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Republic of the Philippines

Province of Iloilo
Municipality of Igbaras
OFFICE OF THE SANGGUNIANG BAYAN

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG

BAYAN OF IGBARAS, ILOILO HELD AT THE SANGGUNIANG BAYAN SESSION HALL ON
JANUARY 18, 2021 AT 9:30 IN THE MORNING

PRESENT: Hon. Vicente E. Escorpion, Jr. ----------------------- Presiding Officer

Hon. Flos Carmeli A. Valera --------------------------- SB Member
Hon. Vincent E. Robles --------------------------------- SB Member
Hon. Anne Karmela E. Eucogco ---------------------- SB Member
Hon. Jose Nilo E. Graza --------------------------------- SB Member
Hon. Jose Ma. Nelson G. Escanlar ------------------- SB Member
Hon. Jaylord E. Esteta --------------------------------- SB Member
Hon. Jose Edmund G. Esporas ----------------------- SB Member
Hon. Christian Jun E. Elarmo -------------------------- SB Member
Hon. Ferdinand E. Esmejarda -------------------------- SB Member (LNB Pres.)
Hon. Carla Jane S. Escorpion-------------------------- SB Member (SK Fed. Pres.)

ABSENT: None
MUNICIPAL ORDINANCE NO. 2021-02
Sponsored by: Hon. Ferdinand E. Esmejarda

AN ORDINANCE REQUIRING ALL BARANGAY GOVERNMENT UNITS IN THE

MUNICIPALITY OF IGBARAS TO APPROPRIATE EMPLOYER COUNTERPARTS
FOR THE PAG-IBIG FUND CONTRIBUTIONS OF BARANGAY OFFICIALS

WHEREAS, Section 9, Article XII of the Constitution of the Philippines declares

that the “state, by law and for the common good undertake a continuing program of urban
land reform and housing which will make available at affordable cost, decent housing and
basic services;

WHEREAS, the Home Development Mutual Fund or Pag-ibig Fund was created
to oversee the housing program of the government and to provide decent and affordable
housing of gainfully employed members;

WHEREAS, as enunciated in Republic Act No. 9679, it is the policy of the State to
establish and develop, promote and integrate a nationwide sound and viable tax-exempt
mutual provident savings system suitable to needs of the employed and other earning
groups, and to motivate them to better plan and provide for their housing needs,
membership in the Home Development Mutual Fund, with mandatory contributory support
of the employers in the spirit of social justice and pursue of national development;

WHEREAS, Executive Order No. 308 signed on April 23, 2004, allowed Barangay
Officials to become members of the Home Development Mutual Fund or Pag-ibig Fund
on voluntary basis;

WHEREAS, Section 3C of Rule VII of the Implementing Rules and Regulations of

R.A 9679 states that “It shall be mandatory and compulsory for all government
instrumentalities, agencies including government owned and controlled corporations, to

VICENTE E. ESCORPION JR. VAL CYRIL E. ESTRADA

JAIME E. ESMERALDA M.D.

https://www.facebook.com/Igbaras Sangguniang Bayan sbigbaras2013@gmail.com (033) 331-11-32
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provide the payment of contributions in their annual appropriations. Penal sanctions shall
be imposed upon these employers who fail to include the payment of contributions on
time or delay of remittance of the required contributions to the fund. The heads of offices
and agencies shall be administratively liable for non-remittance of the required
contributions to the Fund;

WHEREAS, it is for the interest and benefit of all Barangay Officials and
employees that the policy be implemented in the Municipality of Igbaras to enjoy the
benefits of Pag-ibig Fund membership as being enjoyed by other government employees,
by:

1. Appropriating the Pag-ibig employer counterpart of barangay officials and

employees to include the Punong Barangay, Sangguniang Barangay
Members, Chairperson at Sangguniang Kabataan, and Barangay Secretaries
and Treasurers, additional appropriations may be included for Barangay
Tanods, Barangay Health Workers, Barangay Service Point Officers, Barangay
Daycare Center Workers and other workers in the barangays subject to the
personal services cap in accordance with Section 325(a) of the Local
Government Code;
2. Registering all barangay officials and employees to the Fund;

BE IT ORDAINED by the Sangguniang Bayan of the Municipality of Igbaras in regular

session duly assembled that:

Section 01. Title: This Ordinance shall be known as Barangay PAG-IBIG FUND
Contributions, for brevity.

Section 02. Coverage: This Ordinance shall cover all 46 barangays of the
Municipality of Igbaras and their corresponding incumbent Punong Barangays, Barangay
Kagawads, Sangguniang Kabataan Chairpersons, Barangay Secretaries and Barangay
Treasurers and other workers in the barangays subject to the personal services cap in
accordance with Section 325(a) of the Local Government Code.

The prioritization of payment of contributions shall be in accordance with the above

order of enumeration of officials and employees to be covered in the event of insufficiency
of funds of the Barangays for this purpose.

Section 03. Definition of Terms: For the purpose of this Ordinance the following
shall mean.

a. Contributions – the amount payable to the fund by the members and their
employers.
b. Employee – any person who performs services for an employer in which either
or both mental and physical efforts are used and who receives any
compensation for such service.
c. Employer – any person, natural or juridical, domestic or foreign, who carries on
in the Philippines, any trade, business industry, undertaking or activity of any
kind, and uses the services of another person who is under his order as regards
such services; the Government and any of its national and local offices, political
subdivision, branches, agencies, or instrumentalities, including corporations
owned and/or controlled by the government and the local government units.
d. Member - any person coverable under R.A. 9679, whether on a mandatory or
voluntary basis, and pays the mandated contributions.

VICENTE E. ESCORPION JR. VAL CYRIL E. ESTRADA

JAIME E. ESMERALDA M.D.

https://www.facebook.com/Igbaras Sangguniang Bayan sbigbaras2013@gmail.com (033) 331-11-32
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e. Fund – the home Development Mutual Fund otherwise known as Pag-ibig

(Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno) Fund,
created under R.A. 9679, which is a government financial institution involved in
mobilizing provident primarily for shelter finance.
Section 04. Pag-ibig Fund Appropriations: All Barangays in the Municipality of
Igbaras, as Local Government Units, being the employers shall appropriate Pag-ibig Fund
contributions in their yearly Annual Budget corresponding to the aggregate/total Pag-ibig
Fund contributions of their Punong Barangays, Barangay Kagawads, Sangguniang
Kabataan Chairpersons, Barangay Secretaries and Barangay Treasurers which shall be
One Hundred (Php 100,000.00) pesos or Fifty (50%) percent of their total monthly
contributions.

Section 05. Rate of Contributions: Covered employees and employers shall

contribute to Pag-ibig Fund of covered barangay officials which shall be One Hundred
(Php100.00) pesos out of their monthly compensation/honoraria and One Hundred
(Php100.00) pesos from the barangay fund for employers share or a total of Two Hundred
(Php200.00) pesos monthly contributions. The employer which, in this case thru the
Sangguniang Barangay Treasurers who shall issue a receipt therefore and be responsible
in remitting the contributions to the Pag-ibig Fund Office.

Section 06. Collection and Remittance: Monthly contributions of the Punong

Barangays, Barangay Kagawads, Barangay Secretaries and Barangay Treasurers shall
be through payroll deductions by their respective employers and remitted to the Pag-ibig
Fund office every 10th of the following month. The deductions shall be made by the
Barangay Treasurers who shall issue a receipt therefore and be responsible in remitting
the contributions to the Pag-ibig Fund Office.

Section 07. Liability for Non-Remittance: The Punong Barangays, as the LCE
shall be responsible of monitoring the monthly remittance of the Employer’s share to the
Pag-ibig Fund Office. In the event of non-remittance, the Punong Barangay shall be
personally and administratively liable thereof. He shall explain/appeal in writing the
reason/s behind said inadvertence in order to regularize the accounts with Pag-ibig. The
Barangay Treasurer, being official responsible in remitting the contributions and issuing
the receipt thereon, shall also be personally and administratively liable thereof. He/ She,
together with the Punong Barangay, shall explain/appeal in writing the reason/s behind
said inadvertence in order to regularize the accounts with Pag-ibig.

Section 08. Pag-ibig Fund Membership Term: Punong Barangays, Barangay

Kagawads, Sangguniang Kabataan Chairperson, Barangay Secretaries and Barangay
Treasurers shall be members of the Pag-ibig Fund during their incumbency, but they may
opt to continue their membership even after term of office by paying their contribution as
private individuals amounting to One Hundred Pesos (Php100.00) per month.

Section 09. Penalty Clause: The Barangay Government Unit has juridical
personality, it can sue and be sued, through their duly elected officials. However, any
barangay government unit for the matter who fails to remit their employers share due to
failure to appropriate fund for the purpose shall pay a fine of Two Thousand Five Hundred
Pesos (Php2,500.00) per corresponding year of non-remittance which shall accrue to the
General Fund of the Municipal Government of Igbaras.

VICENTE E. ESCORPION JR. VAL CYRIL E. ESTRADA

JAIME E. ESMERALDA M.D.

https://www.facebook.com/Igbaras Sangguniang Bayan sbigbaras2013@gmail.com (033) 331-11-32
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Section 10. Retroactive effect: The coverage of the employer’s

contribution/premium shall retroact on January 1, 2017, or after the succeeding annual
budget shall have been approved and reviewed by their Local Sangguniang Bayan.

Section 11. Effectivity Clause: This Ordinance shall take effect upon the
approval and complying with the posting requirements as set forth by law.

UNANIMOUSLY APPROVED.

I HEREBY CERTIFY THAT THIS IS A TRUE

AND ACCURATE COPY OF THE ORDINANCE
DULY ENACTED BY THE SANGGUNIAN ON
JANUARY 18, 2020.

VAL CYRIL E. ESTRADA

SB Secretary

VICENTE E. ESCORPION, JR.

Presiding Officer

APPROVED:

JAIME E. ESMERALDA M.D.

Municipal Mayor

_______________________
Date of Approval

AFFIRMATIVE VOTERS: ALL

NEGATIVE VOTERS: NONE
ABSTAIN: NONE
COMMENTS: PASSED

VICENTE E. ESCORPION JR. VAL CYRIL E. ESTRADA

JAIME E. ESMERALDA M.D.

https://www.facebook.com/Igbaras Sangguniang Bayan sbigbaras2013@gmail.com (033) 331-11-32