Law Summary

Introduction

Executive Order No. 308 allows certain barangay officials to voluntarily become members of the Pag-IBIG Fund, recognizing the need for shelter assistance for low and middle-income families as part of the National Shelter Program.

Section 1: Honoraria Treated as Salary

• Legal Principle: The honoraria received by Barangay Chairmen, Barangay Council Members, including the Sanggunian Kabataan (SK) Chairman, barangay secretaries, and treasurers, are considered as salary for the purposes of Republic Act No. 7742.
• Key Definitions:
  • Honoraria: Compensation received by barangay officials for their public service.
  • Salary: For the purposes of this Executive Order, the term includes honoraria for specific barangay officials.

Section 2: Employees' Contribution

• Legal Principle: Contributions to the Home Development Mutual Fund shall be deducted from the monthly honoraria of qualified barangay officials who voluntarily apply for membership.
• Requirements:
  • Barangay officials must apply and qualify as members of the Pag-IBIG Fund.
  • Contributions will be automatically deducted from their honoraria.
• Relevant Cross-References: This is in accordance with the provisions of Republic Act No. 7742 and its Implementing Rules and Regulations.

Section 3: Employers' Contribution

• Legal Principle: Local funds appropriated by the respective barangays will cover the employer's counterpart contributions to the Pag-IBIG Fund for participating barangay officials.
• Requirements:
  • Contributions must not exceed the personal services cap as per Section 325 (a) of the Local Government Code.
• Key Definitions:
  • Employers' Contribution: The financial support provided by the barangays to match the contributions of the barangay officials.

Section 4: Applicability of RA 7742

• Legal Principle: The provisions of Republic Act No. 7742 and its Implementing Rules and Regulations are applicable to barangay officials who voluntarily become members of the Pag-IBIG Fund.
• Rights and Privileges: Members are entitled to the rights and privileges stated under the law.

Section 5: Repealing Clause

• Legal Principle: Any previous orders or regulations inconsistent with this Executive Order are hereby repealed or modified accordingly.

Section 6: Effectivity

• Legal Principle: This Executive Order takes effect immediately upon issuance.

Key Takeaways

• Barangay officials can voluntarily join the Pag-IBIG Fund, with their honoraria considered as salary.
• Contributions are to be deducted from the officials' monthly honoraria, with employer contributions sourced from local funds.
• The provisions of Republic Act No. 7742 apply to these officials, ensuring their rights and privileges as members of the fund.
• The Executive Order is effective immediately and repeals any inconsistent regulations.