Membership contribution to the Overseas Workers Welfare Administration (OWWA) dropped by 60 percent as deployment of overseas Filipino workers (OFWs) declined in 2020 because of the economic effect and travel restrictions imposed by labor importing countries as a result of the coronavirus disease 2019 (Covid-19) pandemic.
“There is a 60 percent drop in membership contribution. The OWWA fund now stands at P18.4 billion,” said OWWA Administrator Hans Leo Cacdac over the weekend in a virtual press briefing even as he assured members that the state-run overseas workers welfare fund is “not in the red” and remains stable primarily because of the support from the national government. “As of now, we manage to balance our fund because of the support of the national government. We were given P5,2 billion last year and for 2021 we were given by Congress P6,2 billion,” Cacdac said.
Cacdac said that all OWWA continues to provide OFW members the benefits due them, which include livelihood programs and educational assistance, among others, because the trust fund is solely dedicated for the workers welfare.
“So I don’t see any depletion of OWWA fund because we were able to balance our fund. We don’t spend the fund for the food, transport and accommodation of returning OFWs. ” he further said.
Prior to the pandemic, the OWWA fund stood at more than P20 billion. It was reduced to P18 billion several months later as the agency spent for the initial repatriation, and the intended benefits and livelihood due returning Covid-affected Filipino migrant workers, including non-OWWA members.
In 2020, about 500,000 OFWs were displaced from work with close to 380,000 repatriated to the country and another 100,000 more to arrive in 2021.
