By Katherine K. Chan, A reporter
MONEY SENT HOME by Filiinternational pinos jumped to a record high of 35.634 billion dollars in 2025, along with the peso’s weak gains against the dollar, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.
BSP data showed the value of remittances increased by 3.3% year-on-year to $35.634 billion in 2025 from $34.493 billion in 2024.
Remittance growth last year was above the BSP’s 3% projection for 2025.
In December alone, remittances rose 4.2% to $3.522 billion from $3.38 billion in the same month in 2024, as overseas Filipino workers (OFWs) sent more money home during the holidays.
This was the highest monthly rate of OFW remittances recorded in history.
Month-on-month, remittances sent home by OFWs increased by 21.03% from $2.91 billion in November.
The majority or 39.7% of remittances in 2025 will come from Filipinos to the United States, followed by Singapore (7.3%), Saudi Arabia (6.6%), Japan (5%), the United Kingdom (4.6%), the United Arab Emirates (4.6%), Canada (3.5%), Qatar (2.9%), Taiwan (2.2.5%) and Hong Kong.
Annual income from workers in the world stood at $28.495 billion, up 3.4% year-on-year from $27.552 billion.
In December, Filipino workers based in the world remained the largest exporter at $2.831 billion, up 4.5% from $2.712 billion in the same month in 2024.
According to the sources, the income from the US made up the largest part or 41.6% of the total remittances in the world. Others came from Saudi Arabia (8.2%), Singapore (6.5%), United Arab Emirates (5.7%) and Japan (4.5%).
On the other hand, remittances from sea-based OFWs increased by 2.9% to $7.139 billion in 2025 from $6.941 billion in 2024, driven by a 3.3% year-on-year increase in December remittances to $691.037 million in December.
The US was still the leading source of remittances at 32.2% of the total, followed by Singapore (10.3%), Japan (7.1%), the United Kingdom (5.4%) and Germany (5.4%).
WEAK PESO
Meanwhile, personal remittances, which include imported income, rose 3.3% to a new high of $39.619 billion in 2025 from $38.341 billion in 2024.
In December, remittances increased 4.2% to $3.892 billion from $3.733 billion in the same month in 2024.
BSP data showed that these were also the highest levels of personal postings on record.
“The record income in December and 2025 was driven by continued overseas employment, especially in healthcare, maritime, and professional services, as well as year-end remittances for household expenses, tuition and loan payments,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
He also said that the increase in remittances was due to the poor performance of the peso in the last half of last year.
“Furthermore, the very weak peso of 2025 is likely to encourage the conversion of higher dollars, increasing the equivalent inflow of the peso and supporting headline growth,” said Mr. Asuncion.
Towards the end of last year, the peso touched the level of P58- to P59-per dollar several times. It reached P58.8488 against the greenback in December, based on BSP data.
The peso ended 2025 weaker after closing at P58.79 against the greenback on Dec. 29, down 94.5 centavos or 1.61% from its close of P57.845-per-dollar on Dec. 27, 2024.
Meanwhile, Jonathan L. Ravelas, senior consultant at Reyes Tacandong & Co., said the decline in remittances in December shows the resilience of OFWs amid global uncertainty.
“This is important for growth: remittances are likely to add about half a percent to GDP (gross domestic product) by supporting consumption, housing, and services,” he said in a Viber message.
According to the central bank, remittances accounted for 7.3% of the Philippines’ GDP and 6.4% of the country’s gross income by 2025.
Mr. Asuncion said remittances are expected to remain strong this year, driven by the continued demand for workers abroad, continued levels of remittances and the small profits of OFWs.
“However, the increase may be offset by slower global growth and the normalization of labor demand after the pandemic, keeping remittances with a strong rate of income instead of strong growth this year,” he added.
At that time, Mr. Ravelas noted that a 1% US remittance tax on money orders, money orders and cash checks for senders from the US could dampen revenue.
“The biggest risk ahead is the proposed US remittance tax – it won’t disrupt the flow of blood overnight, but the higher costs could delay legal transfers and weigh on them in the long run,” he said.
The 1% tax means US OFWs are now charged a dollar for every $100 they send to the Philippines.
“Important: remittances are always a strong burden, but we will not take them lightly,” said Mr. Ravelas.
This year, the central bank expects cash outflows to grow 3% year over year to $36.6 billion.
