Senate /Offier of the secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 MAR 25 A10 :10 First Regular Session SENATE RECEIVED BY: S. No. 2013 Introduced by Senator JV Ejercito AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, A LUMP SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR HONORARIUM, AMENDING FOR THE PURPOSE SECTION 393 OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 EXPLANATORY NOTE Being the smallest political unit in the Philippines, the barangay plays an important role as both a local government and a community of an area. As mandated by the Local Government Code of 1991, the barangay is the primary implementing unit of government programs, which highlights its importance? Consequently, barangay officials and workers are equally essential, as they carry out the functions and responsibilities of the barangay. Barangay officials and workers remain highly committed to public service, often driven by the modest compensation they receive under an honoraria-based system rather than a fixed salary structure. However, the inconsistency of these honoraria, along with the lack of gratuity pay, undermines their welfare and may affect the quality 1 Dagacer. (2023, November 22). Nationwide study highlights crucial role of barangay officials in PH governance. People, Events and Places. https://pep.inquirer.net/1606/nationwide-study-highlights-crucial-role-of-barangay- officials-in-ph-governance 2 Salazar, C. (2024, April 27). Why you should vote on Oct. 30: Experts identify 5 biggest responsibilities of barangays. PCIJ.org. https://pcij.org/2023/10/11/experts-identify-biggest-responsibilities-of-barangays/
and sustainability of public service delivery, despite their dedication and continued efforts to serve their communities. To address these concerns, this proposed legislation seeks to grant barangay officials and workers a lump-sum retirement benefit equivalent to one year of their honorarium. This measure aims to provide due recognition to those who have served their respective barangays with dedication over many years. Moreover, the bill seeks to address the longstanding funding gap that has prevented smaller barangays from providing adequate retirement benefits. It proposes the establishment of a dedicated Barangay Retirement Fund, to be financed through the allocation of one percent (1%) of the national government's share of taxes in the Philippines. This mechanism ensures that retirement benefits are no longer dependent on the limited financial capacity of individual barangays. Instead, it promotes a more equitable system in which every barangay worker-regardless of the economic status of their locality-is guaranteed a reliable financial safety net upon retirement. In light of the foregoing, the immediate passage of this legislation is earnestly sought. • • JV EJERCITO
Senate Office of the Secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 MAR 25 A10:10 First Regular Session RECEIVED BY: SENATE S. No. 2013 Introduced by Senator JV Ejercito AN ACT PROVIDING ALL BARANGAY OFFICIALS, INCLUDING BARANGAY TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY HEALTH WORKERS AND BARANGAY DAY CARE WORKERS, A LUMP SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR HONORARIUM, AMENDING FOR THE PURPOSE SECTION 393 OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Section 393 of Republic Act No. 7160, as amended, otherwise
2 known as "The Local Government Code of 19917, is hereby amended to read as 3 follows: "Sec. 393. Benefits of Barangay Officials. - (a) Barangay officials, including barangay tanods and members of the Lupong Tagapamayapa, shall receive honoraria, 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 (P1,000.00) per month for the punning barangay, and Six Hundred Pesos (P600.00) per month for the sangguniang barangay members, barangay treasurer, and barangay secretary: Provided, however, That the annual appropriations for personal services shall be subject to the budgetary limitations prescribed under the Title Five. Book II of this Code."
"b" XXX "(1) xxx "(2) xXx "(3) BE ENTITLED TO A LUMP SUM RETIREMENT PAY EQUIVALENT TO ONE (1) YEAR HONORARIUM WHICH SHALL NO CASE EXCEED ONE HUNDRED THOUSAND PESOS (P100,00.00) TO BE TAKEN FROM THE BARANGAY RETIREMENT FUND; PROVIDED, THAT A RETIRIEE IS AT LEAST (60) YEARS OF AGE WITH A MINIMUM OF NINE (9) YEARS IN SERVICE AT THE TIME OF HIS/HER RETIREMENT. "THE TERM "RETIREE" SHALL INCLUDE ALL BARANGAY OFFICIALS, BARANGAY TANODS, MEMBERS OF THE LUPONG TAGAPAMAYAPA, BARANGAY HEALTH WORKERS AND BARANGAY DAY CARE WORKERS. [<3)] (4) xxx [(4)] (5) xxx [(5)] (6) xxx (c) xxx (d) xxx"
Sec. 2. Barangay Retirement Fund Created. - There is hereby created a
Barangay Retirement Fund which shall serve to fund the retirement of Barangay official members mentioned in the preceding paragraph. The amount equivalent to one percent (1%) of the share of the national government under Section 284 of the Local Government Code of 1991, as amended, shall be used for this purpose.
Sec. 3. Implementing Rules and Regulations. - The Department of Budget and
Management, in coordination with the DILG, shall formulate the necessary rules and regulations for the effective implementation of this Act.
Sec. 4. Separability Clause. If any provisions of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting
Sec. 5. Repealing Clause. - All acts, executive orders, memorandum
30 circulars/guidelines and other issuances or parts thereof, which are inconsistent with 31 this Act, are hereby repealed or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspaper of general circulation. Approved,