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Republic of the Philippines | RECEIVED
HOUSE OF REPRESENTATIV) :
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._ 2463

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

Under Section 81 of Republic Act No. 7160, otherwise known as the
Local Government Code of 1991, the compensation of local officials and
employees shall be determined by the local sanggunian concemed. The
same law lays down the limitations and conditions in the grant of any
increase in their compensation. This provision is based on the principle that
local officials and employees must be properly compensated.

However, while much depends on the availability of local government
funds to sustain such increase in the special allowance of local government
officials and employees, there is no denying that many of our civil servants
are teetering in the brink of economic difficulties with the soaring pricing of
basic commodities and services. Under the circumstances, additional
allowances to boost the purchasing power of local government officials and
employees is justified.

For the foregoing reason, the immediate passage of this proposed
measure, previously filed as House Bill No. 198 in the Sixteepth-Congress
by the undersigned, is earnestly urged.

ARTHUR C. YAP
Representative



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

ENTEENTH CONGRESS
First Regular Session

House Bill No._& 403

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT
GRANTING ADDITIONAL COMPENSATION IN THE
FORM OF SPECIAL ALLOWANCES FOR ALL LOCAL
GOVERNMENT OFFICIALS AND EMPLOYEES AND
FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - It is hereby declared the
policy of the State to maintain and keep a roster of qualified, committed and
efficient local government officials and employees by providing them
with incentives commensurate to their positions and functions.

SECTION 2. Grant of Special Allowances. - To carry out the
declared policy of this Act, all local government official and employees shall
be granted special allowances in amounts to be determined by the local
sanggunian concerned in consultation with the Secretary of the Department
of Budget and Management (DBM).

The grant of special allowances shall be in such amounts and up to the
extent only that can be supported by the funding source specified in Section

3 hereof: Provided, that the said special allowance shall not exceed one


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hundred percent (100%) of the basic salary of the local government officials

and employees concerned, as provided in Republic Act No. 6758, otherwise
known as the Salary Standardization Law, as amended : Provided further,
that said special allowances shall not cause to exceed the limitations on
budgetary allocations for personal services provided under Title V, Book II
of Republic Act No. 7160, otherwise known as the Local Government Code
of 1991.

SECTION 3. Funding Source. - The amount necessary to
implement the additional compensation in the form of special allowances
granted under this Act shall be sourced from the collections of the real
property taxes of the concerned local government units which shall be made
available for payment of benefits herein provided.

SECTION 4. Effects of Subsequent Salary Increases. - Upon
implementation of any subsequent increases in the salary rates provided
under Republic Act No. 6758, as amended, all special allowances granted
under this Act to all local government officials and employees shall be
considered as an implementation of the said salary increases as may be
provided by law. The special allowance equivalent to the increase in the
basic salary as may be provided by law shall be converted as part of basic
salary: Provided, That the amounts converted as basic salary shall be funded
from the regular appropriations of the local government units concerned.
Any excess in the allowances granted under this Act not converted as basic
salary shall continue to be granted as such and shall continue to be funded

under Section 3 of this Act.


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SECTION 5. Implementing Rules and Regulations. -The DBM
shall issue the necessary rules and regulations for the effective
implementation of this Act not later
than ninety (90) days from approval hereof.

SECTION 6. Separability Clause. - If any provision of this Act, or
any parts thereof, is declared unconstitutional, the same shall not affect the
validity and effectivity of the other portions.

SECTION 7. Repealing Clause. - All laws, executive orders,
presidential decrees, proclamations, rules, regulations, issuances and
enactments of parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 8. Effectivity. - This Act shall take effect fifteen (15) days
from its complete publication in the Official Gazette of in a newspaper of

general circulation in the Philippines, whichever comes earlier.

APPROVED.