Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

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RECEIVED
27 JUL 2018

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REI:
SEVENTEENTH CONGRESS BILLS AND INDLX SERVICE

First Regular Session

HOUSE BILL no.2069

Introduced by Honorable MARK A. VILLAR

AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY
TANODS, AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, A LUMP SUM
GRATUITY PAY EQUIVALENT TO ONE HUNDRED THOUSAND PESOS (P 100,000.00),
AND OTHER NON-MONETARY BENEFITS, AMENDING FOR THE PURPOSE
SECTION 393 OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

The 1987 Constitution mandates, “The Congress shall enact a local government
code which shall provide for a more responsive and accountable local government
structure instituted through a system of decentralization with effective mechanisms of
recall, initiative, and referendum, allocate among the different local government units their
powers, responsibilities, and resources, and provide for the qualifications, election,
appointment and removal, term, salaries, powers and functions and duties of local officials,
and all other matters relating to the organization and operation of the local units.” (Article
X, Section 3)

The barangay is the smallest administrative division in our country. It is empowered
and mobilized to deliver basic services, and serves as the primary planning and
implementing unit of goverment policies, plans, programs, projects, and activities in the
community. It is the frontline unit for combating poverty and addressing basic social
services like health and education.

However, despite the potential opportunities for governance and development at the
grassroots level, the barangay attracts alow appreciation. It has become a microcosm of
the national political environment. The usual programs, activities, and projects have
superficial impact on the community's economy. Corruption in the form of kickbacks laces
the said programs, activities, and projects.

HOSE JF REPRESENTATIVES:



It is high time that the barangay is given encouragement in the form of benefits. At
the same time, these benefits will act as catalysts that may curb corruption. Hopefully, this,
Act will contribute in the empowerment of the barangay as dynamic and proactive units.

Furthermore, this measure aims to reward those barangay officials, for their many
years of exemplary service, and to acknowledge the vital role that barangay officials and
workers play in nation building.

This bill seeks to amend section 293 of Republic Act No. 7160, otherwise known as

the Local Government Code of 1991, in order to provide all barangay officials a lump sum
gratuity pay and other non-monetary benefits.

In view of the foregoing, the passage if this bill is eamestly sought.

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Cpa na —


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House BILL No._2U69

Introduced by Honorable MARK A. VILLAR.

AN ACT
PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS,
AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, A LUMP SUM
GRATUITY PAY EQUIVALENT TO ONE HUNDRED THOUSAND PESOS
(P100,000.00), AND OTHER NON-MONETARY BENEFITS, AMENDING FOR THE
PURPOSE SECTION 393 OF REPUBLIC ACT NO. 7160, AS AMENDED,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress Assembled:

SECTION 1. Section 393 of Republic Act No. 7160, as amended, otherwise
known as the Local Goverment Code of 1991 is hereby amended to read as
follows’

“SECTION 393. 2. Benefits of Barangay Officials. - (a) Barangay Officials,
including barangay tanods and members of the lupong tagapamayapa, shall receive
honoraria, allowances, and such other emoluments as may be authorized by law or
barangay, municipal or city ordinance in accordance with the provisions of this Code,
but in no case shall it be less than One thousand pesos (P1,000.00) per month for
the punong barangay and Six hundred pesos (P600.00) per month for the
sangguniang barangay members, and barangay treasurer, and barangay secretary
Provided, however, That the annual appropriations for personal services shall be
subject to the budgetary limitations prescribed under Title Five, Book Il of this Code.

(b) The punong barangay, the sangguniang barangay members, the barangay
treasurer, and the barangay secretary shall also:


(1) Be entitled to Christmas bonus of at least One thousand pesos
(P1,000.00) each, the funds for which shall be taken from the general fund of the
barangay or from such other funds appropriated by the national government for the
purpose;

(2) Be entitled, during their incumbency, to insurance coverage which shall
include, but shall not be limited to temporary and permanent disability, double
indemnity, accident insurance, death and burial benefits, in accordance with
Republic Act No. 6942 entitled "An Act Increasing the Insurance Benefits of Local
Government Officials and Providing Funds Therefor,”

(3) Be entitled to free medical care, including subsistence, medicines, and
medical assistance in any government hospital or institution: Provided, That such
hospital care shall include surgery or surgical expenses, medicines, X-rays,
laboratory fees, and other hospital expenses;

In case of extreme urgency where there is no available government hospital
or institution, the barangay official concemed may submit himself for immediate
attendance to the nearest private clinic, hospital or institution and the expenses not
exceeding Five thousand pesos (P5,000.00) that may be incurred therein shall be
chargeable against the funds of the barangay concerned.

BARANGAY OFFICIALS SHALL ALSO BE ENTITLED TO TEN PERCENT
(10%) DISCOUNT, AND EXEMPTION FROM VALUE-ADDED TAX (VAT), IF
APPLICABLE, ON THE SALE OF GOODS AND SERVICES FROM ALL
ESTABLISHMENTS, PARTICULARLY ON THE PURCHASE OF MEDICINES, AND
SUCH ESSENTIAL MEDICAL SUPPLIES, ACCESSORIES AND EQUIPMENT TO
BE DETERMINED BY THE DEPARTMENT OF HEALTH (DOH), AND ON THE
PROFESSIONAL FEES OF ATTENDING PHYSICIAN OR PHYSICIANS IN ALL
PRIVATE HOSPITALS, MEDICAL FACILITIES, OUTPATIENT CLINICS AND
HEALTH HOME CARE SERVICES;

(4) Be exempted, during their incumbency, from paying tuition and
matriculation fees for their legitimate dependent children attending state college or
universities. He may likewise avail of such educational benefits in a state college or
university located within the province or city to which the barangay belongs; [and]

(5) Be entitled to appropriate civil service eligibility on the basis of the number
of years of service to the barangay, pursuant to the rules and regulations issued by
the Civil Service Commission [;

(6) BE ENTITLED TO A LUMP SUM GRATUITY PAY EQUIVALENT TO ONE
(1) YEAR HONORARIUM, BUT IN NO CASE SHALL EXCEED ONE HUNDRED
THOUSAND PESOS (P100,000.00) TO BE TAKEN FROM THE BARANGAY
RETIREMENT FUND: PROVIDED, HOWEVER, THAT A RETIREE |S AT LEAST
SIXTY (60) YEARS OF AGE WITH A MINIMUM OF NINE (9) YEARS IN SERVICE
AT THE TIME OF THE RETIREMENT;


AS USED IN THIS SUB-SECTION, THE TERM “RETIREE” SHALL INCLUDE
ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS AND MEMBERS
OF THE LUPON NG TAGAPAMAYAPA;

(7) BE ENTITLED TO A FRANKING PRIVILEGE FOR THIS PURPOSE,
BARANGAY OFFICIALS SHALL BE EXEMPT FROM THE PAYMENT OF
POSTAGE ON ANY MAIL MATTER TO BE SENT TO GOVERNMENT AGENCIES,
PUBLIC OFFICIALS AND PRIVATE INDIVIDUALS IN THE PERFORMANCE OF
OFFICIAL FUNCTIONS; AND.

(8) BE ENTITLED TO TWENTY PERCENT (20%) DISCOUNT IN
TRANSPORTATION FARE, AND HOTEL ACCOMODATION CHARGE.

1K 20K

SEC. 2. Barangay Retirement Fund Created. - There is hereby created a
Barangay Retirement Fund (BRF) which shall be used to fund the retirement of
barangay officials and workers mentioned in this Act. The amount equivalent to one
percent (1%) of the share of the national government under Section 284 of the Local
Government Code of 1991, as amended, shall be used for this purpose.

The Department of the Interior and Local Government (DILG) shall administer
and ensure the appropriate disbursement of the Fund.

SEC. 3. Rules and Regulations. - The Department of Budget and
Management (DBM), in coordination with the DILG, and the Department of
Transportation shall issue the necessary rules and regulations to implement this Act.

SEC. 4, Repealing Clause. - All laws, executive orders, issuances, rules and
regulations inconsistent with this Act are hereby amended, repealed or modified
accordingly.

SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in any newspaper of general circulation.

Approved,