By Katherine K. Chan, Reporter
MONEY SENT HOME by Filipinos abroad jumped to a record high of $35.634 billion in 2025, with the weak peso boosting gains from dollar conversion, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.
BSP data showed total cash remittances rose by 3.3% year on year to $35.634 billion in 2025 from $34.493 billion in 2024.
The growth in cash remittances last year was well above the 3% growth projection of the BSP for 2025.
In December alone, cash remittances increased by 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 for the holiday season.
This was the highest monthly level of OFW remittances recorded in history.
Month on month, money sent home by OFWs surged by 21.03% from $2.91 billion in November.
The bulk or 39.7% of cash remittances in 2025 came from Filipinos in 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 (2.8%) and Hong Kong (2.5%).
Full-year cash remittances from land-based workers stood at $28.495 billion, rising by an annual 3.4% from $27.552 billion.
In December, land-based Filipino workers remained the largest senders with $2.831 billion, up 4.5% from $2.712 billion in the same month in 2024.
In terms of sources, inflows from the US made up the bulk or 41.6% of the total land-based remittances. The rest were from Saudi Arabia (8.2%), Singapore (6.5%), the United Arab Emirates (5.7%) and Japan (4.5%).
On the other hand, remittances from sea-based OFWs rose by 2.9% to $7.139 billion in 2025 from $6.941 billion in 2024, driven by a 3.3% annual increase in December remittances to $691.037 million in December.
The US was still the top source of sea-based remittances with 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 inflows in kind, climbed by 3.3% to a new high of $39.619 billion in 2025 from $38.341 billion in 2024.
In December, personal remittances went up by 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 personal remittance levels on record.
“The record-high remittances in December and for full-year 2025 were driven by steady overseas employment, particularly in healthcare, maritime, and professional services, alongside seasonal year‑end transfers for household spending, tuition, and debt payments,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
He also attributed the remittance growth to the peso’s weak performance in the latter part of last year.
“In addition, the weaker peso for much of 2025 likely encouraged higher dollar conversions, boosting peso-equivalent inflows and supporting headline growth,” Mr. Asuncion added.
Late last year, the peso touched the P58- to P59-per-dollar level several times. It averaged P58.8488 against the greenback in December, based on BSP data.
The peso ended 2025 weak after closing at P58.79 against the greenback on Dec. 29, down by 94.5 centavos or 1.61% from its P57.845-per-dollar finish on Dec. 27, 2024.
Meanwhile, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the remittances surge in December signaled resilience of OFWs amid global uncertainties.
“This matters for growth: remittances likely added around half a percentage point to GDP (gross domestic product) by supporting consumption, housing, and services,” he said in a Viber message.
According to the central bank, cash remittances accounted for 7.3% of the Philippine GDP and 6.4% of the gross national income in 2025.
Mr. Asuncion said remittances are expected to remain resilient this year, driven by sustained labor demand abroad, steady deployment rates and OFWs’ modest income gains.
“However, upside may be tempered by slower global growth and normalization of post-pandemic labor demand, keeping remittances more of a stable income anchor rather than a strong cyclical growth driver this year,” he added.
Meanwhile, Mr. Ravelas noted that the US’ 1% remittance tax on cash payments, money orders and cashier’s checks for US-based senders could dampen inflows.
“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,” he said.
A 1% tax means OFWs in the US are now being charged a dollar for every $100 they send to the Philippines.
“Bottom line: remittances remain a strong tailwind, but we can’t take them for granted,” Mr. Ravelas said.
For this year, the central bank expects cash remittances to grow 3% year on year to $36.6 billion.
