Republic of The Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. iOS

Introduced by: HON. RACHEL MARGUERITE B. 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
front liners, 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 to 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 there 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 eamestly requested.

coco n ERIT£ B. DELMAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. _L

Introduced by: HON. RACHEL MARGUERITE B. DEL MAR

AN ACT
PROVIDING INCENTIVES TO ALL BARANGAY OFFICIALS, INCLUDING
BARANGAY TANODS AND MEMBERS OF THE LUPONG TAGAPAMAYAPA,
AND BARANGAY EMPLOYEES AND FOR OTHER PURPOSES

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

SECTION 1. Title. This Act shall be known as the “Barangay Incentives Act of
2010”.

SEC. 2. Declaration of Policy. It is the declared policy of the Senate 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. 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

ion of

a house and lot, not exceeding 500 square meters, for family dwelling. The acqui
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 be 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 Attorney'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 concerned, 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) newspaper of general circulation.

Approved,