HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No,.7543

Introduced by Representative Jaime R. Fresnedi

EXPLANATORY NOTE

This bill seeks to promote the welfare of barangay officials by proposing amendments
to Republic Act No. 7160 or the Local Government Code of 1991, which would provide them
regular monthly compensation. This would enable our barangay officials to become members
of the Government Service Insurance System (GSIS) and formalize their memberships with
other government social agencies such as the Philippine Health Insurance Corporation
(PhilHealth) and the Home Development Mutual Fund (HDMF) or the Pag-IBIG Fund.

Our barangay officials are our frontliners in the delivery of basic services as they are
the ones who are with the people in the basic political unit of the country. These public servants
are the ones who may be considered as first responders to the concerns of our countrymen that
must be addressed by the government, Many of our barangay officials today, which include the
Punong Barangay, members of the Sangguniang Barangay, Barangay Secretary, Barangay
Treasurer and the Sangguniang Kabataan Chairperson, have been serving their respective
barangays in any of these various capacities for a very long time already. In fact, many of them
have served for more than fifteen (15) years, the minimum number of years of service required
by the Government Service Insurance System to qualify a person from receiving monthly
pension upon reaching the age of sixty (60). However, they cannot avail of benefits from the
GSIS because of certain provisions of existing laws.

Section 3 of Republic Act No. 8291 (RA 8291) or “The Government Service Insurance
System Act of 1997” provides that “membership in the GSIS shall be compulsory for all
employees receiving compensation who have not reached the compulsory retirement age,
irrespective of employment status,..." The same law also defines “employee or member’ as
“any person, receiving compensation while in the service of an employer as defined herein,
whether by election or appointment, irrespective of status of appointment, including barangay
and sanggunian officials.” Compensation on the other hand is defined as “the basic pay or
salary received by an employee, pursuant to his election/appointment, excluding per diems,
bonuses, overtime pay, honoraria, allowances and any other emoluments received in
addition to the basic pay which are not integrated into the basic pay under existing laws.”
(emphasis supplied)

Herein lies the problem as to why barangay officials cannot qualify to become members
of the GSIS. Section 393 of Republic Act No. 7160 (RA 7160) or the Local Government Code
of 1991 provides:


“Sec. 393. 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 (P 1,000.00) per month
for the punong barangay and Six hundred pesos (P600.00) per month for the
sangguniang barangay members, barangay treasurer, and barangay secretary.
Provided, however, That the annual appropriations for personal services shall be
subject 10 the budgetary limitations prescribed under Title Five, Book II of this
Code; (emphasis supplied)

Unlike members of the Sangguniang Bayan or Panlungsod who are receiving minimum
monthly compensation as provided under Sections 447(b) and 458(b) of RA 7160, barangay
officials are not considered as ‘employees or members’ who may benefit from the GSIS since
they are only receiving honoraria, allowances and other emoluments.

The time is ripe to provide regular monthly compensation to barangay officials by
passing legislation in this respect. This is to give justice to the services being selflessly
rendered by our hardworking barangay officials not only to their constituents but to the country
in general.

According to the Department of the Interior and Local Government (DILG), as of June
30, 2022, there are 42,046 barangays in the country. Based on this figure, this legislative
proposal, if enacted into law, will benefit around 462,506 barangay officials all over the
‘country.

In view of the foregoing, the immediate approval of this bill is earnestly sought.

JAIM Fi EDI
Representative
Lone District, Muntinlupa City


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOBSEVICE No. 7543

Introduced by Representative Jaime R. Fresnedi

AN ACT
TO PROMOTE THE WELFARE OF BARANGAY OFFICIALS, AMENDING FOR
THIS PURPOSE SECTION 393 OF REPUBLIC ACT NO. 7160 OTHERWISE KNOWN
AS THE “LOCAL GOVERNMENT CODE OF 1991” AND PROVIDING FUNDS
THEREFOR

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

SECTION ONE. Section 393 of Republic Act No. 7160 is hereby amended to read as
follows:

“Sec. 393. 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, 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 II of this Code;} SHALL
RECEIVE REGULAR MONTHLY COMPENSATION BASED ON THE
RECOMMENDATIONS OF THE DEPARTMENT OF BUDGET AND
MANAGEMENT (DBM): PROVIDED, THAT THE COMPENSATION OF
BARANGAY OFFICIALS SHALL COMPLY WITH SECTIONS 325, 331,
447(A) AND 458(A) HEREOF AND SECTION 10(A) OF REPUBLIC ACT
NO. 11466, OTHERWISE KNOWN AS THE SALARY
STANDARDIZATION LAW OF 2019: PROVIDED, FURTHER, THAT THE
SAME SHALL BE SUBJECT TO APPLICABLE STATUTORY
DEDUCTIONS TO ENABLE MEMBERSHIP BENEFITS FROM
GOVERNMENT SOCIAL AGENCIES SUCH AS, BUT NOT LIMITED TO,
THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS),
PHILIPPINE HEALTH INSURANCE CORPORATION (PHILHEALTH)
AND THE HOME DEVELOPMENT MUTUAL FUND (HDMF):
PROVIDED, FINALLY, THAT THE GSIS, PHILHEALTH AND HDMF
COUNTERPART CONTRIBUTIONS OF BARANGAYS AS EMPLOYERS
SHALL COME FROM A SPECIAL FUND IN THE ANNUAL GENERAL

1


APPROPRIATIONS ACT THAT SHALL BE APPROPRIATED FOR THIS.
PURPOSE.

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.

(b) xxx

(c) xxx

(d) xxx”

SEC. 2. Appropriations. ~ The amount necessary to implement the provisions of this Act
shall be funded by the National Government under the Annual General Appropriations Act
(GAA).

SEC. 3. Separability Clause. ~ If any provision or part hereof is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other provisions of
this Act.

SEC. 4. Repealing Cause. ~ All laws, decrees, orders and issuances, or portions thereof,
which are inconsistent with the provisions of this Act, are hereby repealed, amended, or
modified accordingly.

SEC. 5. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,