REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT

GENERAL SOLANO STREET, SAN MIGUEL, MANILA

LOCAL BUDGET CIRCULAR No. _____________

Date: _____________

To : Local Chief Executives, Members of the Local Sanggunian, Local

Budget Officers, Local Treasurers, Local Planning and Development
Coordinators, Local Accountants, Local Youth Development
Officers, Sangguniang Kabataan (SK) Chairpersons, Members of
the SK, SK Treasurers, SK Secretaries, and All Others Concerned

Subject : GUIDELINES ON THE IMPLEMENTATION OF THE GRANT OF

HONORARIUM TO SK OFFICIALS PURSUANT TO REPUBLIC
ACT (RA) NO. 117681

1.0 LEGAL BASIS

Section 4 of RA No. 11768, amending Section 16 of the SK Reform Act of 2015 (RA
No. 10742), provides the following:

“SEC. 4. Section 16 of the same Act is hereby amended to read as follows:

“SEC. 16. Privileges of Sangguniang Kabataan Officials. – (a) All [SK]

officials in good standing, whether elected or appointed, shall, during
their incumbency:

“xxx;

“(6) The [SK] members, including the [SK]

treasurer and secretary, shall receive a monthly
honorarium, chargeable against the [SK] funds, in
addition to any other compensation provided by this Act
and shall be granted at the end of every regular monthly
[SK] meeting: Provided, That the monthly honorarium
shall not exceed the monthly compensation received by
their [SK] chairperson: Provided, further, That not more
than twenty-five percent (25%) of the [SK] funds shall
be allocated for personnel services. The DBM shall issue
the necessary guidelines implementing this provision.

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“An Act Strengthening the Sangguniang Kabataan, Institutionalizing Additional Reforms to Revitalize Youth Participation in Local
Governance and by Providing Honorarium, Other Benefits, and Privileges, Amending for the Purpose Certain Sections of Republic
Act no. 10742, Otherwise Known as the “Sangguniang Kabataan Reform Act of 2015”
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 “The local government units [LGUs] may provide
additional honorarium as well as social welfare
contributions and hazard pay to the [SK] chairperson and
the elected and appointed members through their own
local ordinances: Provided, That the honorarium as
stated in this section shall be subject to the post-audit
jurisdiction of the [Commission on Audit] COA; and xxx”
(Emphasis supplied)

2.0 PURPOSE

This Circular is being issued to prescribe the guidelines and procedures on the grant
of honorarium to SK officials pursuant to Section 4 of RA No. 11768.

3.0 POLICY GUIDELINES

3.1 Grant of Honorarium to SK Officials Charged Against the SK Fund

3.1.1 The SK members, including the SK treasurer and SK secretary,

shall receive a monthly honorarium, chargeable against the SK
funds, in addition to any other compensation, and shall be granted
at the end of every regular monthly SK meeting.

3.1.2 The monthly honorarium of said SK officials shall not exceed the
monthly compensation received by the SK chairperson.

3.1.3 The monthly honorarium of said SK officials shall be recorded as

Personal Services (PS) expenditure in the book of accounts of the
SKs concerned. The amount to be allocated for PS shall not be
more than twenty-five percent (25%) of the SK funds.

3.1.4 The grant of honorarium to SK members, including SK secretary

and SK treasurer, shall be included in the Annual Barangay Youth
Investment Program of the SK, and shall be subject to the SK
planning and budgeting process pursuant to Department of
Budget and Management (DBM)-Department of the Interior and
Local Government (DILG)-National Youth Commission (NYC) Joint
Memorandum Circular No. 1, s. 2019 dated January 23, 2019.2

3.1.5 The SKs are strongly advised to observe funding priorities in the
determination of the amount of honorarium to be given to the
entitled SK officials. It must be understood that the SKs shall
prioritize the delivery and implementation of local youth
development and empowerment programs, projects, and activities
(PPAs) pursuant to Section 20 (c) of RA No. 10742, as amended
by Section 6 of RA No. 11768.

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Guidelines on the Appropriation, Release, Planning and Budgeting Process for the SK Funds
Page 2 of 4
 3.1.6 The grant of honorarium to entitled SK officials charged against
the SK funds shall be subject to pertinent budgeting, accounting
and auditing laws, rules and regulations.

3.2 Additional Honorarium from the LGUs

3.2.1 The LGUs, i.e., provinces, cities, municipalities, and barangays,

may provide additional honorarium, as well as social welfare
contributions and hazard pay, to the SK chairperson and the
elected and appointed members through their own local
ordinances.

3.2.2 The grant of additional honorarium, as well as social welfare

contributions and hazard pay, to said SK officials shall be taken up
as PS expenditures in the book of accounts of the LGU concerned.
As such, the same shall be subject to the PS limitations in LGU
budget pursuant to Sections 325 (a) and 331 (b) of the Local
Government Code of 1991 (RA No. 7160).

3.2.3 In no case shall the grant of additional honorarium to said SK

officials will result to a situation where the total honorarium to be
received by the SK officials will be more than the amount of
honorarium being received by the barangay officials of the mother
barangay of the SK. The LGU officials concerned may establish a
mechanism or system to ensure that this policy is strictly observed
and enforced.

3.2.4 In determining the amount of additional honorarium to be given

to said SK officials, funding priorities shall be observed and the
LGUs concerned must ensure the grant of additional honorarium
will not significantly affect the LGU’s capability to allocate
adequate funds for the delivery of basic services and facilities and
implementation of developmental projects.

3.2.5 The additional honorarium to be given to said SK officials shall be

included in the Annual Investment Program of LGUs concerned.

3.2.6 The additional honorarium that may be provided by the LGUs to

said SK officials shall be directly given to and received by the
entitled SK officials. Therefore, the same shall no longer be subject
to the planning and budgeting process of the SK.

3.2.7 The grant of additional honorarium to said SK officials charged

against LGU funds shall be subject to pertinent budgeting,
accounting and auditing laws, rules and regulations.

4.0 POSTING AND REPORTING REQUIREMENTS

The SKs and LGUs concerned shall comply with the posting and reporting
requirements that may be prescribed by the NYC, DILG, or COA.

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 5.0 MONITORING AND EVALUATION SYSTEM

The NYC shall be responsible for the monitoring of the grant of honorarium,
whether charged against the SK funds or LGU funds, as well as social welfare
contributions and hazard pay, to the SKs. The SKs and LGUs concerned shall comply
with the guidelines that may be issued by the NYC for this purpose.

6.0 RESPONSIBILITY AND ACCOUNTABILITY

The responsibility and accountability in the determination and payment of

honorarium to SK officials charged against the SK funds and LGU funds shall rest
upon the SK officials, local chief executives, and other local officials concerned.

It is also the responsibility of the said SK and local officials to ensure that public
funds are strictly utilized in accordance with applicable budgeting, accounting, and
auditing laws, rules and regulations.

7.0 ITEMS FOR RESOLUTION

Interpretation of the provisions of this Circular, including relevant items not covered
herein, shall be referred to the DBM for resolution.

8.0 SEPARABILITY CLAUSE

If any provision of this Circular is declared invalid or unconstitutional, the other

provisions not affected thereby shall remain valid and subsisting.

9.0 REPEALING CLAUSE

All provisions of existing guidelines that are not consistent with this Circular are
hereby revised, modified, and/or repealed accordingly.

10.0 EFFECTIVITY

This Circular shall take effect immediately after its publication in the Official Gazette
or in a newspaper of general circulation.

AMENAH F. PANGANDAMAN
Secretary

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