Voluntary Pag-IBIG Membership for Barangay Officials

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EXECUTIVE ORDER NO. 308: Voluntary Pag-IBIG Membership for Barangay Officials

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Title Supreme Court: Voluntary Pag-IBIG Membership for Barangay Officials

Law: Executive Order No. 308

Decision Date: Apr 23, 2004

Executive Order No. 308 allows barangay officials, including chairpersons and council members, to voluntarily join the Pag-IBIG Fund, treating their honoraria as salary and enabling them to contribute to the National Shelter Program for housing assistance.

barangay officials

voluntary membership

A

Role of the Home Development Mutual Fund (Pag-IBIG Fund)

Administration of provident fund contributions from employees and employers.
Use of excess funds from provident benefits for housing loans.
Development of savings schemes for home acquisition targeting private and government employees.
Authority based on Section 2 (a) of Executive Order No. 90.

Coverage Under Republic Act No. 7742

Mandatory coverage for employees under Social Security System and Government Service Insurance System and their employers.
Voluntary coverage for employees with monthly compensation below PHP 4,000.
Employer contributions required upon employee membership.

Barangay Officials as Basic Political Units

Barangay Chairman and Councilors recognized as local government leaders.
Receive honoraria as compensation for public service.
Leave privileges and honoraria treated as fixed salary as per Civil Service Commission and Department of Budget and Management directives.

Treating Honoraria as Salary (Section 1)

Barangay Chairman, Council Members, SK Chairman, secretaries, and treasurers’ honoraria classified as salary for Pag-IBIG coverage purposes.

Employee Contributions (Section 2)

Voluntary membership of barangay officials in Pag-IBIG Fund.
Monthly contributions deducted from honoraria.
Contributions regulated pursuant to RA 7742 and implementing rules.

Employer Contributions (Section 3)

Employer counterpart contributions to be sourced from barangay local funds.
Appropriations to be made by respective Sangguniang Barangays.
Contributions must comply with the personal services cap under Section 325 (a) of the Local Government Code.

Applicability of Republic Act No. 7742 (Section 4)

All relevant provisions and rights under RA 7742 and implementing rules apply to voluntarilly enrolled barangay officials.
Officials gain rights and privileges accorded by Pag-IBIG membership.

Repealing Clause (Section 5)

Repeal or modification of any inconsistent orders, rules, or regulations.

Immediate Effectivity (Section 6)

Executive Order takes effect immediately upon issuance.

END