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NINETEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
First Regular Session 
]
SENATE
S.B. No. 388
72 JUL 12 P12 ••03
RUCEIVtOBV,___
Introduced by SEN. WIN GATCHALIAN
AN ACT
STRENGTHENING THE BARANGAY AS THE BASIC LOCAL GOVERNMENT UNIT 
BY INCREASING ITS CAPACITY TO DELIVER SERVICES, PROVIDING SALARY 
GRADES, RETIREMENT BENEFITS AND OTHER ENTITLEMENTS OF CERTAIN 
BARANGAY OFFICIALS, INCREASING THEIR TERM OF OFFICE, AND OTHER 
PURPOSES, AMENDING REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991, AND OTHER RELATED LAWS
EXPLANATORY NOTE
Section 384 of Republic Act No. 7160, or the Local Government Code of 1991 
provides:
"SEC. 384. Role of the Barangay. - As the basic political unit, 
the barangay serves as the primary planning and implementing unit 
of government policies, plans, programs, projects, and activities in 
the community, and as a forum wherein the collective views of the 
people may be expressed, crystallized and considered, and where 
disputes may be amicably settled."


As such, the role of the Barangay in our society is crucial as it is a major partner 
of the national government in responding to development challenges at the grassroots 
level, particularly on the effective and efficient service delivery to the community. It is a 
microcosm of the government, which by itself is authorized to enact laws, enforce them, 
as well as exercise judicial functions in its katarungang pambarangay duties, and peace 
enforcement through the tanods. Clearly, a barangay's political jurisdiction maybe small 
compared to other local government units, but their role in the delivery of public services 
are expansive and the efficient and effective performance of their services will directly 
benefit their constituents.
Notwithstanding the critical role of barangay officials in the delivery of government 
services and the Herculean task the national government has imposed on them. Local 
Government Code provisions enumerating the benefits and privileges for these barangay 
officials leave much to be desired. Barangay officials continue to be ranked the lowest 
among all civil servants in terms of remuneration, benefits and other privileges received, 
and a proper compensation scheme for barangay officials that is commensurate with their 
role in the delivery of public services are yet to be provided. If we are to effectively give 
to the local government units the self-sufficiency that the government envisions, we must 
be able to provide the environment and support conditions conducive to a productive 
leadership.
Accordingly, this measure mandates the creation of a position, classification and 
compensation scheme for the Punong Barangay, Sangguniang Barangay members, 
Barangay Treasurer and Barangay Secretary and the provision of honoraria and 
allowances to the members of the Lupon Tagapamayapa and Barangay Tanods. It also 
extends the tenure of service of the Barangay Chairman and Kagawads to provide a 
longer implementation period of set programs for these basic units of the local 
government. It creates a barangay retirement gratuity fund that will enable barangay 
governments to pay for monthly contributions to retirement coverage of respective 
barangay officials. It directs the creation of capacity development and enhancement 
programs for barangay officials to provide the necessary skills support in implementing 
various government programs. Lastly, it establishes the barangay income classification
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system to be used in the formulation of a compensation and benefits scheme and grant 
of honoraria and allowances.
Thus, approval of this bill is earnestly sought.


NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE 
S.3. No. 388
^ V ■ 
^ *1 ^ “ • ■ ■ ■
H JUL12 PI 2 -03
RI’CE'VlD bv
Introduced by SEN. WIN GATCHALIAN
AN ACT
STRENGTHENING THE BARANGAY AS THE BASIC LOCAL GOVERNMENT 
UNIT BY INCREASING ITS CAPACITY TO DELIVER SERVICES, PROVIDING 
SALARY GRADES, RETIREMENT BENEFITS AND OTHER ENTITLEMENTS OF 
CERTAIN BARANGAY OFFICIALS, INCREASING THEIR TERM OF OFFICE, 
AND OTHER PURPOSES, AMENDING REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND
OTHER RELATED LAWS
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembied:
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SECTION 1. Short Tide. - This Act shall be known as the "Magna Carta for
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Barangay Officials Act"
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SEC. 2. Deciaration of Poiicy. - It is the policy of the State to strengthen,
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develop and improve the general welfare of the barangay, its officials and residents.
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In line with this policy and in cognizance of the crucial role of the barangays through
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its barangay officials in nation-building, the State shall empower the barangay elective
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officials and appointive personnel through extending the term of office to better
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implement programs at the barangay level; provision of salary grades, remuneration.


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benefits, allowances, retirement benefits and other entitlements commensurate to the
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status as civil servants of the basic local government units in our country; and ensure
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the promotion of the capacity and welfare of barangay officials and personnel to
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safeguard the faithful execution of their duties and functions.
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SEC. 3. Section 43 of Republic Act 7160 (RA 7160), otherwise known as the
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"Local Government Code of 1991," is hereby amended to read as follows:
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"Section 43. Term of Office
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(a) XXX
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(b) No local elective official shall serve for more than three (3)
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consecutive terms in the same positionH, EXCEPT FOR
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BARANGAY OFFICIALS WHO SHALL NOT SERVE
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FOR MORE THAN TWO (2) CONSECUTIVE TERMS IN
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THE SAME POSITION. Voluntary renunciation of the
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office for any length of time shall not be considered as an
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interruption in the continuity of service for the full term for
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which the elective official concerned was elected.
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(c) The term of office of barangay officials and members of
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the sangguniang kabataan shall be for [three (3>-yeaf-5]
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FIVE (5) YEARS, [which shall begin after the regular
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election of barangay officiats-on the second-Monday of May
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4994.]"
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SEC. 4. Section 11 of Republic Act No. 10742, otherwise known as the
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"Sangguniang Kabataan Reform Act of 2015" is hereby amended to read as follows:
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"Sec. 11. Term of Office. - (a) The chairperson and members
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of the Sangguniang Kabataan shall hold office for a fixed term
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of [three (3)} FIVE (5) years unless sooner removed for


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cause, permanently incapacitated, have died or resigned from
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office."
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SEC. 5. Section 1 of Republic Act No. 11462, otherwise known as the "Act
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Postponing the May 2020 Barangay and Sangguniang Kabataan Elections," is hereby
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amended to read as follows:
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Section 1. Date of Election. - There shall be synchronized
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barangay and sangguniang kabataan elections, which shall be
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held on July 15, 2002. Subsequent synchronized barangay and
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sangguniang kabataan elections shall be held on the last
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Monday of October 2007 and every three (3) years thereafter:
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Provided, That the barangay and sangguniang kabataan
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elections on the second Monday of May 2020 shall be
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postponed to December 5, 2022. Subsequent synchronized
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barangay and sangguniang kabataan elections shall be held
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on the first Monday of December 2025 and every [three-(-3
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FIVE (5) years thereafter."
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SEC. 6. A new Sec. 389-A of RA 7160 is hereby inserted to read as follows:
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Section 389-A. COMPENSATION AND BENEFITS OF
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PUNONG BARANGAY- THE PUNONG BARANGAY
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SHALL BE CONSIDERED A REGULAR GOVERNMENT
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EMPLOYEE, ENTITLED TO THE FIXED RATE OF AT
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LEAST SALARY GRADE TWELVE (SG-12) UNDER THE
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SALARY STANDARDIZATION LAW, AS AMENDED, AND
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SHALL HENCEFORTH BE ENTITLED TO ALL THE
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BENEFITS PROVIDED BY THE GOVERNMENT WHICH
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SHALL INCLUDE BUT NOT LIMITED TO SALARIES,


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ALLOWANCES, BENEFITS AND INCENTIVES 
APPLICABLE TO ALL GOVERNMENT PERSONNEL.
SEC. 7. A new Sec. 391-A shall be inserted in RA 7160 to read as follows:
Section 391-A. COMPENSATION AND BENEFITS OF 
MEMBERS OF SANGGUNIANG BARANGAY. - THE 
MEMBERS OF THE SANGGUNIANG BARANGAY SHALL 
BE CONSIDERED AS REGULAR GOVERNMENT 
EMPLOYEES, ENTITLED TO THE FIXED RATE OF AT 
LEAST SALARY GRADE TEN (SG-10) UNDER THE 
SALARY STANDARDIZATION LAW, AS AMENDED, AND 
SHALL HENCEFORTH BE ENTITLED TO ALL THE 
BENEFITS PROVIDED BY THE GOVERNMENT WHICH 
SHALL INCLUDE BUT NOT LIMITED TO SALARIES, 
ALLOWANCES, BENEFITS AND INCENTIVES 
APPLICABLE TO ALL GOVERNMENT PERSONNEL.
SEC. 8. Sec. 393 of RA 7160 is hereby amended to read as follows: 
Section 393. Benefits of MEMBERS OF THE LUPON 
TAGAPAMAYAPA AND BARANGAY TANODS. - 
(a) [Barangay-offidals, including] [bJBarangay 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] TWO thousand pesos [(P1,000.00)] 
(P2,000.00) per month [for the punong barangay and Six 
hundred-pesos (P6QQ.Q0) per month for the sangguniang
barangay members, barangay treasurer,-and barangay


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sccrctery-]: Provided, however, That the annual appropriations 
for personal services shall be subject to the budgetary 
limitations prescribed under Title Five, Book II of this Code; 
(b) [The punong barangay, the songguniang barangay
members7—the—barangay—treasurer/—aod—the—barangay
secretary} THE BARANGAY TANODS AND MEMBERS OF 
THE LUPON TAGAPAMAYAPA shall also:
(1) Be entitled to Christmas bonus of [at least One 
thousand-pesos (PI,000.00) each} TWO THOUSAND 
PESOS (P2a000)a 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) XXX 
(C) XXX
(E) BE ENTITLED TO A LUMP SUM RETIREMENT 
GRATUITY PAY EQUIVALENT TO ONE (1) YEAR 
HONORARIUM TO BE TAKEN FROM THE BARANGAY 
RETIREMENT GRATUITY FUND, AS MENTIONED IN 
SECTION 9 OF THIS ACT: 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 THE RETIREMENT;
SEC. 9. Sec. 394-A of RA 7160 is hereby inserted to read as follows:
Section 394-A. COMPENSATION AND TERM OF 
OFFICE OF BARANGAY SECRETARY. - THE BARANGAY 
SECRETARY SHALL BE CONSIDERED AS A REGULAR 
GOVERNMENT EMPLOYEE AND ENTITLED TO THE


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FIXED RATE OF AT LEAST SALARY GRADE EIGHT (SG- 
8) UNDER THE SALARY STANDARDIZATION LAW, AS 
AMENDED.
THE BARANGAY SECRETARY SHALL BE 
COTERMINUS WITH THE APPOINTING AUTHORITY 
UNLESS SOONER REMOVED FOR CAUSE, FOUND TO 
HAVE FAILED FROM THE DISCHARGE OF HIS OR HER 
DUTIES, OR HAS COMMITTED ABUSE OF AUTHORITY 
AS STIPULATED IN EXISTING LAWS PERTAINING TO 
THE CONDUCT OF PUBLIC OFFICIALS, THROUGH A 
MAJORITY VOTE OF ALL THE MEMBERS OF THE 
SANGGUNIANG BARANGAY IN A REGULAR OR 
SPECIAL ASSEMBLY CALLED FOR THE PURPOSE.
SEC. 10. Sec. 395 of RA 7160 is hereby amended to read as follows: 
Sec. 395. Barangay Treasurer: Appointment, Qualifications, 
Powers and Duties. - (a) The barangay treasurer shall be 
appointed by the punong barangay with the concurrence of 
the majority of all the sangguniang barangay members. [The 
appointment of the barangay treasurer shall not-bc subject to
attestation by the Civil Service-CommisGioft.]
(b) XXX
SEC. 11. Sec. 395-A of RA 7160 is hereby inserted to read as follows:
Section 395-A. COMPENSATION AND TERM OF 
OFFICE OF BARANGAY TREASURER. - THE BARANGAY 
TREASURER SHALL BE CONSIDERED AS A REGULAR 
GOVERNMENT EMPLOYEE AND ENTITLED TO THE


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FIXED RATE OF AT LEAST SALARY GRADE 8 UNDER
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THE SALARY STANDARDIZATION LAW.
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THE 
BARANGAY TREASURER SHALL 
BE
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COTERMINUS WITH THE APPOINTING AUTHORITY
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UNLESS SOONER REMOVED FOR CAUSE, FOUND TO
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HAVE FAILED FROM THE DISCHARGE OF HIS OR HER
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DUTIES, OR HAS COMMITTED ABUSE OF AUTHORITY
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AS STIPULATED IN EXISTING LAWS PERTAINING TO
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THE CONDUCT OF PUBLIC OFFICIALS, THROUGH A
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MAJORITY VOTE OF ALL THE MEMBERS OF THE
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SANGGUNIANG 
BARANGAY IN A REGULAR 
OR
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SPECIAL ASSEMBLY CALLED FOR THE PURPOSE.
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SEC. 12. Sec. 399 of RA 7160 is hereby amended to read as follows:
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Section 399. Lupong Tagapamayapa. -
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(a) There is hereby created in each barangay a lupong
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tagapamayapa, hereinafter referred to as the lupon,
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composed of the punong barangay, as chairman and ten
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(10) [to twenty (20)] members. The lupon shall be
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constituted every [three (3)] FIVE (5) years in the
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manner provided herein.
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SEC. 13. Creation of Barangay Retirement Gratuity Fund (BRGF). - The
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Barangay Retirement Gratuity Fund is hereby created which shall be used to fund
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government's share in the retirement gratuity of barangay tanods and members of
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the Lupon ng Tagapamayapa, as mentioned in this Act. The amount equivalent to one
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percent (1%) of the share of the national government under Section 284 of the Local
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Government Code of 1991, as amended, shall be earmarked, set-aside and used for
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this purpose.


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The Department of the Interior and Local Government (DILG) shall administer
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and ensure the appropriate disbursement of the Fund.
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SEC. 14. Capacity Development and Enhancement Program for Barangay
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Officials. - The Department of Interior and Local Government, through the Local
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Government Academy (LGA), shall develop capacity development and enhancement
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programs for the Punong Barangays, Members of the Sangguniang Barangay,
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Barangay Secretaries, Barangay Treasurers, Barangay Tanods, and Members of the
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Lupon Tagapamayapa.
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The Department of Finance (DOF), through the Bureau of Local Government
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Finance (BLGF), shall assist in the development of programs for Barangay Treasurers,
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and the Department of Justice (DOJ) shall assist in the development of programs for
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for Barangay Tanods and Members of the Lupon Tagapamayapa.
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The Programs shall develop comprehensive training manuals, and based
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thereon, conduct the trainings necessary and appropriate to ensure the
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professionalization of the aforementioned barangay officials, for the efficient delivery
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of services at the barangay level.
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SEC. 15. Income Classification of Barangays - The DOF, through the BLGF,
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shall formulate an income classification of barangays based on locally generated
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average annual income for the last two (2) consecutive years based on 2000 constant
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prices. The average annual income shall include the income accruing to the general
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fund, exclusive of special funds, transfers, and non-recurring income.
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Based on this income classification, the DILG and the Department of Budget
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and Management (DBM) shall issue the necessary rules and regulations on the annual
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appropriations for the newly created salary grades, honoraria and allowances of the
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identified barangay officials under this Act.


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SEC. 16. Implementing Rules and Regulation. -The DBM, in coordination with 
the Government Service Insurance System (GSIS), the DILG, the DOJ, and the DOF 
shall issue the necessary rules and regulations to implement this Act.
SEC. 17. Funding Source. - The amount necessary for the implementation of 
this Act shall be charged against the respective funds of both the Barangay and the 
City or Municipality which it is part of. Local government units which do not have 
adequate or sufficient funds shall be assisted by the National Government.
SEC. 18. Applicability Clause. -The provisions of this Act shall be applicable to 
the barangay elected and appointed officials identified under this Act, after the next 
barangay elections following the approval of the enactment of this Act.
SEC. 19. Separability Clause. - If for any reason any section or provision of this 
Act is declared to be unconstitutional or invalid, the other sections or provisions thereof 
which are not affected thereby shall continue to be in full force and effect.
SEC. 20. Repealing Clause. - All laws, decrees, orders, rules or regulations or 
parts thereof inconsistent with the provisions of this Act are hereby repealed, amended 
or modified accordingly.
SEC. 21. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in a newspaper of general circulation in the Philippines.
Approved,