TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
25 JUL-3 P5 •02
SENATE 
S. No. 100
Introduced by Senator MARK A. VILLAR
AN ACT
ADJUSTING THE BENEFITS OF ALL BARANGAY OFFICIALS, INCLUDING 
BARANGAY TANODS, AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, 
AMENDING FOR THE PURPOSE SECTION 393 OF REPUBLIC ACT NO. 7160, 
AS AMENDED, OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 
1991"
EXPLANATORY NOTE
Article X, Section 3 of the 1987 Constitution mandates that the Congress shaii 
enact a iocai government code which shaii provide for a more responsive and 
accountabie iocai government structure instituted through a system of decentraiization 
with effective mechanisms of recaii, initiative, and referendum, aiiocate among the 
different local government units their powers, responsibilities, and resources, and 
provide for the qualifications, eiection, appointment and removal, term, salaries, 
powers and functions and duties of iocai officiais, and aii other matters reiating to the 
organization and operation of the iocai units.
The barangay is the smaiiest administrative division in our country. It is 
empowered and mobiiized to deiiver basic services, and serves as the primary pianning 
and implementing unit of government policies, plans, programs, projects, and 
activities in the community. It is the frontline unit for combating poverty and in 
deiivering basic sociai services like heaith and education.
However, despite the potentiai opportunities for governance and deveiopment 
at the grassroots ievei, the barangay attracts iow appreciation. It has become a 
microcosm of the nationai poiiticai environment.


It is high time that the barangay is provided with the right encouragement in 
the form of benefits. At the same time, these benefits wiil act as catalysts to curb 
corruption. Through this Act, the barangay will be empowered as a dynamic and 
proactive unit, thereby improving the overall government services.
Furthermore, this measure aims to reward barangay officials, for their many 
years of exemplary service, and to acknowledge the vital role that barangay officials 
and workers play in nation building.
In view of the foregoing, the passage of this bill is earnestly sought.
MARK A. VILLAR


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 100
25 JIJL -3 P5 :02
Introduced by Senator MARK A. VILLAR
AN ACT
ADJUSTING THE BENEFITS OF ALL BARANGAY OFFICIALS, INCLUDING 
BARANGAY TANODS, AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, 
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 House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 393 of Repubiic Act No. 7160 otherwise known as the Local
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Government Code of 1991, as amended, is hereby amended as follows:
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"Section 393. Benefits of Barangay Officials. -
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(a) Barangay officials, including barangay tanods and members of the
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lupong tagapamayapa, shall receive honoraria, allowances, and such
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other emoluments as may be authorized by law or barangay, municipal or
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city ordinance in accordance with the provisions of this Code, but in no
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case shall it be less than [Qne- thousand pesos (PI,000.00)] THREE
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THOUSAND PESOS (P3,000.00) per month for the punong barangay
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and [Six hundred pesos (P600.00)] TWO THOUSAND PESOS
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(P2,000.00) per month for the sangguniang barangay members,
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barangay treasurer, and barangay secretary: Provided, however. That the
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annual appropriations for personal services shall be subject to the
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budgetary limitations prescribed under Title Five, Book II of this Code;


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(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)] THREE THOUSAND PESOS (P3/000.00) 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 Numbered Sixty-nine 
hundred forty-two (R.A. 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 attendance 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 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 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


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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 colleges 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 IS AT LEAST SIXTY 
(60) YEARS OF AGE WITH A MINIMUM OF NINE (9) YEARS 
IN SERVICE AT THE TIME OF 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.
(8) BE ENTITLED TO TWENTY PERCENT (20%) DISCOUNT IN 
TRANSPORTATION FARE AND HOTEL ACCOMODATION 
CHARGE.


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(c) Elective barangay officials shall have preference in appointments to
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any government position or in any government-owned or controlled
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corporations, including their subsidiaries, after their tenure of office,
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subject to the requisite qualifications and the provisions of the
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immediately preceding paragraph.
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(d) All duly appointed members of the barangay tanod brigades, or their
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equivalent, which shall number not more than twenty (20) in each
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barangay, shall be granted insurance, FREE TUITION AND
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MATRICULATION FEES FOR THEIR LEGITIMATE DEPENDENT
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CHILDREN ATTENDING STATE COLLEGES AND UNIVERSITIES or
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other benefits during their incumbency, chargeable to the barangay or the
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city or municipal government to which the barangay belongs."
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Sec. 2. Barangay Retirement Fund. - The Barangay Retirement Fund (BRF) is
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hereby created, which shall be used to fund the retirement of barangay officials and
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workers mentioned in this Act. The amount equivalent to one percent (1%) of the
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share of the local government under Section 284 of the Local Government Code of
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1991, as amended, shall be used for this purpose.
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The Department of Budget and Management (DBM), in coordination with the
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Department of Interior and Local Government (DILG) shall administer and ensure the
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appropriate disbursement of the Fund.
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Sec 3. Implementing Rules and Regulations. - The DBM and the DILG, in
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coordination with local government units and other relevant offices or agencies, shall
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issue the implementing rules and regulations to implement this Act within ninety (90)
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days after its effectivity.
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Sec 4. Appropriations. - The amount necessary for the implementation of this
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Act shall be charged to the funds of the implementing agencies.
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Sec 5. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in force and effect.
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Sec 6. Repealing Clause. - Any law, presidential decree or issuance, executive
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order, letter of instruction, rule or regulation inconsistent with the provisions of this
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Act is hereby repealed or modified accordingly.


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Sec 7. Effectivity. - This Act shall take effect fifteen (15) days following its
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complete publication in a newspaper of general circulation.
Approved,