ONLY a third of overseas Filipino workers (OFWs) last year set aside savings from their remittances, according to the latest data released by the Philippine Statistics Authority (PSA).
The 2019 Survey on Overseas Filipinos (SOF) showed that 32.8 percent of the 1.934 million OFWs had savings from the remittances they sent. This meant 67.2 percent did not have any savings.
This was lower than the 44.8 percent of the 2.039 million posted in the 2018 SOF data. In that year, some 55.2 percent were unable to set aside savings from cash remittances sent.
“The SOF aims to provide data on overseas Filipinos particularly the overseas contract workers and their contribution to the economy,” PSA said. “Specifically, the survey has the following objectives: to obtain national estimates on the number of overseas Filipinos including overseas workers and their socioeconomic characteristics and to provide estimates on the amount of cash and in-kind transfers received by the families and the modes of remittances.”
PSA said regardless of the amount of the cash remittances sent, for every 10 OFWs whose families reported savings from cash remittances received, about seven or 55.3 percent were able to save less than 25 percent of the total amount received.
Only two of 10 or 28.3 percent were able to save from 25 to 49 percent of it, and one in 10 or 16.4 percent saved 50 percent or more.
Data also showed that among those who set aside savings from remittances were 3.4 percent of the OFWs who were able to save less than P20,000; and 12.3 percent among those who sent anywhere between P20,000 to P39,999.
PSA said the OFWs who were able to set aside savings were those who sent more. Around 39.8 percent who set aside savings sent P40,000 to P99,999; and 44.6 percent of these OFWs sent P100,000 and over.
Cash remittance
Meanwhile, OFWs sent a total of P211.9 billion between April and September 2019. Majority or P157.9 billion were sent home as cash remittances; P46.7 billion accounted for cash brought home; and P7.3 billion were sent in-kind.
The majority of OFWs or 58 percent sent their cash remittances through banks while the rest at 40.7 percent used money transfers and 0.6 percent sent cash remittances through agencies or local offices.
For those who sent cash and in-kind remittances, some 0.4 percent of OFWs used door-to-door delivery to send their remittances to their families; friends or coworkers, 0.2 percent; and other means, 0.1 percent.
PSA noted that the remittances sent by OFWs to their respective families may just be a part of the total salary received by the OFWs.
It added that if the family received during the reference period goods and products sent by this OFW, the imputed value of such goods was included in his/her total remittance.
“Data on remittances in this report are based on the answers given by the survey respondents to the questions on how much cash remittance was received by the family during the period April to September 2019 from a family member who is an OFW and how much cash did this member bring home during the reference period, if any,” PSA said.
Between April and September 2019, there were 2.2 million OFWs. Overseas Contract Workers (OCWs) or those with existing work contracts comprised 96.8 percent of the total OFWs during the said period while 3.2 percent worked overseas without a contract.
At the regional level, Calabarzon had the largest share in the total OFWs at 20.7 percent, followed by Central Luzon and the National Capital Region at 13.3 percent and 9.7 percent, respectively.
PSA said the smallest share in the total OFWs came from Mimaropa at 1.5 percent and the Zamboanga
Peninsula at 1.6 percent.