Online petition

Many OFWs expressed their dismay and anger over the circular online, as most who are still abroad have been displaced from their jobs due to the pandemic.

An online petition on Change.org entitled “Remove Philhealth Mandatory 3% Premium Payment from OFW’s salary,” has subsequently been put up and as of writing has been signed by almost 400,000 people out of the half a million target signatories.

Militant labor group Kilusang Mayo Uno (KMU) has denounced the hike, calling it an “additional burden for OFWs who are still struggling with the impact of the new coronavirus disease (COVID-19) pandemic.”

“Why burden our OFWs with more mandatory payments when the government cannot even provide them with sufficient aid in this time of crisis? Why make them more cash-strapped?” KMU chair Elmer Labog said in a statement.

It is like an income tax which was abolished for OFWs and even their tax-free income filings were destroyed. They are just totally out of the purview of government exactions for which they will not benefit at all. https://t.co/NrNYGsUMt1

— Teddy Locsin Jr. (@teddyboylocsin) May 3, 2020

Foreign Affairs Sec. Teodoro Locsin Jr. tweeted on Sunday reacting to the rate hike saying, “After the abolition of the income tax on OFWs, they’ve figured another way to tax you for your great privilege of being born Filipino, poor and jobless at home. Let’s all sing for nothing.”

PhilHealth officials have yet to comment on the issue.

According to the Department of Labor and Employment (DOLE), almost 86,000 OFWs have already received P10,000 assistance under its Abot Kamay Ang Pagtulong (AKAP) program. Approximately 20,000 OFWs returning to the country through government initiative are now under quarantine.

Header photo courtesy of Inquirer

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