Compensation and Benefits of Barangay Officials

What is the form of compensation of barangay officials?

The Local Government Code of 1991 provides that, barangay officials shall be compensated in the form of honorarium at an amount not less than P1,000 per month for the Punong Barangay and P600 each per month for the Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary. E. O. No. 332 provides that the rates of honorarium prescribed in Section 393 (a) of R.A. No. 7160 may be increased/ adjusted.

What are the other benefits of barangay officials?

Aside from honorarium, barangay officials are also entitled to the following benefits;

• Christmas bonus in the form of cash gift at the rate authorized by law which covers the Punong Barangay, Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary;
• Insurance coverage under RA 6942 for the Punong Barangay, Sangguniang Barangay members, Barangay Treasurer, Barangay Secretary and Barangay Tanods not exceeding twenty (20) in each barangay;
• Medical care consisting of free hospitalization in government hospitals for the Punong Barangay, Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary. In extreme emergency, the same officials may be confined in private hospitals with expenses chargeable against barangay funds at not more than P5,000 per official;
• Free tuition and matriculation fees in government schools in their area for Punong Barangay, Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary including two of their legitimate dependent children during their term of office only.
• Conferment of civil service eligibility based on the number of years of service in the barangay for Punong Barangay, Sangguniang Barangay members, Barangay Treasurer and Barangay Secretary who have completed their term of office; and
• Preference in appointment to any government position to which they are qualified for the Punong Barangay and Sangguniang Barangay members after their term of office.

Can incumbent barangay officials provide additional compensation for themselves and to other personnel of the barangay during their term?

No, unless specifically authorized by law or by the President in view of the prohibition under Section 95 of RA No. 7160 and Section 8, Article IX-B of the Constitution.

What are the rates of honoraria of barangay officials and the salaries or wages of other appointive positions?

The maximum rates of honoraria and salaries of barangay officials and personnel are shown in Table I. These rates are adjusted whenever general salary adjustments (across-the-board increases) are authorized by law or by the President.

Are the incumbent barangay officials entitled to an increase in honoraria?

Yes, incumbent barangay officials are entitled to an increase in honoraria if there is a general salary adjustment authorized by law.

While the Local Government Code prescribes the minimum rate of honoraria and prohibits under Section 391 (a) item No. 10, incumbent officials from enjoying salary adjustments legislated during their terms, the compensation system of barangays has been placed under the Salary Standardization Law by virtue of Executive Order No. 332 dated May 16, 1996 (Subject: Integrating the Barangay Governments into the Revised Position Classification and Compensation System in the Government). The Code’s prohibition refers only to increases legislated by the local governments.

Are the compensation rates of mandatory positions in barangays included in the budgetary cap for personal service expenditures?

In the context of Executive Order No. 332, which includes the barangay government under the coverage of the Revised Position Classification and Compensation System being administered by the DBM and on the basis of the implementing guidelines under Local Budget Circular No. 63, enforcement of the 55% budgetary cap on personal services expenditures shall be waived insofar as the adjustment from the minimum rate of honoraria of P1,000 for the Punong Barangay and P600 for the other mandatory barangay officials are concerned. Adjustment of the honoraria rates shall however not exceed the minimum for positions with salary grade 14 and 10, respectively, the rates of which are based on the salary schedule being implemented by the city or municipality where the barangay is situated.

Are barangay officials entitled to salary under Local Budget Circular No. 58?

No. Section 393 (a) of R.A. No. 7160 expressly provides that barangay officials shall only receive honoraria, allowances and other emoluments. LBC No. 58 which has been repealed by LBC No. 63, does not provide for the salary of barangay officials consistent with the provision of R.A. No. 7160.

While the compensation of the Punong Barangay is equated to a position with salary grade 14 and other officials at salary grade 10, they shall continue to receive compensation only in the form of honoraria.

Are barangay officials entitled to hazard duty pay?

No. Barangay officials are not entitled to hazard duty pay even if the grant of which can be sustained by local income of the barangays concerned.

Can the Liga ng mga Barangay President and the SK Federation President receive both their honoraria as barangay officials and their salaries as ex-officio Sanggunian members at the same time?

Yes. The Liga ng mga Barangay President and the SK Federation President can receive both the fixed salary as ex-officio Sanggunian member from the municipality or city and honorarium from the barangay at P1,000 and P600 per month respectively pursuant to LBC No. 66 and 66A. However, they may only receive the cash gift from only one source.

In the event that other officials are validly designated to perform the functions of the Liga President and the SK Federation President in the barangay, the designated officials shall be entitled to collect reimbursable travelling and incidental expenses not exceeding P1,000 and P600 per month, respectively. The designated officials shall not be entitled to cash gift/christmas bonus.

Are barangay officials entitled to Representation and Transportation Allowances (RATA), Personnel Economic Relief Allowances (PERA), Productivity Incentive Bonus (PIB) and Clothing Allowance?

No. Barangay officials are not entitled to RATA, PERA, PIB, and other forms of remuneration other than the honoraria and the cash gift at the rate duly authorized by law.

Do barangay officials earn leave credits and are they entitled to terminal leave benefits?

The issue may be referred to the Civil Service Commission being the proper authority on this matter. Point of consideration is that barangay officials are not receiving salaries which should be the basis for computation of leave credits under existing laws.

Can a Sangguniang Kabataan Chairman receive additional honorarium for performing other official duties/functions such as that of a Barangay Tanod?

No, There is no legal basis/specific statutory authority for the grant of additional honorarium to SK chairman for performing other functions/duties other than being a Sangguniang Barangay member.

Under LBC 63, the maximum honorarium rate is equivalent to SG-14 for the Punong Barangay and SG-10 for the other officials. How can this be increased?

The first step of SG-14 and SG-10, as the case may be, are the maximum honoraria allowed for barangay officials. The rates can be increased only when:

1. A general salary adjustment for all government employees is granted, or
2. A specific legal basis is issued by competent authority upgrading the salary grade equivalence of the said barangay officials.

The implementation of the authorized increase shall be subject to the availability of barangay funds and the pertinent budgetary rules.

Can the barangay implement the authorized 10% salary increase even if the mother municipality did not implement same?

No. The rate of honorarium of barangay officials is based on the salary schedule being implemented by the city/municipality where the barangay belongs. The limit or maximum amount of honoraria in the barangay is the equivalent rate actually prevailing in the mother LGU.

Are barangay officials entitled to the 13th month pay?

No. The 13th month pay is not among the authorized benefits in the government since this is applicable only in the private sector. Pursuant to RA No. 7160, as implemented by BC No. 2000-18, barangay officials may be entitled to P5,000 cash gift each per year.

Are barangay officials with 5 to 10 yrs. service entitled to Anniversary bonus?

Anniversary Bonus (AB) is not granted due to the length of service of the officials but in connection with the celebration of the milestone years of the barangay. Hence, a barangay may grant AB to its appointive officials and personnel if it has been in existence for at least 15 years. The grant of AB shall be for the 15th year in existence of the barangay and every five years thereafter. It shall be granted only to appointive officials and personnel.

Are barangay day care and health workers entitled to honorarium and cash gift?

Barangay day care and health workers who are paid on honorarium basis are not entitled to cash gift. Those who are appointed to regular positions receiving salaries shall be entitled to year-end bonus which includes the cash gift.

Can a Health Worker collect honorarium from both the barangay and the mother municipality/city?

Yes. The honorarium of a Health Worker shall be charged from barangay funds. However, this does not preclude higher local governments to undertake projects in the barangay which may include the payment of honoraria to the Barangay Health Workers charged from funds of the LGU concerned.

What is the compensation of the SK Federation President who is an ex officio member of the Sangguniang Bayan?

The SK President shall receive a salary equivalent to SG-24 and all other authorized allowances for a Sangguniang Bayan Member. In addition, he is also entitled to collect the minimum honorarium in the barangay which is P600 per month if he is still performing his duties in the barangay.

Is the SK Chairman who was elected Federation President entitled to receive the honorarium even if it is the SK kagawad, as his representative, who attends the regular Sangguniang Barangay sessions?

No. The designated SK official who performs the function of the SK Federation President in the Sangguniang Barangay is the one entitled to the reimbursement of travelling and incidental expenses incurred in the performance of his delegated functions. The SK Federation President is not entitled to honorarium from the barangay if he is not actually performing his functions pursuant to LBC No. 66-A.

Assuming the SK Chairman could no longer personally attend the regular barangay meetings, should he automatically relinguish his position and remuneration to the second highest ranking SK member?

No. The SK Chairman cannot relinquish his position as SK Chairman because it is his original mandate. However, he may delegate his functions to the next highest SK official so as to avoid a vacuum in the SK Chairman’s office in the barangay.

Can elected and appointed barangay officials receive additional compensation for rendering services as Barangay Health Workers?

No. Receipt of multiple honorarium is not allowed consistent with the policy of no double compensation.

Is the barangay allowed to insure the Barangay Tanods with private insurance agencies other than the GSIS?

Pursuant to Sec. 522 of RA No. 7160, the GSIS shall establish and administer an appropriate system for insurance coverage of the barangay officials and barangay tanods. In the absence of said insurance coverage system, individual arrangements should first be made with the GSIS. In case no satisfactory arrangement could be reached, coverage by private insurance companies may be allowed subject to the following conditions:

1. Insurance coverage shall be subject to availability of local funds;
2. No funding from the national government shall be provided for the purpose; and
3. Such insurance coverage shall cease as soon as the GSIS has established the required insurance coverage system.

Who are entitled to the insurance benefits under R.A. No. 6942?

The following barangay officials are entitled to the insurance benefits under R.A. No. 6942:

• Punong Barangay
• Sangguniang Barangay Members
• Chairman of the Sangguniang Kabataan
• Barangay Secretary
• Barangay Treasurer

What are the benefits under R.A. No. 6942?

R.A. No. 6942 provides the following benefits

1. death and burial benefits
2. benefits due to injuries resulting from accident, and
3. benefits due to total and permanent incapacity or disability.

What is the funding source of insurance benefits under R.A. No. 6942?

Funding for the insurance benefits under R.A. No. 6942 shall be charged against the Local Officials Insurance Premium Fund authorized under the annual General Appropriations Act which is administered by the GSIS.

Who pays the salary of the President of the Liga ng mga Barangay (provincial and municipal/city chapters) being an ex-officio member in the sanggunian?

The ex-officio member of the Sangguniang Panlalawigan representing the Liga ng mga Barangay shall receive the full amount of his/her authorized salaries and emoluments from the provincial government where he/she sits as ex-officio member. On the other hand, the ex-officio member of the Sangguniang Bayan/Panlungsod shall receive the same salaries and emoluments actually received by his/her elective counterparts in the sanggunian concerned.This is in addition to the minimum honorarium paid by the barangay which he represents.