Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

76

HOUSE BILL No.

Introduced by: Rep. RAUL V. DEL MAR

EXPLANATORY NOTE

‘The attached Bill seeks to provide incentives to Barangay Officials, including
Barangay Tanods and Members of the Lupong Tagapamayapa and Barangay employees.

Compared to other government employees in local government units, Barangay
officials and Barangay employees are the lowest paid and the least benefited in terms of
government employment benefits and privileges. And yet our Barangay officials are the
frontliners, so to speak, the government workers who make democracy work at the
grassroots level. They have a job to do under existing law and, as a general rule, they
strive to do their job well, particularly in the area of peace and order and community
relations, despite the limited resources made available to them.

Foremost of the benefits granted the Barangay officials and Barangay employees
is the exemption from income tax of their salaries wages, compensation, remuneration
and other emoluments, such as honoraria and allowances, including any benefits that
they may receive from government on account of their work or employment. Added to
this are some equally important benefits: (a) benefit coverage under the Government
Service Insurance System; (b) coverage under existing medical and health service
programs of government under existing laws; and (c) free legal representation in the
event that any Barangay official or employee is involved as party litigant in any
administrative or criminal case as a result of or connected with the performance of his
official duties.

In sum, the proposed legislation, in a sense, seeks to give due recognition to the
important job being performed by these grassroots workers and to acknowledge the
important tole being played by the smallest territorial unit and political subdivision of
government called the Barangay.

In view of the foregoing, approval of the Bill is earnestly requested.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

HOUSEBILLNO.___— 76

Introduced by: Rep. RAUL V. DEL MAR

AN ACT
PROVIDING INCENTIVES TO ALL BARANGAY OFFICIALS, INCLUDIN'
BARANGAY TANODS AND MEMBERS OF THE LUPONG TAGAPAMAYAP.:
AND BARANGAY EMPOYEES AND FOR OTHER PURPOSES

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

SECTION 1. Title. This Act shall be known as the “Barangay Incentives Act of
2004”.

SEC. 2. Declaration of Policy. It is the declared policy of the State to promote
and enhance the efficiency and responsiveness of barangay officials and employees, the
government workers who make democracy work at the grassroots level in the smallest
territorial and political subdivision of the government which is the barangay. To achieve
this objective, the State shall adopt measures and provide such incentives not only to help
ensure the faithful performance of the duties and functions of barangay officials and
employees but also to raise their quality of life.

SEC. 3. Tax Exemption, All amounts received by barangay officials, including
Barangay Tanods and members of the Lupong Tagapamayapa, hereinafter particularly
referred to as “barangay officials and barangay employees”, as salaries, wages,
compensation, remuneration and other emoluments, such as honoraria and allowances
shall be exempt from income taxation. Gross benefits received by such officials and
employees, of whatever kind or character, shall likewise be exempt from taxation.

SEC. 4. Exemption from Capital Gains and Transfer Taxes. The sale,
exchange or disposition of real property by barangay officials and barangay employees


shall be exempt from capital gains and other national taxes as long as the proceeds of
such sale, exchange or disposition shall be directly and exclusively used by such officials
and employees to acquire a house and lot, not exceeding $00 square meters, for family
dwelling. The acquisition of such house and lot for family dwelling purposes shall
likewise be exempt from any national or local taxes and fees in connection with the
transfer and registration of such property in the name of the barangay official or barangay
employee concerned.

SEC. 5. GSIS Benefit Coverage. All barangay officials and barangay employees
shall be considered members of the Government Service Insurance System (GSIS) and
shall be covered with life insurance and social security protection, including retirement,
disability, separation and unemployment benefits and such other benefits as may
extended by the GSIS, subject to limitations provided by law.

The GSIS shall make special provisions in order to facilitate the inclusion of
barangay officials and barangay employees, in the benefit coverage of GSIS.

SEC. 6. Health Benefits. Government medical and health insurance programs
under existing laws shall include in their coverage free basic health services and medicine
to barangay officials and barangay employees.

SEC. 7. Legal Representation. Barangay officials and barangay employees who
may be involved as party litigants in administrative or criminal cases filed in connection
with the performance of their official duties shall, as a member of right, be entitled to the
free legal services of the Public Attomey’s Office (PAO) who shall facilitate the legal
representation of the such officials and employees by a counsel.

Such benefit of legal representation shall include an exemption from payment of
docket and other lawful fees, and of transcripts of stenographic notes which the court
may order to be furnished the barangay officials and barangay employees.

SEC. 8. Implementing Rules and Regulations. Within six (6) months from the
effectivity of this Act, the Department of Interior and Local Government, in
coordination and consultation with the Department of Justice, the Department of Health,
the Government Service Insurance System and other agencies concemed, shall
promulgate such rules or guidelines as may be necessary for the proper implementation
of this Act.

SEC. 9. Separability Clause. If any provision of this Act or the application of
such provision to any person or circumstances is declared unconstitutional, the remainder


of this Act or the application of such provision to other persons or circumstances shall not
be affected by such declaration.

SEC. 10. Repealing Clause. All laws, decrees, orders, rules and regulations or
parts thereof which are inconsistent with or contrary to the provisions of this Act are
hereby amended, modified or repealed accordingly.

SEC. 11. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,