Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

HOUSE BILL No. 3318

Introduced by REPRESENTATIVE LAARNI LAVIN ROQUE

EXPLANATORY NOTE
Article X, Section 3 of the 1987 Constitution provides that:

"The Congress shall enact a local goverment code which shall provide
for a more responsive and accountable local government structure through a
system of decentralization with effective mechanisms of recall, initiative, and
referendum, allocate among the different local government units their powers,
responsibilities, and resources, and provide for the qualifications, election,
appointment and removal, term, salaries, powers and functions and duties of
local officials and all other matters relating to the organization and operation of
the local units."

The barangay is the smallest administrative division in our country. It is
empowered and mobilized to deliver basic services, and serves as the primary
planning and implementing unit of government policies, plans, programs, projects, and
activities in the community. Itis the frontline unit for combating poverty and addressing
basic social services like health and education.

However, despite the potential opportunities for governance and development
at the grassroots level, the barangay attracts a low appreciation. It has become a
microcosm of the national political environment. The usual programs, activities, and
projects have superficial impact on the community's economy. Corruption in the form
of kickbacks laces the said programs, activities, and projects

Given the above mentioned vital functions of the abovementioned barangay
officials in the community we live in, it is significantly noticeable that the meager
amount of honoraria, allowances and emoluments they currently receive pursuant to
Section 393 of the present Local Government Code are not compensatory to the
valuable services they render. In order to justly and equitability give due recognition
to the remarkable contributions of barangay officials in the true progress of the
country, it is not only just but timely that we must substantially increase the benefits
of the barangay officials which therefore requires the necessary amendment of
Section 393 of the 1991 Local Government Code.


This bill also seeks to provide retirement pay for barangay officials and for those
who are working for the Barangay on a voluntary basis such as Barangay Tanods,
Barangay Health Workers and Day Care workers. It also proposes the
institutionalization of retirement benefits for all barangay officials and workers to be
sourced from the Barangay Retirement Gratuity Fund and which will be under the
auspices of the Department of Interior and Local Government.

Given the above premises, the urgent passage of this bill is earnestly sought.

LAAR! IN ROQUE
Representative| #th [pistrict of Bukidnon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 3318

Introduced by REPRESENTATIVE LAARNI LAVIN ROQUE

AN ACT

INCREASING THE HONORARIUM AND CHRISTMAS BONUS OF ALL
BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS,
MEMBERS OF THE LUPON NG TAGAPAMAYAPA, BARANGAY
HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, AND
PROVIDING THEM A LUMP SUM RETIREMENT PAY EQUIVALENT
TO ONE HUNDRED THOUSAND PESOS (P100,000.00) AND OTHER
NON-MONETARY BENEFITS, 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.

“SECTION 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] FIVE
thousand pesos (PM] 5,000.00) per month for the punong barangay and [Six
hundred] THREE THOUSAND pesos (P[600] 3,000.00) per month for the
sangguniang barangay members, [and] barangay treasurer, and barangay
secretary AND TWO THOUSAND PESOS
(P2,000 00) FOR BARANGAY TANODS AND MEMBERS OF THE LUPON NG.
TAGAPAMAYAPA: Provided, however, That the annual appropriations for


personal services shall be subject to the budgetary limitations prescribed under
Title Five, Book Il of this Code.

(b) The punong barangay, the sangguniang barangay members, the
barangay treasurer, and the barangay secretary shall also:

(1) Be entitled to Christmas bonus of at least [One] thousand
pesos (P[I] 2,000.00) each, 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 purposedfs]: PROVIDED, HOWEVER, THAT
BARANGAY TANODS AND MEMBERS OF THE LUPONG
TAGAPAMAYAPA SHALL ALSO ENJOY THIS BENEFIT.

(2) Be entitled, during their incumbency, to insurance coverage
which shall include, but shall not be limited to temporary and permanent
disability, double indemnity, accident insurance, death and burial benefits, in
accordance with Republic Act Numbered Sixty-nine hundred forty-two
(R.A.\No. 6942, entitled "An Act Increasing the Insurance Benefits of Local
Government Officials and Providing
Funds Therefor,”

(3) Be entitled to free medical care including subsistence,
medicines, and medical assistance in any government hospital or institution:
Provided, That such hospital care shall include surgery or surgical expenses,
medicines, X-rays, laboratory fees, and other hospital expenses;

In case of extreme urgency where there is no available government
hospital or institution, the barangay official concerned may submit himself for
immediate attendance to the nearest private clinic, hospital or institution and
the expenses not exceeding Five thousand pesos (P5,000.00) that may be
incurred therein shall be chargeable against the funds of the barangay
concerned;

BARANGAY OFFICIALS SHALL ALSO BE ENTITLED TO TEN PERCENT
(10%) DISCOUNT, AND EXEMPTION FROM VALUE-ADDED TAX (VAT), IF
APPLICABLE, ON THE SALE OF GOODS AND SERVICES FROM ALL
ESTABLISHMENTS, PARTICULARY ON THE PURCHASE OF MEDICINES,
AND
SUCH ESSENTIAL MEDICAL SUPPLIES, ACCESSORIES AND
EQUIPMENT TO BE DETERMINED BY THE DEPARTMENT OF HEALTH
(DOH), AND ON THE
PROFESSIONAL FEES OF ATTENDING PHYSICIAN OR PHYSICIANS 'N
ALL PRIVATEHOSPITALS, MEDICAL FACILITIES OUTPATIENT CLINICS
AND
HEALTH HOME CARE SERVICES;


(4) Be exempted, during their incumbency, from paying tuition
and matriculation fees for their legitimate dependent children attending state
college or universities. He may likewise avail of such educational benefits in
a state college or university located within the province or city to which the
barangay belongs; [and]

(5) Be entitled to appropriate civil service eligibility on the basis
of the number of years of service to the barangay, pursuant to the rules and
regulations issued by the Civil Service Commission [J;

(6) BE ENTITLED TO A LUMP SUM RETIREMENT GRATUITY
PAY
EQUIVALENT TO ONE (1) YEAR HONORARIUM, BUT IN NO CASE SHALL
EXCEED ONE HUNDRED THOUSAND PESOS (PIOO,0000.00) TO BE
TAKEN FROM THE BARANGAY RETIREE IS AT LEAST SIXTY (60) YEARS
OF AGE WITH A MINIMUM OF NINE (9) YEARS IN SERVICE AT THE TIME
OF THE RETIREMENT.

AS USED IN THIS SUB-SECTION, THE TERM "RETIREE"
SHALLINCLUDE ALL BARANGAY OFFICIALS, INCLUDING BARANGAY
TANODS AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA;

(7) BE ENTITLED TO A FRANKING PRIVILEGE FOR THIS
PURPOSE, BARANGAY OFFICIALS SHALL BE EXEMPT FROM THE
PAYMENT OF POSTAGE ON ANY MAIL MATTER TO BE SENT
TOGOVERNMENT AGENCIES, PUBLIC OFFICIALS AND PRIVATE-
INDIVIDUALS IN THE PERFORMANCE OF OFFICIAL FUNCTIONS; AND

(8) BE ENTITLED TO TWENTY PERCENT (20%) DISCOUNT
IN
TRANSPORTATION FARE, AND HOTEL ACCOMODATION CHARGE.

{c) XXX

(@) All’ duly appointed members of the barangay tanod brigades,
or their equivalent, which shall number more than (20) in each barangay, shall
be granted insurance, FREE TUITION AND MATICULATION FEES FOR THEIR
LEGITIMATE DEPENDENT CHILDREN ATTENDING STATE COLLEGES AND
UNIVERSITIES, or other benefits during their incumbency, chargeable to the
barangay or the city or municipality government to which the barangay belongs

SEC. 2. Barangay Retirement Gratuity Fund (BRGF) Created — There is
hereby created a Barangay Retirement Gratuity Fund (BRGF) which shall be used to
fund the retirement gratuity of barangay officials, including 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
Section284 of the Local Government Cade of 1991 as amended shall be used for this

purpose.


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

SEC 3. Rules and Regulation — The Department of Budget and Management
(DBM), in coordination with the DILG and Department of Transportation (DOTR), shall
issue the necessary rules and regulation to implement this Act.

SEC. 4. Repealing Clause— All laws, executive orders, issuance, rules and
regulations inconsistent with this Act are hereby amended, repealed or modified
accordingly

SEC. 5. Effectivity — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved