Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No. _____________ 
Introduced by REPRESENTATIVE ERIC L. OLIVAREZ 
EXPLANATORY NOTE 
The barangay officials and employees in our country are frontliners who are tasked 
to respond quickly to the immediate needs of the citizens. Barangay officials and 
employees are in charge of delivering first level assistance to the Filipinos. This is why 
the barangay is considered as the basic political unit of our country. Being the basic 
political unit, it is palpable that people who work for the barangays are continuously and 
tirelessly serving citizens day in and day out. However, it is also quite known that the 
compensation received by these people is disproportionate to the workload that they 
have. Not only that, the retirement benefits granted to barangay officials and employees 
are also menial.  
In order to recognize the efforts exerted by the barangay officials and employees, 
this bill aims to grant them a lump sum retirement pay equivalent to their one-year 
honorarium. This is to give due recognition to barangay workers who not only served 
diligently but also have served their respective barangays for many years.  
In view of the foregoing, the passage of this bill is earnestly sought. 
ERIC OLIVAREZ 
May 24, 2021
10:21 pm
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Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No. _____________ 
Introduced by REPRESENTATIVE ERIC L. OLIVAREZ 
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“AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY 
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TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY  
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HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, A LUMP  
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SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR 
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 HONORARIUM, AMEDNING FOR THE PURPOSE SECTION 393  
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OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE  
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KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991” 
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Be it enacted in the Senate and the House of Representatives of the Republic of the 
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Philippines in Congress assembled: 
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SECTION 1. Section 393 of Republic Act No. 7160, as amended, 
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otherwise known as “The Local Government Code of 1991”, is hereby 
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amended to read as follows:  
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“Sec. 393. Benefits of Barangay Officials. – (a) Barangay 
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officials, including barangay tanods and members of the Lupong 
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Tagapamayapa, shall receive honoraria, allowances, and such 
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other emoluments as may be authorized by law or barangay, 
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municipal or city ordinance in accordance with the provisions of 
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this Code, but in no case shall it be less than One Thousand 
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Pesos (P1,000.00) per month for the punong barangay and Six 
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Hundred Pesos (P600.00) per month for the sangguniang 
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9455


barangay members, barangay treasurer, and barangay 
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secretary: Provided, however, That the  annual appropriations 
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for personal services shall be subject to the budgetary 
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limitations prescribed under Title Five, Book II of this Code.  
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 “(b) x xx 
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 “(1) x x x “ (2)xxx 
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 “(3) BE ENTITLED TO A LUMP SUM RETIREMENT 
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PAY EQUIVALENT TO ONE (1) YEAR HONOARIUM 
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WHICH SHALL IN NO CASE EXCEED ONE HUNDRED 
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THOUSAND PESOS (P100,000.00) TO BE TAKEN FROM 
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THE BARANGAY RETIREMENT FUND; PROVIDED, 
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THAT A RETRIEE IS AT LEAST (60) YEARS OF AGE 
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WITH A MINIMUM OF NINE (9) YEARS IN SERVICE AT 
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THE TIME OF HIS/HER RETIREMENT.  
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“THE TERM “RETIREE” SHALL INCLUDE ALL 
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BARANGAY 
OFFICIALS, 
BARANGAY 
TANODS, 
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MEMBERS 
OF 
THE 
LUPONG 
TAGAPAMAYAPA, 
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BARANGAY HEALTH WORKERS AND BARANGAY DAY 
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CARE WORKERS. 
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[(3)] (4) xxx 
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[(4)] (5) xxx 
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[(5)] (6) xxx 
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(c) xxx 
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(d) xxx” 
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SECTION 2 Barangay Retirement Fund Created. – There is hereby 
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created a Barangay Retirement Fund which shall serve to fund the retirement 
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of Barangay official members mentioned in the preceding paragraph. The 
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amount equivalent to one percent (1%) of the share of the national 
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government under Section 284 of the Local Government Code of 1991, as 
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amended, shall be used for this purpose.  
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The appropriate disbursement of the Barangay Retirement Fund shall 
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be under the administration of the Department of the Interior and Local 
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Government (DILG).  
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SECTION 3. Implementing Rules and Regulations. – The 
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Department of Budget and Management, in coordination with the DILG, 
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shall formulate the necessary rules and regulations for the effective 
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implementation of this Act.  
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SECTION 4. Separability Clause. – If any provision of this Act is 
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declared invalid or unconstitutional, the other provisions not affected 
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thereby shall remain valid and subsisting.  
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SECTION 5. Repealing Clause. – All acts, executive orders, 
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memorandum circulars/guidelines and other issuances or parts thereof, 
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which are inconsistent with this Act, are hereby repealed or modified 
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accordingly. 
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SECTION 6. Effectivity. – This Act shall take effect fifteen (15) days 
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after its publication in the Official Gazette or in two (2) newspapers of 
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general circulation. 
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Approved. 
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