EXECUTIVE ORDER NO. 1021 - ON ENCOURAGING THE INWARD REMITTANCES OF CONTRACT WORKERS EARNINGS THROUGH OFFICIAL CHANNELS

WHEREAS, Filipino contract workers overseas have by way of the inward remittance of their earnings through the years contributed tremendously to the stabilization of the national economy;

WHEREAS, this contribution of workers to the economy can be further maximized if a lot more can be encouraged to effect the inward remittance of their earnings through official channels;  

WHEREAS, government recognizes this contribution of overseas contract workers and should therefore reward them through a package of incentives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

1. The repeal of the punitive provisions of Executive Order No. 857;

2. The creation of an Inter-Agency Committee on Contract Workers Remittances to be composed of representatives from the Ministry of Labor and Employment, Ministry of Foreign Affairs, the Central Bank of the Philippines, the Bankers Association of the Philippines and a workers representative who shall be nominated by the Minister of Labor and Employment. The Committee shall immediately design, adopt and, with the concurrence of the Minister of Labor and Employment, the Minister of Foreign Affairs and the Governor of the Central Bank, implement a package of incentives to reward workers who remit through official channels.

The Central Bank shall provide the Committee with Secretariat services.

3. The Committee shall also study the institutionalization of a payroll system for foreign employers employing twenty five (25) or more workers. The payroll system shall include an incentive plan for employers or their local agencies.

4. The Committee shall also study the legalization of the money couriers system and make its recommendation to the Monetary Board in this regard.  

5. The Ministry of Labor and Employment, the Ministry of Foreign Affairs and the Central Bank of the Philippines shall together issue the corresponding implementing rules within 45 days from issuance thereof.