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RECEIVED
oye, SUL 29,2000

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

EIGHTEENTH (18") CONGRESS
1* Regular Session

HOUSE BILL NO. 3016

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 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
relive 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, the barangay is at the forefront of the
service delivery responsibilities of the government,

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Department of Budget and Management, which was later repealed by Local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 the 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 subjected 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.

It is 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 front liners of government service in the communities, it is high
time that we afford them with 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, and education, and calamity which the GSIS already
provide to other state workers.

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

aan

. WILTER “SHARKY” WEE PALMA II
1* District, Zamboanga Slbugay



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH (18") CONGRESS
First Regular Session

House BiLt No, 3016

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.”

SEC. 2. Paragraph (a) of Section 393, Chapter 4, Title One, Book Ill 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


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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.

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

SEC. 4. Compensation of Members of the Saungginiang 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.

SEC 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.

SEC. 6. Implementation. The Department of Budget 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
implementation of this Act.

SEC. 7. Appropriations. The Secretary of the 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


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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.

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

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

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

Approved,