Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__ 2935

~~ Introduced By: HON. TEDDY _BRAWNER BAGUILAT, JR.

EXPLANATORY NOTE

At the forefront of government service are Barangay Officials. They are the State’s
micro-managers that have the most direct link to the people. Barangay Officials are the first to
respond to the people’s problems. May it be in an issue of peace and order, health concern, or
business, Barangay Officials are in the best position to respond to the exigencies of the time. It is
however unfortunate that they are the lowest paid and the least benefited in terms of government
employment benefits and privileges in the country. Hence, the need to address this problem.

In recognition of the State’s policy to promote and enhance the efficiency and
responsiveness of barangay officials and employees and in acknowledgment of their service as
the grassroots level managers of the smallest yet most integral territorial and political subdivision
of the government (the Barangay), this bill is submitted.

The main goal of this bill is to provide for benefits to barangay officials in the form of
exemption from income tax of their salaries wages, compensation, remuneration and other
emoluments, such as honoraria and allowances, including any benefits that they may receive
from government on account of their work or employment. Moreover, they are also given
benefits covered under the Government Service Insurance System (GSIS), other existing medical
and health service programs of government under existing laws, and free legal representation.

With this bill Barangay Officials will be properly compensated and the commensurate
performance of their duties and obligations shall be expected.

Consistent with the said reasons, the early passage of this bill is earnestly recommended.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL ‘No. 2935

Introduced By: HON. TEDDY BRAWNER BAGUILAT, JR.

AN ACT PROVIDING INCENTIVES TO ALL BARANGAY
OFFICIALS, INCLUDING BARANGAY TANODS AND
MEMBERS OF THE LUPONG TAGAPAMAYAPA AND
BARANGAY EMPLOYEES 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 Incentives Act of
2010.”

SECTION 2. Declaration of Policy. -It 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 level 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.

SECTION 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 or character, shall
likewise be exempt from taxation.

SECTION 4. GSIS Benefit Coverage. - All barangay officials and barangay 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 extended 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.

SECTION 5. 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 barangay employees.

SECTION 6. Legal Representation. - Barangay officials and barangay employees who may be
involved as party litigants in administrative or criminal cases filed in connection with the
performance of their official duties shall, as a matter of right, be entitled to the legal services of
the City, Municipal or Provincial Legal Officer 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 fees, and of transcripts of stenographic
notes which the court may order to be furnished the barangay officials and barangay employees.

SECTION 7. Appropriation - The expenses for the GSIS and other health care benefits of
barangay officials shall be included in the annual General Appropriations Act...

SECTION 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 may be
necessary for the proper implementation of this Act.

SECTION 9. Separability Clause. - If any part hereof, is held invalid or unconstitutional, the
remainder of the provision not otherwise affected shall remain valid and subsisting.

SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with the
provisions of this act is hereby repealed, modified or amended accordingly.

SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,