NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

H.B. No, 2186

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR A MAGNA CARTA FOR BARANGAY OFFICIALS, PERSONNEL
AND VOLUNTEER WORKERS, PROVIDING FUNDS THEREFOR FROM THE
ADDITIONAL LOCAL GOVERNMENT SHARE IN THE NATIONAL TAXES, AND
FOR OTHER PURPOSES

EXPLANATORY NOTE

Barangay officials and volunteer workers, due to their proximity to the people,
are the front-line civil servants and primary public service providers on matters
concerning public health, public order and safety, environmental protection,
alternative dispute resolution, and even disaster risk reduction and management. As
such, the national government depends considerably on the capability of barangay
Officials, personnel and volunteer workers, especially in remote areas of the country,
in coordinating and implementing various government interventions at the grassroots

level.

Despite the Herculean task the national government has imposed on the
barangay government, however, the national government has yet to provide barangay
officials, personnel and volunteer workers with a compensation scheme that is
commensurate with the role they perform in the delivery of social services. Barangay
officials, personnel and volunteer workers are ranked the lowest among all civil

servants in terms of remuneration, benefits and privileges enjoyed and received.



This bill is endorsed in recognition of the significant contribution of barangay
officials and volunteer workers in nation-building. This bill mandates the creation of a
distinct Position Classification and Compensation Scheme for Barangay Officials,
Personnel and Volunteer Workers that will govern the dispensation of salaries,
honoraria and other benefits and allowances to the manpower complement of the
barangay government. It directs the membership of barangay officials, personnel and
volunteer workers to the Social Insurance Program of the Government Service
Insurance System, the National Health Insurance Program of the Philippine Health
Insurance Corporation, and the Mandatory Membership Program of the Home
Development Mutual Fund to ensure that barangay officials, personnel and volunteer

workers are covered against insurable financial risks.

Moreover, the bill provides additional benefits to qualified barangay officials,
personnel and volunteer workers such as hazard allowances, death and burial benefits,
and legal indemnification. To finance this undertaking, this bill shall source funding
from the additional proceeds arising from the share of local government units in the
national taxes collected by the Bureau of Customs in accordance with the decision of
the Supreme Court in Mandanas vs. Executive Secretary, G.R. No. 199802 dated July
3, 2018.

These interventions are made with the intention of creating a motivated,
competent corps of frontline public service providers through the promotion of the
welfare of those who ensure the safety, security, amity and well-being of Filipino

communities in times of peace and crisis.

In light of the foregoing, immediate passage of the bill is earnestly sought.

/mdg



NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES. )
First Regular Session )

HOUSE OF REPRESENTATIVES

H. B. No. 2186

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR A MAGNA CARTA FOR BARANGAY OFFICIALS, PERSONNEL
AND VOLUNTEER WORKERS, PROVIDING FUNDS THEREFOR FROM THE
ADDITIONAL LOCAL GOVERNMENT SHARE IN THE NATIONAL TAXES, AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
TITLE IT
GENERAL PROVISIONS

Section 1. Title. - This Act shall be known as the “Magna Carta for Barangay
Officials, Personnel and Volunteer Workers.”

Sec. 2. Declaration of Policy. —It is hereby declared the policy of the State to
empower government officials and personnel, and public volunteer workers especially
at the grassroots level. In line with this policy and in cognizance of the crucial role of
barangay officials and volunteer workers in nation-building, the State shall, through
the recognition of their rights as civil servants and the provision of remuneration,
benefits, allowances and other entitlements commensurate to the service they render
to the country, ensure the promotion of the rights and welfare of barangay officials,
personnel and volunteer workers and the faithful execution of their duties and
functions.


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Sec. 3. Definition of Terms, — For the purpose of this Act:

(a) Barangay Elective Officials shall refer to the following: the Punong
Barangay, Members of the Sangguniang Barangay, Chairperson of the Sangguniang
Kabataan, and Members of the Sangguniang Kabataan,

(b) Barangay Appointive Officials shall refer to the following: Barangay
Secretary; Barangay Treasurer; Members of the Lupong Tagapamayapa, Secretary of
the Sangguniang Kabataam, and Treasurer of the Sangguniang Kabataan;

(c) Barangay Personnel shall refer to other personnel of the barangay who
perform regular functions in the maintenance of public order, protection and security
of life and property, settlement of disputes, preservation of a desirable and balanced
environment or delivery of basic social services within the jurisdiction of the barangay
government who receives compensation in the form of salary or honorarium; and

(d) Barangay Volunteer Workers shall refer to individuals who have undergone
basic training courses conducted by government agencies or non-government
organizations and who voluntarily provide ancillary social services in a barangay under
a memorandum of agreement between the volunteer worker and the barangay
government concerned.

Sec. 4. Coverage. - This Act shall apply to all barangay officials, personnel, and
volunteers as defined in Section 3 of this Act: Provided, That when the barangay
official, personnel or volunteer worker receives a fixed salary by virtue of a permanent
appointment in any other government office, by election to another public office or by
employment in the private sector, their coverage under this Act shall automatically
cease and they shall then be covered under the appropriate laws.

TITLE II
RIGHTS, PRIVILEGES AND ENTITLEMENTS OF
BARANGAY OFFICIALS, PERSONNEL AND VOLUNTEER WORKERS

Sec. 5. Position Classification and Compensation Scheme for Barangay Officials,
Personnel and Volunteer Workers. - Barangay officials, personnel and volunteer
workers shall be entitled to salaries, benefits or allowances as compensation for
services they rendered. The Department of Budget and Management (DBM) shall
develop a standardized Position Classification and Compensation Scheme for Barangay
Officials, Personnel, and Volunteer Workers, taking into consideration the educational


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qualification and nature of work performed and the financial capability of barangays,
and subject to the minimum qualification standards and guidelines to be prescribed
by the Civil Service Commission (CSC). Such position classification and compensation
scheme shall conform with the following guidelines:
(a) The Position Classification and Compensation Scheme for Barangay
Officials and Personnel shall be comprised of three salary grades, namely:
i. Barangay Salary Grade I for barangay appointive officials and other
barangay personnel;
ji. Barangay Salary Grade II for barangay elective officials in the
Sangguniang Barangay and Sangguniang Kabataan with the exception of the
Punong Barangay, and
Barangay Salary Grade III for Punong Barangay.
(b) The minimum salary for barangay officials and personne! shall be as

follows:
Barangay Salary Grade I 5,000
Barangay Salary Grade IT 7,500
Barangay Salary Grade III 10,000

The minimum salary indicated herein may be increased to a maximum rate equivalent
to the first step of the following salary grade level and its corresponding salary being
implemented by the city or municipality where the barangay belongs:

Barangay Salary Grade I Salary Grade 6
Barangay Salary Grade II Salary Grade 10
Barangay Salary Grade IIT Salary Grade 14

Provided, That no barangay official or personnel shall suffer any reduction, diminution
or withdrawal of salaries and benefits already enjoyed by the barangay official or
personnel concerned: Provided, further, That the grant of adjusted basic salary shall
be subject to limitations provided under Section 14 of this Act.

(©) Barangay volunteer workers shall be entitled to honoraria and other
benefits, incentives or allowances to be determined in accordance with this Act.


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Sec. 6. Membership of Barangay Officials and Personnel in the Government
Service Insurance System. -The Government Service Insurance System (GSIS) shall
establish a social insurance program to provide life insurance and social protection to
barangay officials and personnel.

It shall be mandatory for barangay governments to pay the monthly
contributions to life insurance, retirement, and social protection coverage of their
respective barangay officials and personnel equivalent to twenty-one percent (21%)
of their average monthly compensation, which corresponds to the twelve percent
(12%) barangay government contribution and the nine percent (9%) employee
contribution to be subsidized by the barangay government.

Barangay governments shall include in its annual appropriations the amounts
necessary for its share of contributions, plus any additional premiums that may be
required on account of the hazards or risks of the occupation of barangay officials and
personnel. The mode of collection and remittance of contributions, including penalties
for violations thereof, shall be in accordance with Republic Act No. 8291, otherwise
known as “7he Government Service Insurance System Act of 1997."

Sec. 7. Enrolment of Barangay Officials and Personnel in the National Health
Insurance Program of the Philippine Health Insurance Corporation. — The Philippine
Health Insurance Corporation (PhilHealth) shall enroll barangay officials and personnel
into the National Health Insurance Program in accordance with existing laws, rules
and regulations.

Barangay governments shall include in its annual appropriations the amounts
necessary for its share of contributions. The amount of contributions due from
barangay officials and personnel and barangay governments, mode of collection and
remittance of contributions, including penalties for violations thereof, shall be in
accordance with Republic Act No. 7875, as amended, otherwise known as the
“Wational Health Insurance Act of 1995."

Sec. 8. Membership of Barangay Officials and Personnel in the Mandatory
Membership Program of the Home Development Mutual Fund. — Barangay officials and
personnel shall be covered under the mutual provident savings system of the Home
Development Mutual Fund (PagIBIG Fund).


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Barangay governments shall include in its annual appropriations the amounts
necessary for its share of contributions. The amount of contributions due from
barangay officials and personnel and barangay governments, mode of collection and
remittance of contributions, including penalties for violations thereof, shall be in
accordance with Republic Act No. 9679, otherwise known as the “Home Development
Mutual Fund Law of 2009."

Sec. 9. Hazard Allowance. — Barangay officials, personnel and volunteer
workers who render service in areas declared under state of calamity or emergency
shall be entitled to a hazard allowance equivalent to ten percent (10%) of their
monthly salary or honoraria, whichever is applicable, until such declaration has been
lifted by a competent authority.

Sec. 10. Death and Burial Benefits. — In the event of death of barangay officials,
personnel, and volunteer workers during their incumbency, their respective legal
beneficiaries shall be entitled to the following death and burial benefits:

(a) Barangay Salary Grade I — Five thousand pesos (P5,000.00);

(b) Barangay Salary Grade II — Fifteen thousand pesos (P15,000.00); and

(c) Barangay Salary Grade III — Twenty-five thousand pesos (P25,000.00)

In addition to the death benefits herein provided, a burial benefit of Two
thousand pesos (P2,000.00) shall be paid to the beneficiaries of barangay officials,
personnel and volunteer workers within twenty-four (24) hours after written notice
and satisfactory proof of death.

In case the death of a barangay official, personnel or volunteer worker occurred
by reason, or on the occasion of the performance of their official duties and functions,
the legal beneficiaries of the barangay officials, personnel, or volunteer worker
concerned shall be entitled to twice the death and burial indemnity provided herein.

Sec. 11. Civil Service Eligibility. - Qualified barangay officials, personnel and
volunteer workers shall be conferred with the appropriate civil service eligibility in
accordance with existing laws, rules and regulations.

Sec. 12. Legal Indemnification. — Barangay officials and personnel shall be
entitled to an equitable legal indemnification package in the form of legal assistance
and other forms of legal protection and indemnification for all legal costs and expenses
reasonably incurred in any administrative, civil, or criminal action, suit or proceeding


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to which they have been made a party by reason of the performance of their official
functions or duties, unless they are finally adjudged in such action or proceeding to
be guilty of an offense.

Sec. 13. Employment Preference in Agencies and Instrumentalities of
Government. — Qualified barangay personnel and volunteer workers shail be accorded
with preferential treatment in employment with national government agencies, local
government units (LGUs), or government-owned or -controlled corporations, subject
to the minimum standards and guidelines prescribed by the CSC, and in accordance
with existing laws, rules and regulations.

TITLE III
FINAL PROVISIONS

Sec. 14. Limitation on Personnel Services Appropriation for Barangays. - The
budget ceiling for annual personnel services appropriations of fifty-five percent (55%)
of the total annual income actually realized from local sources during the next
preceding fiscal year, as provided in Section 331(b) of Republic Act No. 7160, as
amended, otherwise known as the “Loca/ Government Code of 1991," shall apply.

Sec. 15. Barangay Miscellaneous Personnel Benefits Trust Fund. — Any
unexpended balance from the local government share from the national taxes
collected by the Bureau of Customs (BOC) as provided in Section 17 of this Act after
the payment of salaries, honoraria to barangay officials, personnel and volunteer
workers as provided in Section 5 of this Act, and remittance of mandatory
contributions to GSIS, PhilHealth and PagIBIG Fund as provided in Sections 6, 7, and
8 of this Act, respectively, shall constitute a trust fund to be known as the “Barangay
Miscellaneous Personnel Benefits Trust Fund” and shall be administered by the DBM.
The Barangay Miscellaneous Personnel Benefits Fund, including any interest income
that may accrue therein, shall be set aside and earmarked by Congress for the
following purposes:

(a) Provision of additional insurance premiums that may be required on
account of the exposure of barangay officials and personnel to hazards or risks of their
occupation in accordance with Section 6 of this Act;

(b) Provision of Hazard Allowance for barangay officials, personnel and
volunteer workers in accordance with Section 9 of this Act;


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(c) Provision of Death and Burial Benefits for barangay officials, personnel and
volunteer workers in accordance with Section 10 of this Act;

(d) Provision of Legal Indemnification Package for qualified barangay officials,
personnel and volunteer workers in accordance with Section 12 of this Act; and

(e) Provision of other allowances and benefits for barangay officials, personnel
and volunteer workers in accordance with the provisions of this Act: Provided, That
the DILG shall, upon the approval of the DBM and in accordance with existing laws,
rules and regulations, identify the benefit and allowances that may be provided to
barangay officials, personnel and volunteer workers and the corresponding amount
thereof: Provided, further, That the grant of other allowances and benefits shall be
subject to limitations provided under Section 14 of this Act.

Sec. 16. Registry System for Barangay Officials, Personnel and Volunteer
Workers. - The Department of the Interior and Local Government (DILG) shall
develop, maintain and update a registry system for barangay officials, personnel and
volunteer workers to effectively implement the provisions of this Act. The registry
system shall be the basis for the release of appropriations for the payment of salaries
and honoraria to barangay officials, personnel and volunteer workers as provided in
Section 5 of this Act, and the remittance of mandatory contributions to GSIS,
PhilHealth and PagIBIG Fund as provided in Sections 6, 7, and 8 of this Act,
respectively.

Sec. 17. Appropriations. - The amount necessary for the implementation of the
provisions of this Act shall be sourced from the share of LGUs from the national taxes
collected by the BOC based on the collection of the third fiscal year preceding the
current fiscal year: Provided, That in the event that such amount is insufficient to
effectively implement the provisions of this Act or when the amount exceeds the
limitations on Personnel Services as provided in Section 14 of this Act, the
Sangguniang Barangay concerned shall formulate a mechanism to prioritize and adjust
the compensation package provided under this Act: Provided, further, that such
mechanism shall allocate the provision for salaries, honoraria, benefits or allowances
proportionally and uniformly across all barangay salary grades in the barangay
government concerned.



Sec. 18. Implementing Rules and Regulations. — Within thirty (30) days from
the effectivity of this Act, the DILG shall, in coordination with the DBM, Department
of Finance, CSC, Liga ng mga Barangay, and other government agencies concerned,
promulgate the necessary implementing rules and regulations for the effective
implementation of this Act.

Sec. 19. Separability Clause. — If any provision, section or part of this Act shall
be declared unconstitutional or invalid, such judgment shall not affect, invalidate or
impair any other provisions, sections or parts hereof.

Sec. 20. Repealing Clause. - All laws, acts, decrees, executive orders,
issuances, and rules and regulations or parts thereof which are contrary to and
inconsistent with this Act are hereby repealed, amended or modified accordingly.

Sec. 21. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation or in the Official
Gazette.

Approved,