LABOUR MIGRATION STRUCTURES AND

FINANCING IN ASIA
Study commissioned by ILO
Rakkee Thimothy
S.K. Sasikumar
Padmini Ratnayake
Alvin P. Ang
January 2015
The views expressed in this presentation are the views of the author and do not necessarily reflect the
views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its
Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data
included in this paper and accepts no responsibility for any consequences of their use. Terminology used
may not necessarily be consistent with ADB official terms.

Key Observations
With increasing magnitude and heterogeneity of
international labour flows, migration management
is becoming complex
Labour receiving countries seen imposing
conditionalities on the entry and rights of migrant
workers
Labour sending countries moving from protection to
promotion of labour migration
2

The Context
Identify the present administrative structures,
services that labour sending countries provide and
their financial efficiency and sustainability
This study attempts to explore these interrelated
issues by taking up the case of three major labour
sending countries in AsiaIndia, the Philippines
and Sri Lanka
3

The Context
India, the Philippines and Sri Lanka demonstrate
several commonalities and distinctions with respect
to international labour flows
The outcome of the study will also provide pointers
to emerging migrant sending countries in evolving
labour migration as a development strategy

Objectives
Assess administrative structures, manpower
requirements and new responses to facilitate
labour mobility
Examine the various migrant services extended by
the government agencies
Analyse the financial efficiency of managing
migration

Conceptual Framework
Conceptual Framework of the Study
REGULATING LABOUR MIGRATION &
MIGRANT SERVICES
Information & Pre Departure Services; Skill
Development; Regulating Recruitment; Services at
the Destination; Welfare Services and; Inter
Country Cooperation

ADMINISTRATIVE STRUCTURE

FINANCING

Mission & Vision of the Ministry &

its Structure; Legislation; Policies;
Available Manpower; Promotion &
Training Opportunities and; New
Administrative Initiatives

Income & Expenditure of the

Ministry & Attached Institutions
and; Financing of various Migrant
Services

MIGRATION
MANAGEMENT

Location Labour Mobility:

Comparisons
Compared to Sri Lanka and the Philippines, data on
labour outflows/inflows in India is limited
In Sri Lanka and the Philippines the labour flows are
observed to be feminised
There are similarities with respect to destination
and skill composition of migrants

Migration of Indian Population to

Major Regions, 2012

Labour Outflows from India (in percent)

Country
Saudi Arabia
UAE
Oman
Qatar
Kuwait
Malaysia
Bahrain
Others
TOTAL

2008

2009

2010

26.9
41.3
10.6
9.8
4.2
2.5
3.8
1.0
847,994

46.1
21.4
12.3
7.6
6.9
1.9
2.9
1.0
610,270

42.9
20.4
16.5
7.1
5.9
3.2
2.4
1.6
641,355

2011

2012

46.2
47.9
22.2
18.9
11.8
11.3
6.7
8.4
7.2
7.5
2.9
2.8
2.3
2.7
0.9
0.5
626,565 747,041
9

Sri Lanka

10

Philippines
Description

2008

2009

2010

2011

2012

Occupational Category*
Household Service workers

36.3

47.0

55.8

62.5

62.1

8.3

8.5

7.0

7.5

6.2

Cook, Waiters, Bartenders and Related Workers

14.3

11.2

7.6

7.7

8.5

Wiremen, Electrical Workers, Plumbers and Welders

18.4

15.3

12.7

11.8

12.0

Labourers and Cleaners

15.5

11.9

11.5

6.1

6.9

7.3

6.1

5.4

4.4

4.2

Major Destination**
Saudi Arabia

28.3

26.7

26.1

24.0

23.0

UAE

19.9

18.0

17.9

17.9

18.1

Singapore

4.3

5.0

6.3

11.1

12.0

Hong
KongChina
SAR
Hong Kong,
Qatar

8.0

9.2

9.0

9.8

9.2

8.7

8.2

7.8

7.6

7.3

Kuwait

4.0

4.2

4.7

5.0

5.2

Taiwan
Taipei,China
Italy

4.0

3.1

3.3

3.2

2.9

2.3

2.1

2.3

2.4

1.8

Bahrain

1.3

1.4

1.4

1.4

1.6

Malaysia

0.6

0.7

0.9

1.3

2.7

18.6

21.5

20.4

16.3

16.3

Nurses

Caregivers

Others

11

Remittance Inflows
Figure 2.3A: Workers' Remittances: Inflows
(USD million)
2010

2013e

Figure 2.3B: Region-Wise Distribution of Private

Transfers Inflows to India (in per cent)
2009-10

40

80,000

2012-13

30

60,000

20

40,000

10

20,000

0
India

Philippines

Figure 2.3C: Workers Remittances to

Sri Lanka (in per cent)
2010

Gulf
North
South
Countries America America

Sri Lanka

Europe

East Asia

Others

Figure 2.3D: Overseas Filipinos Cash Remittances

(in per cent)

2012p

2010

70
60
50
40
30
20
10
0

Africa

2013r

80
60
40
20
0
Middle
East

Europe

Asia

America

Others

America

Asia

Europe

Middle
East

Others

12

Legal framework to Manage Labour Migration

INDIA

PHILIPPINES

SRI LANKA

Legal Basis

Emigration Act
1983

Labor Code of 1974

Foreign
Employment
Agencies Act 32
of 1980

Key
Provisions

Facilitate
Recruitment of
Indian Workers
on best possible
terms and
conditions of
employment

Created the Bureau

of Employment
Services and
facilitation of
overseas work

Regulate
recruitment and
related aspects
of foreign
employment

13

Key Functions of Overseas Migration

Administrative Structures: A Comparison

MOIA, India

DOLE, the Philippines

MOFEPW, Sri Lanka

Diaspora Services
Emigration Services
Financial Services
Management Services
Economic Services

Information &
publication Service
Administrative Service
Legal Service
Financial Management
Service
Human Resource
Development Service
Planning Service
Training and skills
development
Regulation of Foreign
Employment
Welfare Services of
OFWs
Reintegration

Formulation & Implementation

of Policies/Programmes/
Projects for Foreign
Employment Industry
Promotion of Foreign
Employment
Migrant Workers Welfare
Regulation & Supervision of
Employment Agencies
Career Guidance on Foreign
Employment
Supervision of SLBFE and SLFEA
Welfare of Expatriate Sri
Lankans
14

Human Resources to Manage

Migration
India has a lean staff based on the Ministry of
Overseas Indian Affairs (MOIA) structure
Philippines has about 1,151 staff with 354
based overseas
Sri Lanka has about 1,252 staff positions
15

Initiatives to Improve Migration Administration

INDIA
e-Governance project
New Responses to
improve Administrative to make migration
management efficient
Services

PHILIPPINES

SRI LANKA

Creation of the
Philippine Statistical
Authority (PSA) is
expected to improve
data on international
migration

Increased manpower,
improved administrative
efficiency, established
Regional Administration for
district and divisional
based welfare activities

Creation of
subcommittee on
Migration and
development at
national level

Establishment of a national
advisory council on Labour
Migration

Work with local

government units
16

Training of Labour Welfare Officers in

Sri Lanka
Programmes

Duration

Certificate Course on
Labour Migration and
Operational Procedures
in Sri Lanka Diplomatic
Missions
in
Labour
Receiving countries

3 Months

Special
Training
selected
LWOs
familiarise
with
functions
procedures

for
to
the
and

Organisers

2-3
weeks

Content

MOFEPW
SLBFE
Ministry of External
Affairs
Diplomatic Officers
Training Institute.
(Bandaranayake
International Diplomatic
Training Institute,
Colombo)

Ministry of External
Affairs,
Consular Affairs
Division, MOFEPW
SLBFE

Continuous
Capacity
Building
Programmes
of the LWOs while in
service

2-3 Days

MOFEPW
SLBFE

International labour migration in

historical
and
contemporary
perspective;
Socio-economic
impacts
of
migration;
Rights of migrant workers and
international
Conventions
on
labour
migration;
diplomatic
practices and protocols
Strategies for promoting labour
migration and migrant services
Functions and responsibilities of
LWOs
Migrant
workers
grievance
handling mechanism
Familiarise
duties
and
responsibilities of the SLBFE and
the Consular Affairs Division of
the Ministry of External Affairs
Special training on Manual of
procedure
of
the
Labour
Divisions
of
the
Sri
Lanka
Diplomatic Missions

New
developments
labour
migration,
procedures etc.

related
manual

to
of

17

Information Services for Migrants

India provides information through tri media
and electronic media on the legal routes of
migration mostly focused on migration to the
Gulf countries
There are existing 24 hours helpline and walk
in counselling through Overseas Workers
Resource Centers (OWRCs)
18

Pre-departure Orientation Services

In India pre-departure orientation not mandatory
In the Philippines and in Sri Lanka, pre departure is
mandatory
Government and CSOs provide a joint platform to extend
pre-departure services in the Philippines
Sri Lanka has pre departure orientation programme
catering to the requirements of different migrant groups
Delivery of pre departure orientation subjected
periodical review

to

19

Pre-departure Orientation Services

INDIA
Pre-departure
Orientation

Not mandatory

PHILIPPINES

SRI LANKA

Compulsory
Offers customised
departure
programmes for
different categories of
migrants. Also provide
Pre-Employment
Orientation Seminar
(PEOS) and PostArrival Orientation
Seminar (PAOS)

Compulsory
Offers customised
departure
programmes for
different categories
of migrants
- Certificate is
mandatory before
registering for SLBFE

20

Migrant Services at the Country of Origin

Skill Development
In India Centre of Excellence in the North East Region

Recently announced Swarna Pravas Yojana train 5 million

people up to 2022 to make India the main source of skilled
labour
National Skill Qualification Framework adopted

In the Philippines, Technical Education and Skills

Development Authority (TESDA) is the main body
responsible for training, assessment and certification
of skills
National Skill Qualification Framework adopted

21

Skills Development
Skill Development

INDIA

PHILIPPINES

SRI LANKA

Skills Training
Initiative for North
Eastern States;
propose to
implement Sarna
Pravas Yojan

Training, assessment and

certification provided by
Technical Education and
Skills Development
Authority (TESDA); OWWA
also conducts specialised
programmes like Skills-forEmployment Scholarship
Program (SESP) and
Seafarers Upgrading
Program (SUP)

Skill development
programmes
conducted with
technical support from
the Ministry of Youth
Affairs and Skill
Development and the
State and Non State
Technical Education
and Vocational Training
(TEVT) network
Country specific
training programmes

22

Sri Lanka Training for

Prospective Migrants
Training Course
Domestic Housekeeping (Sinhala & Tamil
Medium)
Domestic Housekeeping & Care giving

Target Group
Female workers to Middle East

Age
Limit
(yrs)
21-45

Duration
(Days)

Fees
(USD)

21

57*

21-45

30

69*

21-45

30

69*

21-45

07/63

46

21-45

25/28

27

Male & female workers to Cyprus and who

can speak English
Domestic Housekeeping & Care giving
Female workers to Singapore/Hong Kong,
China and who can speak English
Training Programme for Experienced Female workers who can speak Arabic
Domestic Sector Workers
(Middle East) and Greek (Cyprus)
Care Giving
Male & female health care workers to
Israel
Care Giving
Male & female experienced health care
workers to Israel
Literacy Training (Sinhala &, Tamil medium) Illiterate migrant workers

21-45

15

46

21-45

18

19

Special English Literacy Training

21-45

18/180

23

18-45

21

57*

Migrant workers to Cyprus, who cannot

read, write & speak English**
Special Training Programme for Oversees First time migrant workers (male/female)
Job Seekers other than domestic to Middle East, Maldives & Malaysia
housekeeping

23

Regulating Recruitment
Regulating
Recruitment

INDIA

PHILIPPINES

SRI LANKA

Licensing recruitment
agencies, granting of
emigration clearance
and verification of
contracts
- Ceilings imposed on
recruitment fees
based on skills
category (USD 37 for
unskilled to USD 184
for other categories)

Monitoring
operation of
recruitment
agencies,
facilitating
recruitment and
validation of
employment
contracts

Regulating and
monitoring
operation of
recruiting agencies
and provide
clearance to
migrant workers.
- Introduced the
grading of licensed
recruitment
agencies

24

India

Unregistered

Registered

Complaints and actions taken against recruiting Agents

Status
Show Cause Notice issued
Registration Certificate Suspended
Registration Certificate Cancelled
Dropped/Settled/Revoked
Cases referred to State
Government/POE for action
Prosecution sanctions sought
Prosecution sanctions issued

2010

2011

2012*

145
10

212
20

234
37

29

44

15

82
166

94
225

36
240

10
10

9
9

14
14
25

Sri Lanka
Redress mechanism in Sri Lanka
The SLBFE Is the key institution handling complaints and grievances of
Migrant Workers.
Conciliation Division, Foreign Relations Division, Investigation Division
and Welfare Division of the SLBFE handles the complaints according to
the nature of the complaints.
Web-based complaint handling system is in operation connecting the
SLBFE, Diplomatic Mission and Recruitment Agencies for speedy
resolutions of complaints.
SLBFE officials can conduct inquiries, make awards/decisions and take
legal action against the recruiting agents.
24hr/365 days operational migrant resource centre/complaint receiving
centre at the SLBFE Head Office.
26

Social Protection
Key programmes
to assist migrant
workers & their
families at the
country of origin

INDIA

PHILIPPINES

SRI LANKA

Pravasi Bharatiya Bima

Yojana (PBBY)
compulsory insurance
scheme for overseas
workers include work
insurance, health
insurance and a 1 way
airfare and maternity
benefits. Mahatma
Gandhi Pravasi Suraksha
Yojana (MGPSY)
voluntary life insurance,
education loan and
scholarships for children,
reintegration services like
OIFC

Philippine Health
Insurance
Corporation
(PhilHealth) and PagIBIG, Education and
Livelihood Assistance
Program (ELAP),
Livelihood Program,
Groceria Project,
National
Reintegration Center
for Overseas Filipino
Workers
Compulsory
insurance for all
workers in 2010.

Upon registration with

SLBFE coverage.
Videsha Rakia (Foreign
Workers insurance) medical and also
extendable to family
members.
compulsory insurance
schemes per country
e.g. Saudi Arabia and
Jordan

27

Migrant Services at the Destination

Indian Community Welfare Fund (ICWF) established
by MOIA in 2009
Labour attaches functioning within the Indian
Embassy/Consulate in foreign countries
In the Philippines several agencies are involved in
providing on-site services
In Sri Lankan Diplomatic Missions in the labour
receiving countries is assigned the task of providing
migrant services at the destination
28

Migrant Services at the Destination

Key Agencies
that provide
migrant
services at
destination

India

Philippines

Sri Lanka

Indian Community
Welfare Fund (ICWF)
and labour attaches
functioning within
Embassy/ Consulate

POLO Network Filipino Workers

Resource Centre
(FWRC) in 32
sites in 25
countries

Labour attaches in
13 countries legal,
medical, counselling
and sheltering
facilities. There is
also an
e-ombudsman
operating from the
SLBFE office,
Sahana Piyasa

29

Sri Lanka
Labour Welfare Services are provided through Labour
Welfare Officials in 14 Diplomatic Missions in the
destinations.
Duties and responsibilities of the LWOs are defined in the
Act, which is mainly the protection of the rights of Migrant
Workers and promoting safe migration, welfare of the
Migrant Workers and promotion of employment
opportunities.
All the expenses on welfare and protection of Migrant
Workers are borne by the Workers Welfare Fund of the
SLBFE.
30

Migrant Services: Cooperation Between Origin

and Destination Countries
INDIA - MOIA has several operative bilateral SSAs and is in
the process of formalising such agreements with many
countries
Signed & Operative

Signed but not Ratified

Draft Finalised

Belgium (2006), Denmark (2010), France

(2008), Germany (Social Insurance) (2008),
Germany
(Comprehensive)
(2011),
Luxemburg (2009), Netherlands (2009),
Republic of Korea (2010), Switzerland
(2009)

Austria
(2013),
Canada
(2012),
Czech
Republic
(2010),
Finland
(2012),
Hungry (2010), Japan (2012),
Norway (2010), Portugal
(2013), Sweden (2012)

Quebec

There also exist MoU and Agreement on Human Resource

Mobility Partnership (HRMP) with many countries
31

Migrant Services: Cooperation Between Origin

and Destination Countries

Cooperation
between countries
of origin and
destination

INDIA

PHILIPPINES

SRI LANKA

Signed several
bilateral social
security
agreements, MoUs,
Labour Mobility
Partnership
Agreement (LMPA)

Signed several
Bilateral Labour
Agreements (BLAs)
82 with 59 receiving
countries

Singed a number of
MoUs/ Agreements,
initiated a social
security programme
for workers
migrating to
Republic of Korea
and signed an
agreement with a
private entity in
Saudi Arabia

32

Migrant Services: Reintegration

MOIA provides various reintegration services to migrant
workers
Overseas Indian Facilitation Centre (OIFC)
Special packages are announced to meet emergencies

In the Philippines and Sri Lanka, reintegration issues are

seen in a holistic perspective
A range of services are offered both monetary and non
monetary support and investment options to different
categories of migrant workers
33

Philippines
Table 4.12: Performance of Re-integration Programme in the Philippines
Item

2010

2011

2012

100
5,387
-

1,970
1,417,560
-

203
628,247
585

267
896,610
697

OFW Groceria Project

Number of Projects Maintained
Total Amount Released/Collected (USD)
Number of Members/Beneficiaries
OWWA-NLSF Livelihood Development
Number of Projects Approved
Amount of Loans Released (USD)
Total Number of Beneficiaries

169
650,386
524

Note: Based on average peso-dollar conversion rates for 2010, 2011 and 2012.
Source: BLES, 2013.

Other major programmes that provide loans to returnee workers include the following:
(a) The 2 Billion-Peso Reintegration Fund for enterprise development; (b) Balik-Pinas,
Balik Hanapbuhay (return to the Philippines, return to work) programme for
displaced/distressed workers and; (c) a micro-credit programme to meet credit needs of
aspiring and existing entrepreneurs by utilising established NGOs as partners in
lending and technical assistance.

34

Sri Lanka
Initiate special programmes on re-integration at district and
divisional levels, loan schemes, entrepreneurship
development programmes, health and safety of Migrant
Workers and their family members, financial literacy,
counselling programmes etc.
Established Rata Viruwo programme in 2010 (Heroes of the
Nation) to strengthen services to returnees
Working with Samurdhi Authority (Poverty Alleviation agency)
to facilitate housing loans and support to build a house.
35

FINANCING MIGRANT SERVICES

INDIA

PHILIPPINES

SRI LANKA

Major Items of
Expenditure

MOIA--various programmes and

schemes for migrants and
organising Pravasi Bharatiya
Divas (PBD) - Day of Migrants

SLBFE--Workers Welfare Fund and

staff salary.
SLFEA--administration services

Major Source of Revenue

Mainly Government Funds

OWWA-- social protection

programmes including disability
and death benefits and
livelihood support to families of
deceased OFWs.
POEA - salaries/wages and other
administrative services and
PhilHealth
CFOs--various welfare
programmes to migrants
Mainly Government Funds.
In the case of OWWA significant
revenue is generated through
membership fees and interest
income of investments

Mainly Government Funds. In the

case of SLBFE significant share of
revenue is generated through
recruitment fees, receipts to the
Workers Welfare Fund,
registration fees on contract
agreements and job orders
collected from the foreign
employers and recruitment
agencies and for SLFEA through
Korean Programme and migrants
insurance
36

Non-plan Revenue Expenditure of MOIA, 201314 (Budget Estimate)

37

Expenditure of OWWA and POEA

Expenditure of OWWA, 2012

Expenditure of POEA, 2011

38

Income and Expenditure of SLBFE

INCOME
Recruitment Fees
Facilities Fees
Licence Fees
Cess Income
Korean Programme
Workers Welfare Fund
Others
EXPENDITURE
Staff cost
Establishment Charges
Operational costs
Advertisement and Publicity
Business Promotion
Workers Welfare Fund

2005

2011

52.9
4.6
0.6
0.8
12.0
27.5
1.5

45.7
2.3
0.3
0.9
4.2
43.7
2.8

19.8
8.7
20.0
1.3
2.6
47.5

28.4
10.6
10.1
2.9
4.0
44.0
39

Key Trends Emerging from Income and

Expenditure Assessments
In India mainly from government grants
Philippines and Sri Lanka, income generated from
diversified sources
Administrative expenses dominate in Sri Lanka and
Philippines, in Sri Lankas SLBFE case more
expenditure on workers welfare fund

40

Policy Implications
Strengthen the human resource to manage migration
both at the countries of origin and destination
Orientation programmes on migration related issues
should also be designed for officers in other
ministries/departmentsof skill development or
health, for instanceto develop a coherence in the
administrative arrangement to manage migration.

41

Policy Implications
Need to reorient budget allocations in favour of
activities like
pre-departure orientation,
skill
upgradation programmes
Measure like diversified investment portfolio of
welfare funds resources critical to step up income
generation efforts

42

Thank You

Alvin P Ang
Economics Department
Ateneo de Manila University
apang@ateneo.edu

For further correspondence:

sasikumarsk2@gmail.com
S.K. Sasikumar
V.V. Giri National Labour Institute , India

43