Every day, thousands of Filipino workers lose their family’s entire savings to placement fees they never should have paid. The confusion is understandable when one agency quotes PHP 5,000 for Hong Kong while another demands PHP 120,000 for the same position. The truth is simpler than agencies want you to believe: Republic Act 10022 and DMW Department Order No. 221 strictly limit what you can be charged, and in many countries, placement fees are completely illegal.

Understanding What’s Legal

For Taiwan, United States, Canada, United Kingdom, New Zealand, and Japan’s TITP program, placement fees are absolutely prohibited – your employer must pay all recruitment costs. If an agency charges you even one peso in placement fees for these countries, they’re breaking the law. Meanwhile, Middle Eastern countries allow a maximum of one month’s salary as placement fee, Hong Kong permits only 10% of the first month’s salary (roughly PHP 3,400 for domestic helpers), and Singapore caps fees at two months’ salary for first-time workers. South Korea’s EPS system operates differently, charging only government processing fees with no agency placement fees allowed.

The only legal charges you should encounter are actual documentation costs, typically ranging from PHP 15,000 to PHP 25,000 total. These include your passport (PHP 950-1,200), NBI clearance (PHP 130), medical exam (PHP 2,500-3,500), PDOS seminar (PHP 100), OWWA membership (PHP 300), insurance (PHP 500-1,000), and authentication fees (PHP 1,000-2,000). Some agencies may also charge a service fee of maximum PHP 5,000 for processing assistance, but this must come with an official receipt and cannot exceed documented expenses.

Recognizing Common Scams

Illegal recruitment agencies have developed sophisticated tactics to extract money from desperate workers. The “training bond” scam involves charging PHP 50,000-100,000 for supposedly mandatory training, when legitimate training should be free or cost maximum PHP 5,000. The “visa facilitation fee” tricks workers into paying PHP 30,000-50,000 for visa processing that actually costs less than PHP 5,000 and is usually covered by employers. Another common scheme is the “job order reservation fee” of PHP 20,000-40,000, despite job orders being free from DMW and requiring no reservation payment.

Perhaps the most insidious is the salary deduction scheme, where agencies claim to charge no upfront fees but then deduct 3-6 months of salary once you’re working abroad. This practice is illegal when deductions exceed the legal placement fee limits. Real cases demonstrate the scale of this problem: Maria, a domestic helper to Saudi Arabia, was charged PHP 110,000 when the legal maximum was PHP 25,000, resulting in the agency’s license suspension after she filed a complaint. John, a factory worker to Taiwan, paid PHP 85,000 in placement fees for a country where fees are completely prohibited, eventually receiving a full refund after POLO intervention.

Protecting Yourself from Overcharging

Before signing any contract, verify the agency’s license through the DMW website or by calling (02) 7289-8258. Demand a written breakdown of all fees with official receipts for every peso – legitimate agencies will provide this without hesitation. Research your destination country’s placement fee rules through the POEA website or by contacting that country’s embassy in Manila. When an agency pressures you with claims that “everyone pays PHP 120,000 for Hong Kong,” firmly respond that DMW Order 221 limits fees to 10% of the first month’s salary, meaning you’ll pay PHP 3,400 maximum.

If you’ve already been overcharged, file a complaint at DMW within 30 days, bringing all receipts and contracts. The DMW can order a full refund and suspend the agency’s license, while criminal charges are possible for large-scale fraud. Free legal assistance is available through OWWA legal aid at (02) 8891-7601, the Public Attorney’s Office, or your local Migrant Workers Office at city hall.

Better Alternatives Exist

Government programs offer legitimate pathways with minimal costs. The Korea EPS System requires only PHP 15,000-20,000 for documents with no placement fees, offering salaries of PHP 65,000-100,000. Japan’s TITP and SSW programs cost PHP 15,000-25,000 total, include free language training, and pay PHP 65,000-85,000 monthly. Germany’s Triple Win Program charges only PHP 30,000 for language training with no placement fees, guaranteeing healthcare positions paying EUR 2,300 (PHP 130,000) or more.

For zero-fee destinations, Taiwan offers factory positions paying PHP 35,000-45,000 with employers covering all recruitment costs and government-to-government hiring available. Canada’s caregiver program requires employers to pay all fees including airfare, with salaries starting at CAD 2,500 (PHP 90,000). These programs demonstrate that expensive placement fees aren’t necessary for successful deployment.

Your Rights Matter

The law exists to protect you, not recruitment agencies. You should never pay more than one month’s salary as placement fee, and for many countries, you should pay absolutely nothing. Agencies demanding PHP 100,000-200,000 are not just overcharging – they’re committing a crime. Keep these emergency contacts ready: DMW 24/7 Hotline at 1348, OWWA Hotline at (02) 8891-7601, and POEA Text at 0917-899-2078.

Remember that legitimate employers need workers and legitimate agencies follow the law. If someone pressures you to pay excessive fees, they’re neither legitimate nor your only option. Every peso you save on illegal placement fees is money for your family’s future. Your dream of working abroad shouldn’t cost your family’s entire savings, and with the right knowledge, it doesn’t have to. The power to say no to illegal fees is yours – use it.