Saturday, August 22, 2009

High remittance fees for overseas workers

High cost of sending money home is one of the problems of those working abroad. In the Philippines, bank charges are normally around 5 percent of the amount sent, up to 10 percent if coming from certain countries.

I do not know the mechanics in sending the money why some 5 percent or more is taken away by the banks. But I suspect that certain government taxes and fees should be among the biggest factirs why remittance charges are generally high.

Below is a portion of a news report on the subject.
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Filipinos Abroad Pay a Lot to Remit Money Home

Inquirer.net, News Feature, Posted: Aug 19, 2009

MANILA, Philippines—Filipinos around the world pay between $6.93 and $19.05 to remit $200 to their families back home, the Trade Union Congress of the Philippines (TUCP) quoted a World Bank study of global money transfer charges as of the first quarter of 2009.

In a statement, the TUCP secretary general Ernesto Herrera said Filipino workers in

a) the Kingdom of Saudi Arabia pay an average of $6.93 remittance fee, whether they transmit $500 or $200.

b) Spain follow next, shelling out an average of $12.42 to dispatch $500, or $10.64 to transfer $200.

c) Germany pay out an average of $13.06 to forward $500, or $11.07 to convey $200.

d) United States spend an average of $12.79 to send $500 home to their families in the Philippines, or an average of $11.45 to remit $200.

e) United Kingdom shell out an average of $17.75 to wire $500, or $14.40 to transfer $200.

f) Italy spend an average of $22.28 to send $500, or $19.05 to remit $200....
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See the news report here,
http://news.ncmonline.com/news/view_article.html?article_id=9ee03bdd0a848b464d1462be15c8e571

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