Reimbursement Rights for Pre-Employment Medical Exam (PEME) Costs of Overseas Filipino Workers
(Philippine legal perspective, updated to 31 July 2025)
1. Why PEME matters
A Pre-Employment Medical Examination is the gatekeeper of fitness-to-work. Airlines, shipowners, hospitals abroad, and foreign labor ministries will not endorse an overseas hire unless a POEA-accredited clinic certifies that the worker is “fit.” Because PEME is mandatory under Philippine regulations, the question is simple yet crucial: Who pays?
2. Core statutory anchors
| Source | Key provision | Take-away |
|---|---|---|
| Republic Act No. 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as amended by RA 10022 (2010) | §2(c), §6, §51 | Declares migrant workers “entitled to adequate and free legal, medical and other services.” Creates joint and solidary liability of foreign employer and local agency for all “authorized and work-related expenses.” |
| Labor Code, Art. 34 (formerly Art. 32) | Prohibits charging “any sum greater than the allowable or authorized fees.” DOLE has never authorized PEME fees to be ultimately shouldered by the worker. | |
| Republic Act 11641 (Department of Migrant Workers Act, 2021) | §6(b)(3) | Re-affirms the State’s policy of zero or reimbursable placement-related costs. |
| Philippine Overseas Employment Administration (POEA)/DMW Rules | 2016 Land-Based Rules, Part III §49-50; 2016 Seafarers’ Rules, Part III §51 | - Land-based: Employer shall reimburse any medical costs advanced by the worker upon deployment. - Seafarers: Principal/employer pays the PEME up-front; charging a seafarer is prohibited. |
| DMW Governing Board Res. No. 4-2023 (Zero Placement Fee Policy for Domestic Workers) | ¶2-3 | Expands zero-fee principle to all household service workers, explicitly including medical examinations. |
3. Employer & agency obligations
Seafarers
- The overseas principal or shipowner must directly shoulder PEME (POEA Rules, §51).
- Any contrary arrangement is “contrary to law, morals, and public policy” and is void.
Land-based workers
- Agencies may initially collect the clinic’s receipt strictly as a pass-through only when the foreign employer has not yet sent funds.
- Upon departure or within 90 days of deployment, the employer/agency must fully reimburse the worker.
- Household Service Workers and any category covered by zero-placement-fee policies cannot be asked to advance PEME at all.
Joint & solidary liability
- RA 8042 §10 makes the foreign employer and the Philippine agency jointly and solidarily liable for money claims—including unreimbursed PEME.
No offsetting
- Agencies cannot treat reimbursement as an “offset” against salary advances or food/travel allowances; the worker must receive cash or its exact cash equivalent.
4. Jurisprudence spotlight
| Case | G.R. No. | Ratio |
|---|---|---|
| Magsaysay Maritime Corp. v. Laurel | 171132, 12 July 2010 | Reiterated that all pre-employment expenses imposed by contract or POEA rules are for the employer’s account; any deduction violates Article 34 of the Labor Code. |
| Inter-Orient Maritime Ent. v. Creer III | 181112, 12 Feb 2014 | Charging a seafarer for PEME or training costs is an unlawful deduction recoverable with interest. |
| Omanfil v. Malibiran | 217206, 6 June 2018 | Even where the employment contract is silent, POEA rules govern; reimbursement is mandatory. |
| AMA Agency v. Luyun | 189505, 21 Nov 2012 | Land-based worker may claim refund of PEME before the NLRC; solidary liability applies. |
Note: The Supreme Court has uniformly viewed PEME charges as prohibited exactions—hence recoverable, with moral damages when bad faith is proven.
5. Enforcement roadmap for OFWs
Before deployment
- Keep official receipts from the accredited clinic.
- Ask the agency to issue a written undertaking of reimbursement.
During employment abroad
- Raise the matter with the Philippine Overseas Labor Office (POLO) or the nearest embassy; they can mediate or secure payment from the employer/principal.
After return
- File a money claim with the DMW Adjudication Office (for recruitment violations) or the NLRC (for employment contract claims) within three years from accrual of the cause of action.
- Claims under ₱5 million now fall within the DMW’s exclusive original jurisdiction (RA 11641 §17).
Evidence tips
- Receipts, e-mail trails, Viber/WhatsApp messages showing demand for reimbursement, and the POEA-standard employment contract are persuasive.
Sanctions on agencies/employers
- Administrative fines up to ₱500,000 plus suspension or cancellation of license (DMW Rules, Part VI).
- Possible criminal prosecution under RA 8042 §6 for “illegal exaction of fees”—penalty: 6-12 years’ imprisonment.
6. Frequently Asked Questions
| Question | Quick Answer |
|---|---|
| Can an agency label the PEME fee as “processing fee” or “reservation fee”? | No. Substitution or alteration of cost nomenclature is prohibited (POEA Rules, §53). |
| What if the worker voluntarily agrees to pay without reimbursement? | Such waiver is void under Art. 6 of the Civil Code and RA 8042 §25; rights granted by labor laws are beyond disposal. |
| Does medical re-examination after a failed PEME fall on the worker? | Still the employer’s liability; repeat tests are part of the pre-deployment process. |
| Are vaccination costs covered? | Yes—POEA Memorandum Circular 10-2022 treats mandatory vaccines (e.g., yellow fever, COVID-19) as part of PEME. |
| What currency should reimbursement follow? | If advanced in pesos, reimburse in pesos; if in foreign currency, use the prevailing BSP reference rate on date of reimbursement, unless contract specifies otherwise. |
7. Practical guidance for agencies & employers
- Budget the full PEME package (usually ₱4,000–₱6,000 for land-based; US$100–$150 for seafarers) in your recruitment cost projections.
- Partner only with DOH- and DMW-accredited clinics; over-billing issues will rebound to you.
- Document the reimbursement—issue an acknowledgment receipt; this is your best defense against later claims.
- Update contracts to state: “All pre-employment medical examinations shall be at employer’s cost; any amount advanced by the worker shall be reimbursed within thirty (30) days from deployment.”
8. Conclusion
In Philippine law, the default and invariable rule is that the employer or its agent ultimately bears the cost of the OFW’s Pre-Employment Medical Examination. Charging the worker outright, or failing to reimburse advances, exposes recruiters and principals to administrative sanctions, monetary awards, and even criminal liability. OFWs enjoy clear statutory, contractual, and jurisprudential backing; with proper documentation and timely action, reimbursement is not a favor—it is a legal right.
This article is for information only and does not substitute for personalized legal advice. Consult a Philippine labor-migration lawyer or the Department of Migrant Workers for case-specific guidance.