OFW remittances hit record $35 billion in 2025

 

 

Personal remittances  of Overseas Filipinos Workers (OFW)  increased by 3.3 percent to an all time high of US$39.62 billion from US$38.34 billion in 2024, according to  records from the Bangko Sentral ng Pilipinas (BSP).

 

OFW cash remittances in 2025   reached US$35.63 billion, 3.3 percent higher than the US$34.49 billion recorded in 2024.

 

Land -based workers sent cash remittance amounting to US$28.49 billion, up 3.4 percent from 2024  (US$27,551billion). 

 

Sea-based workers remitted USD 7.139 billion in 2025 which is  2.9 percent higher than 2024 (US$6.94 billion).

 

By source, the BSP said the United States accounted for the largest share at 39.7 percent, followed by Singapore (7.3 percent), Saudi Arabia (6.6 percent), Japan (5 percent), and the United Kingdom and the United Arab Emirates (4.6 percent each).

 

The full-year 2025 cash remittances represented 7.3 percent and 6.4 percent of the country’s Gross Domestic Product (GDP) and Gross National Income (GNI), respectively.

 

Personal remittances represent the total value of money and goods sent by Filipinos working abroad, covering both formal bank transfers and informal channels (like hand-carrying cash).

 

 Cash remittances, a subset of personal remittances, refer exclusively to money sent specifically through bank-to-bank transfers or formal courier services.

 

Essentially, all cash remittances are personal remittances, but not all personal remittances are cash remittances.

 

Personal remittances are considered a more comprehensive metric of total household support, while cash remittances are tracked by the BSP for formal economic impact.

 

A weak peso often encourages higher remittances as the value of foreign currency increases in Philippine pesos.

 

Remittances provide macroeconomic benefits to the Philippine economy, where a significant portion of the population lives and works abroad.

 

They augment foreign currency reserves, alleviate pressure on the exchange rate, and reduce the need for foreign borrowing.

 

From 2015 to 2025, cash remittances reached   US$25.607B in 2015; US$26.900B in 2016; US$28.060B in 2017; US$28.943B in 2018; US$30.133B in 2019 ; US$29.903B in 2020; US$31.42B in 2021; US$32.539B in 2022; US$33.490B in 2023; US$34.492B in 2024;  and US$35.63B in 2025.               

 

These cash remittances formed part of the personal remittances that reached US$28.308B in  2015; US$29.706B in  2016; US$31.288B in   2017; US$32,213 in            2018; US$33.467B in   2019; US$33.194B in 2020; US$34.88B in 2021; US$36.14B in 2022; US$37.2B in 2023; US$38.34B in 2024; and $39.62B in 2025.           

 

In terms of deployment, the Department of Migrant Workers  (DMW) reported that the total number of Filipino seafarers deployed overseas reached 376,663 in 2017; 337,502 in 2018; 507,730 in 2019; 217,223 in 2020; 345.52 in 2021; 385,239 in 2022; 549,249 in 2023;  and 549,339 in 2024. 589,179 in 2025

 

The sea-based sector’s remittances (in thousand US dollars) for the past two decades: $1,669,358 in 2005; $1,949,290 in 2006; $2,236,363 in 2007; US$3,034,553 in 2008; US$3,400,412 in 2009; $3,806,108 in 2010; $4,340,416 in 2011; $4,835,342 in 2012; $5,215,378 in 2013; $5,575,722 in 2014; $5,572,148 in 2015; $5,792,459 in 2016, US$6,870,827 in 2017; $6,139,512 in 2018; $6,539,246 in 2019; $6,353,522 in 2020; $6,545,002 in 2021; $6,715,880 in 2022; $6,852,362 in 2023;  $6,941,085 in 2024 and $7,139,028 in 2025.

 

The data showed the yearly increase of seafarers’ remittances (in thousand US dollars) in 2006 ($279,930) 2007 ($287,073), 2008 ($798,190), 2009 ($365,859), 2010 (US$405,696), 2011 (US$534,308), 2012 ($494,926), 2013 ($380,036), 2014 ($360,344), 2015 ($220,311), 2016 (US$220,311), 2017 ($1,078, 368), 2018 (US$731,315), 2019 ($399,734), 2021 ($191,480) 2022 ($172,878),  2023 ($136,482), 2024 ($88,723) and 2025 ($197,943).

 

The remittances decreased in two years: 2015 by $3,574 and 2020 by $185,724.

 

Unlike land-based OFWs, the DMW Seafarer Employment Contract (SEC) mandates that a Filipino seafarer has to make an allotment which shall be at least 80 percent of the seafarer’s “monthly basic salary”, payable once a month to his designated allottee in the Philippines.

 

Basic wage  under the DMW SEC is defined as “the salary of the seafarer exclusive of overtime, leave pay”.

 

However, under the Magna Carta for Filipino Seafarers, the allotment shall be at least 80 percent of the seafarer’s “monthly salary.” The word “basic” was omitted .

 

The monthly salary shall now consist of basic wage plus fixed or guaranteed overtime. significantly increasing the total amount that must be sent home.

 

Seafarers have expressed concern that this restricts their ability to manage their own money, leaving them with only 20% to cover personal expenses, "crucial savings," or emergencies while on board.

 

While the law mandates that remittances be converted using the actual bank exchange rate at the time of transfer, concerns persist about inconsistencies in the rates applied by different agencies, principals, or banks.

 

 (Atty. Dennis R. Gorecho is the junior partner   of the Sapalo Velez Bundang Bulilan Law Offices. For comments, e-mail info@sapalovelez.com, or call 0908-8665786.)