Minimum compensation under LGC
- Republic Act No. 7160 sets the minimum compensation of barangay officials at PHP 1,000 per month for the punong barangay.
- Republic Act No. 7160 sets the minimum compensation of barangay officials at PHP 600 per month for sangguniang barangay members, barangay secretary, and barangay treasurer.
- Republic Act No. 7160 authorizes the sangguniang barangay to create positions as may be necessary to carry out barangay government purposes and to provide compensation for such positions.
Increasing compensation: conditions
- A barangay may increase officials’ compensation above the LGC minimum subject to the conditions stated in item 2.2 of DBM Local Budget Circular No. 58.
- The adjusted rate for the punong barangay must be in the city or municipality where the barangay belongs, and must not exceed the minimum basic salary of Salary Grade 14 (SG-14).
- The adjusted rate for the sangguniang barangay members, barangay secretary, and barangay treasurer must not exceed the minimum basic salary of Salary Grade 10 (SG-10).
- The compensation increase must follow the salary schedule implemented by the city or municipality where the barangay is located.
Funding and timing rules for increases
- The increase in compensation must be charged against city, municipal, or barangay funds.
- The increase must be proportionately and uniformly applied for all levels of officials concerned, shown in Annex “A”.
- The increase must comply with the general limitation on personal service expenditures prescribed under Republic Act No. 7160.
- Where the Ordinance authorizing the increase is enacted by the Barangay Council, the increase must take effect only after the terms of those approving the ordinance have expired.
Compensation for non-mandatory created positions
- Created positions in the barangay other than mandatory positions may be compensated subject to the conditions in item 2.3.
- The compensation may be in the form of salary or honorarium, and the rates must not exceed the minimum of the indicated salary grade allocation for the following positions:
- Utility Worker — Salary Grade 1 (SG-1)
- Clerk I — Salary Grade 3 (SG-3)
- Accounting Clerk I — Salary Grade 4 (SG-4)
- Barangay Health Aide — Salary Grade 4 (SG-4)
- Revenue Collection Clerk I — Salary Grade 5 (SG-5)
- Day Care Worker I — Salary Grade 6 (SG-6)
- Administrative Assistant — Salary Grade 8 (SG-8)
- The compensation rate for these created positions must be in accordance with the salary schedule implemented by the city or municipality where the barangay is located.
- The compensation rate must not equal nor exceed the rate paid to the lowest barangay official.
- The positions created must be classified in accordance with Republic Act No. 6758, as amended.
- Cities, municipalities, or barangays may grant honorarium, allowances, or other emoluments as compensation to barangay tanods, provided the total amount received by barangay tanods from any or all sources does not exceed the minimum salary rate for SG-1.
- The funds necessary for the increase must be charged against city, municipal or barangay funds, and the personal services requirement must comply with the general limitation prescribed under Republic Act No. 7160.
PERA and other benefits for eligible regular officials
- Regular salaried barangay officials/employees whose positions are classified under Republic Act No. 6758, as amended and whose appointments are made under Civil Service law, rules, and regulations may be entitled to PERA, Additional Compensation, Year-End Benefits, and other Productivity Incentive Benefits and other benefits accruing to other regular government employees.
- The entitlement must be at rates not exceeding those provided for by the pertinent law or Presidential authority and guidelines authorizing the same.
- The grant of these benefits is subject to availability of local funds and to the general/budgetary limitations prescribed under Republic Act No. 7160.
- Officials and employees other than those covered above are not entitled to those benefits, except for elective and mandatory appointive officials whose entitlement to year-end benefits is specifically provided for by law.
Continuity and savings provisions
- Compensation rates approved and granted by the respective sangguniang of an LGU at higher rates before the issuance of this circular may continue to be received.
- Such higher rates are coterminous with the present incumbent of the position.
- Cases not covered by the circular must be referred to the Secretary of Budget and Management for resolution.
Effectivity
- DBM Local Budget Circular No. 58 takes effect immediately.
- The circular was adopted on 7 July 1995.
- The circular bears the signature of SALVADOR M. ENRIQUEZ, JR., Secretary.
Annex A: proportionate uniform computation example
- Annex “A” provides a computation method for applying increases proportionately and uniformly when a barangay has a limited available amount for honoraria increase.
- The example assumes Barangay A (a barangay in a second class municipality) has PHP 2,000 a month available for increase in honoraria of the punong barangay, sangguniang barangay members, barangay secretary, and barangay treasurer.
- The computation shows that increases are derived using the relationship between the difference between present and maximum allowable rates and the share of available funds, then allocating the increase proportionately across the covered positions.