Purpose of the Circular
- To provide detailed guidelines on classification and compensation of barangay positions.
- Based on Republic Act No. 7160 and Executive Order No. 332 of May 16, 1996.
Honorarium and Salary Adjustments
- Adjustments allowed subject to fund availability and limits on personal services.
- Maximum honorarium capped at first step of Salary Grade (SG) 14 for Punong Barangay; SG 10 for other officials.
- Congress or Presidential authorized salary grade adjustments override RA 7160 restrictions.
Creation and Compensation of Additional Positions
- Barangays may create non-mandatory positions paid honorarium or salary but not exceeding minimum of specified salary grades.
- Specific indicative positions: Utility Worker I (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).
- Positions paid salaries must comply with revised Index of Occupational Services and be approved by the Department of Budget and Management if inconsistent.
Compensation for Barangay Tanods and Lupong Tagapamayapa
- May receive honoraria or allowances, capped at minimum salary of SG 1.
Salary Schedule Alignment and Funding Constraints
- Honoraria and salaries aligned with city/municipality salary schedules implementing RA 6758.
- Insufficient local funds require proportional uniform reductions in honoraria.
- Increases in honoraria/salary cannot be applied retroactively.
Benefits for Eligible Barangay Personnel
- Personnel with salary basis and appointments per Civil Service laws may receive benefits including:
- Personnel Economic Relief Allowance
- Additional Compensation
- Year-End Benefits
- Productivity Incentive Benefits
- Benefits subject to availability of funds and barangay approval.
- Officials not on salary basis (except elective and mandatory appointive officials) are generally ineligible for these benefits.
Prohibitions on Adjustments
- Punong Barangay and Sangguniang Barangay prohibited from granting unapproved compensation increases.
- Provincial, city, or municipal governments cannot provide additional compensation to barangay officials/employees charged to their respective funds.
Funding Sources and Budgetary Limits
- Honorarium/salary adjustments charged to barangay funds.
- Appropriation ordinance required from Sangguniang Barangay for such adjustments.
- Personal services appropriations shall not exceed 55% of prior year’s local income, with exceptions for minimum honoraria and compensation standardization law.
Continuity and Separability Clauses
- Barangay officials already receiving higher honoraria may continue until their term ends.
- Invalidity of any provision does not affect the rest of the Circular.
Authority and Implementation
- Uncovered cases referred to Secretary of Budget and Management.
- Repeals prior inconsistent circulars including Local Budget Circular No. 58 (1995).
- City and municipal governments must distribute copies of this Circular to all component barangays.
- Circular effective January 1, 1996.