Department of Migrant Workers Raises Minimum Wage for Filipino Domestic Workers Abroad

Strategic Insights -

The Department of Migrant Workers (DMW) has implemented an eight-part reform package, which includes raising the minimum wage for Filipino domestic workers abroad from $400 to $500 per month. The new wage rate was announced by DMW Secretary Hans Leo Cacdac, who emphasized that the increase will be integrated into the employment contract and that migrant workers' offices will engage with host governments and private entities to implement the new wage standard. The new wage rate applies to newly hired domestic workers as well as those returning to work, and employers and recruitment agencies have a 60-day transition period to adjust to the new pay rate.

Key Takeaways:

  • The DMW has increased the minimum wage for Filipino domestic workers abroad to $500 per month, up from $400.
  • The wage increase is part of an eight-part reform package announced by the DMW on Friday.
  • The new wage rate applies to newly hired domestic workers as well as those returning to work, whether for vacation or from unemployment.
  • Employers and recruitment agencies have a 60-day transition period to adjust to the new pay rate.
  • The DMW is also studying the implementation of higher minimum wage rates for upskilled workers, including former domestic workers who trained to become caregivers.
  • The agency is launching a digital welfare monitoring system called "Kumusta Kabayan?" to help identify potential OFW welfare issues or concerns.
  • The program has a pilot run in Kuwait, where about 20,000 emails were sent to the DMW.

Statistics:

  • The estimated 20 to 30 percent of total OFWs deployed yearly who are domestic workers (DMW).
  • The new minimum wage of $500 per month for Filipino domestic workers abroad.
  • The 60-day transition period for employers and recruitment agencies to adjust to the new pay rate.

Sources:

  • Prevention of Sexual Abuse of Vulnerable Overseas Filipino workers Act ( Republic Acts of the Philippines)
  • Kumusta Kabayan? pilot run in Kuwait
  • DMW Reform Programs announced on Friday