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Republic of the Philippines fe RECEIVED @
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HOUSE OF REPRESENTATIVES DATE August 16, 2022 rs
Quezon City Wisma 6
NINETEENTH CONGRESS Sey Bai Ray)
First Regular Session FF
HOUSE BILL No. 3701 Wo inpeke

Introduced by REP. REX GATCHALIAN

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, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991, AND OTHER RELATED LAWS

EXPLANATORY NOTE

Under the Local Government Code of 1991 (LGC), barangays are considered
as the primary planning and implementing unit of government policies, plans,
programs, projects, and activities in the community. It also serves as a forum where
the collective views of the people may be expressed, crystallized and considered, and
where disputes among constituents may be amicably settled.

Barangays are the most basic territorial and political subdivision of the
country, and they play a crucial role in nation building. It is the national
government's partner to address challenges at the grassroots level and is vital for the
effective and efficient delivery basic needs to the community. It is a microcosm of the
government, which by itself, is authorized to enact laws, enforce them, as well as
exercise judicial functions with its katarungang pambarangay duties, and enforce
peace and order through its tanods.

It is without a doubt that the barangay officials’ role in the delivery of public
services are expansive. However, the herculean task the national government has
imbued them with is not commensurate with the benefits and privileges provided by

the LGC. Barangay officials, compared to other civil servants, receive among the


lowest remuneration, benefits and other privileges. If we are to effectively give to the
local government units the self-sufficiency and autonomy envisioned by the
Constitution, we must be able to provide the environment and conditions conducive
to a productive leadership.

This bill will mandate the creation of positions, classifications, regularization,
and a compensation scheme for the Punong Barangay, Sangguniang Barangay
members, Barangay Treasurer and Barangay Secretary and the provision of
honoraria and allowances to the members of the Lupon Tagapamayapa and
Barangay Tanods. Moreover, a barangay gratuity fund will be created which shall be
used to fund the government's share in the retirement gratuity of barangay tanods
and members of the Lupon ng Tagapamayapa.

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

c IAN
Representative
« District, Valenzuela City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3701

Introduced by REP. REX GATCHALIAN

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, OTHERWISE KNOWN 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
Congress 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:

“SECTION 389-A. COMPENSATION AND BENEFITS OF THE PUNONG
BARANGAY. - THE PUNONG BARANGAY SHALL BE CONSIDERED A
REGULAR GOVERNMENT EMPLOYEE, ENTITLED TO THE FIXED
RATE OF AT LEAST SALARY GRADE TWELVE (SG-12) 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.”

SEC. 2. Anew 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


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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.”

SEC. 3. Section 393 of RA 7160 is hereby amended to read as follows:

Section 393. Benefits of [Barangay—Officials] MEMBERS OF THE
LUPON TAGAPAMAYAPA AND BARANGAY TANODS. ~

(a) [Barangay-officials, inchiding] 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 shalll it be less than [One] TWO thousand pesos [(P4,000.00}]
(P2,000.00) per month [forthe -punong_barangay_and-Six_hundred
Pp P64 HP eh he-sangguniang be embers;
barangay_treasurer,and-barangay-seeretary: 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;

Be 1y_treasurer,and_the_barangay | THE BARANGAY
TANODS AND MEMBERS OF THE LUPON TAGAPAMAYAPA shall
also:

(1) Be entitled to Christmas bonus of | [atleast One thousand pesos:
{P1,000:00-each] 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) 200c

(d) xxx



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(E) 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;

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

SEC. 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 all the sangguniang
barangay members. [The-appoit the barangay-tre hall

oasis fon by the Git

(b) 200


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SEC. 6. A new Sec. 395-A shall be inserted in RA 7160 to read as follows:

SECTION 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.

SEC.7. Creation of Barangay Retirement Gratuity Fund (BRGF). - The
Barangay Retirement Gratuity Fund is hereby created which shall be used to fund
the government's share in the retirement gratuity of barangay tanods and members
of the Lupon ng Tagapamayapa, as mentioned in this Act. The 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 (DILG) shall administer
and ensure the appropriate disbursement of the fund.

SEC. 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 of Local Government
Finance (BLGF), shall assist in the development of programs for Barangay



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Treasurers, and the Department of Justice (DOJ) shalll assist in the development of
programs for for Barangay Tanods and Members of the Lupon Tagapamayapa.

‘The Programs shall develop comprehensive training manuals, and based
thereon, 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.

SEC. 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.

SEC. 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.

SEC. 11. 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 or Municipality which it is part of. Local government units which do not have
adequate or sufficient funds shall be assisted by the National Government.

SEC. 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 the enactment of this Act.

SEC. 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.


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SEC. 14, Repeating Clause. ~ All laws, executive orders, presidential decrees
or issuances, letter of instruction, administrative orders, rules, and regulations as
well as local ordinances contrary to or inconsistent with the provisions of this Act
are hereby repealed, amended, or modified accordingly.

SEC. 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,