I' 
' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENA1l942 
S.No. ___ _ 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'15 SEP -8 P 1 :54 
PROVIDING INCENTIVES TO ALL BARANGA Y OFFICIALS, INCLUDING 
BARANGA Y TANODS AND MEMBERS OF THE LUPONG TAGAPAMA YAP A, 
AND BARANGA Y EMPLOYEES 
EXPLANATORY NOTE 
This bill seeks to provide incentives to Barangay Officials, including Barangay 
Tanods and Members of the Lupong Tagapamayapa and Barangay employees. 
Compared to other government employees in local government units, Barangay 
officials and Barangay employees are the lowest paid and the least benefited in terms of 
government employment benefits and privileges. And yet our Barangay officials are the 
frontliners, so to speak, the government workers who make democracy work at the 
grassroots level. They have a job to do under existing law and, as a general rule; they 
strive to do their job well, particularly in the area of peace and order and community 
relations, despite the limited resources made available to them. 
Foremost of the benefits granted the Barangay officials and Barangay employees 
is the exemption from income tax of their salaries wages, compensation, remuneration 
and other emoluments, such as honoraria and allowances, including any benefits that they 
may receive from government on account of their work or employment. Added to this are 
some equally important benefits: (a) benefit coverage under the Government Service 
Insurance System; (b) coverage under existing medical and health service programs of 
government under existing laws; and (c) free legal representation in the event that any 
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Barangay official or employee is involved as party litigant in any administrative or 
criminal case as a result of or connected with the performance of his official duties. 
In sum, the proposed legislation, in a sense, seeks to give due recognition to the 
important job being performed by these grassroots workers and to acknowledge the 
important role being played by the smallest territorial unit and political subdivision of 
government called the Barangay.l 
I This bill was originally filed in the Fourteenth Congress, First Regular Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 
2942 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'15 
SEP -8 P 1 :54 
",. (".'!\'C'I BY· Y-
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PROVIDING INCENTIVES TO ALL BARANGA Y OFFICIALS, INCLPDING 
BARANGA Y TANODS AND MEMBERS OF THE LUPONG TAGAP AMA YAP A, 
ANDBARANGAYEMPLOYEES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Barangay Workers 
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Incentives Act." 
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SECTION 2. Declaration of Policy. - It is the declared policy of the State to 
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promote and enhance the efficiency and responsiveness of barangay officials and 
5 
employees, the government workers who make democracy work at the grassroots level in 
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the smallest territorial and political subdivision of the government which is the barangay. 
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To achieve this objective, the State shall adopt measures and provide such incentives not 
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only to help ensure the faithful performance of the duties and functions of barangay 
9 
officials and employees but also to raise their quality of life. 
10 
SECTION 3. Tax Exemption. - All amounts received by barangay officials, 
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including Barangay Tanods and members of the Lupong Tagapamayapa, hereinafter 
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particularly referred to as "barangay officials and barangay employees", as salaries, 
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wages, compensation, remuneration and other emoluments, such as honoraria and 
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allowances shall be exempt from income taxation. Gross benefits received by such 
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officials and employees, of whatever kind or character, shall likewise be exempt from 
2 
taxation. 
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SECTION 4. Exemption from Capital Gains and Transfer Taxes. - The sale, 
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exchange or disposition of real property by barangay officials and barangay employees 
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shall be exempt from capital gains and other national taxes as long as the proceeds of 
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such sale, exchange or disposition shall be directly and exclusively used by such officials 
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and employees to acquire a house and lot, not exceeding 500 square meters, for family 
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dweJIing. The acquisition of such house and lot for family dwelling purposes shall 
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likewise be exempt from any national or local taxes and fees in connection with the 
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transfer and registration of such property in the name of the barangay official or barangay 
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employee concerned. 
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SECTION 5. GSIS Benefit Coverage. - All barangay officials and barangay 
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employees shall be considered members of the Government Service Insurance System 
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(GSIS) and shall be covered with life insurance and social security protection, including 
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retirement, disability, separation and unemployment benefits and such other benefits as 
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may extended by the GSIS, subject to limitations provided by law. 
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The GSIS shall make special provisions in order to facilitate the inclusion of 
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barangay officials and barangay employees, in the benefit coverage ofGSIS. 
19 
SECTION 6. Health Benefits. -
Government medical and health insurance 
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programs under existing laws shall include in their coverage free basic health services 
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and medicine to barangay officials and barangay employees. 
22 
SECTION 7. Legal Representation. - Barangay officials and barangay employees 
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who may be involved as party litigants in administrative or criminal cases filed in 
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connection with the performance of tllll!r Qffilli!!l guties shall, as a member of right, be 
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entitled to the free legal services of the Public Attorney's Office (P AO) who shall 
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facilitate the legal representation of the such officials and employees by a counsel. 
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Such benefit of legal representation shall include an exemption from payment of 
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docket and other lawful fees, and of transcripts of stenographic notes which the court 
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may order to be furnished the barangay officials and barangay employees. 
6 
SECTION 8. Implementing Rules and Regulations. - Within six (6) months from 
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the effectivity of this Act, the Department of Interior and Local Government, in 
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coordination and consultation with the Department of Justice, the Department of Health, 
9 
the Government Service Insurance System and other agencies concerned, shall 
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promulgate such rules or guidelines as may be necessary for the proper implementation 
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of this Act. 
12 
SECTION 9. Separability Clause. - - If any provision or part hereof is held 
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invalid or unconstitutional, the same shall not affect the validity and effectivity of the 
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other provisions hereof. 
15 
SECTION 10. Repealing Clause. - All laws, decrees, orders, and issuances, or 
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portions thereof, which are inconsistent with the provisions of this Act, are hereby 
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repealed, amended or modified accordingly. 
18 
SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days 
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after its pUblication in the Official Gazette or in two (2) newspapers of general 
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circulation. 
Approved, 
/rapt4September2015 
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