Law Summary
Minimum Compensation Framework
- Punong Barangay minimum monthly compensation set at ₱1,000.
- Sangguniang Barangay members, Barangay Secretary and Treasurer minimum at ₱600 monthly.
- Barangay councils authorized to create necessary positions and provide compensation.
Compensation Increase Guidelines
- Increase over minimum allowed but with ceiling limits relative to city/municipality salary grades:
- Punong Barangay compensation capped at salary grade (SG) 14.
- Sangguniang Barangay members, Secretary, Treasurer capped at SG 10.
- Compensation must align with city/municipality salary schedules.
- Funding for increments charged to city, municipal, or barangay funds.
- Increase must be uniform and proportional across all officials concerned.
- Subject to personal services expenditure limits under RA 7160.
- For increases passed by Barangay Council Ordinance, effectiveness commences only after approval terms expire.
Compensation of Non-Mandatory Barangay Positions
- Positions created beyond mandatory officials may be salaried or receive honoraria not exceeding specified minimum salary grades:
- Utility Worker: SG 1
- Clerk I: SG 3
- Accounting Clerk I: SG 4
- Barangay Health Aide: SG 4
- Revenue Collection Clerk I: SG 5
- Day Care Worker I: SG 6
- Administrative Assistant: SG 8
- Compensation must align with local salary schedules.
- Rate shall not equal or exceed the lowest barangay official's pay.
- Positions to be classified per RA 6758 standards.
- Barangay tanods may receive honoraria/allowances not exceeding SG 1 minimum salary equivalent in total from all sources.
- Funding for compensation increases charged to local funds.
- Personal services expenditures remain subject to RA 7160 limits.
Benefits for Regular Salaried Barangay Officials/Employees
- Officials/employees with positions classified under RA 6758 and Civil Service appointees may be entitled to:
- PERA (Personnel Economic Relief Allowance)
- Additional Compensation
- Year-End Benefits
- Productivity Incentive Benefits and other lawful benefits
- Benefits limited to rates prescribed by law or presidential authority.
- Grant subject to available local funds and budgetary constraints under RA 7160.
- Other officials/employees generally not entitled except elective/mandatory appointive officials if law specifically grants year-end benefits.
Continuity Clause for Previously Approved Compensation
- Higher compensation rates granted before this Circular remain valid for incumbents.
- Higher compensation ceases when incumbent's term ends.
Referral Clause
- Cases not covered by Circular to be referred to Secretary of Budget and Management for resolution.
Effectivity
- Circular is effective immediately from July 7, 1995.
Illustrative Computation Example (Annex A)
- Demonstrates proportional, uniform increase application for honoraria given limited funds.
- Increase formulas show how available funds are allocated based on total required increments and proportionate shares for:
- Punong Barangay
- Sangguniang Members
- Secretary
- Treasurer
- Example reflects a barangay in a second-class municipality with ₱2,000 available for honoraria increase.