G/Information: Compensation of Barangay Officials — Honoraria

Minimum Honoraria

Pursuant to Section 393 of the Local Government Code of 1991, Barangay Officials, including barangay tanods and members of the lupong tagapamayapa, shall receive honoraria, allowances & other emoluments as may be authorized by law.

The Punong Barangay shall receive honoraria not less than P1,000.00 per month while the Sangguniang Barangay Members, Barangay Secretary, and Barangay Treasurer may receive honoraria not less than P600.00 per month.

Adjustment/Increase in Honoraria

Section 2 and 4 of Executive Order 332, s. 1996 or the Revised Position Classification & Compensation System provides that compensation adjustments authorized by Congress and/or the President for government personnel shall also apply to the barangay personnel subject to the rules, policies and guidelines to be issued on the matter, and further subject to the budgetary requirement and limitations as provided for by law.

In 1996, the Department of Budget and Management (DBM) issued Local Budget Circular No. 63 to provide, among others, the guidelines for the compensation adjustment of Barangay Officials pursuant to EO 332.

[Download: Local Budget Circular No. 63]

Based on the Circular, the minimum honoraria rates of P1,000 and P600 may be adjusted to the following rates: 1) Punong Barangay — Salary Grade 14; and 2) Sangguniang Barangay Members, Barangay Secretary, and Barangay Treasurer — Salary Grade 10.

However, such adjusted rates shall not exceed the rate equivalent to the first step of the salary grades of the above positions in the city or municipality where the barangay belongs.

The maximum honorarium/salary rates shall correspondingly change to conform with the adjustments, authorized by Congress and/or the President of the Philippines notwithstanding the restriction under Section 391(10) of RA 7160. In other words, whenever there is a general salary adjustment authorized by law, the honoraria of Barangay Official shall also be increased accordingly.

Nonetheless, the budget cap is waived insofar as the Adoption of Minimum Rates is concerned.

Honorarium of other Positions created by the Barangay, as authorized

Section 3.3 of LBC No. 63 provides that positions other than those for the mandatory barangay officials may be created in the barangay and may be compensated in the form of salary or honorarium at the discretion of the barangay government concerned, at rates not exceeding the minimun of the salary grade allocation of the following indicative positions:

✅ Utility Worker I ( SG 1)

✅ Clerk I (SG 3)

✅ Accounting Clerk I (SG 4)

✅ Barangay Health Aide (SG 4)

✅ Revenue Collection Clerk I (SG 5)

✅ Day Care Worker I (SG 6)

✅ Administrative Assistant I (8)

Any positions created by the Barangay which are not consistent with the above position classification shall be subject to the approval of the DBM.

In the event barangay funds are not sufficient and sustainable, the Sangguniang Barangay may adjust the honoraria rates but at uniform percentage.

[Read: Guidelines on the Salary Increase for Barangay Officials in 2019]

Can Barangay Officials Provide Additional Compensation for Themselves and their Personnel?

The Barangay Officials cannot provide additional compensation and other benefits for their employees and for themselves unless there’s a law expressly granting the same to them.

Is the compensation of Barangay Officials taxable?

The honoraria and other compensation of barangay officials are generally taxable, subject to the provisions exisiting tax law, rules and regulations.

Are there any efforts to exempt the benefits of Barangay Officials from tax?

There were various efforts to exempt the benefits of Barangay Officials from being taxed.

Among these legal initiatives are House Bill Nos. 313 and 2196 sponsored in 2013 by now House Speaker Gloria Macapagal Arroyo and her son Diosdado Macapagal Arroyo and in 2016 by 2nd District Misamis Oriental Representative Juliette T. Uy, respectively, both entitled An Act Providing Incentives to All Barangay Officials and Employees, Including Barangay Tanods and Members of the Barangay Lupon ng Tagapamayapa and for other Purposes.

In 2008, Senate Bill No. 2298 or the Barangay Incentive Act of 2008, which also aimed to exempt the benefits of Barangay Officials from tax was filed by then Senator Mirriam Defensor-Santiago. She died in 2016 due to lung cancer.