RECEIVED
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘TIME __ o2:4d ym

20" CONGRESS
First Regular Session

HOUSE BILL No. 1662

Introduced by REPRESENTATIVE FRANCISCO PAOLO P. ORTEGA V

AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY
TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY
HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, A LUMP

SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR
HONORARIUM, AMENDING FOR THE PURPOSE SECTION 393 OF
REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

As the basic political unit in the country, it is expected that people who work for the
barangays are continuously and tirelessly serving citizens day even during the wee hours.
However, the compensation received by these people is disproportionate to the responsibilities that

they perform. Furthermore, the retirement benefits granted to barangay officials and employees
are also menial.

In order to recognize the efforts of the barangay officials and employees, this bill aims to
grant them a lump sum retirement pay equivalent to their one-year honorarium. This is to give

due recognition to barangay workers who not only served diligently but also served their respective
barangays for many years.

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

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
20th CONGRESS

First Regular Session

HOUSE BILL No._1662

Introduced by REPRESENTATIVE FRANCISCO PAOLO P. ORTEGA V

AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY
TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY
HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, A LUMP

SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR
HONORARIUM, AMENDING FOR THE PURPOSE SECTION 393 OF
REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

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

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

“Sec. 393, Benefits of Barangay Officials. — (a) Barangay officials, including 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 Thousand
Pesos (P1,000.00) per month for the punning 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 the Title Five, Book II of this Code.”

“bX Xx

“(xxx

“Q)xxx

“(3) BE ENTITLED TO A LUMP SUM RETIREMENT PAY EQUIVALENT TO ONE
(1) YEAR HONORARIUM WHICH SHALL NO CASE EXCEED ONE HUNDRED
THOUSAND PESOS (P100,00.00) TO BE TAKEN FROM THE BARANGAY RETIREMENT

FUND; PROVIDED, THAT A RETIRIEE IS AT LEAST (60) YEARS OF AGE WITH A
MINIMUM OF NINE (9) YEARS IN SERVICE AT THE TIME OF HIS/HER RETIREMENT.


“THE TERM “RETIREE” SHALL INCLUDE ALL BARANGAY OFFICIALS, BARANGAY
TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY HEALTH
WORKERS AND BARANGAY DAY CARE WORKERS.

[G)] (4) xxx
{(4)] (S) xxx
{(5)] (6) xxx
(©) Xxx

(d) xxx”

Section 2. Barangay Retirement Fund Created. — There is hereby created a Barangay
Retirement Fund which shall serve to fund the retirement of Barangay official members mentioned
in the proceeding paragraph. 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 used for this purpose.

Section 3. Implementing Rules and Regulations. — The Department of Budget and
Management, in coordination with the DILG, shall formulate the necessary rules and regulations
for the effective implementation of this Act.

Section 4. Separability Clause. If any provisions of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting

Section 5. Repealing Clause. All acts, executive orders, memorandum circulars/
guidelines and other issuances or parts thereof, which are inconsistent with this Act, are hereby
repealed or modified accordingly.

Section 6. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspaper of general circulation.

Approved,