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

SEVENTEENTH CONGRESS
‘Second Regular Session

7755

HOUSE BILL NO.

Introduced by Representatives Manuel Luis T. Lopez and Carlo V. Lopez

EXPLANATORY NOTE

The Local Government Code of 1991 as implemented by Executive Order No. 332
and Local Budget Circular No. 63 dated October 22, 1996 (“LBC No. 63”), issued by the
Department of Budget and Management, prescribes the rates of honorarium to be given
to Barangay officials as compensation. According to LBC No. 63, the Punong Barangay
shall be entitled to an honorarium which shall not exceed salary grade 14 while the
honorarium for members of the Sanggunian Barangay, Barangay Secretary and Barangay
Treasurer shall not exceed Salary Grade 10.

This is one of the causes why corruption is very prevalent at this level. Further, a
number of drug and violence related crimes are committed in the various barangays as
some of these officials are greatly susceptible to the acceptance of bribes and patronage
politics in exchange for their giving ‘protection’ to certain individuals and businesses.

It also does not help that Barangay’s often make it difficult for businesses to
operate as it requires a number of clearances and permits. Thus, the red tape bureaucracy
continues to prevail as the business owners and individuals would instead resort to
paying an extra “premium” or giving out “facilitation fees” in order for them to conduct
their business or profession.

This representation sees it fit to standardize the salaries of Barangay Officials by
giving them a decent amount in order for them to properly and fully perform their
functions and duties. By giving these officials a fixed wage including the benefits and
privileges regular government officials enjoy, it will help promote a more stable source
of livelihood and it will help deter them from seeking other extra-legal means of income.

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

HON. MANI IS T. LOPEZ

Repeeséhtative
1 District, City of Manila 2m Districk, City of Manila



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

SEVENTEENTH CONGRESS
Second Regular Session

7755

HOUSE BILL NO.

Introduced by Representatives Manuel Luis T. Lopez and Carlo V. Lopez

AN ACT
AMENDING SECTION 343 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Section 393 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, is hereby amended to read as follows:

“SECTION 393. Benefits of Elected Barangay Officials. - (a)
Elected Barangay officials shall be entitled to receive a minimum
monthly compensation as may be authorized by law. The
compensation of the Punong Barangay shall correspond to Salary
grade 20 provided however, that those Punong Barangays outside of
Metro Manila and other Highly Urbanized Cities shall receive a
minimum monthly compensation corresponding to Salary grade 19.
The compensation of the sangguniang barangay members, barangay
treasurer, and barangay secretary shall correspond to Salary grade
17 if within Metro Manila and other Highly Urbanized Cities otherwise
it shall correspond to Salary grade 16: Provided, finally, That the
annual appropriations for personal services shall be subject to the
budgetary limitations prescribed under Title Five, Book II of this Code;

(b) The Punong Barangay, the Sangguniang Barangay
members, the Barangay treasurer, and the Barangay secretary shall
also:

1. Be entitled to Christmas bonus of at least Twenty Five

Thousand pesos (P25,000.00) each for the Punong Barangay and at
least Fifteen Thousand Pesos each for the Sangguniang Barangay

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members, the Barangay Treasurer and the Barangay Secretary, 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. Be entitled, during their incumbency, to insurance
coverage which shall include, but shall not be limited to temporary
and permanent disability, double indemnity, accident insurance,
death and burial benefits, in accordance with Republic Act Numbered
Sixty-nine hundred forty-two (RA. No. 6942), entitled "An Act
Increasing the Insurance Benefits of Local Government Officials and
Providing Funds Therefor";

3. Be entitled to free medical care including subsistence,
medicines, and medical attendance in any government hospital or
institution: Provided, That such hospital care shall include surgery or
surgical expenses, medicines, X-rays, laboratory fees, and other
hospital expenses;

In case of extreme urgency where there is no available government
hospital or institution, the Barangay official concerned may submit
himself for immediate medical attendance to the nearest private
clinic, hospital or institution and the expenses not exceeding Fifty
thousand pesos (P50,000.00) that may be incurred therein shall be
chargeable against the funds of the Barangay concerned;

4. Be exempted during their incumbency from paying
tuition and matriculation fees for their legitimate dependent children
attending state colleges or universities. He may likewise avail of such
educational benefits in a state college or university located within the
province or city to which the Barangay belongs; and

5. Be entitled to appropriate civil service eligibility on the
basis of the number of years of service to the Barangay, pursuant to
the rules and regulations issued by the Civil Service Commission.

() Elective Barangay officials shall have preference in
appointments to any government position or in any government-
owned or -controlled corporations, including their subsidiaries, after
their tenure of office, subject to the requisite qualifications and the
provisions of the immediately preceding paragraph.

(d) All duly appointed members of the lupon tagapamayapa
and Barangay tanod brigades, or their equivalent, which shall number
not more than twenty (20) in each Barangay are entitled to a
minimum monthly compensation to be determined by Local
Government Unit concerned duly enacted through an ordinance. The
members of the lupon tagapamayapa and Barangay tanod brigades

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shall be granted insurance or other benefits during their incumbency,
chargeable to the Barangay or the city or municipal government to
which the Barangay belongs. Provided, that the annual
appropriations for the minimum compensation of members of the
lupon tagapamayapa and Barangay tanod brigades, or their
equivalent, shall be subject to the budgetary limitations prescribed
under Title Five, Book II of this Code.”

SEC. 2. Implementing Rules and Regulations. - Within sixty (30) days from the
promulgation of this Act, the necessary rules and regulations for the proper
implementation of its provisions shall be formulated by the Department of Budget and
Management (“DBM”) and the Civil Service Commission (“CSC’).

SEC. 3. Repealing Clause. - All laws, ordinances, executive orders, administrative
orders, rules, regulations, decrees, and other issuances or parts thereof, which are
inconsistent with the provisions of this Act are hereby revoked, repealed, or modified
accordingly.

SEC. 4. Separability Clause. - If any provision of this Act is held unconstitutional
or invalid, the other provisions not affected thereby shall continue in operation and

remain in full force and effect.

SEC. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in a newspaper of general circulation or the Official Gazette.

Approved,

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