MONEY sent home by overseas Filipino workers (OFWs) hit a record $3.89 billion in December, the Bangko Sentral ng Pilipinas (BSP) reported on Monday, bringing the full-year total to an all-time high of $39.6 billion.
Personal remittances, which include cash sent through banks and informal channels, were 4.2 percent higher than the year-earlier $3.73 billion and up 20.4 percent from November’s $3.23 billion. The 2025 tally, meanwhile, was 3.3 percent higher than 2024’s $38.34 billion. It also exceeded the central bank’s $35.5-billion target for the year.
Cash remittances reached $3.52 billion in December, up 4.2 percent from $3.38 billion a year earlier and were also higher compared to the $2.91 billion in November.
For the full year, cash remittance inflows climbed to a record $35.63 billion, 3.3 percent more than the $34.49 billion posted in 2024.
The 2025 total was equivalent to 7.3 percent of gross domestic product (GDP) and 6.4 percent of gross national income, the BSP said.
Land-based workers accounted for the bulk of December cash remittances at $2.83 billion, up from $2.71 billion a year earlier, while sea-based workers also contributed more, approximately $690 million from $670 million.
For the full year, land-based workers sent home $28.49 billion, up from the year-ago $27.55 billion, while sea-based workers added $7.14 billion — higher compared to the $6.94 billion recorded in 2024.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the increase was driven by year-end bonuses and holiday spending but more importantly showed the resilience of overseas Filipino employment despite global uncertainties.
He said this was important for economic growth, as remittances likely contributed about half a percentage point to GDP by supporting consumer spending, housing and services.
“The main risk ahead is the proposed US remittance tax — it won’t derail flows overnight, but higher costs could slow formal transfers and weigh on momentum over time,” Ravelas said.
“Bottom line: remittances remain a strong tailwind, but we can’t take them for granted,” he added.
The new 1.0 percent tax, which took effect on January 1 this year, applies to money sent from the US through cash, money orders and cashier’s checks, regardless of the sender’s citizenship. The tax does not apply to transfers made through US banks, US-issued debit or credit cards, or cash carried by hand.
The United States remained the top source of cash remittances, accounting for 39.7 percent of the year-to-date total. Singapore followed at 7.3 percent and Saudi Arabia at 6.6 percent.
Rounding up the top five were Japan (5.0 percent) and the United Kingdom and the United Arab Emirates (4.6 percent each).
The BSP noted limitations on data by source, as remittance centers abroad normally send the money through correspondent banks that are mostly located in the US.
Also, remittances sent through couriers are recorded under the country where their main offices are located, which again in many cases is the US.
“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.