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

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 932

introduced by Representative EDUARDO R. KAMA jR.

EXPLANATORY NOTE

“The barangay serves as the most basic local government unit among those established under Republic
AG 7160, otherwise known as the Lycal Government Code of 1991, as they primatily provide fivutline
services to the community. Barangays provide one of the most vital roles in public service within the
apparatus of the state government, the aforementioned code provides that the barangay is the “primary
‘planning and implementing unit of government policies, plans, programs, projets, and activities in the community, as a
forum whercin the coletve views of people may be expressed, eystallized, and considered and where disputes may be
amicably settled." Undeniably, the governance of our barangays plays a crucial role in nation building.

Moreover, barangay officials provide a comprehensive understanding of their respective jurisdictions

which conuibute to the further development of responsive and updated goverment policy and

iniriariere Furthermnre, they serve a6 the “fenntliners” in implementins: government nenigeame while
risking theic health and wellbeing by performing their roles as first responders during calamities and
disasters. Despite the indispensable role that barangay officials play in our daily lives, they have not
been granted the appropriate compensation, benefits, and incentives that they deserve based on the

current cost of iiving,

This measure respectfully seeks wv provide for the regularization and Compensation scheme for he
Punong Barangay, Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary, and
4 provision of honoraria and allowances to the members of the Lupon ‘Tagapamayapa and Barangay


‘Tanods. Additionally, a barangay gratuity fund will be created which shall be used to fund che
government's share in the retirement gratuity of barangay tanods and members of the Lupon ng

‘Tagapamayapa.
his well-meaning and imperative legislative measure was originally fied in the 19® Congress by then

Representative Rexlon “Rex” T. Gatchalian, who now serves as the Department of Social Welfare and

Development (DSWD) Secretary.

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

—a =

REP, EDUARDO R. RAMA JR.
2 District, City of Cebu


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

TWENTIETH CONGRESS
First Regular Session

Introduced by Representative EDUARDO R. KAMA JR.

AN ACT STRENGTHENING THE BARANGAY AS THE BASIC LOCAL
GOVERNMENT UNIT BY INCREASING ITS CAPACITY TO DELIVER SERVICES,
PROVIDING SALARY GRADES, RETIREMENT BENEFITS, OTHER
ENTITLEMENTS OF CERTAIN BARANGAY OFFICIALS, AND OTHER PURPOSES,
AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7160, OTHER’ WIN
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 Congres assembled:

SECTION 1. A new Section 389-A shall be inserted in Republic Act No. 7160, otherwise
known as the “Local Government Code of 1991” (RA 7160) to read as follows:

BARANGAY. - THE PUNONG BARANGAY SHALL BE CONSIDERED A
REGULAR GOVERNMENT EMLOYEE, ENTITLED TO THE FIXED RATE OF
AT LEAST SALARY GRADE TWELVE (12-A) UNDER THE SALARY
SWANDAKDIZATION LAW, AS AMENDED, AND SHALL HENCEFORTH BE
ENTITLED TO ALL THE BENEFITS PROVIDED BY THE GOVERNMENT
WHICH SHALL INCLUDE BUT NOT LIMITED TO SALARIES,


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ALLOWANCES, BENEFITS AND INCENTIVES APPLICABLE TO ALL
GOVERNMENT PERSONNEL.”

SECTION. 2. A new Section 391-A shall be inserted in RA 7160 to read as follows:

“SECTION 391-A. COMPENSATION AND BENEFITS OF THE MEMBERS OF
THE 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. “

SECTION. 3. Section 393 of RA 7160 is hereby amended tw read as follows:

Section 393. Benefits of Barangay Officials} MEMBERS OF THE LUPON
TAGAPAMAYAPA AND BARANGAY TANODS. -

(a) {Barangey offeisis;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 city or city ordinance in accordance with the provisions of this
Code, but in no case shali it be less than [One] TWO thousand pesos ((P1,000.00)]
(2,000,000) per month ffor-the punong-barangey-and Six-hundred pesos P600-000} per
mmenth_thor-the pnenge haranmyandh the bindred: per Patti perenne she:
sangmuniang-berangay-membersbarangey-treasurerand-baranpey-seeretaeyp: Provided,

be subject to the

however, That the annual appropriations for personal services shi

budgetary limitations prescribed under Title Five, Book I of this Code;


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(b) [The punong barangay, the sangguniang barangay members, the barangay treasurer, and
the barangay secretary] THE BARANGAY TANODS AND MEMBERS OF THE
LUPON TAGAPAMAYAPA shall also:

()) Be entitled to Christmas bonus of fatleast One thousand pesos P4,000.00 exch} TWO
THOUSAND PESOS (P2,000.00), 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

(@ wx

(£) 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;

SECTION. 4. A new Sec. 394-A shall be inserted in RA 7160 to read as follows:

“SECTION 394-A. COMPENSATION AND TERM OF OFFICE OF THE
BARANGAY SECRETARY. - THE BARANGAY SECRETARY SHALL BE
CONSIDERED AS A REGULAR GOVERNMENT EMPLOYEE AND ENTITLED
TO THE 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,


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THROUGH A MAJORITY VOTE OF ALL THE MEMBERS OF THE
SANGGUNIANG BARANGAY IN A REGULAR OR SPECIAL ASSEMBLY
CALLED FOR THE PURPOSE.”

SECTION. 5. Section 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 ali the sangguniang barangay members. [Fhe appeinement-of- the
(b) xxx

SECTION. 6. A new Sec. 395-A shail be inserted in RA 7160 co read as follows:

SECTON 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 FIXED
RATE OF AT LEAST SALARY GRADE 8 UNDER THE SALARY
STANDARDIZATION LAW.

THE BARANGAY TREASURER 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.

SECTION. 7. Creation of Barangay Retirement Gratuity Fund (BRGF).— The Barangay

Retirement Gratuity Fund is hereby ercated which shall be used to fund rhe government's share in the

retirement gratuity of barangay tanods and members of the Lupon ng Tagapamayapa, as mentioned


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in this Acc. This 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 earmarked, set-aside and

used for this purpose.

‘The Department of the interior and Local Government (DIG) shail admmister and ensure

the appropriate disbursement of the fund.

SECTION. 8. Capacity Development and Enhancement Program for Barangay Officials. —
‘The DILG, through the Local Government Academy (LGA) shall develop capacity development and
enhancement programs for the Punong Barangays, Members of the Sangguniang Barangay, Barangay

Secretaries, Barangay Treasurers, Barangay Tanods, and Members of the Lupon Tagapamayapa.

‘The Department of Finance (DOF), through the Bureau oi Local Goverment Finance
(BLGP), shall assist in the development of programs for Barangay Treasures, and the Department of
Justice (DOJ) shall assist in the development of programs for Barangay Tanods and Members of the
Lupon Tagapamayapa.

‘The Programs shall develop comprehensive training manuals, and based thercon, conduct the
trainings necessary and appropriate to ensure the professionalization of the aforementioned barangay

officials, for the efficient delivery of services at the barangay level.

SECTION. 9. Income Classification of Barangays. - The DOF, through the BLGF, shall
formulate an income classification of barangays based on locally generated average annual income for
the last two (2) consecutive years based on 2000 constant prices. The average annual income shall
include the income accruing to the general fund, exclusive of special funds, transfers and non-recurring

income.

Based on this income classification, the DILG and the Department of Budget and
‘Management (DBM) shall issue the necessary rules and regulations on the annual appropriations for

the newly created salary grades, honoraria and allowances of the identified officials under this Act.


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SECTION. 10. Implementing Rules and Regulations (IRR) 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.

SECTION. it. 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 of Municipality
which it is part of. Local government units which do not have adequate or sufficient funds shall be
assisted by the National Government.

SECTION. 12. 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 this enactment of this Act.

SECTION. 13. Separability Clause — If any provision or part of this Act is held invalid or

unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

SECTION. 14. Repealing Clause. ~ Ail jaws, executive orders, presidential decrces or
issuances, letters of instruction, administrative orders, rules, and regulations as well as local ordinances
contrary €o or inconsistent with the provisions of this Act ate hercby repealed, amended, or modified

accordingly.

SECTION. 15. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation.

Approved,