Record-Breaking Padala: OFW Remittances Smash All-Time High at $35.6 Billion in 2025
Overseas Filipino workers proved once again why they’re called the country’s modern-day heroes. Cash remittances hit a record $35.634 billion in 2025, up 3.3% from the previous year’s $34.493 billion, according to the Bangko Sentral ng Pilipinas. December alone saw $3.522 billion sent home — the highest single-month remittance ever recorded.
The US remained the top source of OFW remittances, accounting for nearly 40% of the total. Singapore came in second at 7.3%, followed by Saudi Arabia (6.6%), Japan (5%), the UK (4.6%), and the UAE (4.6%). Land-based workers sent home $28.5 billion while sea-based workers contributed $7.1 billion.
Economists attribute the surge partly to the weak peso, which hovered around P58-59 per dollar for much of late 2025, making dollar conversions more attractive. The holiday season also drove a 21% month-on-month spike from November to December as OFWs sent extra for Christmas celebrations, tuition, and debt payments.
But a shadow looms over 2026: the US government’s new 1% remittance tax, which means OFWs in America are now charged one dollar for every $100 they send home. Given that the US accounts for nearly 40% of all remittances, economists warn this could push some OFWs toward informal “under-the-table” channels instead of banks.
Despite the headwinds, BSP data shows remittances accounted for 7.3% of Philippine GDP in 2025 — a massive lifeline for an economy still struggling with slow growth. As one economist put it: “Remittances remain a strong tailwind, but we can’t take them for granted.”
Source: BusinessWorld
