Philippine Overseas Employment Administration

Department of Labor and Employment

Republic of the Philippines

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Annual Report 2014

 VISION
Excellence in governance for world-class Filipino migrant workers

MISSION
POEA connects to the world and in partnership with all
stakeholders, facilitates the generation and preservation of
decent jobs for Filipino migrant workers, promotes their protection
and advocates their smooth reintegration into Philippine society.

QUALITY POLICY
We pursue excellence in governance to satisfy our customers.
We achieve this by:
· Providing effective and efficient services
· Operating within the requirements and
standards governing overseas employment
· Empowering our human resources
· Assuring continual improvement using ISO 9001:2008
CONTENTS

2 Message from the Chairman of the Governing Board

4 Message from the POEA Administrator

15 Performance Highlights

5 Overseas Employment Facilitation Services

15 Workers’ Assistance and Placement Services

17 Industry Regulation and Management

18 Workers Protection

20 Internal Management and Support System

23 POEA Governing Board

24 POEA Directorate

25 OFW Statistics

27 Financial Statement
2

I am immensely delighted and proud to present this 2014 Annual Report of the
Philippine Overseas Employment Administration to our clients, partners, and
stakeholders, and hope this Report will serve them in good stead. I also warmly
congratulate all POEA officers and employees, and all the members of the POEA
Governing Board, for making 2014 another exceptional year for the organization.
This Report sums up the POEA’s hard work in demonstrating once more
“excellence in governance”.

The POEA is very close to my heart. Thus, I always recall that when I was POEA
Administrator and even now that I am Secretary of Labor and Employment and
Chairperson of the POEA Governing Board, I am very passionate about how we
can always improve our frontline services and make the lives of our clients stress-
free as they transact business with the agency as part of our contribution to
national development.

The use of the Internet and other modern electronic technology is the key to
improving services delivery. To POEA’s credit, it has rolled-out in 2014 various
online projects and improvements in its service delivery systems, including the
Balik-Manggagawa Online System (BM Online), New Hire Online System, and the
Special Recruitment Authority (SRA)/ Letter of Acknowledgement (LOA) Online
Application System. These online delivery systems were intended not only to get
rid of queues at POEA offices, but also to speed up transactions, all for our clients’
convenience.

The POEA’s Online Pre-Employment Orientation Seminar (PEOS Online) is another

commendable project implemented during the year. PEOS Online enables
jobseekers to have quick and easy access to information on overseas
employment, as well as about the risks and the prospects of working abroad. The
mobile application to verify the status and job orders of a recruitment agency is
also a great tool against scammers and illegal recruiters.

As more of our women and men opt to work overseas, the POEA has consistently
lived up to its mission of not only facilitating employment, but also in protecting
workers. In 2014, it documented 2.4 million OFWs, the highest record in its
history, validating that Filipinos, with their considerable talents and skills, are still
the darling of world labor markets. It is this fact that continually challenges the
POEA to enhance further its welfare and protection measures and implement
more advantageous employment options.

The POEA’s valuable contributions to labor migration policy development and its
active participation in fruitful negotiations that sealed partnerships with
destination countries through bilateral labor agreements, including the ratification
of international conventions for the benefit of OFWs, are well-documented in this
Annual Report.

Philippine Overseas Employment Administration

 MESSAGE FROM THE GOVERNING BOARD CHAIRMAN 3

The POEA, in all its programs and initiatives during the year, has demonstrated
that the well-being of every OFW is a priority. Its anti-illegal recruitment
campaign, workers’ assistance and placement services, industry and regulation
management, adjudication and conciliation of cases, legal assistance, and other
support services yielded positive results, a testament to its steadfast commitment
to fulfill its mission.

Hence, it is no longer surprising that the POEA team's efforts have resulted to the
continued certification of its Quality Management System, covering 39 frontline
and support services, as compliant to ISO 9001:2008.

I challenge the POEA not to rest. The road to 2015 and beyond is difficult, but
with a corps of men and women strongly united and highly-dedicated to its
mission, there is no doubt in my mind that it will continue to engage, motivate,
and achieve for every OFW and his/her family.

Congratulations once again and God bless!

ROSALINDA DIMAPILIS-BALDOZ
Secretary and POEA Governing Board Chairman
4 MESSAGE FROM THE ADMINISTRATOR

Called the Year of the HI-Tech Online Services Delivery System, 2014 marked an
important moment for the Philippine Overseas Employment Administration.
Leading the DOLE agencies in harnessing the power of technology-enabled systems
to deliver effective programs and services, we embarked and succeeded in
institutionalizing the Balik-Manggagawa Online System, New Hires Online Services
which included the e-Payment System for Agency-Hired Workers, Online
Recruitment Application on Special Recruitment Authority (SRA) and Letter of
Authority (LOA), Online PEOS and the POEA Mobile App for IOS and Android
phones. These are part of our efforts to make our services more efficient and
transparent for the benefit of the overseas Filipino workers and stakeholders.

Looking back likewise at what we have managed to accomplish and true to our
commitment to promote the protection and welfare of our OFWs, it can be said
that 2014 was another record-setting year. Let me walk you further through our
most meaningful accomplishments for this year:

1. Continued negotiations with host governments to improve further the

conditions and terms and benefits of our OFWs in the worksites. Two
agreements were signed during the year, namely: (1) Renewal of the
Memorandum of Understanding with Korea for the recruitment of Filipino
workers under the Employment Permit System (EPS) on10 April 2014; and (2)
PH-Swiss Agreement on the exchange of professional and technical trainees
on 14 November 2014.

2. Deployment of 1,832,668 OFWs to 192 compliant countries, contributing a

total of US$24.3B in remittances surpassing the US$ 22.9B recorded in 2013.

3. Focus on deployment of high end/high value skills category.

4. Increase in deployment of government hires.

5. Above target performance in increasing awareness about illegal recruitment

through the conduct of PEOS with the attendance of 488,507 prospective
OFWS, a 182% increase from the previous year’s total of 173,143
participants.

6. Also an above target performance in voluntary conciliation and compulsory

arbitration.

7. Consistent implementation of the “hard to enter policy” in regulation and

managing private sector participation in the overseas employment program

Philippine Overseas Employment Administration

 MESSAGE FROM THE ADMINISTRATOR 5

8. Recognition of high performing licensed private recruitment and manning

agencies through the grant of Agency Awards.

9. Sustained ISO certification and continual process improvements.

10. An empowered workforce espousing our core values of trust, integrity,

honesty and camaraderie.

I invite you to read this Annual Report to see how POEA has directly confronted
the challenges of 2014 head on and succeeding at that!

HANS LEO J. CACDAC

Administrator

Annual Report 2014

POEA NUMBERS

DBM Approved Budget Regional/provincial offices

Php334.5 million 16

Regular employees Number of years as government office

320 32

Online systems/apps launched Pre-employment Orientation Seminars conducted

4 1,856

OFW destinations Approved overseas jobs

190+ 0.9 million

New licensed recruitment agencies Deployed OFWs

70 1.8 million

Deployed land-based workers Deployed seafarers

1,430,842 401,826
 PERFORMANCE HIGHLIGHTS 7

OVERSEAS EMPLOYMENT FACILITATION SERVICES

Harnessing Technology Through Online

Delivery Systems
 The call for a more facilitative deployment
of OFWs and enhanced welfare and
protection measures saw the Administration
embarking and succeeding in
institutionalizing online services.

 It was in October 2014 when the Balik-

Manggagawa Online System (BM Online)
materialized. Allowing BMs or vacationing
workers to secure and print their Overseas
Employment Certificates anywhere and at
their convenience, 78,000 OFWs have been
benefitted with 11,000 going through straight
online processing without having to go to
any POEA or POLO processing centers. The
rest of the users passed through the online
appointment system.

 A New Hire Online System for agency-hired

workers was also developed and pilot
tested with 20 licensed agencies using it.
OECs processed thru the system benefitted
more than 14,000 OFWs.

 The issuance of Special Recruitment

Authority (SRA) and Letter of
Acknowledgement (LOA) was facilitated
with the implementation of an SRA/LOA
Online Application System. 169 agencies
have utilized the system. 180 and 222 SRAs
and LOAs respectively have been issued
during the year.

 A Mobile App can now be downloaded in

IOS and Android phones. About 79,000
users have installed the application to verify

ONLINE SYSTEMS:
the status of licensed agencies and their
updated job orders.
THE WAY TO GO

Annual Report 2014

8 PERFORMANCE HIGHLIGHTS OVERSEAS EMPLOYMENT FACILITATION SERVICES

OFWs Documented Hit 2.4 Million

 In 2014, the number of POEA documented

OFWs had reached a record high of
2,442,360 OFWs based on the issued Overseas
Employment Certificates (OECs). The figure is
8.94 percent higher than the 2,241,854 OFWs
documented in 2013. Out of the total,
1,924,388 or 78.8% were landbased OFWs
while the remaining 517,972 or 21.2% were

2,442,360
seafarers.

 Of the total landbased OFWs documented,

33.2% or 639,679 were new hires while 66.8%
percent or 1,284,709 were rehires. OECs ISSUED
 The number of new hires documented grew
by 13.7% from the previous year’s total of
562,635. The big increase can be attributed to
the 14% percent increment of agency hires
documented. Name hires and government
hires also posted growth rates of 4.2% and
11.2% respectively.

 Rehires documented on the other hand,

recorded a modest increase of 6.0%, from
1,211,304 in 2013 to 1,284,709 in 2014. The
increase is attributed to the 15.7% percent
increment in the processing of rehires at the
POEA Regional Offices.

 Seabased workers documented increased by

10.7%, from 467,915 in 2013 to 517,972 in 2014.
Seafarers documented by the POEA Regional
Offices hiked by 61.4% or 1,903 in 2013 to 3,072
in 2014.

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 7

OFWs deployed still at 1.8 Million Mark

• In 2014, a total of 1,832, 668 OFWs were deployed.

This is a decline of 0.20% from last year’s figure of
1,836,345. The decrease can be attributed to the 6.04
percent decline in the deployment of rehires.
Rehires deployed went down from 1,004,291 in 2013
to 943,666 in 2014.

• Land-based OFWs deployed numbered 1,430,842 for

a 78% share of total OFW deployment in 2014.
However, this is 2.6% lower than land-based
deployment of 1,469,179 in 2013.

• Land-based new hires deployed increased by 4.8

percent from 464,888 in 2013 to 487,176 in 2014. A
huge deployment was recorded from the regions.
The total new hires deployed from the regions
ballooned to 5,613 in 2014 from 1,992 in 2013 for a
181.8% growth.

• Though deployment of rehired workers decreased in

2014, it still accounted for 66% of the total land-
based deployment.

• On the deployment of seafarers, a 9.44% increase

was noted. From a level of 367,166 in 2013,
deployment rose to 401,826 in 2014. This can be

4.8%
attributed to the increasing demand for Filipino
seafarers despite the stiff competition from other DEPLOYED NEW WORKERS
Asian and European seafarer-sending countries. INCREASED BY

Annual Report 2014

8 PERFORMANCE HIGHLIGHTS OVERSEAS EMPLOYMENT FACILITATION SERVICES

OFW Global Destinations

 The Kingdom of Saudi Arabia remained to

be the top destination of both new hires and
rehires with a total deployment of 402,837, up
by 5.30% from 382,553 in 2013. The United
Arab Emirates came in second with 246,231,
down by 5.70% from 261,119 in 2013.
Singapore occupied the third spot with
140,205 and remained as Asia’s number one
destination of OFWs. Qatar, Hong Kong,
Kuwait, Taiwan, Malaysia, Bahrain, and
Canada round up the top ten destinations of
OFWs.

 By World Region, 90% of OFWs are in the

Middle East and Asia. The Middle East
employed 885,541 OFWs or 61.89% of the
total land-based deployment. The figure was
2.59% higher than 863,152 in 2013. Asia
hosted 420,106 OFWs or 29.36 % of the total
land-based deployment. The rest are in

62%
Europe (29,250), Americas (27,615), Africa
(22,240), Oceania (21,311) and the Trust OF OFWs DEPLOYED TO
Territories (3,867). MIDDLE EAST COUNTRIES

CANADA 10

MIDDLE EAST
6
1 9 57
42 ASIA
38

TOP TEN DESTINATIONS

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 9

More Principals Registered; 900,878 Job

Orders Made Available for Filipinos

 There were 27,925 foreign principals or

employers registered from January to
December 2014. Of the total, about 97.15%
or 27,129 were land-based employers and
the remaining 2.85% or 796 were manning
principals. The 31.26% growth rate in the
number of registered principals over last
year generated a total of 900,878 job orders.

 The job orders made available for Filipinos

in 2014 represented a 0.80% decrease from
908,147 recorded in 2013. Majority of these
approved job orders were for (a)
production and related transport
equipment workers, (b) service workers, and
(c) professionals and technical and related
workers. The bulk of these job orders come
from countries in the Middle East,
particularly Saudi Arabia, United Arab
Emirates and Qatar.

Annual Report 2014

10 PERFORMANCE HIGHLIGHTS OVERSEAS EMPLOYMENT FACILITATION SERVICES

Filipino Seafarers Still Number One in

the World

 Filipino seafarers continued to dominate  The 2014 figure also showed that the bulk of
the world’s seafaring industry making up those profiled were ratings (154,963), followed
30% of the world’s maritime workforce. This by non-marine or passenger ship personnel
is translated to more or less 1.3 million in (151,402). Officers number 93,686.
numbers. As to their annual total
deployment, the figure in 2014 was  The top 10 flags of registry of Filipino seafarers
registered at 401,826 or 9.44 percent higher in 2014 were: Panama (71,356), Bahamas
than 367,166 in 2013. (50,379), Liberia (35,974), Marshall Islands
(32,179), Malta (23,793), Singapore (22,561),
 Majority of 401,826 seafarers who were Bermuda (16,509), Norway (13,323),
profiled in 2014, were males and they were Netherlands (12,582), and Italy (12,297).
deployed on board bulk carriers (91,205 or
22.70%), passenger vessels (79,941 or
19.89%), containers (46,888 or 11.67%),
oil/product carriers (26,093 or 6.49%), and
tankers (22,988 or 5.72%).

1.3 Million
FILIPINO SEAFARERS IN
OCEAN-GOING VESSELS

Wikipedia

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 11

Impact of Overseas Employment: Billions

of Remittances for OFW Families

 Sustained demand for Filipino manpower

worldwide – particularly professionals and
skilled workers – combined with greater
access by OFWs and their beneficiaries to
expanded remittance facilities contributed
immensely to the growth in remittances in
2014. Data from the Bangko Sentral ng
Pilipinas (BSP) showed that cumulative
remittances of overseas Filipinos coursed
through banks for 2014 summed up to
US$24.3 billion. This was 5.83 percent higher
than the US$22.9 billion level recorded in
2013.

 The bulk of remittances came from the

United States of America, Kingdom of Saudi
Arabia, United Arab Emirates and the United
Kingdom..

2014 OFW REMITTANCE

US$24.3 B

http://business.inquirer.net/

Annual Report 2014

12 PERFORMANCE HIGHLIGHTS OVERSEAS EMPLOYMENT FACILITATION SERVICES

Protection of OFWs Brought to Fore

The policy thrust of the government remained geared

towards affording protection and promoting the
welfare of overseas Filipino workers in a liberalized and
open global labor market. This was the core
deliverable carried out through bilateral and
multilateral negotiations with destination countries and
in all international conferences and fora on migration
and development where the POEA participated either
as resource person or delegate.

During the period, the POEA actively participated in

the development of bilateral agreements, bilateral and
multilateral negotiations and ratification of international
conventions. These were with the Kingdom of Saudi
Arabia, United Arab Emirates, Bahrain, Oman, Kuwait,
Iraq, Libya, Italy, British Columbia (Canada),
• Riyadh, KSA – Agreement on Domestic Worker
Saskatchewan (Canada), Canada, Russia, Azerbaijan,
Recruitment between the Ministry of Labor of the
New Zealand, and Mongolia.
Kingdom of Saudi Arabia and the Department
of Labor and Employment of the Philippines.
Two Bilateral Labor Agreements were concluded and
signed, namely:
• Jakarta, Indonesia – 11th ASEAN Committee on
the Implementation of the ASEAN Declaration on
• Sending and Receiving of Workers to South
the Protection and Promotion of the Rights of
Korea under the Employment Permit System
Migrant Workers Drafting Team (ACMW-DT)
(renewal), 10 April 2014
Meeting
• Exchange of Professional and Technical Trainees
• Palais Wilson, Geneva, Switzerland – 20th Session
with Switzerland, 14 November 2014
of the United Nations Committee on Migrant
Workers
The Philippines also participated in the process of
drafting an ASEAN instrument to implement the Cebu
• Geneva, Switzerland – 1st Meeting of the Special
Declaration on the Protection and Promotion of Rights
Tripartite Committee on MLC, 2006
of Migrant Workers.
• Colombo, Sri Lanka – Senior Officials Meeting of
The Philippines further participated in Regional
the Colombo Process
Consultative Processes (RCP) which were aimed at
developing and implementing cooperative initiatives
• Myanmar – 7th Meeting of the ASEAN Committee
toward more ethical and efficient management of
on the Implementation of the ASEAN Declaration
labor mobility: Colombo Process (Asian labor sending
on the Protection and Promotion of the Rights of
countries) and Abu Dhabi Dialogue (Asian labor
Migrant Workers
sending countries with receiving countries belonging to
The Gulf Cooperation Council)
• Kuwait – Abu Dhabi Dialogue Senior Officials
Meeting (ADD-SOM)
The year saw the DOLE and POEA participating in
twenty (20) technical discussions concerning
employment protection and rights of OFWs including
seafarers:

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 13

• Yangon, Myanmar – 6th Experts Working Group

(EWG) Meeting on ASEAN Convention on
Trafficking in Person (ACTIP) and Regional Plan
of Action (RPA)

• Jakarta, Indonesia – 1st Coordination Team

Meeting of ASEAN-EU Human Rights
Cooperation Programme under READ Facility

• Chiang Mai, Thailand – 12th ASEAN Committee

on the Implementation of the ASEAN
Declaration on the Protection and Promotion of
the Rights of Migrant Workers Drafting Team
(ACMW-DT) Meeting

• Nay Pyi Taw, Myanmar – 13th ASEAN Committee

on the Implementation of the ASEAN
Declaration on the Protection and Promotion of
the Rights of Migrant Workers Drafting Team
(ACMW-DT) Meeting • Lao PDR – 15th ASEAN Committee on the
Implementation of the ASEAN Declaration and
• Bangkok, Thailand – Sub Regional Meeting to Protection of the Rights of Migrant Workers
Develop the CLM Work Plan with the ASEAN Drafting Team (ACMW-DT) Meeting
Triangle Project
• Macau, SAR/Hong Kong, SAR/Korea/Japan –
• Sri Lanka – 2nd Senior Officials Meeting of the Pilot Testing and Development of the Foreign
Colombo Process and 3rd ASIA-EU Dialogue Labor Operation Information System (FLOIS) at
Conference the POLOs

• Penang, Malaysia – 14th ASEAN Committee on • Korea – 10th Year Anniversary of the Employment
the Implementation of the ASEAN Declaration Permit System (EPS)
and the Protection and Promotion of the Rights
of Migrant Workers Drafting Team (ACMW-DT) • Horizon Lake View Hotel, Nay Pyi Taw, Myanmar
Meeting – 7th ASEAN Forum on Migrant Labor

• Doha, Qatar/Muscat, Oman/Manama,

Bahrain/Riyadh and Alkhobar, KSA/Abu Dhabi,
UAE/Dubai, UAE – 3rd Ministerial Consultation of
the Abu Dhabi Dialogue and Assessment of
POLOs and Migrant Workers Welfare
Administration (MWOFRC)

• Saudi Arabia – Gulf Cooperation Council-Health

Ministers Council (GCC-HMC) and the Ministries
of Labor and Health of the aforementioned
countries the problems arising from the GAMCA
checking system, and to resolve the impasse
caused by the insolvency of the Mohammed Al-
Mojil Group of Companies (MMG)

Annual Report 2014

14 PERFORMANCE HIGHLIGHTS OVERSEAS EMPLOYMENT FACILITATION SERVICES

Participation in International Conferences/Fora on Labor Market Information

Migration and Development Market updates and advisories on current labor
The POEA participated in various international market developments in Yemen, Canada, Australia,
conferences/fora on labor migration and Cayman Island, Qatar, Oman, Singapore, Brunei, UAE,
development, some of which are: (1) Trafficking-in Uzbekistan, Taiwan, Belgium, Turkey, Canada, Kenya,
Persons Conference in Singapore; (2) International Syria and Macau served as useful marketing tools for
Dialogue on Migration, South to South Migration private recruitment and manning agencies and
Partnering Strategically for Development, Geneva, guided the workers and the general public on
Switzerland; (3) 7th Global Forum on Migration and overseas employment opportunities.
Development (GFMD), Stockholm, Sweden; (4)
Regional Capacity Building Workshop on Inbound Study Visits
Advocacy to Protect Migrant’s Rights and Health the POEA received eight (8) inbound missions
Issues, Malaysia; (5) Regional Workshop on Anti- consisting of foreign government and private sector
Trafficking in Person, Mexico; (6) Dignity Rights and delegations from Papua New Guinea, Mongolia,
Domestic Work in the Arab State, Turkey; (7) ILO- Azerbaijan, Palau, Canada, Italy, KSA, and UAE.
DWAB Pilot Project for Migrant Health Professional
and Skilled Workers, Belgium and Norway; Labor
Migration Workshop on EPS and Reintegration,
Korea; (8) 7th AEAN Forum on Migrant Labor
(AFML), Myanmar; (9) Experts Meeting on
International Recruitment Integrity System, Geneva

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 15

WORKERS’ ASSISTANCE AND PLACEMENT SERVICES

POEA Maintains 6 Government Clients

 In 2014, the POEA, under its government to

government hiring program, continued to serve
three (3) regular government clients, namely:
National Ambulance of UAE; Ministry of Health,
Saudi Recruitment Office; and, Federal
Employment Agency (BA)/International
Placement Agency (ZAV) of Germany. Special
Hiring Programs for Korea, Japan and Taiwan
were likewise pursued.

2.6% Increase in Deployment Under

Government Hiring Facility

 From 8,022 in 2013, the number of OFWs

deployed under the government hiring facility
increased by 2.6% to 8,234. Majority of workers
deployed were males.

Annual Report 2014

16 PERFORMANCE HIGHLIGHTS WORKERS’ ASSISTANCE AND PLACEMENT SERVICES

Increase in Skills Registration

 A total of 173,793 land-based worker applicants

registered with the POEA. This number is a 27.3%
increase from the previous total of 136,527 in
2013. This was brought about by the 145%
increase in the number of land-based
registrants under the Korean Employment Permit
System (EPS). From 20,423 in 2013, EPS registrants
rose to 50,092 in 2014.

 The profile of 167,993 worker registrants at the

POEA Central Office show that about 63% of the
applicants were males. Of the total, 7,766
applicants were referred by POEA to job Voluntary Conciliation
openings, 4,449 were referred to licensed
recruitment agencies and the remaining 3,317
 The year also saw a notable performance in voluntary
were referred to the government hiring facility.
conciliation with the Administration achieving an 85.6%
Twenty-two licensed agencies utilized the POEA
disposition rate. Settlement rate was at 76% translated
manpower registry during the period, up by
into a total of Php 163,828,003 benefitting 3,473 OFWs.
10% from 20 recorded in 2013.

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 17

INDUSTRY REGULATION AND MANAGEMENT

Issuance of License

 Seventy (70) new licenses were issued during

the year consisting of 58 land-based agencies
and 12 manning agencies. In terms of job
generation, 7,279 additional job opportunities
were opened for professionals, managerial,
skilled, construction, production, and health
workers and 633 new job opportunities for our
seafarers.

 Consistent with the difficult to enter policy, the

70 new licenses issued represent only 34.8% of
the 201 applications acted upon. Thirteen (13)
applications were denied while 86 were
returned for failure to comply with licensing
requirements.

Renewal of License

 License of 261 agencies were renewed

consisting of 228 land-based and 33 manning
agencies. The renewed licenses during the
period represent 95.6% of the 274 applications
for renewal acted upon. Five (5) applications
for renewal were denied.
Agency Performance Evaluation and Awards
Agency Education Programs
 The Outstanding Agency Awards with the theme
 The POEA conducted ten (10) Pre-Licensing “Achieving Excellence Through Ethical Recruitment in
Orientation Seminars (PLOS) which were the Service of Overseas Filipino Workers” was held at
attended by 727 agency owners/executives the Rizal Hall, Malacañang Palace on February 10,
applying for issuance of license. The seminars 2014. Since its implementation, the three-tiered
conducted and attendees were higher by 25% award system has given recognition to 179 agencies
and 39.8%, respectively from the previous year’s with outstanding performance in the overseas
total of 8 sessions and 520 participants. This employment program consisting of 13 Presidential
activity was aimed at providing timely and Awardees, 31 Awardees of Excellence and 135 Top
relevant information to applicant-agency Performers. New names were added to the elite
executives on the various requirements needed group for the year in review with the conferment of
for setting up and managing a recruitment awards to 5 Presidential Awardees, 9 Awardees of
agency. Excellence and 4 Top Performers.

 There were 56 Continuing Agency Education

Program (CAEP) seminars conducted in 2014
with 5,186 participants as compared with 21
seminars and 1,877 participants in 2013. The big
leap in numbers is attributed to the strict
implementation of the 100% mandatory
attendance of agency executives and
employees of licensed agencies in CAEP
seminars as a requisite for renewal of license.

Annual Report 2014

18 PERFORMANCE HIGHLIGHTS INDUSTRY REGULATION AND MANAGEMENT

WORKERS PROTECTION
Anti-illegal Recruitment and
Trafficking in Persons Campaign
 The POEA Anti-Illegal Recruitment-Trafficking in
Persons (AIR-TIP) Campaign nationwide has
gained headway as more support were
generated from different local government units
to help fight illegal recruitment and trafficking in
persons, and more entrapment operations were
conducted which resulted to the arrests of a
large number of illegal recruiters.

 The preventive aspect of the AIR/TIP Campaign

focused on workers’ protection through
empowerment. For 2014, a total of 1,856 Pre-
Employment Orientation Seminars (PEOS)
nationwide were conducted surpassing 1,453
sessions the previous year by 27.7%. The PEO
program was aimed at assisting prospective
OFWs and their families to develop intelligent
decisions on whether to consider overseas
employment or not. PEOS modules provide
complete and timely information on the risk and
benefits of overseas employment to prospective
OFWs and their families. An attendance of 488,
507 was recorded in 2014, boasting an increase
of 182.1% from the previous year’s 173,143
participants.

 AIR-TIP seminars nationwide were also conducted

and attended by 6,075 participants. Capability
Enhancement Trainings (CET) were participated in
by 1,840 LGU Personnel, PESO managers, members
of Provincial and City Prosecution Offices, and law
enforcers.

• The intensified AIR-TIP campaign generated strong

support from the local government units as well as
from the academe, civil society and faith-based
organizations. A total of 156 Memoranda of
Understanding (MOUs) were forged to evidence
continued partnership and networking.

• Supplementing the mass-based PEOS is the online

PEOS. Launched in July 2014, this internet-based
facility was designed to provide easy, convenient
and quality information on overseas employment.
Jobseekers can take on the learning modules,
review their learnings by answering all questions at
the end of each module and print their own PEOS
certificates. Some 26,825 jobseekers have accessed
the online PEOS.
 PERFORMANCE HIGHLIGHTS 19

Legal Assistance to Victims of Illegal Workers Protection Through Compulsory

Recruitment and Recruitment Violations Arbitration

 From January to December 2014, the POEA  Expeditious disposition of cases was a main
assisted a total of 8,757 complainants of agenda in 2014. From a target of 4,200
illegal recruitment and recruitment violations adjudication cases, a total of 3,896 cases were
against licensed agencies. Of the total, 427 disposed for a 92.8% disposition rate, a
were complainants involving cases of illegal manifestation of the Administration’s
recruitment, 7,415 were complainants of seriousness in implementing its deployment
recruitment violations, 189 were complainants policies. These include the cancellation of 63
in filing Disciplinary Action against Workers licensed agencies for the blatant disregard of
(DAW) and 375 were complainants for recruitment rules and regulations.
Disciplinary Action against Employers (DAE).

 The POEA also conducted surveillance of 167

establishments allegedly engaged in illegal
recruitment activities. These operations
resulted in the closure of 12 establishments
confirmed to be engaged in illegal
recruitment activities.

Fewer Cases Endorsed for Preliminary

Investigation

 For 2014, the POEA endorsed a total of 137

cases involving 235 complainants to the
different City and Provincial Prosecution
Offices for the conduct of preliminary
investigation. While this number is lower than
2013’s total of 187 endorsed cases, still these
cases manifested the willingness and
cooperation of the complainants in the
prosecution of illegal recruiters. With the
intensified AIR-TIP Campaign seminars
conducted nationwide, victims of illegal
recruitment were informed of their rights to go
after their recruiters even if recruitment
happened three to four years ago.

Annual Report 2014

20 PERFORMANCE HIGHLIGHTS WORKERS PROTECTION

INTERNAL MANAGEMENT AND SUPPORT SYSTEM

QMS Certification Sustained

 Having passed the 4th surveillance audit last

August 27, 2014 with no non-conformities, the
certifying body conferred on the
Administration the continued certification of its
Quality Management System to ISO 9001:2008
on October 20, 2014 for its 17 frontline services,
13 support services and 10 general provisions.
This is a renewed commitment to provide
excellent service to our clients – the OFWs,  The POEA also attended to 50,164 walk-in clients
recruitment and manning agencies, other or a daily average of 137 customers.
stakeholders and the general public.
 For 2014, the Information Center recorded
minimal reports on un-authorized or illegal
recruitment entities. Instead, it noted an upsurge
in the number of complaints or reports on
recruitment violations of licensed agencies such
as collection of excessive fees; recruitment
without approved job orders; withholding of
passports; signing of contracts different from the
POEA - approved ones. Said complaints or reports
were endorsed to and acted upon with priority by
concerned offices.

 Aimed at sharing the best practices on managing

labor migration to other countries, the POEA
provided briefings to sixteen (16) study visits of
Increased POEA Visibility Through Integrated foreign delegates from Nigeria, Qatar, Germany,
Public information and Education Bangladesh, Tajikistan, Indonesia, Myanmar,
Finland, Cambodia, Lao PDR, Nepal, United
 It was in 2014 that POEA maximized the use of Kingdom and Korea
social media and partnered with some private
institutions to increase its visibility to the public.
About 60 press releases on vital overseas
employment concerns got to be published. Weekly
guestings on radio programs as well as TV
interviews of POEA officials provided media
mileage to POEA programs and services.

 During the period, the POEA Information Center,

which operated Monday to Saturday, attended to
40,513 phone calls or a daily average of 111 calls.
The top four phone queries received by the
Information Center were: (1) Questions on job
vacancies: (2) Procedures in hiring: (3) Processing
of documents; and (4) Information concerning
OFW Welfare. Popular job searches involved
Canada and South Korea.

Philippine Overseas Employment Administration

 PERFORMANCE HIGHLIGHTS 21

Human Resource Development and

Employee’s Welfare and Benefits

 Twelve (12) capacity-building programs,

including two (2) supervisory training
programs were facilitated benefitting 80%
of the existing rank-and-file manpower
complement of the Administration. Third
level executives also participated in
various executive training programs
offered by the Career Executive Service
Board (CESB) and its partner training
institutions.

 By the end of 2014, 44 employees who

rendered 10, 15, 20, 25, 30, 35, and 40 years
of service at DOLE/POEA were given
loyalty awards. A recognition was also
given to 12 employees who retired from
the service – 3 compulsory retirees and 9
optional retirees.

 The Administration’s Efficiency and Integrity

Development Plan was approved by the
Efficiency and Integrity Board composed
of the members of the Directorate,
employee representatives; private sector
representative and a labor sector
representative.. Both private and labor
sector representatives were re-appointed
as members of the POEA Tripartite
Efficiency and Integrity Board (TEIB) for the
next three (3) years.

 By end of 2014, 36 out of 51 administrative

cases lodged before the POEA
Administrative Complaints Committee or
90.5% were disposed.

Annual Report 2014

22 PERFORMANCE HIGHLIGHTS

Improved Records Management System

 Records management has kept up with the

times with the conversion of a total of 101,905
OFW records to digital/scanned copies for
easy retrieval. In addition, with authority from
the National Archives of the Philippines (NAP),
disposal of a total of 15.96 cubic meters of
valueless records was effected with a money
equivalent of P36,832 which, subsequently,
was remitted to the national coffers.

Safe and Client Friendly POEA Offices

 In cooperation with the Office of Civil Defense

and the National Disaster Risk Reduction
Management Council, earthquake and fire
drills were conducted.

 For a more professional look and client friendly

atmosphere, renovation of the Balik-
Manggagawa Processing Center and the
Second Floor were almost complete by year
end. Seven (7) new air-conditioning units were
installed on various locations within the
building providing both employees and clients
a cooler environment.

 The POEA’s entire perimeter fence was given a

make-over with a mural painting containing
core messages/slogans against illegal
recruitment and human trafficking. Very
visible and truly eye catching, the mural
painting was a subtle way of educating the
public on POEA’s Anti-Illegal Recruitment and
Trafficking in Persons Campaign.

Philippine Overseas Employment Administration

 23

POEA Governing Board

Annual Report 2014

24

POEA Directorate

Philippine Overseas Employment Administration

 25

OFW Statistics

TABLE 1 - Number of Workers with Contracts Processed TABLE 4 - Number of Deployed Land-based Overseas Filipino Workers
by Type by Top Ten Destinations, New Hires

TYPE 2013 2014 DESTINATION 2013 2014

Total 2,241,854 2,391,152
All Destinations 464,888 487,176
Land-based Workers 1,773,939 1,873,180
1 Saudi Arabia 166,744 193,457
New Hires 562,635 639,679
Rehires 1,211,304 1,233,501 United Arab
2 Emirates 81,926 56,589
Sea-based Workers 467,915 517,972 3 Taiwan 29,174 48,922
4 Kuwait 34,211 36,731
5 Qatar 28,453 26,831
TABLE 2 - Number of Deployed Overseas Filipino Workers
by Type 6 Hong Kong 22,477 22,226
7 Singapore 16,787 14,885
TYPE 2013 2014
8 Malaysia 14,094 14,840
Total 1,836,345 1,832,668
9 Japan 6,307 8,973
Land-based Workers 1,469,179 1,430,842 10 Bahrain 9,275 8,641

New Hires 464,888 487,176

Rehires 1,004,291 943,666

TABLE 5- Number of Deployed Land-based Overseas Filipino Workers
Sea-based Workers 367,166 401,826 by Top Destinations, Rehires

DESTINATION 2013 2014

TABLE 3 - Number of Deployed Land-based Overseas Filipino
Workers by Top Ten Destinations, New Hires and Rehires All Destinations 1,004,291 943,666

DESTINATION 2013 2014 1 Saudi Arabia 215,809 209,380

All Destinations 1,469,179 1,430,842 2 United Arab Emirates 179,193 189,642

Saudi Arabia 382,553 402,837 3 Singapore 156,879 125,320

United Arab Emirates 261,119 246,231 4 Qatar 65,742 87,680

Singapore 173,666 140,205 5 Hong Kong 108,209 83,511

Qatar 94,195 114,511 6 Kuwait 33,645 33,367

Hong Kong 130,686 105,737 7 Malaysia 19,994 16,611

Kuwait 67,856 70,098 8 Italy 19,314 14,727

Taiwan 41,145 58,681 9 Canada 13,061 11,690

Malaysia 34,088 31,451 10 Bahrain 11,271 10,317

Bahrain 20,546 18,958

Canada 18,120 18,107

Annual Report 2014

25 OFW STATISTICS

TABLE 6 - Number of Deployed Land-based Overseas Filipino Workers TABLE 9 - Number of Seafarers by Top Ten Occupations
by Major Occupational Group, New Hires

MAJOR OCCUPATIONAL GROUP 2013 2014 OCCUPATION 2013 2014

Total 367,166 401,826

Total 464,888 487,176
Professional, Technical and Related 1 Able Seaman 51,537 58,219
53,296
Workers 53,840
2 Oiler 29,730 32,263
Administrative and Managerial Workers 1,909
1,947 3 Ordinary Seaman 26,046 28,437
4 Chief Cook 14,040 15,890
Clerical Workers 12,893 11,579
5 Second Mate 13,591 14,873
Sales Workers 9,220 8,402
6 Bosun 13,208 14,645
Service Workers 230,030 251,747 7 Third Engineer Officer 12,031 13,184
8 Messman 11,146 11,711
Agricultural Workers 2,233 2,452
9 Third Mate 10,546 11,586
Production Workers 147,776 149,008
10 Waiter/Waitress 9,426 11,538
Others (Not Elsewhere Classified) 6,949 8,783

TABLE 7 - Number of Deployed Land-based Overseas Filipino Workers

By Top Ten Occupational Categories, New Hires TABLE 10 - Number of Seafarers by Top Ten Vessel Types

OCCUPATIONAL CATEGORY 2013 2014 VESSEL TYPES 2013 2014

Total 367,166 401,826
All Occupational Categories 464,888 487,176 1 Bulk Carrier 80,649 91,205
2 Passenger 68,863 79,941
1 Household Service Workers 164,396 183,101 3 Container 47,251 46,888
4 Oil/Product Tanker 22,203 26,093
2 Nurses Professional 16,404 19,815 5 Tanker 22,808 22,988
6 Chemical Tanker 19,436 21,690
3 Waiters, Bartenders and Related Workers 14,823 13,843
7 General Cargo 16,884 19,017
8 Supply Vessel 9,739 11,683
4 Caregivers and Caretakers 6,466 12,075
9 Tugboat 10,456 11,405
10 Pure Car Carrier 9,772 11,030
5 Charworkers, Cleaners and Related Workers 12,082 11,894

6 Laborers/Helpers General 11,892 11,515

TABLE 11 - Number of Seafarers by Category
7 Wiremen and Electrical Workers 9,539 8,226
CATEGORY 2013 2014
8 Plumbers and Pipe Fitters 8,594 7,657
Total 367,166 401,826
9 Welders and Flame-Cutters 7,767 7,282 Officer 86,636 93,686

10 Cooks and Related Workers 7,090 5,707 Rating 139,211 154,963

Non-Marine 132,396 151,402
TABLE 8 - Number of Deployed Seafarers by Top Ten Flags of Registry Others 8,923 1,775

FLAG OF REGISTRY 2013 2014

Total 367,166 401,826
1 Panama 69,297 71,356
2 Bahamas 41,627 50,379
3 Liberia 35,585 35,974
4 Marshall Islands 27,444 32,179
5 Malta 19,249 23,793
6 Singapore 18,820 22,561
7 Bermuda 15,203 16,509
8 Norway 11,877 13,232
9 Netherlands 7,921 12,582
10 Italy 11,865 12,297
 FINANCIAL STATEMENTS 27

STATEMENT OF MANAGEMENT'S RESPONSIBILITY

FOR FINANCIAL STATEMENTS

The management of Philippine overseas Employment Administration is responsible for all

information md representations contained in the accompanying Statement of Financial Position
as of December 31, 2014 and the related statement of Financial Performance, Statement of
Cash Flows, Statement of Comparison of Budget and Actual Amounts, Statement of Charges in
Net Assets/Equity and the Notes to Financial Statements for the year then ended. The financial
statements have been prepared in conformity with the Philippine Public Sector Accounting
Standards and generally accepted state accounting principles and reflect amounts that are
based on the best estimates and informed judgment of management with an appropriate
consideration to materiality.

In this regard, management maintains a system of accounting and reporting which

provides for the necessary internal controls to ensure that transactions are properly authorized
and recorded, assets are safeguarded against unauthorized use or disposition and liabilities are
recognized

CANDIDA B. VISTRO HANS LEO J. CACDAC

Director II, Finance Branch Administrator

Annual Report 2014

28 FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS

FORTHEYEAR ENDED DECEMBER 31,2014

Cash Flows From Operating Activities

Cash ln Flows
Receipt of Notice of Cash Allocation
Collection of Income/Revenues 465,739,796.O0
Refund of Cash Advances & Expenses 434,580,960.42
Collection of Receivables 5,173,516.97
Receipt of Trust Liabilities 5,001,215.76
Restoration of Cash Equivalent of Unreleased Checks 104,070,485.67
Transfer to Trust Account the Refund of Processing Fees 9,190,752.70
Adjustments-Balance of Due from National Treasury 198,756.64
Other Adjustments 219,695,462.52
Total Cash lnflow 376,695.80
1,244,027,642.48
Cash Outflow
Remittance to National Treasury 482,329,879.02
Remittance of Tax 1,006,028.75
Payment of Expenses 228,646,033.60
Purchase of lnventories 9,323,229.68
Purchase of Machineries, Equipments & Furnitures 15,933,188.38 11
Grant of Cash Advances 44,670,239.11
Prepayments 430,400.00
Refund of Deposits/Bid Bonds 210,375.72
Payment of Terminal Leave Benefits 5,017,532.88
Remittance of Personnel Benefit Contributions and Mandatory Deductions 43,498,132.27
Other Trust Disbursements 20,822,942.23
Other Trust Disbursements-payments to Claimants 14,023,778.24
Other Trust Disbursements-Refund of Processing Fees 34866.60
NCA for trust 15,200,815.00
Reversal of Unutilized NCA 103,942,677.38
Adjustment 4,923,043.39
Total Cash Outflows 990,013,156.25

Cash Provided by (Used ln) Operating Activities 254,014,486.23

Total Cash Provided by operating, Investing and Financing Activities 254,0t4,486.23

Add: Cash Balance, Beginning January 1, 2014 20,493,564.53

Cash Balance, Ending December 31, 2014 274,5O8,05O.76

Annual Report 2014

 FINANCIAL STATEMENTS 29

CONDENSED STATEMENT OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED DECEMBER 3T,2014

Revenue
Service and Business Income 475,295,535.30
Shares, Grants and Donations 84,622.49

Total Revenue 475,380,158.39

Less Current Operating Expenses

Personnel Services 216,970,9M.64
Maintenance and Other Operating Expenses 132,089,427.49
Non-Cash Expenses 14455,780.91

Total Current Operating Expenses 363,516,053.04

Surplus from Current Operations 111864,105.35

Financial Assistance/Subsidy 378,599,340.09

Gains 1,457,159.40

Surplus for the period 491,910,604.93

STATEMENT OF ACCUMULATED SURPLUS

AS OF DECEMBER 31,2014
Government Equity, Beginning
Regular Agency 205,219,490.26
National Government 11,939,075.26 217,157,555.52

Adjustments of the following Accounts due to

Conversion to Revised Chart of Accounts
Items in Transit (284) (2,306,939.74)
Due to National Treasury (411) 3,388,319.49
Due to Other Funds (424) 405.444.17 1,496,923.92

Accumulated Surplus, Beginning 218,644,379.44

Prior Years' Adjustment 2,933,650.64

Recognition of COA Disallowance 871,500.00
Refund of Prior Years Expenses & Cash Advances 145,097.07
Donation of Equipments 500,000.00
Purchase of Equipments Charged to Trust Fund 878,537.62
Refund of Prior Years' Income (176,717.68)
Refund of Excess Trust Fund 6,000.00
Balance of Collections Deposited to BTr (482,420,602.46)
Surplus from Current Operations 491,910,604.83 14,548,070.02

Accumulated Surplus, Ending 233, 192,449.46

30 FINANCIAL STATEMENTS

CONDENSED STATEMENT OF FINANCIAL POSITION AS OF

DECEMBER 31, 2014
ASSETS

Current Assets
Cash and Cash Equivalents 274,508,050.76
Receivables 20,353,302.59
Inventories 3,989.471.53
Total Current Assets 298,850,824.88

Non-Current Assets
Property, Plant and Equipment 191,770,754.90
lntangible Assets 3,649,863.60
Other Assets 9,929,431.62
Total Non-Current Assets 205,350,050.12

Total Assets 504,200,875.99

LIABILITIES

Current Liabilities
Financial Liabilities 76,303,875.96
Inter-Agency Payables 12,058,072.81
Intra-Agency Payables (31,155.00)
Trust Liabilities 182,795,322.32
Other Payables (117,690.55)
Total Liabilities 271,008,425.54

NET ASSETS/EQUITY
Accumulated Surplus 233,192,449.46
Total Net Assets/Equity 233,192,449.46

Total Liabilities and Net Assets/Equity 504,200,875.00

Annual Report 2014

 Department of Labor and Employment
PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION
EDSA corner Ortigas Avenue, Mandaluyong City
PHILIPPINES

E-MAIL: [email protected] WEBSITE: poea.gov.ph FACEBOOK: /myPOEA TWITTER: /POEAnews HOTLINES: 722.11.44 – 722.11.55