Recruitment Fees Rules in the Philippines: What Agencies May and May Not Charge

Recruitment fees rules in the Philippines rest on one principle: a licensed recruitment or manning agency may charge only what the Secretary of Labor and Employment allows. Under Republic Act No. 10022, which amended the Migrant Workers and Overseas Filipinos Act of 1995, it is illegal recruitment for any person — licensed or not — to charge or accept, directly or indirectly, any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment. Overcharging is not a mere violation of agency rules; it is a criminal offense that can carry imprisonment and a fine.

The basic rule on placement fees

The law does not leave the amount of placement fees to the agency's discretion. Section 6 of Republic Act No. 10022 fixes the ceiling by reference to a schedule issued by the Secretary of Labor and Employment. Anything collected beyond that schedule is prohibited.

The same provision bars making a worker pay or acknowledge an amount greater than what the worker actually received as a loan or advance. This closes a common workaround: padding a loan or cash advance so the worker appears to owe more than was ever handed over.

Note that the prohibition covers both direct and indirect charges. An agency cannot avoid the rule by routing the excess through a third party, a training provider, or a loan.

When overcharging becomes illegal recruitment

Under Section 6 of Republic Act No. 10022, illegal recruitment includes canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers, and covers referring, contract services, promising, or advertising for employment abroad — whether for profit or not — when done by a non-licensee or non-holder of authority.

Critically, the same section states that the following acts are illegal recruitment whether committed by a non-licensee, non-holder, licensee, or holder of authority. In other words, holding a valid license is no defense. A licensed agency that overcharges commits illegal recruitment.

The penalties under Section 7 are severe. Illegal recruitment carries imprisonment of not less than twelve years and one day but not more than twenty years, plus a fine of not less than One million pesos nor more than Two million pesos. If illegal recruitment constitutes economic sabotage — committed by a syndicate of three or more persons, or in large scale against three or more persons — the penalty is life imprisonment and a fine of not less than Two million pesos nor more than Five million pesos.

Other prohibited charges and arrangements

Beyond the fee ceiling, Section 6 of Republic Act No. 10022 lists prohibited acts that commonly appear as disguised charges:

• Excessive loans. Granting a loan to an overseas Filipino worker with interest exceeding eight percent per annum, to be used for payment of legal and allowable placement fees, and requiring postdated checks in relation to that loan.
• Captive lending. Imposing a compulsory and exclusive arrangement requiring the worker to borrow only from designated institutions, entities, or persons.
• Captive medical and training arrangements. Requiring the worker to undergo health examinations, or training and seminars, only from specifically designated clinics or institutions. Exceptions exist for seafarers whose medical examination cost is shouldered by the principal or shipowner, and for recommendatory trainings mandated by principals or shipowners who bear the cost.
• Passing on insurance costs. A recruitment or manning agency, or a foreign principal or employer, may not pass on to the worker or deduct from salary the cost of insurance fees, premiums, or related charges under the compulsory worker's insurance coverage.
• Withholding travel documents. Withholding or denying travel documents before departure for monetary or financial considerations, or for reasons other than those authorized under the Labor Code and its implementing rules.

Failure to reimburse expenses incurred by the worker for documentation and processing — where deployment does not actually take place without the worker's fault — is likewise illegal recruitment under Section 6.

Recovering what was overcharged

Claims arising from overseas deployment fall within the original and exclusive jurisdiction of the Labor Arbiters of the National Labor Relations Commission, under Section 10 of Republic Act No. 10022. The Labor Arbiter is directed to hear and decide these cases within ninety calendar days from filing.

Under the same section, the liability of the principal or employer and the recruitment or placement agency is joint and several, and this must be incorporated into the contract for overseas employment as a condition for its approval. If the agency is a corporation, its corporate officers, directors, and partners are themselves jointly and solidarily liable.

Where overseas employment is terminated without just, valid, or authorized cause, or where there are unauthorized deductions from salary, the worker is entitled to full reimbursement of the placement fee and the deductions made, with interest at twelve percent per annum, plus salaries for the unexpired portion of the contract or for three months for every year of the unexpired term, whichever is less.

Section 6 also allows the Secretary of Labor and Employment, the POEA Administrator or their authorized representatives, or any aggrieved person to initiate the corresponding criminal action. Free legal assistance for victims of illegal recruitment is available through the anti-illegal recruitment branch of the POEA, including its regional offices, under Section 13.

Frequently asked questions

Can a recruitment agency charge any amount it wants? No. A licensed agency may charge only within the schedule of allowable fees prescribed by the Secretary of Labor and Employment. Charging or accepting any amount beyond that schedule is illegal recruitment under Republic Act No. 10022.

Is overcharging still illegal if the agency has a valid license? Yes. The prohibited acts under Section 6 of Republic Act No. 10022 apply whether committed by a non-licensee, non-holder, licensee, or holder of authority.

Where do I file a claim to recover overcharged fees? Money claims involving Filipino workers for overseas deployment fall under the original and exclusive jurisdiction of the Labor Arbiters of the National Labor Relations Commission.

Practical takeaways

• A licensed agency may collect only within the schedule of allowable fees set by the Secretary of Labor and Employment; anything more is illegal recruitment.
• Overcharging is illegal even for licensed agencies, and carries imprisonment and fines under Republic Act No. 10022.
• Loans for placement fees cannot carry interest above eight percent per annum, and workers cannot be forced to borrow, train, or undergo medical exams only at designated providers.
• The principal or employer and the agency are jointly and severally liable for money claims, including reimbursement of placement fees with twelve percent interest per annum.
• Keep every receipt, contract, and acknowledgment of payment — these are the evidence that establishes how much was actually charged.

Primary sources

The rules discussed above are drawn from the following primary sources. Where the firm's library holds the document as a PDF it is embedded here in full; the rest are cited by title.

DMW-DC-06-2026 — 2026 DMW Rules and Regulations Governing the Recruitment and Employment of Seabased Overseas Filipino Workers, which shall take effect on 2 July 2026Open in Law LibraryDownload PDF

• REPUBLIC ACT NO. 10022 - AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES

• IRR of REPUBLIC ACT NO. 11641 (Approved by the Transition Committee) - THE IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 11641, OTHERWISE KNOWN AS THE "DEPARTMENT OF MIGRANT WORKERS ACT"

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.