RECEIVED
Republic of the Philippines 70 WN 205
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO._583

Introduced by Representative Jaime R. Fresnedi

EXPLANATORY NOTE

This bill seeks to align the benefits of barangay officials with the salary grades of
government employees and to ensure fair compensation, retirement benefits, and
professional development for barangay officials, including the Punong Barangay,
members of the Sangguniang Barangay, barangay tanods, and members of the Lupong
Tagapamayapa. This ensures that the Punong Barangay receives at least Salary Grade 12
(SG-12) (P32,245) and members of the Sangguniang Barangay receive at lease Salary
Grade 10 (SG-10) (P25,586), along with all applicable government benefits!. This move
will professionalize their roles and ensures they are compensated fairly for their critical
work in serving communities.

Barangay officials are currently compensated with honoraria rather than regular
salaries. These honoraria, with a minimum of P1,000 per month for the Punong Barangay
and P600 per month for Sangguniang Barangay members, the Barangay Secretary and the
Barangay Treasurer, depending on the size and income of the barangay, are not enough to
reflect the complexity and importance of their duties. These are insufficient to meet basic
living expenses, especially considering the responsibilities these officials bear in managing
local services, maintaining peace and order and providing critical social services to their
communities. The current compensation structure is outdated and fails to recognize the
evolving role of barangay officials in local governance, leaving them underpaid and
underappreciated.

This proposed legislation also establishes a Barangay Retirement Gratuity Fund to
provide retirement benefits for barangay tanods and members of the Lupon
Tagapamayapa, addressing the lack of post-service security for barangay officials who
have dedicated years of service to the government. This ensures that they are able to retire
with dignity and security after their years of service.

* Second Tranche Monthly Salary Schedule for Civilian Personnel of the National Government (Effective January
1, 2025)

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Furthermore, the development of capacity development enhancement programs for
barangay officials will provide them with necessary training in areas like financial
management, leadership and public administration. This ensures barangay officials are
equipped to serve our communities effectively and efficiently.

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

JAIME/R. FRESNEDI
>presentative
Lone District, Muntinlupa City


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

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No._583

Introduced by Representative Jaime R. Fresnedi

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 House of Representatives of the Phil
assembled:

»pines in Congress

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. A new 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
FIXEDRATE 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, 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] TWO thousand pesos [(P1,000.00)] (2,000.00) 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;

b) [the punong barangay, the sangguniang barangay members, the
barangay treasurer, and the barangay secretary] THE BARANGAY TANODS
AND MEMBERS OF THE LUPON TAGAPAMAYAPA shall also:

1. Be entitled to Christmas bonus of [at least 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. XXX
d) xxx

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 COTERMINOUS 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 appointment of the barangay treasurer shall not be subject to attestation by the
Civil Service Commission. ]

(d)xxx
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 COTERMINOUS 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. ~ The Barangay Retirement
Gratuity Fund (BRGF) 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 Treasurers, and the
Department of Justice (DOJ) shall assist in the development of programs 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.

SEC. 14. Repealing Clause. ~ All laws, decrees, ordinances, administrative order, rules
and regulations, or any part thereof, which are inconsistent with this Act are repealed or
amended accordingly.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette and at least two (2) newspapers of national circulation.

Approved,