Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2645

INTRODUCED BY HONORABLE CHERYL P. DELOSO-MONTALLA

AN ACT
ESTABLISHING THE MAGNA CARTA FOR BARANGAYS
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The barangay is the smallest territorial and political subdivision of government. As the
basic political unit, the barangay serves as the primary planning and implementing unit of
government programs, projects and activities. It is also the forum in which the collective views of
the people in the community may be crystallized and considered. The dynamics in the affairs of
the barangay is defined by its officials and employees who are the front liners in the efficient and
effective delivery of basic social services. In addition to the heavy burden and the intricacies of
running the affairs of the barangay, the barangay officials and employees, most especially in times
of disaster, are at the risk in maintaining peace and order and in keeping the balance of the dynamic
social order. These risks often pose danger to lives and limbs of the barangay officials and
employees who serve on meager honoraria or on voluntary basis.

It is in recognition of the significant role of the barangay and of the more than 120,000
barangay officials and employees all over the country who make the basic government unit — the
barangay — operative, that this bill is being filed. The intent of this bill include:

1. That barangay officials be considered as regular government employees with fixed
salaries, allowances, insurance, medical and dental coverage, retirement benefits
and other fringe benefits to which a regular government employee is entitled to;

2. Basic priorities such as regular supply of clean and potable water, public

transportation, schools, health centers and Barangay halls, should be provided

every barangay;

Automatic release of share from national taxes;

Transfer of funds to barangay for the maintenance of roads and bridges;

Mandatory share of barangays in taxes, fees and other charges;

Priority in employment.

ayaye

Itis in this light that this bill is being filed and its immediate passage is earnestly sought.

‘HERYL P. DELOSO MONTALLA
Representative
2% District, Zambales


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNo.__2545_

INTRODUCED BY HONORABLE CHERYL P. DELOSO-MONTALLA

AN ACT
TO ESTABLISHING THE MAGNA CARTA FOR BARANGAYS
AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “Magna Carta for Barangays”.

SECTION 2. Declaration of Policy. - The State recognizes the role of the barangay
officials and employees in making democracy work in the smallest territorial and political unit of
government which is the barangay. Anent this, it is hereby declared the policy of the State to
promote and enhance efficiency and responsiveness of barangay officials and employees by
adopting measures and incentive schemes that shall foster and ensure the faithful performance of
their functions and duties as well as improve their quality of lives.

It is also declared the policy of the State to promote, develop and improve the general
welfare of barangay residents, raise the economic and social status of barangay officials, grant
every barangay, the basic facilities for decent, healthy and comfortable living therein and provide
new measures that will insure its enjoyment of local autonomy to ensure the effective performance
of its role as the primary planning and implementing unit of government programs, projects and
activities, and as a forum in which the collective views of the people in the community may be
crystallized and considered.

SECTION 3. Barangays Officials and Employees Defined. - For all intents and purposes
of this Act, Barangay Officials shall mean and include the Punong Barangay, Barangay Kagawad,
Barangay Secretary and Treasurer, Sangguniang Kabataan (SK) Chairman, in his/her capacity as
ex-officio member of the Sangguniang Barangay.

Employees shall include Barangay Tanods, Barangay Health Workers and all other
employees of the barangay whose positions were or will be created by the barangay as are
necessary for the effective and efficient delivery of the basic social services afforded by the it.

As defined in this Act, the word “employee” shall be used only for the purpose of availment
of benefits herein included and shall preclude those that are or may be defined in any other law,
decree, rule, regulation or issuance relating to employer-employee relationship.

CHAPTERI

BARANGAY OFFICIALS AS REGULAR
GOVERNMENT EMPLOYEES

SECTION. 4. The Barangay Officials as Regular Government Employees. ~The Punong
Barangay, Sangguniang Barangay members, the Sangguniang Kabataan Chairman, the Barangay
Secretary and Barangay Treasurer in all barangays are hereby declared regular government


employees, and as such are entitled to fixed salaries, allowances, insurance, medical and dental
coverage, retirement benefits and such other fringe benefits to which a regular government
employee may be entitled to.

SECTION. 5. Salaries of Barangay Officials. - As soon as the appropriate steps and
measures are undertaken by each city or municipality in coordination with the individual barangay
involved on matters relating to the sources of fund and the corresponding appropriation ordinance,
which in no case shall be later than six (6) months from the approval hereof, all barangay officials
mentioned in paragraph 4 hereof, shall be entitled to the following fixed salaries:

(a) Punong Barangay - An amount equivalent to the salary of a sangguniang bayan member
of his municipality.

(b) Six Sangguniang Barangay Members - An amount equivalent to eighty percent (80%)
of the salary of a sangguniang bayan member of his municipality.

(©) Sangguniang Kabataan Chairman, Barangay Secretary, Barangay Treasurer - For each,
an amount equivalent to seventy-five percent (75%) of the salary of a sangguniang
bayan member of his municipality.

CHAPTER I

INCENTIVES AND BENEFITS OF
BARANGAY OFFICIALS AND EMPLOYEES

SECTION 6. Incentives and Benefits of Barangay Officials and Employees. - All
barangay officials and employees are hereby entitled to the following benefits:

a. Inclusion in the GSIS Coverage. All barangay officials and employees including the
members of the Lupong Tagapamayapa, upon assumption into office and during the
entire course of their incumbency, shall automatically be covered with life insurance,
social security protection, disability, separation, unemployment, retirement, death,
burial and such other benefits as may be extended by the Government Service Insurance
System (GSIS). Provided, that, the GSIS shall make special provisions in order to
facilitate the inclusion of all barangay officials and employees in its benefit coverage.
Provided, further, that, their inclusion shall be subject to limitations provided by law.

b. Inclusion in the coverage of the Philippine Health Insurance Corporation (PHIC). All
barangay officials and employees including the Lupong Tagapamayapa shall, upon
assumption into office and during their term or tenure, be enrolled into the National
Health Insurance Program for the purpose of availing adequate package of personal
health services that shall include but not limited to in- and out-patient hospital care,
emergency and transfer services and other supplementary health benefits that may be
provided by the PHIC.

c. Legal Representation. All barangay officials and employees including the members of
the Lupong Tagapamayapa who may be involved as party litigants in administrative or
criminal cases filed in connection with the discharge of their official duties shall be
entitled to free legal services. The Public Attorney’ s Office shall forthwith facilitate the
legal representation of a barangay official or employee by counsel upon receipt of an
official request for legal representation by the said barangay official or employee.

d. Tax exemption. All amounts received by barangay officials and employees such as
salaries, wages, compensation, remuneration and any other emoluments such as
honoraria and allowances shall be exempt from income taxation. Gross benefits
received by such officials and employees, of whatever kind, nature or character, shall
likewise be exempt from taxation.


The sale, exchange or disposition of real property by barangay officials and employees
including the members of the Lupong Tagapamayapa shall also be exempt from capital
gains and other local and national taxes and fees. Provided, that, such sale, exchange
or disposition shall be directly and exclusively used by such official or employee for
the acquisition of a house and lot for family dwelling, the lot area of which shall not
exceed 200 square meters. The acquisition of such house and lot for family dwelling
shall likewise be exempt from national or local taxes and fees in connection with the
transfer and registration of such property in the name of the barangay official or
employee concerned.

e. Hazard Pay. The Punong Barangay, members of the Sangguniang Barangay Barangay
Tanods and Barangay Health Workers shall be granted a hazard pay equivalent to one
(1) thousand pesos a month during their term or tenure of office.

f. Total or Permanent Incapacity or Disability. In the event of total or permanent
disability in connection with the discharge of their official duties and functions, the
Punong Barangay, members of the Sangguniang Barangay, Barangay Tanods and
Barangay Health Workers shall be entitled to five (5) thousand pesos as disability
benefit.

g. Death and Burial Benefits. In the event of death of a barangay official or employee in
connection with the discharge of his/her official duty or function, he/she shall be
entitled to ten (10) thousand pesos as burial assistance.

SECTION 7. Barangay Retirement Fund Created. - There is hereby created a Barangay
Retirement Fund (BRF) which shall be used to fund the retirement of barangay officials and
employees mentioned in this Act. The amount equivalent to one (1) percent of the share of the
national government under Section 284 of the Local Government Code of 1991 (RA 7160), as
amended shall be used for this purpose.

The Department of Interior and Local Government (DILG) shall administer and ensure the
appropriate disbursement of the BRF.

SECTION 8. Disqualification from Availment of Benefits. - No benefit shall be given to
a barangay official or employee or his/her beneficiaries when the injury, sickness, disability or
death is a result or caused by:
a. His/her habitual drunkenness, intoxication or drug addiction;
b. His/her willful intention to injure or kill himself or another;
c. His/her unauthorized absence or abandonment of post.
CHAPTER III

BASIC PRIORITIES IN THE BARANGAY

SECTION. 9. Drinking Water for Every Barangay. - It is the right of every barangay to
have a regular supply of clean and potable water. To attain this goal, every city or municipality, as
the case may be, is hereby required to construct and/or maintain at least one deep well with
pumping device for drawing drinking water to supply the needs of every one thousand residents
for each barangay within its jurisdiction.

SECTION. 10. Transportation for Every Barangay. - Itis also the right of every barangay
to have public transportation available at least once a day. For this purpose, every municipality or
city, as the case may be, should make such necessary representations before the appropriate
government agencies to require public utility companies operating within its jurisdiction to provide
the minimum means of transportation in every barangay.


SECTION. 11. Schools, Health Centers and Barangay Halls for the Barangays. - Every
barangay is entitled to have at least one elementary school, provided that there shall be at least one
high school for every five (5) kilometers from the barangay center. It shall also be the right of
every barangay to have one health center and one barangay hall.

CHAPTER IV
MEASURES TO ASSURE THE ENJOYMENT OF LOCAL AUTONOMY

SECTION. 11. Automatic Release of share from National Taxes. - It shall be the duty
of the National Treasury to remit automatically to the barangays every end of the calendar year
their just share from the national taxes.

SECTION. 12. Transfer of Funds to Barangay for the Maintenance of Roads and
Bridges. - All public funds appropriated from the national treasury for the maintenance of barangay
roads and bridges and other similar constructions shall be transferred or remitted directly to the
general fund of every barangay for their proper disposition by the barangay officials.

SECTION. 13. Mandatory Share of Barangays in All Taxes, Fees or Other Charges. -
Twenty-five percent (25%) of all taxes collected on real property located within the barangay shall
be considered barangay funds and shall be allocated in accordance with existing laws. In addition
thereto, each barangay shall be entitled to ten percent (10%) from all other forms of taxes, fees,
penalties, compromises or other charges collected from persons residing in the barangay or entities
whose office and/or manufacturing plant is located within the barangay.

SECTION. 14. Equitable Share of the Barangay from the Proceeds of the Utilization
and Development of National Wealth. - For the exploitation, utilization and development of
natural resources within its territory, Every barangay shall be entitled to an equitable share of the
proceeds derived from.

The amount of barangay share shall be determined by the city or municipality concerned
after consultations with the concessionaires, the municipal or city officials and barangay officials,
taking into account the extent of the exposure of the barangay residents to pollution, flood and
ecological imbalance: Provided, however, That this equitable sharing rate for each barangay shall
be resolved by all parties concerned not later than six (6) months from the approval of this Act.

Revenues derived from this source shall also from part of the general fund of the barangay.
CHAPTER V
SUNDRY MATTERS

SECTION. 15. Scholarship Grant. - Every barangay shall sponsor at least one scholarship
grant every year leading to any Bachelor's degree to be awarded by a committee of five persons
appointed by the Sangguniang Barangay with the approval of the Punong Barangay after
competitive examinations are given to applicants who should be bona fide residents of the
barangay. The grant shall include tuition fees and all other school fees, reasonable allowances for
schoolbooks, supplies and transportation and other expenses as the barangay may deem
appropriate.

SECTION. 16. Priority in Employment. - Residents in every barangay shall have the
priority in the hiring of workers and laborers to be needed in any government construction or
development projects within the barangay.

SECTION. 17. Cooperative Enterprise. - Cooperative enterprises in the barangay shall be
encouraged and every barangay is directed to give full assistance for the establishment and


organization of said enterprises and to take every possible effort to make cooperative undertakings
a way of life in the barangay.

CHAPTER VI
ADMINISTRATION AND ENFORCEMENT

SECTION. 18. Implementing Rules and Regulations. - Within 120 days from the
effectivity of this Act, the Department of Interior and Local Government (DILG), Department of
Health, Department of Justice, GSIS, PHIC and other concerned government agencies, shall come
up with rules and regulations that shall govern the implementation of this Act and shall review the
same every five (5) years or as frequently as may be necessary.

SECTION. 19. Budgetary Estimates. - The Secretary of Department of Interior and Local
Government shall submit to the Congress the necessary budgetary estimates to implement the
provisions of this Act concerning the allowances, insurance, medical, dental and retirement
benefits and other fringe benefits of barangay officials, the basic priorities in the barangays and
the barangay scholarship grant.

The fund necessary to carry out the provisions of this Act shall be included in the annual
General Appropriations Act. The fund shall be managed by a body whose members shall include
the Secretary of the DILG who shall head the body, a representative of the GSIS and PHIC, the
chairmen of the Senate and House Committees on Local Government, the President of the National
Liga ng mga Barangay and a representative of the Commission on Audit.

SECTION. 20. Penal Provision. - Any person who shall willfully interfere with, restrain
or coerce any barangay official or barangay resident in the exercise of his or their rights guaranteed
by this Act or who shall in any other manner commit any act to defeat any of the provisions of this
Act shall, upon conviction, be punished by a fine of not less than five hundred pesos nor more than
two thousand pesos, or by imprisonment or six months and one day, or both, subject to the
discretion of the court. If the offender is a public official, the court shall order his dismissal from
the government service.

CHAPTER VII
FINAL PROVISIONS

SECTION 21. Separability Clause. - If any provision or the application of any provision
of this Act is declared unconstitutional, there remaining provisions not affected thereby shall
remain in full force and effect.

SECTION 22. Repealing Clause. - All laws, rules, regulations, decrees, executive orders
and other issuances or parts thereof which are inconsistent with this Act are hereby repealed,
modified or amended accordingly.

SECTION 23. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in two (2) newspapers of national circulation.

Approved,