Higher OFW remittances continue to buoy Filipinos at home

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Global migration trends continue to affect Philippine labor and economy as Bangko Sentral ng Pilipinas (BSP) reports a 3% overall remittance growth to $17.59 billion (from January to June 2023) from the year-earlier $17.09 billion.

The same data found that cash remittances by overseas Filipino workers (OFWs) also increased by 2.9% to $15.79 billion compared to $13.35 billion in 2022. In June alone, OFW remittances sent through banks hit $2.81 billion, the highest level since $3.16 billion in December 2022. According to BSP data, personal remittances, including non-monetary inflows, grew by 2.2% to $3.13 billion in June from $3.06 billion in the same month last year.

Data from the Department of Migrant Workers and the Philippine Statistics Authority found that the country deployed over 1.8 million OFWs to major destination countries in 2022, which accounted for the largest financial contribution of all observed areas in this study.

"Millions of Filipinos are welcomed and valued in various industries and economies worldwide. While the pandemic slowed their deployment, this has since rebounded thanks to easing restrictions and inclusive labor policies in both the Philippines and host countries," said Earl Melivo, Head of Asia-Pacific at WorldRemit.

Land-based workers with contracts of a year or more and sea- and land-based workers with contracts of less than one year served as the greatest contributors, according to recent reports. Origin countries with the largest remittance flows from January to June 2023 were the United States at 41 percent, Singapore at 7 percent, Saudi Arabia at 6 percent, and Japan at 5 percent.

Melivo said that digitalization has been increasingly important in facilitating recruitment and emigration, improving labor migration management among OFWs.

Digitalization has also streamlined many processes for migrants and has also helped them cope with working and living abroad. It lets them stay in touch with loved ones and send money home easily. Platforms like WorldRemit facilitate secure and real-time online transfers for users worldwide.

"In this global landscape, remittances play an increasingly critical role in moving people and sustaining populations. But primarily, they support migrant workers' families. WorldRemit recognizes the significance of affordable remittance services in ensuring their welfare and empowering them through financial inclusion," Melivo said.

Get to know Filipino workers all over the world and their inspiring stories through the WorldRemit community at https://worldremote.com/en/blog/community.

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About WorldRemit

We’re a leading global payments company. We disrupted an industry previously dominated by offline legacy players by taking international money transfers online—making them safer, faster, and low-cost. We currently send from 50 to 130 countries, operate in more than 5,000 money transfer corridors worldwide, and employ around 1,200 people globally.

On the sending side, WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up, and mobile money.

Education consumes 51% of Filipino household income—WorldRemit

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More than 51% of a Filipino household’s monthly income goes to covering educational costs, a new report by WorldRemit revealed.

The digital cross-borders app released its third year of global data and findings to understand how the cost of school supplies impact families around the world. The price of uniforms, stationery, and extra supplies like bags across 21 countries were compared from 2022 to 2023.

In the Philippines, the cost of school supplies rose by 16%.

“We have to think about frequency of use in relation to these school supplies. As children are more likely to go through stationery like a pencil quicker than wearing down a uniform, the higher cost adds up over time. And if there is more than one student in a household, these costs multiply accordingly,” said Earl Melivo, Head of Asia Pacific at WorldRemit.

According to Melivo, more remittances are sent from June and July to pay for tuition fees and school supplies in time for the opening of classes in August.

Amid global economic circumstances, 40% of observed countries are expected to pay more than their monthly income on school supplies. In countries outside of North America, Europe, and Australia, cost differences were far more drastic, where yearly changes averaged an increase of 78%.

Data from the United Nations states that 1 in 9 people worldwide rely on money sent from friends and relatives who have migrated abroad for work. According to Social Weather Stations, 7% of Filipino households have a family member working as an OFW, 75% say these OFWs regularly send money back home.

As of 2022, the Philippines had the third highest remittance inflows in the Asia and Pacific region at 11%.

“Education is one of the top reasons people send money back home. For Filipino families, especially those whose monthly income just suffices for daily needs, remittances from overseas supplement their ability to afford essential school supplies, as well as manage steep costs like tuition, transportation and childcare,” said Melivo.

 

 

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About WorldRemit

We are a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global remittance brands.

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower cost. We currently operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.                                      

Sending money with WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, we offer a wide range of options, including bank transfer, cash pickup, airtime top up and mobile money.                        

Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom, with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.

Migrant Workers Wish Mother’s Day was Celebrated on Same Day Globally

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A new survey from WorldRemit, a leading digital remittances company within the Zepz Group, has found that 44 percent of migrant workers wish that Mother’s Day was celebrated on the same day around the world—pointing to the cultural difficulties faced by those who live in a different country to their mother.

Mother’s Day is celebrated on different dates across the world, ranging from the second Sunday of February in Norway, to the 14th of May in the Philippines and even to the 15th of October in Malawi.

The multi-country survey was conducted in February with 3,000 participants to understand how migrants celebrate their relationship with their mothers.

Multiple Mother’s Days

Mother’s Day is celebrated on different dates across the world. The most popular dates being the second Sunday in May (such as in the United States of America, Australia, and Philippines) and the fourth week of Lent in March (such as in the United Kingdom and Nigeria).

The survey found that while 95 percent of respondents celebrate Mother’s Day, nearly a quarter (23 percent) agree that it is easy to forget when Mother’s Day is celebrated in their family’s country of origin.

While the majority of respondents (44%) celebrate Mother’s Day on the day their  country of residence celebrates, over a third (35%) of respondents noted that they celebrate Mother’s Day twice a year; recognising the celebratory date in their family’s country of origin, in addition to the country they currently reside in.

44% of respondents agree that they wish that Mother’s Day was celebrated on the same day around the world.

The Impact of Mothers

Mothers and mother figures play a significant role in many people’s lives. Often, they act as a confidante, advisor, friend, and caretaker in one. When asked to describe their mother in three words, top responses from participants included “trustworthy,” “devoted,” “strong,” and “selfless.”

WorldRemit’s survey found that 97% of respondents agree that their mother has been influential in shaping them as a person. In addition, 97% of respondents agree that their mother had helped them to get to where they are in their lives currently. Finally, 96% of respondents agree that their mother supports them in their life choices.

Gifting on Mother’s Day

According to the WorldRemit survey, the most popular way to celebrate Mother’s Day is by sending a gift, which is how 72 percent of respondents would mark the day. Other popular celebrations include eating out and visiting family.

Flowers were revealed as the most popular gift choice, with 63 percent citing that they planned on giving them on Mother’s Day. On the more practical side, 57 percent of participants said that they would send their mother money instead.

This Mother’s Day, WorldRemit encourages all migrant workers across the globe to celebrate their mothers or mother figures—be it through a small gift or a written note of appreciation to say “thank you.”

Methodology

International money senders aged 18 and above voluntarily responded to a 22 question survey in February about the role of their mother in their lives and their remittance behaviors.

The survey took place on the Attest platform and resulted in 3,000 responses from people who celebrate Mother’s Day in the United Kingdom, Australia, Canada, and the United States of America. Those who responded that they do not celebrate Mother’s Day were exited from the survey to create a viable participant base.

No quotas (e.g. gender, age) were set for this survey so results are not intended to be nationally representative.

About WorldRemit

We are a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global remittance brands.

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower cost. We currently operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.

Sending money with WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, we offer a wide range of options, including bank transfer, cash pickup, airtime top up and mobile money.

Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom, with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.

www.worldremit.com

WorldRemit powers long-distance love

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Love makes many feats possible. This statement rings true for many Filipinos who have been working overseas to better provide for their loved ones this Valentine’s Day.

This February, WorldRemit shares stories of love – particularly about how two OFWs have made long-distance relationships work throughout the years and how remittances have acted as a currency of care.

“Today’s rising cost of living has only pushed more Filipinos to seek better opportunities abroad, resulting in more couples living apart,” said Earl Melivo, Interim APAC Managing Director of WorldRemit. “It is also worth noting that many couples are married with children and are finding ways to provide for their families. This makes being away for longer periods of time necessary yet even more difficult.”

A 2018 study showed how Filipino husbands were more likely to be separated from their wives, with 58% of OFW children having fathers who worked abroad. Jonathan, a father of three, has been a supervisor for an oil firm based in Brunei for 25 years. There, he initially lived and worked together with his children and his wife Bam, an optometrist. After 12 years, they returned to the Philippines, where his wife put up her own optical clinic.

Jonathan chose to stay behind to maintain their family income. Now, he only sees his family once a year, which he considers as the hardest part about his extended stay. “It’s difficult to cope with their present activities,” he said.

Another case is Manny, a management assistant who has worked in the Middle East for 32 years. “Being an absentee father to my three daughters makes me regret at times being away while they are growing up,” he also echoed.

However, as a result of their sacrifices, both fathers were able to achieve significant milestones for their families together with their wives. In the years they spent apart, Jonathan and Bam have been able to acquire a house and lot, a car, and another clinic for Bam’s practice. They are currently seeing all three of their children through college.

In the long run, both OFWs share the same goal of having all their children finish their education and putting up a business that can support them after retiring. For now, their main advice for other OFW couples is daily communication.

“Constantly communicate, update the one who’s away with everything going on with the family, and always give each other assurance,” Jonathan said.

While Jonathan and Manny are now able to maximize video calls to stay connected with their families, Manny still looked back fondly at how he and his wife got by before the internet.

“Letters and voice tapes delivered through post were the only ways we could convey our affections. We would receive each other’s letters in about a week if we were lucky, or in two weeks at most. Telephone calls were an option, but were rare as they were quite expensive,” he said.

At present, Manny is thankful enough for the ease and convenience offered by technology. After all, online remittance services like WorldRemit are the reason he and his wife are able to work towards the future they’ve always dreamed of together.

“Despite challenges like difficult working conditions and homesickness, Filipinos are ultimately motivated by their love for their families. WorldRemit not only recognizes this love but empowers it, enabling reliable and real-time digital transfers which make OFWs feel like they’re right there,” Melivo said.

Read more inspiring stories from migrant workers around the world. Get to know them better through the WorldRemit community at https://www.worldremit.com/en/blog/community/.

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About WorldRemit

We’re a leading global payments company. We disrupted an industry previously dominated by offline legacy players by taking international money transfers online—making them safer, faster and lower-cost. We currently send from 50 to 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ around 1,200 people globally.

On the sending side WorldRemit is 100% digital (cashless),increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.

Filipinos Pay More than 50% of Monthly Income on School Supplies—WorldRemit

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Research reveals the total average schooling supply cost per household nears the average monthly income in the Philippines.

With the Back-to-School season in full swing, families all over the world are preparing their children for the school year with the proper gear and tools to set them up for success.

In line with this exciting time, WorldRemit conducted a multi-country study[1] to determine the true cost of education in 10 countries, mining data to compare average costs of core educational equipment, including schoolwear, stationery, P.E. equipment, and other miscellaneous fees with average annual incomes and fertility rates.

The study reveals that the average cost to send one child back to school in the Philippines is USD 78 (PHP 3,876.60). When compared alongside the country's average fertility rate of 2.89 children per household, the total cost of sending a typical household of children back to school reaches an average of USD 226 (PHP 11,232.20).

With an average annual household income in the Philippines of USD 3,472 (PHP 172,558.40), which translates to a monthly income of about USD 289.33 (PHP 14,389.83), the study found that the average Filipino family spends upwards of 78 percent of their total monthly income on basic supplies during the back-to-school season.

Of the 10 countries in the study, Nigerians are most impacted by the disparity between average household income, fertility rate, and cost of education. The current fertility rate in Nigeria is 4.67 children per household. That means an average household can anticipate basic seasonal costs to meet or exceed NGN241,789.25 or USD580.29, which is more than a full month’s income for 45 percent of all Nigerians.

How then do countries like the Philippines and Nigeria bridge the gap between income and cost of education? The answer is international remittances.

According to a recent Consumer Expectations Survey (CES)[2] education is one of the primary reasons immigrants and overseas foreign workers (OFWs) send money back to their home country. Because of the high cost of education in many regions and the opportunities, an education provides to a young person, it is vital for senders to be able to support those dearest to them with the gift of an education.

More than 244 million people are classified as immigrants around the world and account for large percentages of populations in countries such as the United States (14.4 percent of total population)[3], UK (14 percent)[4] Australia (30 percent)[5] and Canada (21.9 percent)[6].

In these countries, where average household incomes are amongst the highest in the world, immigrants and overseas foreign workers are often working to support themselves whilst also supporting their families and communities back home. And for the nearly 250 million people who live in different countries than their families, education is one of the primary reasons to send money back to their home country.

To learn more about the study and see full results, visit https://www.worldremit.com/en/back-to-school.

About WorldRemit

We’re a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global payments brands.

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online - making them safer, faster and lower-cost. We currently send from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.

On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.

Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.

[1] WorldRemit back to school cost overview. (2021).

[2] Consumer Expectations Survey (CES). Media and Research - Consumer Expectations Survey (2021, Quarter 2).

[3] United Nations, Department of Economic and Social Affairs, Population Division (2015). Trends in International Migrant Stock: The 2015 Revision. (United Nations database, POP/DB/MIG/Stock/Rev.2015).

[4] UK Parliament, House of Commons Library: Migration Statistics (2021, Quarter 2).

[5] Australian Bureau of Statistics: Migration, Australia (2021, Quarter 2).

[6] Statista: Immigration in Canada: Statistics & facts (2021, Quarter 3).