Republic of the Philippines \
HOUSEOF REPRESENTATIVES \
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, 2046

INTRODUCED BY HONORABLE CHERYL DELOSO-MONTALLA

EXPLANATORY NOTE

The barangay is the smallest territorial and political subdivision of government
The dynamics in the affairs of the barangay is defined by its officials and employees
who are the front liners in the efficient and effective delivery of basic social services.

In addition to the heavy burden and the intricacies of running the affairs of the
barangay, the barangay officials and employees, most especially in times of disaster,
are at the risk in maintaining peace and order and in keeping the balance of the
dynamic social order. These risks often pose danger to lives and limbs of the barangay
officials and employees who serve on meager honoraria or on voluntary basis

It is in recognition of the significant role of the more than 120,000 barangay
officials and employees all over the country who make the basic government unit - the
barangay — operative, that this bill is being filed.

The intent of this bill is to provide incentives to barangay officials and employees
including their inclusion in the coverage of the GSIS and PHIC, tax exemption benefits,
death and disablement benefits, free legal assistance and hazard pay. It is hoped that
through the incentive scheme set forth in this bill, barangay officials and employees
would be further motivated to bring the barangay to new and greater heights as a socio-
economic and political entity.

It is in this light that this bill is being filed and its immediate passage is earnestly
sought

CHBRYL DELOSO MONTALLA
resentative
District, Zambales


Republic of the Philippines
HOUSEOF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.___ 2046

INTRODUCED BY HONORABLE CHERYL DELOSO-MONTALLA

AN ACT
PROVIDING INCENTIVES TO BARANGAY OFFICIALS AND EMPLOYEES AND FOR
OTHER PURPOSES

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

SECTION 1. Short Title, This Act shall be known as the Barangay Officials and
Employees Incentives Act of 2013

SECTION 2, Declaration of Policy. The State recognizes the role of the
barangay officials and employees in making democracy work in the smallest territorial
and political unit of government which is the barangay. Anent this, it is hereby declared
the policy of the State to promote and enhance efficiency and responsiveness of
barangay officials and employees by adopting measures and incentive schemes that
shall foster and ensure the faithful performance of their functions and duties as well as
improve their quality of lives.

SECTION 3. Barangays Officials and Employees Defined. For all intents and
purposes of this Act, Barangay Officials shall mean and include the Punong Barangay,
Barangay Kagawad, Barangay Secretary and Treasurer, SK Chairman, in his/her
capacity as ex-officio member of the Sangguniang Barangay, members of the Lupong
Tagapamayapa, Employees shall include Barangay Tanods, Barangay Health Workers
and all other employees of the barangay whose positions were or will be created by the
barangay as are necessary for the effective and efficient delivery of the basic social
services afforded by the it.

‘As defined in this Act, the word “employee” shall be used only for the purpose of
availment of benefits herein included and shall preclude those that are or may be
defined in any other law, decree, rule, regulation or issuance relating to employer-
employee relationship

SECTION 4. Incentives and Benefits of Barangay Officials and Employees. All
barangay officials and employees are hereby entitled to the following benefits

a. Inclusion in the GSIS Coverage. All barangay officials and employees, upon
assumption into office and during the entire course of their incumbency, shall
automatically be covered with life insurance, social security protection,
disability, separation, unemployment, retirement, death, burial and such other
benefits as may be extended by the Government Service Insurance System
(GSIS). Provided, that, the GSIS shall make special provisions in order to
facilitate the inclusion of all barangay officials and employees in its benefit
coverage. Provided, further, that, their inclusion shall be subject to limitations
provided by the law.


Inclusion in the coverage of the Philippine Health Insurance Corporation
(PHIC). All barangay officials and employees shall, upon assumption into
office and during their term or tenure, be enrolled into the National Health
Insurance Program for the purpose of availing adequate package of personal
health services that shall include but not limited to in- and out-patient hospital
care, emergency and transfer services and other supplementary health
benefits that may be provided by the PHIC

Premium contribution shall be charged against the general fund of the
barangay. Provided, however, that the national government shall subsidize
50% of the PHIC premium contribution of barangay officials and employees in
fourth, fifth and sixth class municipalities.

Legal Representation. All barangay officials and employees who may be
involved as party litigants in administrative or criminal cases filed in
connection with the discharge of their official duties shall be entitled to free
legal services. The Public Attorney's Office shall forthwith facilitate the legal
representation of a barangay official or employee by counsel upon receipt of
an official request for legal representation by the said barangay official or
employee.

Tax exemption. All amounts received by barangay officials and employees
such as salaries, wages, compensation, remuneration and any other
emoluments such as honoraria and allowances shall be exempt from income
taxation. Gross benefits received by such officials and employees, of
whatever kind, nature or character, shall likewise be exempt from taxation

The sale, exchange or disposition of real property by barangay officials and
employees shall also be exempt from capital gains and other local and
national taxes and fees. Provided, that, such sale, exchange or disposition
shall be directly and exclusively used by such official or employee for the
acquisition of a house and lot for family dwelling, the lot area of which shall
not exceed 200 square meters. The acquisition of such house and lot for
family dwelling shall likewise be exempt from national or local taxes and fees
in connection with the transfer and registration of such property in the name
of the barangay official or employee concerned.

Hazard Pay. The Punong Barangay, members of the Sangguniang Barangay
Barangay Tanods and Barangay Health Workers shall be granted a hazard
pay equivalent to one (1) thousand pesos a month during their term or tenure
of office

Total or Permanent Incapacity or Disability. In the event of total or permanent
disability in connection with the discharge of their official duties and functions,
the Punong Barangay, members of the Sangguniang Barangay, Barangay
Tanods and Barangay Health Workers shall be entitled to five (5) thousand
pesos as disability benefit.

. Death and Burial Benefits. In the event of death of a barangay official or
employee in connection with the discharge of his/her official duty or function,
he/she shall be entitled to ten (10) thousand pesos as burial assistance.

Lump-sum Retirement Pay. All barangay officials and employees shall be
entitled to a lump-sum retirement pay equivalent to one (1) year honorarium.
But in no case shall this lump-sum amount exceed one (1) hundred thousand
pesos (P100,000.00) to be taken from the~Barangay Retirement 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 retirement.

SECTION 5. Barangay Retirement Fund Created. There is hereby created a
Barangay Retirement Fund (BRF) which shall be used to fund the retirement of
barangay officials and employees mentioned in this Act. The amount equivalent to one
(1) percent of the share of the national government under Section 284 of the Local
Government Code of 1991 (RA 7160), as amended shall be used for this purpose.

The Department of Interior and Local Government (DILG) shall administer and
ensure the appropriate disbursement of the BRF

SECTION 6. Disqualification from Availment of Benefits. No benefit shall be
given to a barangay official or employee or his/her beneficiaries when the injury,
sickness, disability or death is a result or caused by:

a, His/her habitual drunkenness, intoxication or drug addiction;
b. His/her willful intention to injure or kill himself or another:
c. His/her unauthorized absence or abandonment of post.

SECTION 7. Implementing Rules and Regulations. Within 120 days from the
effectivity of this Act, the Department of Interior and Local Government (DILG),
Department of Health, Department of Justice, GSIS, PHIC and other concerned
government agencies, shall come up with rules and regulations that shall govern the
implementation of this Act and shall review the same every five (5) years or as
frequently as may be necessary

SECTION 8. Appropriation. The amount necessary for the first five (5) years
implementation of this Act shall be sourced from the windfall profit of the sale of the
Malampaya natural gas, Thereafter, fund necessary to carry out the provisions of this
Act shall be included in the annual General Appropriations Act. The fund shall be
managed by a body whose members shall include the Secretary of the DILG who shall
head the body, a representative of the GSIS and PHIC, the chairmen of the Senate and
House Committees on Local Government, the President of the National Liga ng mga
Barangay and a representative of the Commission on Audit

SECTION 9. Separability Clause. If any provision or the application of any
provision of this Act is declared unconstitutional, there remaining provisions not affected
thereby shall remain in full force and effect

SECTION 10. Repealing Clause. All laws, rules, regulations, decrees, executive
orders and other issuances or parts thereof which are inconsistent with this Act are
hereby repealed, modified or amended accordingly.

SECTION 11. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette.

Approved,