Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
TWENTIETH CONGRESS
First Regular Session

2744

House Bill No.

Introduced by Representative Julius Cesar “Jay” V. Vergara

The barangay, also known as the barrio during the Spanish era, is the smallest
administrative unit in the Philippines. It is the basic template for grassroots democracy
in action. The barangay captains and other barangay officials are thus our local
community leaders who help in keeping the peace and in providing security in their
locale, among others.

As far back as 20 June 1959, Republic Act 2370 or the Barrio Charter Act
changed the council along with the Barrio Lieutenant from appointed positions to
elected positions. In 1974, President Marcos issued Presidential Decree (PD) No. 557,
declaring all barrios in the Philippines as barangays, as the basic political unit after its
revival under PD No. 86. Landmark changes in the powers and responsibilities of the
barangay system came about with the Local Government Code of 1991, which
explicitly tagged the barangay as the basic political unit," serving as "the primary
planning and implementing unit of government policies, plans, programs, projects,
and activities in the community, and as a forum wherein the collective views of the
people may be expressed, crystallized and considered, and where disputes may be
amicably settled”.

Despite this key role in our country, however, our barangay officials are not
considered members of the Government Service Insurance System (GSIS). This bill
seeks to change this unreasonable state of affairs. It will thus augment the meager
compensation and benefits enjoyed by barangay officials by including them in the
coverage of the GSIS Law. The early adoption of this measure is thus earnestly

requested.
aad

JULIUS CESAR “JAY” V. VERGARA
Third District of Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._2744

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT
AMENDING REPUBLIC ACT NO. 8291, ALSO KNOWN AS THE
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997,
EXPANDING THE MEMBERSHIP AND BENEFITS OF THE GOVERNMENT
SERVICE INSURANCE SYSTEM TO COVER BARANGAY OFFICIALS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Section 1. The coverage of the Government Service Insurance System (GSIS) is
hereby expanded by including barangay officials as members of the System. Section
2{i) of Republic Act No. 8291, otherwise known as the “Government Service Insurance
System Act of 1997”, is hereby amended to read as follows:

“(i) Compensation - The basic pay or salary received by an employee, pursuant
to his election/ appointment, excluding per diems, bonuses, overtime pay, honoraria,
allowances and any other emoluments received in addition to the basic pay which are
not integrated into the basic pay under existing laws. IN THE CASE OF ELECTED
AND APPOINTED BARANGAY OFFICIALS, THEIR COMPENSATION FOR THE
PURPOSE OF DETERMINING THEIR CONTRIBUTION, SHALL BE COMPUTED
BY ADDING THE AMOUNT OF THE HONORARIA, ALLOWANCES, AND SUCH
OTHER COMPENSATION THAT THEY REGULARLY RECEIVE AS MAY BE
ALLOWED BY LAW OR ORDINANCE

Section 2. The premium contribution and thereafter, the standard monthly
contributions, shall be borne by the LGU concerned; Provided, that the National
Government shall subsidize fifty percent (50%) of the contributions of fourth, fifth,
and sixth class municipalities.

Upon passage of this Act, barangay officials shall be automatically entitled to
the retirement, disability, burial benefits, and other supplemental benefits, as
enumerated under Republic Act No. 8291 or the “Government Service Insurance


24

System Act of 1997”. Barangay officials shall not be required to pay monthly
contributions and all other fees or charges for them to be entitled to these benefits.

Section 3. Implementing Rules and Regulations. - Within three (3) months after
the passage of this Act, the GSIS in consultation and in coordination with the
Department of Interior and Local Government and the league representing barangay
captains and officials, shall issue the necessary rules and regulations to implement the
provisions of this Act. The rules and regulations shall cover the rate of premiums and
the manner of its payment, the extent of insurance coverage, and the participation of
the local government units and the National Government.

Section 4. Separability Clause. - If any provision, or part hereof is held invalid
or unconstitutional, the remainder of the law or the provision not otherwise affected
shall remain valid and subsisting.

Section 5. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule, ordinance, or
regulation contrary to or inconsistent with, the provisions of this Act is hereby
repealed, modified, or amended accordingly.

Section 6. Effectivity Clause, - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,