As of this writing, the Philippine peso continues to gain strength against the dollar creating an additional burden to overseas Filipino workers (OFWs) who are supposedly the new heroes of the land. To ease their toll, recruitment companies suggested a new remittance scheme called pay-rolling system.

Under the new proposed system of sending remittances, OFWs would be required to send to the Philippines 70% of their monthly earnings.

Accoding to the president of LBS E-Recruitment Solutions, Lito Soriano, this method will significantly lessen the rate of remittance fee and at the same time increase and make the flow of remittances into local banking sector faster.

Soriano gave details, “With this kind of system, service charges will drop since there will be a one-time charge only for the employer abroad sending the funds for the payroll of the local manning agency that will in turn deposit the salaries for the intended beneficiaries in their bank accounts."

The LBS E-Recruitment Solutions president also said that the proposed system would be beneficial for all: the OFWs, the service contractors with infrastructure projects abroad and the local banks.

Implementing the pay-rolling system would reduce the banking costs with the remittance of salaries and local banks will gain profit through the “float of the dollar proceeds" before converting the funds to pesos and depositing the salaries in the accounts of workers.

Soriano added, “This was the most efficient form of sending the salaries of workers in the ‘70s since the costs were lower per worker and the dollars were captured by the banking system, which in turn increased the dollar reserves during the time of President Marcos when the country had a dollar reserve crisis..

Government agencies like the Department of Labor and Employment (DOLE) and the Philippine Overseas Employment Administration (POEA) are currently using this scheme but only apply to the manning companies.

Soriano call on the government to hold a national summit on remittances to discuss the system and other measures that could reduce the cost of remittance fee.