OFW Placement Fees: How Much Can Agencies Legally Charge?
Understand the legal limits on OFW placement fees by country, which charges are prohibited, and how to avoid being overcharged by recruitment agencies.
How much should I really pay? It is the most common question Filipino workers ask before going abroad, and for good reason. Overcharging is one of the most widespread forms of illegal recruitment in the Philippines. The law sets specific limits on what agencies can collect, and these limits vary depending on the destination country and the type of work. Knowing the rules can save you tens of thousands of pesos.
The general rule: one month salary maximum
For most countries and for skilled workers, the maximum placement fee that a DMW-licensed agency can charge is the equivalent of one month's salary. This means if your employment contract states a monthly salary of USD 500, the most you should pay is the peso equivalent of USD 500. This is the standard rule that applies to the majority of land-based OFW deployments. Any amount charged above this limit is illegal, and you have the right to refuse payment and report the agency.
Zero placement fee countries for household workers
If you are a household service worker (HSW) being deployed to Saudi Arabia, UAE, or Qatar, you should pay absolutely zero in placement fees. In these Gulf countries, the employer or principal is required to shoulder all recruitment costs. This zero-fee policy exists because of bilateral labor agreements between the Philippines and these countries, designed to protect domestic workers who are among the most vulnerable OFWs. If an agency asks you to pay a placement fee for an HSW position in any of these countries, that agency is violating the law.
Special rules for Japan, Hong Kong, and Taiwan
Several countries have specific fee arrangements based on bilateral agreements. For Japan, under the Technical Intern Training Program (TITP) and Specified Skilled Worker (SSW) program, placement fees are either zero or strictly capped under the bilateral agreement between Japan and the Philippines. For Hong Kong, domestic workers follow Hong Kong SAR rules, which cap fees at 10 percent of the first month's salary. For Taiwan, fees are capped according to bilateral terms negotiated between the Philippine and Taiwanese governments. Always ask your agency which specific fee schedule applies to your destination and job category.
Charges that are always prohibited
Beyond the placement fee itself, agencies are prohibited from collecting several types of charges. Documentary stamp fees beyond the actual cost of the documents are illegal. Medical examination fees beyond what is actually required for the visa or deployment are not allowed. PDOS (Pre-Departure Orientation Seminar) fees cannot be charged because PDOS is government-funded. So-called "training fees" that are not connected to actual, verifiable skills training are prohibited. Currency exchange fees on your placement deposit are also illegal. If you see any of these charges on your bill, question them immediately.
How to verify what you should pay
Before paying anything, take these steps. Check the DMW website for the current fee schedule for your destination country and job category. Ask the agency for an official, itemized receipt for every payment — not a handwritten note, but a proper receipt with the agency name and license number. Compare the total against the legal limit. If the agency cannot explain a charge or refuses to give an official receipt, treat it as a red flag. You can also call the DMW hotline or visit a regional office to verify whether the fees being charged to you are within legal limits.
What to do if you were overcharged
If you have already paid more than the legal limit, you have the right to seek a refund and file a complaint. Gather all your receipts and documents. File a complaint with the DMW — overcharging is a form of illegal recruitment under RA 8042. If the agency refuses to refund or if multiple workers were overcharged, the case may be elevated to economic sabotage under RA 10022, which carries a penalty of life imprisonment and fines up to PHP 5 million. Do not assume the money is gone — the law is on your side.
Check your contract for hidden charges
Many overcharges are buried in contract language that is hard to understand — terms like "administrative processing" or "coordination fee" that sound official but have no legal basis. Upload your contract to PlainDoc to get a plain-language breakdown that identifies any charges beyond legal limits, flags prohibited fees, and tells you exactly how much you should be paying based on current Philippine regulations.