Title
Barngay Officials' Pag-IBIG Voluntary Membership
Law
Executive Order No. 308
Decision Date
Apr 23, 2004
Executive Order No. 308 allows certain barangay officials in the Philippines to voluntarily join the Pag-IBIG Fund, which provides housing assistance, by deducting their membership contributions from their monthly honoraria.

Law Summary

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

  • The Fund collects provident contributions from employees and employers.
  • Excess funds are used to offer housing loans to members.
  • Charged with developing savings schemes for home acquisition for private and government employees.

Coverage and Membership under Republic Act No. 7742

  • Mandatory coverage for employees under the Social Security System and Government Service Insurance System and their employers.
  • Voluntary membership for employees earning less than PHP 4,000 monthly.
  • Employers are required to contribute upon employees' membership.

Barangay Officials' Compensation and Recognition

  • Barangay Chairmen and Councilors govern barangays and receive honoraria for service.
  • Leave privileges of barangay officials are recognized by the Civil Service Commission and Department of Budget and Management.
  • Honoraria are treated as fixed salary under relevant regulations.

Honoraria Considered as Salary (Section 1)

  • Barangay Chairmen, Council Members, SK Chairmen, secretaries, and treasurers' honoraria are deemed salary for Pag-IBIG membership purposes.

Voluntary Membership and Employee Contributions (Section 2)

  • These barangay officials can apply to become Pag-IBIG members voluntarily.
  • Their contributions are deducted monthly from their honoraria according to RA 7742 and its rules.

Employers’ Contribution and Funding Source (Section 3)

  • Employers’ counterpart contributions come from barangay local funds.
  • Appropriation of funds must be by the respective Sangguniang Barangay.
  • Contributions cannot exceed the personal services cap as per Section 325(a) of the Local Government Code.

Application of Republic Act No. 7742 Provisions (Section 4)

  • All relevant provisions of RA 7742 apply to barangay officials who are voluntary Pag-IBIG members.
  • They are accorded the rights and privileges under the law.

Repealing Clause (Section 5)

  • Any orders, rules, or regulations inconsistent with this Executive Order are repealed or amended accordingly.

Effectivity (Section 6)

  • The Executive Order is effective immediately upon issuance.

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