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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

313

House Bill No.

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

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

EXPLANATORY NOTE

The measure seeks to give additional incentives to Barangay Captains, Councilors,
Secretary, Treasurers, including Tanods, Members of the Lupong Tagapamayapa
and all Barangay employees.

Our Barangay Officials are the frontliners. They make democracy at the grassroots level.
Most important of the benefits given the Barangay officials and Barangay employees is
the exemption from income tax of their salaries wages 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 under the GSIS; (b) coverage under existing medical
health service programs of government under existing laws, and © free legal
representation.

This measure therefore seeks to give due recognition to the important job being
performed by these grassroots workers as well as to acknowledge the vital role being
played by the smallest government unit and political subdivision called the Barangay.

In view of the foregoing, approval of the measure is urgently requested,

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GLORIA MACAPAGAL ARROYO DIOSDADO-MACARAGAL ARROYO

2" District, Pampanga 2" District, Camarines Sur



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

13

House Bill No.__~

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

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 House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Barangay Incentives Act of
2013”.

Sec. 2. Declaration of Policy. - 11 is the declared policy of the State to promote
and enhance the efficiency and responsiveness of barangay officials and employees, the
government workers who make democracy work at the grassroots levels 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. Tax 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 of 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 a house and lot, not exceeding 500 square meters,
for family dwelling. The acquisition of 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 Benefits Coverage. - All barangay officials and 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 extend 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 employees.

Sec. 7. Legal Representation. - Barangay officials and barangay employees
who maybe 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 Attomey'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 tees, and of transcripts of stenographic notes
which the court may order to be furnished the barangay officials and 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 maybe 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 OT 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 provision 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) newspapers of general circulation.

Approved,