NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 441
of t«K- jr 'r
72 JUL12 P6:12
RECEIVED SV.
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS, 
AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, A LUMP SUM 
GRATUITY PAY AND OTHER BENEFITS, AMENDING FOR THE PURPOSE 
SECTION 393 OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE 
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
EXPLANATORY NOTE
The 1987 Constitution mandates, "The Congress shall enact a local government code 
which shall provide for a more responsive and accountable local government 
structure instituted 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, "(Article X, Section 3)
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. It is 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.
It is high time that the barangay is given encouragement in the form of benefits. At 
the same time, these benefits will act as catalysts that may curb corruption. Hopefully, 
this Act will contribute in the empowerment of the barangay as dynamic and proactive 
units.
Furthermore, this measure aims to reward those barangay officials, for their many 
years of exemplary service, and to acknowledge the vital role that barangay officials 
and workers play in nation building.
In view of the foregoing, the passage if this bill is earnestly sought.
KARK A. VILLAR 
Senator


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. '^'^1
,-5 *mriir 
WifOinti?
72 JUL 12 P6--12
> !i;
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS, 
AND MEMBERS OF THE LUPON NG TAGAPAMAYAPA, A LUMP SUM 
GRATUITY PAY AND OTHER 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:
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Section 1. Section 393 of Republic Act No. 7160 otherwise known as the Local
2 
Government Code of 1991, as amended, is hereby amended as follows:
"Section 393. Benefits of Barangay Officials. -
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(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 [Gne-thousand pesos (P1,000.00)] THREE 
THOUSAND PESOS (P3,000.00) per month for the punong barangay 
and [Six hundred--pesos (P600.00)] TWO THOUSAND PESOS 
(P2,000.00) per month for the sangguniang barangay members, 
barangay treasurer, and barangay secretary: Provided, however. That
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the annual appropriations for personal services shall be subject to the 
budgetary limitations prescribed under Title Five, Book II 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 [Qnc thousand -pesos 
(Pl-,000.00)] THREE THOUSAND PESOS (P3r000.00) 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 purpose;
(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 attendance 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 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 SALE OF 
GOODS AND SERVICES FROM ALL ESTABLISHMENTS, 
PARTICULARLY ON THE PURCHASE OF MEDICINES, AND


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SUCH ESSENTIAL MEDICAL SUPPLIES, ACCESSORIES AND 
EQUIPMENT 10 BE DETERMINED 3Y THE DEPARTMENT OF 
HEALTH (DOH), AND ON THE PROFESSIONAL FEES OF 
ATTENDING PHYSICIAN OR PHYSICIANS IN ALL PRIVATE 
HOSPITALS, 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 colleges 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 civii service eiigibility 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.
(6) BE ENTITLED TO A LUMP SUM GRATUITY PAY EQUIVALENT 
TO ONE (1) YEAR HONORARIUM, BUT IN NO CASE SHALL 
EXCEED ONE 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.
AS USED IN THIS SUB-SECTION, THE TERM "RETIREE" 
SHALL INCLUDE 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 TO GOVERNMENT AGENCIES, PUBLIC OFFICIALS AND 
PRIVATE INDIVIDUALS IN THE PERFORMANCE OF 
OFFICIAL FUNCTIONS.


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(8) BE ENTITLED TO TWENTY PERCENT (20%) DISCOUNT IN 
TRANSPORTATION FARE AND HOTEL ACCOMODATION 
CHARGE.
(c) Elective barangay officials shall have preference in appointments to 
any government position or in any government-owned or controlled 
corporations, including their subsidiaries, after their tenure of office, 
subject to the requisite qualifications and the provisions of the 
immediately preceding paragraph.
(d) All duly appointed members of the barangay tanod brigades, or their 
equivalent, which shall number not more than twenty (20) in each 
barangay, shall be granted insurance, FREE TUITION AND 
MATRICULATION 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 municipal government to which the barangay belongs."
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Sec. 2. Barangay Retirement Fund. - The Barangay Retirement Fund (BRF) is
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hereby created, which shall be used to fund the retirement of barangay officials and
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workers mentioned in this Act. The amount equivalent to one percent (1%) of the
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share of the local government under Section 284 of the Local Government Code of
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1991, as amended, shall be used for this purpose.
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The Department of Budget and Management (DBM), in coordination with the
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Department of Interior and Local Government (DILG) shall administer and ensure
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the appropriate disbursement of the Fund.
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Sec 3. Implementing Rules and Regulations. - The DBM and the DILG, in
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coordination with local government units and other relevant offices or agencies, shall
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issue the implementing rules and regulations to implement this Act within ninety
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(90) days after its effectivity.


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Sec 4. Appropriations. - The amount necessary for the implementation of this
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Act shall be charged to the funds of the implementing agencies.
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Sec 5. Separabiiity Ciause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in force and effect.
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Sec 6. Repeaiing Ciause. - Any law, presidential decree or issuance, executive
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order, letter of instruction, rule or regulation inconsistent with the provisions of this
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Act is hereby repealed or modified accordingly.
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Sec 7. Effectivity. - This Act shall take effect fifteen (15) days following its
10 complete publication in a newspaper of general circulation.
Approved,