The Barangay: Roles,

Functions, Officials,
Offices and Benefits
OUTLINE

• Roles of Barangays and its

Officials
• Sources of Barangay Funds
• Benefits of Barangay
Officials
• PS Limitation Computation
ROLES OF
BARANGAYS
AND ITS
OFFICIALS
“ As the____________, the barangay serves as
the primary planning and implementing unit
of government policies, plans, programs,
projects, and activities in the community, and
as a forum wherein the collective views of the
people may be expressed, crystallized and
considered, and where disputes may be
amicably settled.”

(Section 384, Republic Act [R.A.] No. 7160,

The Local Government Code of 1991)
“ As the basic political unit, the
barangay serves as the primary
planning and implementing unit of
government policies, plans,
programs, projects, and activities in
the community, and as a forum
wherein the collective views of the
people may be expressed,
crystallized and considered, and
where disputes may be amicably
settled.”

(Section 384, Republic Act [R.A.]

No. 7160, The Local Government
Code of 1991)
Basic Services and Facilities
(Section 17, RA No. 7160)
1. Agricultural support services which include
planting materials distribution system and
operation of farm produce collection and
buying stations;
2. Health and social welfare services which
include maintenance of Barangay health
center and day-care center;
3. Services and facilities related to general
hygiene and sanitation, beautification, and
solid waste collection;
4. Maintenance of Katarungang Pambarangay;
Basic Services and
Facilities (Section 17,
RA No. 7160)
5. Maintenance of Barangay roads and
bridges and water supply systems;
6. Infrastructure facilities such as multi-
purpose hall, multi-purpose pavement,
plaza, sports center, and other similar
facilities
7. Information and reading center; and
8. Satellite or public market
Barangay
Funds
 1. Share of Barangays in
the Proceeds of National
Tax
 IRA AND THE SC RULING ON THE MANDANAS CASE
INTERNAL REVENUE ALLOTMENT NATIONAL INTERNAL REVENUE TAXES

• LGUs shall have a just share, as determined

by law, in the national taxes which shall be Internal
automatically released to them. Revenue
Allotment
40%
• Forty percent (40%) of the share in the
national internal revenue taxes (NIRT) based National
on the collection of the third fiscal year Government
60%
preceding the current fiscal year will be given
to LGUs
 IRA AND THE SC RULING ON THE MANDANAS-GARCIA CASE
SUPREME COURT RULING ON THE MANDANAS CASE
• The Supreme Court (SC) ruled that the just share of LGUs from the national taxes is not limited to
“national internal revenue taxes” collected by the Bureau of Internal Revenue (BIR) but includes
collections (customs duties) by the Bureau of Customs (BOC) and other collecting agencies.
BEFORE MANDANAS RULING AFTER MANDANAS RULING (NATIONAL TAXES)

IRA 40%
60%
NG

NATIONAL TAXES National Government Internal Revenue Allotment

FULL DEVOLUTION AS A MEASURE TO MITIGATE THE
FISCAL IMPACT OF THE MANDANAS RULING
• Sec. 17 of the LGC mandates the devolution of
basic services and facilities to LGUs
• However, many national agencies continue
to provide these services/facilities
• For fiscal sustainability, the devolved functions
must permanently be taken out from the
national agencies to empower the LGUs to
assume them
Adapted from Powers and Devolved Services of Local Government Units (LGUs) by Dr. Maria Ela Atienza (Professor and Chair), Asst. Prof. Jan Robert Go (Assistant
Professor), and Herby Jireh Esmeralda (Research Assistant). Retrieved from https://halalan.up.edu.ph/powers-and-devolved-services-of-local-government-units-
lgus/

IRA NG fiscal
shares resources
Share of Barangays in
the Proceeds of LGU Type Percentage Share
National Tax
Province Twenty-three
percent (23%)
The share of local
Cities Twenty-three
government units in percent (23%)
the National Tax shall
be allocated in the Municipalities Thirty-four
percent (34%)
following manner:
Barangays Twenty percent
(20%)
Every barangay with a
population of not less
than one hundred (100)
inhabitants shall be
entitled to an NTA share
of not less than
P80,000.00 per annum
chargeable against the
20% share of barangays
from the total NTA.
After deducting the
aggregate sum of the
individual barangay
share of P80,000.00
each from the total POPULATION 60%
twenty percent (20%)
allocation for all EQUAL SHARING 40%
barangays, the
remaining balance of
said 20% shall be
further distributed to
the barangays
Financial requirements of
barangays created by LGUs
after the effectivity of the
Code shall be the
responsibility of the LGU
concerned.
2. Taxing and
Other • Taxes
Revenue- • Service Fees Or Charges
Raising • Barangay Clearance
Powers of • Other Fees And Charges
Barangays
3. Shares from Other Local Sources
•Service Fees And Charges
•Public Utility Charges
•Toll Fees Or Charges
•Community Tax
4. Shares from Real Property Taxes

Real Property Tax Proceeds From Use, Lease Or
(Including Interest) Disposition, Sale Or
Redemption Of Property
Acquired At Public Auction
50% Of The Tax Paid
Under Protest Collected
By The Local Treasurer
5. Shares of Barangay
from the Development
and Utilization of the
National Wealth
• LGUs shall have a share
based on the preceding fiscal
year from the proceeds
derived by any national
government agency (NGA) or
government-owned and
controlled corporation
(GOCC) engaged in the
utilization of the national
wealth.
Barangay share shall be distributed in the
following manner:

Where the natural resources are located in the

province and HUC/ICC:
• Barangay – 35%

Where natural resources are located in two or

more barangays:
• Population – 70%
• Land Area – 30%
 6. Assistance and
Subsidy
• Subsidy from National Government
• Subsidy from Other Local
Government Units

Provinces, cities, and municipalities shall

provide aid to component barangays in
amounts of not less than P1,000 each.
 Barangays are also entitled to
receive voluntary donations,
7. Grants grants, or aids from any public
and or any private entity.
Donations By nature, the same shall be
treated as trust funds.
8. Capital/Investment
Receipts

These are the proceeds

from the sale or lease of
barangay property or
loans and grants
secured by the
barangay.
 Punong Barangay

Barangay 7 Sangguniang Barangay Members

Officials and SK Chairperson (ex-officio member)
Offices
Barangay Treasurer

Barangay Secretary
 Position Title Salary Grade
Barangays (SG)
Administrative Aide I (Utility Worker SG 1
may create I)
the following Administrative Aide III (Clerk I) SG 3
positions and Administrative Aide IV (Accounting SG 4
may be Clerk I)
Barangay Health Aide SG 4
compensated
Revenue Collection Clerk I SG 5
in the form of
Day Care Worker I SG 6
salary or Administrative Assistant I SG 7
honoraria: Administrative Assistant II SG 8
Local Budget Circular No. 149

Implementation of the Fourth

Tranche of the Modified
Salary Schedule for Local
Government Personnel
Pursuant to Republic Act (RA)
No. 11466
 Other Positions
• Lupong Tagapamayapa
• Community Brigades
• Barangay Tanod
• Other Community
Service Units
How many barangay tanods
can the Punong Barangay
appoint?
Not more than 20
Benefits of
Barangay
Officials
 The annual
HONORARIA, ALLOWANCES
and such other EMOLUMENTS appropriations for
Punong Barangay – shall in no
case be less than P1,000.00
personal services
shall be subject to
Sannguniang Barangay the budgetary
members, Barangay Treasurer,
and Barangay Secretary – shall limitations under
in no case be less than
P600.00
Sec 331 (b), R.A.
No. 7160
The punong barangay, the sangguniang barangay
members, the barangay treasurer, and the
barangay secretary shall also be entitled to:

A. Christmas Bonus
B. Insurance Coverage
C. Free Medical Care
D. Immediate medical attention to the
nearest private clinic, hospital, or
institution in case of extreme
emergency
The punong barangay, the sangguniang
barangay members, the barangay treasurer,
and the barangay secretary shall also be
entitled to:

E. Exemption from payment of tuition or

matriculation fees for their legitimate
dependent children
F. Appropriate civil service eligibility on the
basis of the number of years of service to
the barangay
 Elective barangay officials shall have
preference in appointments to any
government-owned or controlled
corporation, including their subsidiaries, after
their tenure of office, subject to the requisite
qualifications and the rules and regulations of
the CSC (Sec. 393 [c], R.A. No. 7160)
All duly appointed members of the
barangay tanod brigades, or the
equivalent, which shall number no more
than twenty (20) in each barangay shall be
granted insurance or other benefits
during their incumbency, chargeable to the
barangay or city or municipal government to
which the barangay belongs.
  Punong Barangay
Entitled to leave  Sangguniang
benefits pursuant
to CSC-DBM Joint Barangay Members
Circular No. 1, s.  SK Chairperson as
2004 dated March ex-officio member
23, 2004
 Barangay Treasurer
 Barangay Secretary
 30 days = 1.25 days leave credits earned per session
24 sessions

Annual Leave Benefit = Leave Credits Earned x Monthly

Honorarium x CF

CF (Constant Factor) = .0481927

OLD COMPUTATION
Annual Leave Benefit = Leave Credits Earned x Monthly Honorarium
20.916667**

** based on the total number of working days per year (251 days)
divided by the number of month in a year (12 months)
OLD COMPUTATION
Annual Leave Benefit = Leave Credits Earned x Monthly Honorarium
20.75

** based on the total number of working days per year (249 days)
divided by the number of month in a year (12 months)

OR
Annual Leave Benefit = S X D X .0481927
 Position Title Salary Grade
(SG)

Increase or adjustment Punong Barangay SG 14, Step

of honoraria of barangay 1
officials notwithstanding Sangguniang Barangay SG 10, Step
Members 1
the restriction under
Sec. 391 a (10), R.A. No,
Barangay Treasurer
7160, as follows:
Barangay Secretary
Local Budget Circular No. 149

Implementation of the Fourth

Tranche of the Modified Salary
Schedule for Local Government
Personnel Pursuant to Republic Act
(RA) No. 11466
Other Personnel Benefits

a) Mid-Year Bonus (BC 2017-2)

b) Year-End Bonus and Cash Gift
(BC 2016-4)
c) Performance Enhancement
Incentive (BC 2017-4)
 PS Limitation =
55% of Total
Income Actually
Realized from
Local Sources
during the Next
Preceding Fiscal
Year

This Photo by Unknown Author is licensed under CC BY-SA-NC

 FOR NEWLY-CREATED LGUs
PS Limitation – for initial
year of its creation, it
shall be based on the
total estimated income
to be generated by the
LGU during the year from
both internal and
external sources.
It shall not include
the financial
subsidies/assistance
that it may receive
from the NG and
other extraordinary
receipts
LOCAL
BUDGET
CIRCULAR
NO. 145
 Annual PS
Budget of an
Existing
Barangay

Productivity Year-End Monetization

Mid-Year
Honoraria Enhancement Bonus and of Leave
Bonus
Incentive Cash Gift Credits
 Minimum Year-end Bonus and Cash Gift for Barangay
PS Cost Personnel/Officials
for Monetization of Leave Credits
Waived
Special Benefits authorized to be granted to LGU personnel
Items during emergency situations
Salaries and Benefits of Health/Medical personnel that may be
hired to perform functions related to emergency situations
Salaries and other benefits of additional personnel that may
be hired by the LGUs to implement devolved basic services
Allowable PS Budget or Excess Over the
PS Limitation

= PS Limitation – (PS Budget - PS Cost for Waived Items)

 Assume that PS Limitation is 1,650,000.00
Particulars Amount
Honoraria
768,000.00
1 - Punong Barangay (P8,000.00)
8 - Sanggunian incl. SK Chairperson (6,000.00)
1 - Barangay Treasurer (P4,000.00)
1 - Barangay Secretary (P4,000.00)
Mid-Year Bonus 64,000.00
Productivity Enhancement Incentive 55,000.00
Year-End Bonus and Cash Gift 119,000.00
Monetization of Leave Credits 70,000.00
TOTAL 1,076,000.00
 PS Cost of Waived Items

Minimum Year-End Bonus, and Cash Gift for Barangay Officials/Personnel

Year-end (PB-P1,000; Other Officials - P600) 7,000.00

Cash Gift 55,000.00

Monetization of Leave Credits 70,000.00

TOTAL 132,000.00
Allowable PS Budget or Excess Over the PS Limitation
= PS Limitation – (PS Budget - PS Cost for Waived
Items)

= P1,650,000.00 – (P1,076,000.00 - P132,000)

= P1,650,000.00 – 944,000.00
=P706,000.00
 REPUBLIC ACT NO. 11768
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”
 SALIENT FEATURES OF REPUBLIC ACT NO. 11768
Age not more than not more than not less than

18 to 30 25% Additional
15% 1%
Expands eligibility SK funds can be set aside an Allows
for Sangguniang honorarium,
allocated for social welfare
amount for appropriation of
Kabataan Treasurer mandatory and
and Secretary
personnel contributions, LGU budget for
services continuing training
and hazard pay LYDO
 LOCAL BUDGET CIRCULAR NO.
148 DATED DECEMBER 23, 2022
IMPLEMENTING GUIDELINES ON
THE GRANT OF HONORARIUM TO
SANGGUNIANG KABATAAN
OFFICIALS PURSUANT TO
REPUBLIC ACT NO. 11768

Published in The Philippine Star on 29 December 2022

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

“(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.

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 COA; and xxx”
 GRANT OF HONORARIUM TO SK OFFICIALS

The SK Officials shall each receive a The amount of the monthly

monthly honorarium, chargeable
01 against the SK funds, and shall be
granted at the end of the month.
03
honorarium of the SK Officials shall be
subject to their attendance to SK
meetings, deliberations and official
activities of the SK.

The SK chairperson shall no longer In no case shall the monthly

be entitled to receive any honorarium exceed the actual monthly
02 honorarium charged against the
regular SK funds.
04 compensation received by the SK
chairperson.
 GRANT OF HONORARIUM TO SK OFFICIALS
The monthly honorarium of the Responsible in the
monitoring of budget and
SK Officials shall be monitored preparation of budget
by the Budget Monitoring reports shall come from
Officer in a separate budget the SK Officials except the
registry for PS and recorded in Budget SK Treasurer.
Monitoring Officer
the appropriate registers being - Item 3.12 of the HFTSK

05 maintained by the SK
Treasurer. 10% of the general
fund of the mother
barangay
The amount to be allocated for
PS shall not be more than Other funds accruing
25% of the SK funds. SK Funds to the general fund of
the SK
 GRANT OF HONORARIUM TO SK OFFICIALS
If the prescribed rate of the SG
The grant of honorarium to SK
cannot be fully provided, the
Officials shall be included in the
proportionate and uniform monthly
06 honorarium shall be determined and
approved by the SK through a
08 CBYDP and ABYIP of the SK, and shall
be subject to the SK planning and
budgeting process.
resolution.

The SKs are strongly advised to

The total honorarium to be included
observe funding priorities in the
in the SK Annual Budget shall cover
07 SK Officials, whether the SK position
is filled or vacant.
09 determination of the amount of
honorarium to be given to the entitled
SK Officials.
ADDITIONAL HONORARIUM FROM THE LGUS
The LGUs may provide additional
honorarium, as well as social welfare
contributions and hazard pay, to the
01 SK chairperson and the elected and
appointed members through local
03
ordinances.
It shall be taken up as financial
subsidy to SK in the book of
accounts of the LGU concerned.
02 The release shall be contingent on the
fulfillment of the requirements set
forth and agreed upon by both parties
04
in a Memorandum of Agreement or
contract.
The grant of additional honorarium, as
well as social welfare contributions
and hazard pay, shall be subject to
their attendance to SK meetings,
deliberations, and official activities of
the SK.
In no case shall the grant of
additional honorarium to SK Officials
result where the total honoraria will
be more than the amount of
honorarium being received by the
barangay officials.
ADDITIONAL HONORARIUM FROM THE LGUS
The grant of additional honorarium The additional honorarium, as well as
shall not result in the total social welfare contributions and
honorarium exceeding SG 9, hazard pay, to be given to the SK
05 Step 1 in the salary schedule
implemented by the city or 07 chairperson and the elected and
appointed members, shall be
municipality where the barangay included in the AIP of LGUs
belongs. concerned.

Funding priorities shall be The additional honorarium, as well as

observed and the LGUs concerned social welfare contributions and
must ensure that the grant will not hazard pay, to be given to the entitled
06 significantly affect the delivery of
basic services and facilities and
08 SK chairperson and the elected and
appointed members, shall be
implementation of developmental transferred/downloaded to the
projects. account of the SK.
ADDITIONAL HONORARIUM FROM THE LGUS
The additional honorarium, as well
as social welfare contributions and
09 hazard pay shall be accounted
for and recorded in the
Registry of Specific Purpose
Fund Commitments, Payments,
and Balances of the SK
concerned.

The same shall no longer be

subject to the planning and
budgeting process of the SK.
MONITORING AND EVALUATION SYSTEM
RESPONSIBILITY AND ACCOUNTABILITY

Payment of additional
Determination and
honorarium, social
payment of
welfare contributions,
honorarium to SK
and hazard pay
SK Chairperson and Officials charged
LCE and charged against the
elected and appointed against the SK funds other local officials
members LGU funds
Maraming Salamat po!