Summary

BSR's Migration Linkages initiative released a new report on remittance systems used by migrant workers to send wages back to their home countries to support their families. The report analyzes the importance of remittances to national economies, provides an overview of the current remittance system, and highlights business' role in creating a fairer system for migrant workers.

Detail

BSR’s Migration Linkages initiative released a new report on remittance systems used by migrant workers to send wages back to their home countries to support their families. The report analyzes the importance of remittances to national economies, provides an overview of the current remittance system, and highlights business’ role in creating a fairer system for migrant workers.

Report highlights include:
- The current remittance system—which often includes monthly checking account fees, money transfer fees, and high opportunity costs and collection fees for recipients—erodes the value of migrant workers’ “take-home” pay.

- Approximately 35 to 70 percent of remittance flows are being sent through informal channels such as unauthorized intermediaries. While cheaper and more convenient, these informal channels are riskier for migrant workers.

- Global buyers, private employers, and financial intermediaries operating in both migrant destination and origin countries can create fairer remittance systems by educating themselves on the issue, engaging with workers and other stakeholders, and collaborating across industries to improve costs and geographic and service access.