EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Second Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No. 8940

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
PROVIDING FOR REMUNERATION, BENEFITS, ALLOWANCES, AND OTHER
ENTITLEMENTS FOR FRONTLINE CIVIL SERVANTS AT THE BARANGAY
LEVEL, ESTABLISHING FOR THE PURPOSE A MAGNA CARTA FOR
BARANGAY OFFICIALS, PERSONNEL AND VOLUNTEER WORKERS, AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

Barangay officials and volunteer workers, due to their proximity to the people, are the
front-line civil servants and primary public service providers on matters concerning public
health, public order and safety, environmental protection, alternative dispute resolution, and
even disaster risk reduction and management. As such, the national government depends
considerably on the capability of barangay officials, personnel and volunteer workers,
especially in remote areas of the country, in coordinating and implementing various
government interventions at the grassroots level.

Yet despite the Herculean task the national government has imposed on the barangay
government, the national government has yet to provide barangay officials, personnel and
volunteer workers with a compensation scheme that is commensurate with the role they
perform in the delivery of social services. Barangay officials, personnel and volunteer workers
are ranked the lowest among all civil servants in terms of remuneration, benefits and privileges

enjoyed and received.


This bill is endorsed in recognition of the significant contribution of barangay officials
and volunteer workers in nation-building. This bill mandates the creation of a distinct Position
Classification and Compensation Scheme for Barangay Officials, Personnel and Volunteer
Workers that will govern the dispensation of salaries, honoraria and other benefits and
allowances to the manpower complement of the barangay government. It directs the
membership of barangay officials, personnel and volunteer workers to the Social Insurance
Program of the Government Service Insurance System, the National Health Insurance Program
of the Philippine Health Insurance Corporation, and the Mandatory Membership Program of
the Home Development Mutual Fund to ensure that barangay officials, personnel and volunteer

workers are covered against insurable financial risks.

Moreover, the bill provides additional benefits to qualified barangay officials,
personnel and volunteer workers such as hazard allowances, death and burial benefits, and legal
indemnification. To finance this undertaking, this bill shall source funding from the additional
proceeds arising from the share of local government units in the national taxes collected by the
Bureau of Customs in accordance with the decision of the Supreme Court in Mandanas vs.
Executive Secretary, G.R. No. 199802 dated July 3, 2018.

These interventions are made with the intention of creating a motivated, competent
corps of frontline public service providers through the promotion of the welfare of those who
ensure the safety, security, amity and well-being of Filipino communities in times of peace and

crisis.

In light of the foregoing, immediate passage of the bill is earnestly sought.



EIGHTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

H.B.No, 8940

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
PROVIDING FOR REMUNERATION, BENEFITS, ALLOWANCES, AND OTHER
ENTITLEMENTS FOR FRONTLINE CIVIL SERVANTS AT THE BARANGAY
LEVEL, ESTABLISHING FOR THE PURPOSE A MAGNA CARTA FOR
BARANGAY OFFICIALS, PERSONNEL AND VOLUNTEER WORKERS, AND FOR
OTHER PURPOSES

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

GENERAL PROVISIONS

Section 1. Vitle. — This Act shall be known as the “Magna Carta for Barangay Officials,
Personnel and Volunteer Workers.”

Sec. 2. Declaration of Policy. —It is hereby declared the policy of the State to empower
government officials and personnel, and public volunteer workers especially at the grassroots
level. In line with this policy and in cognizance of the crucial role of barangay officials and
volunteer workers in nation-building, the State shall, through the recognition of their rights as
civil servants and the provision of remuneration, benefits, allowances and other entitlements
commensurate to the service they render to the country, ensure the promotion of the rights and
welfare of barangay officials, personnel and volunteer workers and the faithful execution of
their duties and functions.

Sec. 3. Definition of Terms. — For the purpose of this Act:

(a) Barangay Elective Officials shall refer to the following: the Punong Barangay,
Members of the Sangguniang Barangay; Chairperson of the Sangguniang Kabataan; and
Members of the Sangguniang Kabataan;


(b) Barangay Appointive Officials shall refer to the following: Barangay Secretary;
and Barangay Treasurer, Members of the Lupong Tagapamayapa, Secretary of the
Sangguniang Kabataan; and Treasurer of the Sangguniang Kabataan;

(c) Barangay Personnel shall refer to other personnel of the barangay who perform
regular functions in the maintenance of public order, protection and security of life and
property, settlement of disputes, preservation of a desirable and balanced environment or
delivery of basic social services within the jurisdiction of the barangay government who
receives compensation in the form of salary or honorarium; and

(a) Barangay Volunteer Workers shall refer to individuals who have undergone basic
training courses conducted by government agencies or non-government organizations and who
voluntarily provide ancillary social services in a barangay under a memorandum of agreement
between the volunteer worker and the barangay government concerned.

Sec. 4. Coverage. — This Act shall apply to all barangay officials, personnel, and
volunteers as defined in Section 3 of this Act: Provided, That when the barangay official,
personnel or volunteer worker receives a fixed salary by virtue of a permanent appointment in
any other government office, by election to another public office or by employment in the
private sector, their coverage under this Act shall automatically cease and they shall then be
covered under the appropriate laws.

TITLE
RIGHTS, PRIVILEGES AND ENTITLEMENTS OF
BARANGAY OFFICIALS, PERSONNEL AND VOLUNTEER WORKERS

Sec. 5. Position Classification and Compensation Scheme for Barangay Officials,
Personnel and Volunteer Workers. — Barangay officials, personnel and volunteer workers shall
be entitled to salaries, benefits or allowances as compensation for services they rendered. The
Department of Budget and Management (DBM) shall develop a standardized Position
Classification and Compensation Scheme for Barangay Officials, Personnel, and Volunteer
Workers, taking into consideration the educational qualification and nature of work performed
and the financial capability of barangays, and subject to the minimum qualification standards
and guidelines to be prescribed by the Civil Service Commission (CSC). Such position
classification and compensation and compensation scheme shall conform with the following
guidelines:

(a) The Position Classification and Compensation Scheme for Barangay Officials and

Personnel shall be comprised of three salary grades, namely:


i, Barangay Salary Grade I for barangay appointive officials and other
barangay personnel;
ii, Barangay Salary Grade II for barangay elective officials in the Sangguniang
Barangay and Sangguniang Kabataan with the exception of the Punong Barangay, and
iii, Barangay Salary Grade III for Punong Barangay.
(b) The minimum salary for barangay officials and personnel shalll be as follows:

Barangay Salary Grade I 5,000
Barangay Salary Grade II 7,500
Barangay Salary Grade III 10,000

The minimum salary indicated herein may be increased to a maximum rate equivalent to the
first step of the following salary grade level and its corresponding salary being implemented
by the city or municipality where the barangay belongs:

Barangay Salary Grade I Salary Grade 6
Barangay Salary Grade II Salary Grade 10
Barangay Salary Grade III Salary Grade 14

Provided, That no barangay official or personnel shall suffer any reduction, diminution or
withdrawal of salaries and benefits already enjoyed by the barangay official or personnel
concerned: Provided, further, That the grant of adjusted basic salary shall be subject to
limitations provided under Section 14 of this Act.

(c) Barangay volunteer workers shall be entitled to honoraria and other benefits,
incentives or allowances to be determined in accordance with this Act.

Sec. 6. Membership of Barangay Officials and Personnel in the Government Service
Insurance System. — The Government Service Insurance System (GSIS) shall establish a social
insurance program to provide life insurance and social protection to barangay officials and
personnel.

It shall be mandatory for barangay governments to pay the monthly contributions to life
insurance, retirement, and social protection coverage of their respective barangay officials and
personnel equivalent to twenty-one percent (21%) of their average monthly compensation,
which corresponds to the twelve percent (12%) barangay government contribution and the nine
percent (9%) employee contribution to be subsidized by the barangay government.

Barangay governments shall include in its annual appropriations the amounts necessary
for its share of contributions, plus any additional premiums that may be required on account of
the hazards or risks of the occupation of barangay officials and personnel. The mode of
collection and remittance of contributions, including penalties for violations thereof, shall be

3


in accordance with Republic Act No. 8291, otherwise known as “The Government Service
Insurance System Act of 1997.”

Sec. 7. Enrolment of Barangay Officials and Personnel in the National Health
Insurance Program of the Philippine Health Insurance Corporation, ~The Philippine Health
Insurance Corporation (PhilHealth) shall enroll barangay officials and personnel into the
National Health Insurance Program in accordance with existing laws, rules and regulations

Barangay governments shall include in its annual appropriations the amounts necessary
for its share of contributions. The amount of contributions due from barangay officials and
personnel and barangay governments, mode of collection and remittance of contributions,
including penalties for violations thereof, shall be in accordance with Republic Act No. 7875,
as amended, otherwise known as the “National Health Insurance Act of 1995.”

Sec. 8. Membership of Barangay Officials and Personnel in the Mandatory
Membership Program of the Home Development Mutual Fund. ~ Barangay officials and
personnel shall be covered under the mutual provident savings system of the Home
Development Mutual Fund (PagIBIG Fund).

Barangay governments shall include in its annual appropriations the amounts necessary
for its share of contributions. The amount of contributions due from barangay officials and
personnel and barangay governments, mode of collection and remittance of contributions,
including penalties for violations thereof, shall be in accordance with Republic Act No. 9679,
otherwise known as the “Home Development Mutual Fund Law of 2009.”


Sec. 9. Hazard Allowance. ~ Barangay officials, personnel and volunteer workers who
render service in areas declared under state of calamity or emergency shall be entitled to a
hazard allowance equivalent to ten percent (10%) of their monthly salary or honoraria,
whichever is applicable, until such declaration has been lifted by a competent authority.

Sec. 10. Death and Burial Benefits. — In the event of death of barangay officials,
personnel, and volunteer workers during their incumbency, their respective legal beneficiaries
shall be entitled to the following death and burial benefits:

(a) Barangay Salary Grade I — Five thousand pesos (P5,000.00);

(b) Barangay Salary Grade II — Fifteen thousand pesos (P15,000.00); and

(c) Barangay Salary Grade III — Twenty-five thousand pesos (P25,000.00)

In addition to the death benefits herein provided, a burial benefit of Two thousand pesos
(P2,000.00) shall be paid to the beneficiaries of barangay officials, personnel and volunteer
workers within twenty-four (24) hours after written notice and satisfactory proof of death.

In case the death of a barangay official, personnel or volunteer worker occurred by
reason, or on the occasion of the performance of their official duties and functions, the legal
beneficiaries of the barangay officials, personnel, or volunteer worker concerned shall be
entitled to twice the death and burial indemnity provided herein.

Sec. 11. Civil Service Fligibility. — Qualified barangay officials, personnel and
volunteer workers shall be conferred with the appropriate civil service eligibility in accordance
with existing laws, rules and regulations.

Sec, 12. Legal Indemnification. — Barangay officials and personnel shall be entitled to
an equitable legal indemnification package in the form of legal assistance and other forms of
legal protection and indemnification for all legal costs and expenses reasonably incurred in any
administrative, civil, or criminal action, suit or proceeding to which they have been made a
party by reason of the performance of their official functions or duties, unless they are finally
adjudged in such action or proceeding to be guilty of an offense.

Sec. 13. Employment Preference in Agencies and Instrumentalities of Government. ~
Qualified barangay personnel and volunteer workers shall be accorded with preferential
treatment in employment with national government agencies, local government units, or
government-owned or -controlled corporations, subject to the minimum standards and
guidelines prescribed by the CSC, and in accordance with existing laws, rules and regulations.

TITLE TH
FINAL PROVISIONS


Sec. 14. Limitation on Personnel Services Appropriation for Barangays. ~The budget
ceiling for annual personnel services appropriations of fifty-five percent (55%) of the total
annual income actually realized from local sources during the next preceding fiscal year, as
provided in Section 331(b) of Republic Act No, 7160, as amended, otherwise known as the
“Local Government Code of 1991,” shall apply.

Sec. 15. Barangay Miscellaneous Personnel Benefits Trust Fund. - Any unexpended
balance from the local government share from the national taxes collected by the Bureau of
Customs (BOC) as provided in Section 17 of this Act after the payment of salaries, honoraria
to barangay officials, personnel and volunteer workers as provided in Section 5 of this Act, and
remittance of mandatory contributions to GSIS, PhilHealth and PagIBIG Fund as provided in
Sections 6, 7, and 8 of this Act shall constitute a trust fund to be known as the “Barangay
Miscellaneous Personnel Benefits Trust Fund” and shall be administered by the DBM. The
Barangay Miscellaneous Personnel Benefits Fund, including any interest income that may
accrue therein, shall be set aside and earmarked by Congress for the following purposes:

(a) Provision of additional insurance premiums that may be required on account of the
exposure of barangay officials and personnel to hazards or risks of their occupation in
accordance with Section 6 of this Act;

(b) Provision of Hazard Allowance for barangay officials, personnel and volunteer
workers in accordance with Section 9 of this Act;

(c) Provision of Death and Burial Benefits for barangay officials, personnel and
volunteer workers in accordance with Section 10 of this Act;

(a) Provision of Legal Indemnification Package for qualified barangay officials,
personnel and volunteer workers in accordance with Section 12 of this Act; and

(e) Provision of other allowances and benefits for barangay officials, personnel and
volunteer workers in accordance with the provisions of this Act: Provided, That the DILG shall,
upon the approval of the DBM and in accordance with existing laws, rules and regulations,
identify the benefit and allowances that may be provided to barangay officials, personnel and
volunteer workers and the corresponding amount thereof: Provided, further, That the grant of
other allowances and benefits shall be subject to limitations provided under Section 14 of this
Act.

Sec. 16. Registry System for Barangay Officials, Personnel and Volunteer Workers. ~
The Department of the Interior and Local Government (DILG) shall develop, maintain and
update a registry system for barangay officials, personnel and volunteer workers to effectively
implement the provisions of this Act. The registry system shall be the basis for the release of

6


appropriations for the payment of salaries and honoraria to barangay officials, personnel and
volunteer workers as provided in Section 5 of this Act, and the remittance of mandatory
contributions to GSIS, PhilHealth and PagIBIG Fund as provided in Sections 6, 7, and 8 of this
Act.

Sec. 17. Appropriations. The amount necessary for the implementation of the
provisions of this Act shall be sourced from the share of local government units from the
national taxes collected by the BOC based on the collection of the third fiscal year preceding
the current fiscal year: Provided, That in the event that such amount is insufficient to effectively
implement the provisions of this Act or when the amount exceeds the limitations on Personnel
Services as provided in Section 14 of this Act, the Sangguniang Barangay concerned shall
formulate a mechanism to prioritize and adjust the compensation package provided under this
Act: Provided, further, that such mechanism shall allocate the provision for salaries, honoraria,
benefits or allowances proportionally and uniformly across all barangay salary grades in the
barangay government concerned.

Sec. 18. Implementing Rules and Regulations. - The DILG shall, in coordination with
the DBM, Department of Finance, CSC, Liga ng mga Barangay, and other government
agencies concerned, promulgate the necessary implementing rules and regulations within thirty
(30) days upon the effectivity of this Act.

Sec. 19. Separability Clause. — If any provision, section or part of this Act shall be
declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any
other provisions, sections or parts hereof.

Sec. 20. Repealing Clause. — All laws, acts, decrees, executive orders, issuances, and
rules and regulations or parts thereof which are contrary to and inconsistent with this Act are
hereby repealed, amended or modified accordingly.

Sec, 21. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation or in the Official Gazette.

Approved,