QuestionsQuestions (Republic Act No. 2368)
RA 2368 amends the Revised Administrative Code to (1) provide for the classification of municipalities, (2) fix the maximum limit of the salaries of municipal officers, and (3) make related adjustments for other purposes.
Municipalities are divided into seven classes based on their income, specifically the average total revenue per annum during the last four fiscal years.
A First Class municipality is one with average total revenue of PHP 300,000 or more per annum during the last four fiscal years.
Sixth Class municipalities have six councilors; Seventh Class municipalities also have six councilors, with a special rule that municipalities with average total revenue of less than PHP 5,000 per annum have only four councilors.
It takes effect beginning with the general election of 1959; the councilors elected at the last general election continue to hold office for their term.
The Secretary of Finance classifies all municipalities, beginning July 1, 1958, and for each period of four consecutive fiscal years after that date.
The classification is based on average annual income during the four fiscal years immediately preceding classification as certified by the Auditor General.
Except as otherwise specially provided, the annual salaries of municipal officers shall not exceed the amounts fixed in the law for the relevant municipality class and revenue bracket.
In Second Class municipalities, the maximum annual salary for the mayor is PHP 5,400.
Municipal Treasurer: PHP 1,920. Chief of Police: PHP 1,440.
Two-thirds of the treasurer’s salary is paid out of municipal funds (in his capacity as such) and one-third out of provincial funds (in his capacity as deputy of the provincial treasurer).
Yes. The provincial board may authorize, in its discretion, an amount more than the maximum rate payable from provincial funds, provided the corresponding maximum salary rate fixed by the law is not exceeded.
Municipalities that are capitals of provinces or subprovinces may have their annual salaries fixed at rates higher than those authorized for their class, but not exceeding the maximum rates authorized for the corresponding officers in the next higher scale of salaries.
If no higher scale is provided, salaries of officers of provincial and subprovincial capitals may be increased by not more than PHP 360 per annum with the approval of the Secretary of Finance.
Per diem depends on municipality class (e.g., up to PHP 20 in First Class, up to PHP 6 in Seventh Class). No per diem may be granted for more than four special sessions a month.
He receives compensation equivalent to the salary of the mayor during the period of such service.
There are class-based caps expressed as percentages of annual revenues to the municipal general fund (excluding balances carried forward and excluding specified outside appropriations). With the approval of the Secretary of Finance, a municipality may exceed the percentages for justifiable cause, subject to limitations prescribed by the Secretary of Finance.
Each municipality has a special fund called the permanent public improvement fund. It is funded by appropriations from time to time plus a statutory portion of the municipal general fund: 12% for First–Third class municipalities, 10% for Fourth–Fifth, and 8% for Sixth–Seventh.