Question & AnswerQ&A (Republic Act No. 2368)
Republic Act No. 2368 amends certain sections of the Revised Administrative Code to provide for the classification of municipalities, fix the maximum limits of salaries of municipal officers, and include other related provisions.
Municipalities are divided into seven classes based on their average total revenue during the last four fiscal years, ranging from first class (300,000 pesos or more) to seventh class (less than 15,000 pesos).
First to fifth-class municipalities have eight councilors; sixth and seventh-class municipalities have six councilors, except those with less than 5,000 pesos revenue which have four councilors.
The Secretary of Finance classifies all municipalities based on their average annual income during the four consecutive fiscal years before classification, as certified by the Auditor General.
For first-class municipalities with average revenue of 1.4 million pesos or more, the mayor's maximum salary is 7,800 pesos annually, with varying lower limits for the municipal treasurer, municipal secretary, chief of police, and fire department chief depending on revenue brackets within the first class.
Two-thirds of the municipal treasurer's salary is paid from municipal funds, and one-third from provincial funds in their capacity as deputy provincial treasurer.
Yes, with approval from the Secretary of Finance, salaries may be set higher than those for the class but not exceeding the maximum rates of the next higher class or increased by up to 360 pesos if no higher scale exists.
Vice-mayors and councilors may receive per diem allowances ranging from six pesos (seventh class) to twenty pesos (first class) for each regular or special session attended, with a maximum of four special sessions per month.
It is a special fund in each municipality's treasury for public improvements, receiving appropriations from the municipal council and a fixed percentage of the municipal general fund depending on the municipality class.
Expenditure limits vary by municipality class, from 55% of annual revenues for first-class municipalities to 80% for sixth-class municipalities, excluding certain funds, with possible exceptions approved by the Secretary of Finance.