Mandatory SSS coverage of OFWs

pinoy_guy · Sep 13, 2007

i'm starting to see a pattern here.

multi-pronged approach to milk the ofws.

says poea: direct hires for overseas work should be cleared by dole

first build a database of all ofws, even the ones which traditionally slip throught the cracks by being direct hirees. (the same direct hirees accused of stealing p88 million from the philippine government 2 years ago because they did not register--and pay the fees--with the poea.)

collect blood toll--oops--yearly membership fee (in dollars). this money will purportedly be used for the ofws' "protection from predatory practices of foreign employers."

encourage them to remit money through banks and collect another blood toll--oops--remittance fee. include scheme to tax the remittance in the future. (be proactive!) the ingenuity of this technique cannot be denied--charge for the fee to remit, then tax it.

bir planning to tax ofws

with the ofw database, collect blood toll--oops--income tax (in dollars).

i thought the income tax on ofws took the cake--boy, was i wrong.

this mandatory sss pension program coverage takes the cake.

when we read in the papers of our elderly who die without getting a single centavo from the sss.

lawrence01 · Sep 14, 2007

This really is extortion or daylight robbery to our OFWs, esp. those who are working abroad in temp. work permits/visas.

They are also trying to include nurses for the US but honestly I question this because majority of nurses who are going to work in the US are US Permanent Residents (green card holders). I even question if nurses bound for the US on immigrant visas (green card) should even be called OFWs and subject to go through the POEA. These are immigrants; they will be living the Philippines as US immigrants and will be entering the US port of entry as new US immigrants. Other workers in another country and even in the US on temp. work permit/work visas are definitely can be classified as OFWs.

Frankly, I really think they must have not yet fully researched what they plan to do and how they plan to do it. Some people always takes it at face value that the Gov't fully know what they are doing. Most often times, they do not. Perfect example is what happened on the June 2006 NLE batch. The PRC Chairperson and the new BON members back then are forcing their rules and policies on CGFNS. They also keep mentioning the CGFNS Certificate is the same as the Visa Screen Certificate and that some States do not need either of them. Of course, they are dead wrong and the Spokesperson from the US Embassy in Manila even have to go public and counter all the wrong information they were giving. They still do not know that nurses going to the US are would-be green card holders and not just on work visas as compared to other OFWs.

There are only a handful of consulates in the US. I wonder if they already thought of how they would collect the SSS contributions, the taxes and how are they are gonna compute the tax bracket and contributions, how to collect it, etc.. because these are traditionally automatically debited from the payroll and we are not even touching yet the extreme discrepancy in the monetary value and what currency is going to be used but what ever it is, the contribution from workers abroad will always be inherently higher than from some one working in PH. And how much will they receive afterwards? Are they gonna guarantee that what the worker will receive when the time comes is equivalent to what he was contributing. I don't think they can guarantee that. Been hearing about some people not able to get their monthly pensions on time and been hearing retirees getting very measly monthly pensions that a middle-class high school student's monthly allowance is even higher than their monthly pensions.

I see a lot of technical and logistical flaws and even if still they find some ways to implement this besides the flaws, I do not think many nurses will choose to go back to PH anymore and will definitely choose to waive their PH Citizenship as soon as they are able to. Their will be no more balikbayans or expats going back. Unfortunately, I can't say the same thing for other workers in other countries because some of them can't afford not to go back home. However, some do choose not to go back home when they feel they can survive and integrate well w/ their host countries. Many workers in Europe do this already even when their first intention was just to work for a couple of years. I see a lot of people in the future not going back to PH for good, even as expats or balikbayans because they won't feel safe anymore.

A bit off-topic: Just heard the EU is considering the use of "blue cards". This is their equivalent of the US' "green cards" and if this would be implemented, I'm sure OFWs who have been working in Europe for already for decades will avail of this if and when it will be made available.

pinoy_guy · Sep 15, 2007

forced sss coverage of ofws needs legislation

09/15/2007 | 03:02 am

but according to the sss' top representative in hong kong, bobby roldan, mandatory coverage could only be done by the country's legislators amending the agency's charter.
"it will take a while before any such plan could be implemented," said roldan. "mahaba ang proseso."
currently, ofw membership to sss is on a voluntary basis.

i think this will be fast-tracked. the philippine government will need a massive amount of cash before the presidential elections in 2010.

roldan said he was told by sss executives in manila that what president arroyo had ordered was for a proposal for mandatory coverage to be drafted.
responding to this, rep. vincent crisologo has reportedly begun drawing up the bill.

the idea of a forced contribution, on top of those already charged for membership in the overseas workers welfare administration (owwa) and medical insurance through philhealth, is expected to face renewed opposition from ofw groups in hong kong.

people will definitely oppose this.

the previous benefits--protection because of membership in owwa--was nebulous at best. the philippine government could not explain where all the membership fees went. what is evident is the money is not there.

the 2nd benefit--medical insurance--is laughable. an md told me a few years ago that the pay for an appendectomy is $40--payable in 6 months. no wonder mds are leaving the philippines. a cellphone costs more than the professional fee of a surgeon for an appendectomy.

for pensions...this is a wickedly ingenious idea. they can afford to pay miniscule amounts to the initial retirees, as the influx will be many times more than the outflow. diversion would be very easy. later retirees...in 10 years? when there's a new administration in control...will wake up to the news that there is no money for them.

. . . he said more ofws in hk are applying for sss membership or increasing their contribution, resulting in last year's total collection to hit the p25-million mark.

somehow i find this hard to believe, unless it's imposed as another requirement for employment.

sss members regularly paying their monthly contributions may be entitled to benefits such as death, disability, maternity (for females), retirement, sickness, funeral, medical care, 13th month pension and dependent's pension.
members can also apply for loans for salary, educational, calamity, housing, stock investment, privatization, livelihood lending and other business loans.

this list sounds good. but you only have to read the papers and see the news shows and know that these benefits are not guaranteed.

as some reporters showed, some retirees have died without getting a single centavo.

pinoy_guy · Sep 15, 2007

this really is extortion or daylight robbery to our ofws, esp. those who are working abroad in temp. work permits/visas.

most are not aware of this yet.

it's gonna hit them in the face when they go to the philippines, and find out they're delinquent in their "contributions."

they are also trying to include nurses for the us but honestly i question this because majority of nurses who are going to work in the us are us permanent residents (green card holders). i even question if nurses bound for the us on immigrant visas (green card) should even be called ofws and subject to go through the poea. these are immigrants; they will be living the philippines as us immigrants and will be entering the us port of entry as new us immigrants. other workers in another country and even in the us on temp. work permit/work visas are definitely can be classified as ofws.

from the poea decisions, it was evident the philippine government wants the whole cake, and the neighbor's cake too.

first they wash their hands of the responsibility of protecting its citizens, saying as green card holders, they have the protection of the host government.

but then again, you can read that immigrants are still citizens of the philippines.

mainly for collection purposes?

get the money, but pass the responsibility?

frankly, i really think they must have not yet fully researched what they plan to do and how they plan to do it.

:lol2:

some people always takes it at face value that the gov't fully know what they are doing. most often times, they do not. perfect example is what happened on the june 2006 nle batch. the prc chairperson and the new bon members back then are forcing their rules and policies on cgfns. they also keep mentioning the cgfns certificate is the same as the visa screen certificate and that some states do not need either of them. of course, they are dead wrong and the spokesperson from the us embassy in manila even have to go public and counter all the wrong information they were giving. they still do not know that nurses going to the us are would-be green card holders and not just on work visas as compared to other ofws.

i agree. our nurses suffered because of the inexplicable actions by philippine government officials.

there are only a handful of consulates in the us. i wonder if they already thought of how they would collect the sss contributions, the taxes and how are they are gonna compute the tax bracket and contributions, how to collect it, etc.. because these are traditionally automatically debited from the payroll and we are not even touching yet the extreme discrepancy in the monetary value and what currency is going to be used but what ever it is, the contribution from workers abroad will always be inherently higher than from some one working in ph.

the surest way would be to collect the "contribution" when you go back to the philippines.

and how much will they receive afterwards? are they gonna guarantee that what the worker will receive when the time comes is equivalent to what he was contributing. i don't think they can guarantee that.

i agree.

i think it would be better to buy lottery tickets with the "contribution."

been hearing about some people not able to get their monthly pensions on time and been hearing retirees getting very measly monthly pensions that a middle-class high school student's monthly allowance is even higher than their monthly pensions.

been seeing the news and reading about the cases so much that it's not news anymore.

i see a lot of technical and logistical flaws and even if still they find some ways to implement this besides the flaws, i do not think many nurses will choose to go back to ph anymore and will definitely choose to waive their ph citizenship as soon as they are able to. their will be no more balikbayans or expats going back. unfortunately, i can't say the same thing for other workers in other countries because some of them can't afford not to go back home. however, some do choose not to go back home when they feel they can survive and integrate well w/ their host countries. many workers in europe do this already even when their first intention was just to work for a couple of years. i see a lot of people in the future not going back to ph for good, even as expats or balikbayans because they won't feel safe anymore.

now this is the crux of the matter.

a columnist pointed out that the current crop of ofws are the educated ones, who integrate easily to the host country.

if the philippine government keeps putting up obstacles and flies to these ofws/emigrants going back to the philippines...then they will not go back.

a bit off-topic: just heard the eu is considering the use of "blue cards". this is their equivalent of the us' "green cards" and if this would be implemented, i'm sure ofws who have been working in europe for already for decades will avail of this if and when it will be made available.

good news/bad news scenario.

the bad news is that the eu opened up its borders internally, to countries with very low minimum wages...in effect shutting out our ofws in the future.