Voluntary Pag-IBIG Membership for Barangay Officials

Executive Order No. 308 is grounded on the Government’s recognition that shelter is a basic need requiring assistance for low and middle income families.
Executive Order No. 308 ties implementation to a six-year National Shelter Program approved by the Government.
Executive Order No. 308 links Pag-IBIG membership mechanics to Republic Act No. 7742, which reinstates and amends coverage provisions previously linked to Presidential Decree No. 1752 and Executive Order No. 90.
Executive Order No. 308 establishes that barangay officials receive honoraria and treats such honoraria as fixed salary in relation to leave privileges and budgeting rules recognized through Joint Circular No. 1 s. 2004 of the Civil Service Commission and Department of Budget and Management and Local Budget Circular No. 63 dated October 22, 1996. (recitals)

Republic Act No. 7742 provides that Section 4 of Presidential Decree No. 1752 (previously repealed by Executive Order No. 90) is reinstated with amendments. (recitals referencing Section 1 of Republic Act No. 7742)
Republic Act No. 7742 reinstates Fund Coverage rules, making Pag-IBIG coverage mandatory for employees covered by the Social Security System and the Government Service Insurance System, and their employers.
Republic Act No. 7742 makes coverage voluntary for employees whose Monthly Compensation is less than Four thousand pesos (4,000.00).
Republic Act No. 7742 provides employer contributions upon membership, and Executive Order No. 308 operationalizes barangay officials’ application and qualification into Pag-IBIG membership consistent with those rules. (Section 2 and Section 3, referencing Republic Act No. 7742)

Executive Order No. 308 applies to Barangay Chairman and Barangay Council Members, including the Chairman of the Sanggunian Kabataan (SK). (Section 1 and Section 4)
Executive Order No. 308 applies to barangay secretaries and treasurers. (Section 1 and Section 4)
The officials become Pag-IBIG Fund members on a voluntary basis by applying and qualifying as Pag-IBIG members. (Section 2 and Section 4)
Executive Order No. 308 grants covered barangay officials the rights and privileges provided under Republic Act No. 7742 and its Implementing Rules and Regulations once they become voluntary Pag-IBIG members. (Section 4)

Section 1 directs that, for purposes of Republic Act No. 7742, the honoraria of Barangay Chairman, Barangay Council Members, and the SK Chairman are considered as salary. (Section 1)
Section 1 further directs that the honoraria of the covered barangay officials treated as salary include those related to their role as barangay secretaries and treasurers for Republic Act No. 7742 purposes. (Section 1)

Section 2 requires that the membership contribution to the Home Development Mutual Fund of covered barangay officials who have applied and qualified as voluntary members shall be deducted by their respective barangays from the officials’ monthly honoraria.
Section 2 mandates that the deduction is made in accordance with Republic Act No. 7742 and its Implementing Rules and Regulations. (Section 2)
Section 3 provides that the employer counterpart contribution shall be sourced from the local funds of the respective barangays that have such Pag-IBIG Fund members.
Section 3 requires that the needed local funds are duly appropriated by the sangguniang barangays for this purpose.
Section 3 limits the employer counterpart contribution so that it shall be no case to exceed the personal services cap under Section 325 (a) of the Local Government Code. (Section 3)

Section 4 applies all pertinent provisions of Republic Act No. 7742 and its Implementing Rules and Regulations to the covered barangay officials who have become Pag-IBIG members on a voluntary basis. (Section 4)
Section 4 provides that such voluntary members are granted the rights and privileges provided for under Republic Act No. 7742. (Section 4)

Section 5 repeals or modifies all orders, rules, or regulations, or parts thereof, that are inconsistent with any provision of Executive Order No. 308. (Section 5)