Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2027 
Introduced by REPRESENTATIVE MERCEDES K. ALVAREZ, MNSA 
EXPLANATORY NOTE 
Despite our Barangay officials and workers being frontliners in terms of 
implementation of government policies and services at the community level, many of 
them retire without receiving any form of retirement pay or recognition for their years 
of dedicated service. 
This bill seeks to amend Section 393 of Republic Act No. 7160, or the Local 
Government Code of 1991, providing a lump sum retirement pay to barangay officials, 
barangay tanods, members of the Lupong Tagapamayapa, barangay health workers, 
and daycare workers. 
To make the lump sum retirement pay a success, this measure proposes the 
creation of a Barangay Retirement Fund, which shall be administered and disbursed 
by the Department of the Interior and Local Government. On the other hand, the 
Department of Budget and Management is tasked to issue the measure’s implementing 
rules and regulations. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
ATTY. MERCEDES K. ALVAREZ, MNSA 
July 16, 2025
4:23 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2027 
Introduced by REPRESENTATIVE MERCEDES K. ALVAREZ, MNSA 
AN ACT 
PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY 
TANODS, MEMBERS OF THE LUPON TAGAPAMAYAPA, BARANGAY 
HEALTH WORKERS, AND BARANGAY DAY CARE WORKERS, A LUMP 
SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR 
HONORARIUM, AMENDING FOR THE PURPOSE SECTION 393 OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL 
GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Section 393 of Republic Act No. 7160, otherwise known as the Local 
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Government Code of 1991 (“RA 7160”) is hereby amended to read as follows: 
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“SEC. 393. Benefits of Barangay Officials. – (a) Barangay officials, 
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including barangay tanods, staff and members of the Lupong 
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Tagapamayapa, shall receive honoraria, allowances, and such other 
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emoluments as may be authorized by law or barangay, municipality or 
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city ordinance in accordance with the provisions of this Code, but in no 
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case shall it be less than One thousand pesos (P1,000.00) per month for 
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the Sangguniang barangay members, barangay treasurer, and barangay 
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secretary: Provided, however, That the annual appropriations for 
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personal services shall be subject to the budgetary limitations prescribed 
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under Title Five, Book II of this Code: 
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“(b)xxx 
1 
 
 
"(1)xxx 
2 
 
 
“(2)xxx 
3 
 
“(3) BE ENTITLED TO A LUMP SUM RETIREMENT PAY 
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EQUIVALENT TO ONE (1) YEAR HONORARIUM, BUT 
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IN NO CASE SHALL EXCEED ONE HUNDRED 
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THOUSAND PESOS (P100,000.00) TO BE TAKEN 
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FROM 
THE 
BARANGAY 
RETIREMENT 
FUND: 
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PROVIDED, HOWEVER, THAT A RETIREE IS AT LEAST 
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SIXTY (60) YEARS OF AGE WITH A MINIMUM OF 
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NINE (9) YEARS IN SERVICE AT THE TIME OF 
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RETIREMENT. 
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AS USED IN THIS SUBSECTION, THE TERM 
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‘RETIREE’ 
SHALL 
INCLUDE 
ALL 
BARANGAY 
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OFFICIALS, 
INCLUDING 
BARANGAY 
TANODS, 
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MEMBERS OF THE LUPON NG TAGAPAMAYAPA, 
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BARANGAY HEALTH WORKERS, AND BARANGAY 
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DAY CARE WORKERS. 
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“[(3)] (4) xxx 
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“[(4)] (5) xxx 
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“[(5)] (6) xxx 
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“(c) xxx 
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“(d) xxx 
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Sec. 2. Barangay Retirement Fund Created. – There is hereby created a 
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Barangay Retirement Fund (“BRF”) which shall be used to fund the retirement of 
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barangay officials mentioned in this Act. The amount equivalent to one percent (1%) 
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of the share of the national government under Section 284 of RA No. 7160, as 
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amended, shall be used for this purpose. 
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The Department of the Interior and Local Government (“DILG”) shall 
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administer and ensure the appropriate disbursement of the BRF. 
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Sec. 3. Rules and Regulations. – The Department of Budget and Management, 
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in coordination with the DILG, shall issue the necessary rules and regulations to 
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implement this Act. 
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Sec. 4. Repealing Clause. – Section 393 of RA 7160, other laws, executive orders, 
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issuances, and rules and regulations inconsistent with this Act are hereby amended, 
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repealed, or modified accordingly. 
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Sec. 5. Effectivity Clause. – This Act shall take effect fifteen (15) days following 
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its publication in the Official Gazette or in a newspaper of general circulation in the 
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Philippines. 
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Approved,