OFW savings and benefits: SSS, Pag-IBIG, PhilHealth and OWWA

Working abroad doesn't mean giving up your Philippine safety nets. In fact, keeping them active is one of the smartest things an OFW can do, because they protect your family while you're away and your income when you come home.

SSS for OFWs

Land-based OFWs are covered by SSS as mandatory members under the Social Security Act of 2018. You pay the full contribution yourself, but you get the same benefits as local members: sickness, maternity, disability, unemployment, retirement pension and death benefits, plus loans. A lifetime pension at retirement generally needs at least 120 monthly contributions, so steady payments while abroad add up.

Pag-IBIG for OFWs

Pag-IBIG membership is also mandatory for OFWs. Your regular savings earn dividends and give you access to multi-purpose loans and one of the most affordable housing loans in the country. Many OFWs also add MP2, the voluntary 5-year savings program with tax-free dividends, for long-term goals like a house or a business fund.

PhilHealth

Keep your PhilHealth membership active so you and your declared dependents at home can use hospital benefits. Check the current premium for OFWs on PhilHealth's official channels, since rules for OFW members have changed in recent years.

OWWA membership

The Overseas Workers Welfare Administration (OWWA) membership costs US$25 and is valid for two years or the length of your contract. It gives access to welfare assistance, repatriation help, education and training programs for you and your dependents, and reintegration support when you come home. Renew it before it lapses.

Build savings that are yours

1. Save a fixed part of your salary before sending padala, in an account in your own name.
2. Build your own emergency fund: 3 to 6 months of your expenses abroad, reachable wherever you are.
3. Add a 'coming home fund' for your first year back, when income may be lower.
4. Put long-term money in MP2 or diversified investments, not in cash at home.

A common target: save at least 20% of your salary for yourself, separate from the padala, from the first month abroad.

Watch out for

• Lending your savings to relatives for 'business' with no plan or written agreement.
• Investment offers aimed at OFWs that promise high fixed returns: check the SEC before you send anything.
• Big purchases on installment at home that you'll be paying for long after your contract ends.

Remember this

Keep SSS, Pag-IBIG, PhilHealth and OWWA active, and save for yourself first, in your own name, every month.

Do this today

Check your SSS and Pag-IBIG contributions online and set up a savings account in your own name if you don't have one.