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Republic of the Philippines
HOUSE OF REPRESENTATIVES a
Quezon City, Metro Manila Ive CaN
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SEVENTEENTH CONGRESS —_ —
1 Regular Session

House Bill No. @964

PRESENT AiivES

Introduced by Hon. WILTER “SHARKY” WEE PALMA II

EXPLANATORY NOTE
This bill seeks to provide a fixed monthly salary to barangay officials.

The Barangay is the smallest and closest form of government to the people, and to
some extent, it is considered as the engine of national growth being a grassroots
development unit. Republic Act No. 7160, otherwise known as “The Local Government Code
of 1991” states that the barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects and activities in the community. It serves as
a forum wherein the collective views of the people may be expressed, crystallized and
considered. It is also where disputes may be amicably settled through the Katarungang
Pambarangay.

The Local Government Code provides that, barangay officials, including barangay
tanods and member of the lupong tagapamayapa, shall receive honoraria, allowances, and
such other emoluments as may be authorized by law or barangay, municipal or city
ordinance. These barangay officials do not receive a fixed monthly salary that will provide
just remuneration for the wide array of roles and responsibilities bestowed upon them
under the Code.

The officials of the barangay are those whom constituents go to for basic problems -
health, social services, simple disputes and peace and order. They relieve the city or
municipality of many issues which can be addressed at the barangay level, thereby
screening the problems before they can reach the municipal or city level. From their
mandates to the devolved national government functions and to small dispute resolution,
at the forefront of the service delivery responsibilities of the government.

the barangay

This bill seeks to properly compensate the elective barangay officials through a fixed
salary system and consequently, amend certain provisions of Republic Act No. 7160. Also,
Local Budget Circular no. 58 issued by the Department of Budget and Management, which
was later repealed by Local Budget Circular no. 63, does not provide for the salary of


barangay officials consistent with the provision of RA 7160. Budget Circulars 58 and 63
clarified the confusion caused by the Executive Order 332 signed by former President Fidel
Ramos which incorporated the barangay officials into the Salary Standardization system.
Budget Circulars 58 and 63 stated that barangay officials should only receive honoraria, and
not salaries, consistent with the Local Government Code. These circulars also provided the
honorarium rates which should not exceed Salary Grade 14 for Punong Barangay and Salary
Grade 10 for Sangguniang Barangay members in the city of municipality where the barangay
is located.

Under the Local Government Code, the Barangay is classified as one of the local
government units, similar to that of Provinces, Cities and Municipalities. The law also
devolved several national government functions to the barangays such as agricultural
support services, health and social welfare services, services and facilities related to general
hygiene and sanitation, solid waste management, maintenance of Katarungang
Pambarangay, information and reading centers, and infrastructure facilities such as
multipurpose halls, sports centers, plazas, and other similar facilities. However, the elected
officials of the provinces, cities, and municipalities are receiving fixed monthly
compensations including other benefits and entitlements. While elected barangay officials
remain to be the least paid within the local government service and are receiving salaries in
a form of honoraria, and not through a fixed salary. Although the honorarium has been
raised to an equivalent of Salary Grade 14 for Punong Barangay and Salary Grade 10 for
Sangguniang Barangay members, it is still subject to the availability of funds of the
barangay. Even at these rates, the barangay officials remain grossly underpaid compared to
their municipal and city counterparts, whose functions are circumscribed within the
executive, legislative and judicial branches of government.

Itis also highly important to note that the barangay officials are also chosen in the
same manner as their provincial, city and municipal counterparts — by a general election.

This bill also seeks to underscore the importance of having the Barangay officials
included as compulsory members of the Government Service Insurance System (GSIS). As
frontliners of government service in the communities, it is high time that we afford them
with the insurance benefits already enjoyed by other government employees. It will qualify
also the barangay officials of retirement benefits after their dedicated service to the
government, and other kinds of loans such as housing, salary, education, and calamity which
the GSIS already provides to other state workers.

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

ae
- WILTER “SHARKY” WEE PALMA II
4* District, Zamboanga Sibugay



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

SEVENTEENTH CONGRESS
1 Regular Session

2564

House Bill No.

Introduced by Hon, WILTER “SHARKY” WEE PALMA II

AN ACT
PROVIDING FIXED COMPENSATION TO ELECTIVE BARANGAY OFFICIALS
AMENDING FOR THIS PURPOSE REPUBLIC ACT 7160
AND APPROPRIATING FUNDS THEREFOR

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 Compensation Act.”

SECTION 2. Paragraph (a) of Section 393, Chapter 4, Title One, Book II of
Republic Act 7160, otherwise known as Local Government Code of 1991, is
hereby amended as follows:

“Section 393. Benefits of Barangays Officials.

(a) Barangay officials, including barangay tanods and members of the
lupong tagapamayapa shall receive (honoraria) A FIXED MONTHLY
COMPENSATION, 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 per month for the punong barangay
and six hundred pesos per month for the sangguniang barangay


members, barangay treasurer, and barangay secretary: Provided,
however, that the annual appropriations for personnel services shall
be subject to the budgetary limitations prescribed under Title Five,
Book II of this Code.

XXX XXX XXX”

SECTION 3. Compensation of Punong Barangay. The Punong Barangay
shall receive a monthly compensation equivalent to the salary of Sanggunian
Member of the city or municipality to which the barangay is located.

SECTION 4. Compensation of Members of the Sangguniang Barangay.
The Members of the Sangguniang Barangay shall receive a monthly
compensation equivalent to eighty percent (80%) of the salary of Sanggunian
Member of the city or municipality to which the barangay is located.

SECTION 5. Compulsory Coverage in the GSIS. - All barangay officials
shall be included in the compulsory membership of the Government Service
and Insurance System under Section 3 of Republic Act. 8291.

SECTION 6. Implementation. The Department of Budget and
Management, in coordination and consultation with the Department of
Interior and Local Government, Liga ng Mga Barangays, and other agencies
concerned, shall formulate, issue and adopt such rules and guidelines deemed
necessary for the proper implementation of this Act.

SECTION 7. Appropriations. The Secretary of Department of Interior and
Local Government (DILG) shall submit to Congress the necessary budgetary
estimates to properly implement the provisions of this Act. Such estimates and
other amount as may be needed for the continued implementation of this Act
shall be included in the Annual Appropriations Act, of the city or municipality
where the barangay is located, in the fiscal year following the passage of this
Act.


SECTION 8. Separability Clause. If any provision of this Act is declared
unconstitutional or invalid, the remainder or any provisions thereof not
affected shall remain in force and effect.

SECTION 9. Repealing Clause. All laws, executive orders, decrees,
instructions, rules and regulations contrary to or inconsistent with any
provision of this Act are hereby repealed and modified accordingly.

SECTION 10. Effectivity Clause. This Act shall take effect fifteen (15) days
after its publication in a national newspaper of general circulation.

Approved,