TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
SENATE
1115
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25 AUG -7 P3 :05
RHCEiVcD BV,
Introduced by SEN. WIN GATCHALIAN
AN ACT
STRENGTHENING THE BARANGAY AS THE BASIC LOCAL GOVERNMENT UNIT 
BY INCREASING ITS CAPACITY TO DELIVER SERVICES, PROVIDING SALARY 
GRADES, RETIREMENT BENEFITS AND OTHER ENTITLEMENTS OF CERTAIN 
BARANGAY OFFICIALS, INCREASING THEIR TERM OF OFFICE, AND OTHER 
PURPOSES, AMENDING REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991, AND OTHER RELATED LAWS
EXPLANATORY NOTE
Section 384 of Republic Act No. 7160 or the Local Government Code of 1991 
acknowledges barangays as the basic political unit serving as "the primary planning and 
implementing unit of government policies, plans, programs, projects, and activities in the 
community, and as a forum wherein the collective views of the people may be expressed, 
crystallized and considered, and where disputes may be amicably settled."
The barangay plays a crucial role in our society, it being a major partner of the 
national government in responding to development challenges at the grassroots level, 
particularly on the effective and efficient service delivery to the community. It is a 
microcosm of the government, which by itself is authorized to enact laws, enforce them,
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exercise judicial functions in the performance of its katarungang pambarangay duties, 
and enforce peace through the tanods. While a barangay's political jurisdiction may be 
small compared to other local government units (LGUs), they play a big part in the 
efficient and effective delivery of public services.
Unfortunately, the benefits and privileges provided in the Local Government Code 
for barangay officials are not commensurate with the herculean task performed by 
barangays. Barangay officials continue to be ranked the lowest among all civil servants 
in terms of remuneration, benefits and other privileges received. In order to give LGUs 
the self-sufficiency envisioned by the government, it is necessary to provide them the 
environment and support conducive to productive leadership.
Accordingly, this measure mandates the creation of a position, classification and 
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. It also 
extends the tenure of service of the Barangay Chairman and Kagawads to provide a 
longer implementation period of programs at the barangay level. It creates a Barangay 
Retirement Gratuity Fund which shall be used to fund the government's share in the 
retirement gratuity of barangay tanods and members of the Lupon ng Tagapamayapa. It 
likewise directs the creation of capacity development and enhancement programs for 
barangay officials to provide the necessary skills support in implementing various 
government programs. Lastly, it establishes the barangay income classification system to 
be used in the formulation of a compensation and benefits scheme and grant of honoraria
and allowances. 
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In view of the foregoing, the immediate passage oKhis bilMs^^amestly sought.
IN GATGHAUAN


TWENTIETH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE 
S.B. No.
C-'V'I 
I.
25 AUG-7 P3:05
REC£lViL>87.
Introduced by SEN. WIN GATCHALIAN
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AN ACT
STRENGTHENING THE BARANGAY AS THE BASIC LOCAL GOVERNMENT 
UNIT BY INCREASING ITS CAPACITY TO DELIVER SERVICES, PROVIDING 
SALARY GRADES, RETIREMENT BENEFITS AND OTHER ENTITLEMENTS OF 
CERTAIN BARANGAY OFFICIALS, INCREASING THEIR TERM OF OFFICE, 
AND OTHER PURPOSES, AMENDING 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. Short Title. - This Act shall be known as the "Magna Carta for 
Ba rang ay Officials Act".
SEC. 2. Declaration of Policy. - It is the policy of the State to strengthen, 
develop, and improve the general welfare of the barangay, its officials and residents. 
In line with this policy and in cognizance of the crucial role of the barangays through 
its barangay officials in nation-building, the State shall empower the barangay elective 
officials and appointive personnel through extending the term of office to better 
implement programs at the barangay level; provision of salary grades, remuneration.


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benefits, allowances, retirement benefits and other entitlements commensurate to the
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status as civil servants of the basic local government units in our country; and ensure
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the promotion of the capacity and welfare of barangay officials and personnel to
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safeguard the faithful execution of their duties and functions.
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SEC. 3. Section 43 of Republic Act 7160 (RA 7160), otherwise known as the
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"Local Government Code of 1991", is hereby amended to read as follows:
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"Section 43. Term of Office. -
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(a) XXX
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(b) No local elective official shall serve for more than three (3)
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consecutive terms in the same position^, EXCEPT FOR
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BARANGAY OFFICIALS WHO SHALL NOT SERVE
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FOR MORE THAN TWO (2) CONSECUTIVE TERMS IN
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THE SAME POSITION. Voluntary renunciation of the
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office for any length of time shall not be considered as an
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interruption in the continuity of service for the full term for
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which the elective official concerned was elected.
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(c)The term of office of barangay officials and members of
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the sangguniang kabataan shall be for [three (3) years]
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FIVE (5) YEARS, [which shall begin after the regular
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election of barangay officials on the second Monday of May
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4994.]"
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SEC. 4. Section 11 of Republic Act No. 10742, otherwise known as the
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"Sangguniang Kabataan Reform Act of 2015", is hereby amended to read as follows:
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"Sec. 11. Term of Office. - (a) The chairperson and members
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of the Sangguniang Kabataan shall hold office for a fixed term
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of [three (3)] FIVE (5) years unless sooner removed for


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cause, permanently incapacitated, have died or resigned from 
office."
SEC. 5. Section 1 of Republic Act No. 11462 is hereby amended to read as
follows:
Section 1. Date of Election. - There shall be synchronized 
barangay and sangguniang kabataan elections, which shall be 
held on July 15, 2002. Subsequent synchronized barangay and 
sangguniang kabataan elections shall be held on the last 
Monday of October 2007 and every three (3) years thereafter: 
Provided, That the barangay and sangguniang kabataan 
elections on the second Monday of May 2020 shall be 
postponed to December 5, 2022. Subsequent synchronized 
barangay and sangguniang kabataan elections shall be held 
on the first Monday of December 2025 and every [three (3)}
FIVE (5) years thereafter."
SEC. 6. A new Sec. 389-A of RA 7160 is hereby inserted to read as follows:
Section 389-A. COMPENSATION AND BENEFITS OF 
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.


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SEC. 7. A new Sec. 391-A shall be inserted in RA 7160 to read as follows:
Section 391-A. COMPENSATION AND BENEFITS OF 
MEMBERS OF SANGGUNIANG BARANGAY.- THE 
MEMBERS OF THE SANGGUNIANG BARANGAY SHALL 
BE CONSIDERED AS REGULAR GOVERNMENT 
EMPLOYEES, ENTITLED TO THE FIXED 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. 8. Sec. 393 of RA 7160 is hereby amended to read as follows: 
Section 393. Benefits of MEMBERS OF THE LUPON 
TAGAPAMA YAPA AND BARANGA Y TANODS. - 
(a) [Barangay-officials; including] [b]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 
shall it be less than [One] TWO thousand pesos [(P1,000.00)] 
(P2,000.00) per month [for the punong barangay and Six 
hundred pesos (P600.00) per month for the sangguniang
barangay—members,—barangay treasurer^—and—barangay
secretary]: 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;


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(b) [The-pwong barangay, the Gangguniang barangay
members,—the—barangay trea5oreF7—and—the—barangay
secretaryj THE BARANGAY TANODS AND MEMBERS OF 
THE LUPON TAGAPAMAYAPA shall also:
(1) Be entitled to Christmas bonus of [at ieast One 
thousand pesos (PI,000.00) each] TWO THOUSAND 
PESOS (P2,000)/ 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) XXX
(6) BE ENTITLED TO A LUMP SUM RETIREMENT 
GRATUITY PAY EQUIVALENT TO ONE (1) YEAR 
HONORARIA TO BE TAKEN FROM THE 
BARANGAY RETIREMENT GRATUITY FUND: 
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. 9. Sec. 394-A of RA 7160 is hereby inserted to read as follows:
Section 394-A. COMPENSATION AND TERM OF 
OFFICE OF 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.


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THE BARANGAY SECRETARY SHALL BE 
COTERMINUS WITH THE APPOINTING AUTHORITY 
UNLESS SOONER REMOVED FOR CAUSE, FOUND TO 
HAVE FAILED FROM THE DISCHARGE OF THEIR 
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. 10. Sec. 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 
appointment of the barangay treasurer shall not be subject to
attestation by the Civil Service Commission.]
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SEC. 11. Sec. 395-A of RA 7160 is hereby inserted to read as follows:
Section 395-A. COMPENSATION AND TERM OF 
OFFICE OFBARANGA Y 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


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UNLESS SOONER REMOVED FOR CAUSE, FOUND TO 
HAVE FAILED FROM THE DISCHARGE OF THEIR 
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. 12. Sec. 399 of RA 7160 is hereby amended to read as follows:
Section 399. Lupong Tagapamayapa. - 
(a) There is hereby created in each barangay a lupong 
tagapamayapa, hereinafter referred to as the lupon, 
composed of the punong barangay, as chairman and ten 
(10) [to twenty-(20)} members. The lupon shall be 
constituted every [three (3)] FIVE (5) years in the 
manner provided herein.
SEC. 13. 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.


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SEC. 14. 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 Treasurers, 
and the Department of Justice (DOJ) shall assist in the development of programs for 
Barangay Tanods and Members of the Lupon Tagapamayapa.
The concerned agencies 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. 15. 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 barangay officials under this Act.
SEC. 16. Implementing Rules and Regulation. -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.


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SEC. 17. 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. 18. 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. 19. Separability Clause. - If for any reason any section or provision of this 
Act is declared to be unconstitutional or invalid, the other sections or provisions thereof 
which are not affected thereby shall continue to be in full force and effect.
SEC. 20. Repeating Clause. - All laws, decrees, orders, rules or regulations, or 
parts thereof inconsistent with the provisions of this Act are hereby repealed, amended 
or modified accordingly.
SEC. 21. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in a newspaper of general circulation in the Philippines.
Approved,